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As the first visit by a foreign leader since the inauguration of the new President, Prime Minister Helen Clark’s visit to Korea from 15-17 May provided a valuable opportunity to register New Zealand’s interests at the highest level at an early stage in President Lee Myung-bak’s Administration. The leaders agreed that New Zealand and Korea are natural partners and focused on the scope to further develop the partnership that now exists. In addition to developing a relationship with Korea’s new administration, a key outcome of the visit was confirmation that preparatory talks on a possible FTA would take place later this year.
In addition to her meetings with President Lee and the Minister of Culture, Sports and Tourism, the Prime Minister attended a reception in her honour at the New Zealand Residence; addressed a well-attended breakfast meeting hosted by the Korean Chamber of Commerce and Industry (KCCI), the Australia-New Zealand Chamber of Commerce in Korea (ANZCCK) and the Korea-New Zealand Business Council (KNZBC); hosted a private dinner for senior Korean and New Zealand business people; visited the Ubiquitous Dream Hall and Ewha Womans University, which feature products using New Zealand technology; viewed environmentally friendly technology at Hyundai Motors research and development facility in Gyeonggi Province; and climbed Mt Bukak.
The Prime Minister and the New Zealand business delegation visited Hyundai Motors research and development centre in Gyeonggi Province. |
The Prime Minister climbed Mt Bukak in Seoul with President of Seoul Marketing, Samuel Koo, Ambassador Jane Coombs and others. |
The Prime Minister with Korean film representatives at the New Zealand Residence in Seoul. |
Prime Minister Helen Clark at the summit meeting with President Lee Myung-bak in Seoul. |
The Korea - New Zealand FTA Roundtable was held on April 21 in Seoul. The meeting was the first opportunity for officials from across a range of government agencies to jointly discuss and endorse the findings of the private level joint Korea - New Zealand FTA study which was completed in December 2007. The New Zealand delegation was led by David Taylor, Asia Division Co-Director, Ministry of Foreign Affairs and Trade (MFAT) and included officials from Ministry of Economic Development, Ministry of Agriculture and Forestry, Ministry of Education, NZTE and MFAT. The Korean delegation was led by Choi Kyong-lim, Director General of the Ministry of Foreign Affairs and Trade's FTA Bureau, with representatives from numerous government departments and agencies, including the Ministry of Strategy and Finance, Ministry of Knowledge Economy, and Ministry of Food, Agriculture, Forestry and Fisheries. The meeting was opened by Simon Murdoch, Secretary of Foreign Affairs and Trade, and Deputy Minister Lee Hye-min, both of whom encouraged officials to view the study and a potential FTA as an important opportunity to ensure that the Korea - New Zealand trade and economic relationship could continue to grow and prosper.
The study, which showed that Korea and New Zealand have two of the most complementary economies in the Asia-Pacific and which concluded that significant benefits would accrue to both countries, formed the basis of discussions. The meeting was also an opportunity to identify steps for taking forward the FTA process. Following the roundtable and during the visit by Prime Minister Helen Clark to Korea it was agreed that the two countries would enter into a series of preparatory talks to examine the scope and level of ambition of a possible Korea - New Zealand FTA.
The Minister also visited a number of Korean research institutions in Daejon and saw firsthand examples of Korean research into anti-cancer drugs; and attended a demonstration of robotic technology which will be a feature of a recently approved and jointly-funded collaboration between the University of Auckland and the Electronics and Telecommunications Research Institute (ETRI).
Representative Won Hee-ryong (Grand National Party) visited New Zealand from 21-27 April as Prime Minister's Fellow. During the visit Representative Won discussed bilateral collaboration in a wide range of areas including prevention of Avian Influenza, gender equity, climate change and energy, a Korea-New Zealand FTA, science and technology, and film.
The Prime Minister's Fellowship programme seeks to bring an up and coming Korean politician to New Zealand each year. Representative Won was the fifth Prime Minister's Fellow from Korea, after Unna Huh (2003), Park Jin (2004), Im Jong-seok (2005) and Ooh Che-chang (2006).
Former Grand National Party (GNP) chairwoman Representative Park Geun-hye visited New Zealand from 17-22 May at the invitation of the New Zealand Government. Representative Park had meetings with the Prime Minister, Foreign Minister, Trade Minister, Social Development Minister, and other Members of Parliament. She had separate functions with the Korean community/business people in New Zealand. Representative Park also met with relevant officials in film, science and technology, and education sectors. She visited the Parnell Rose Garden to lay a wreath and meet with the Korean War Veterans. This was Representative Park's first visit to New Zealand since 1968 when she visited New Zealand with her father, (then) President Park Jung-hee.
Dr Richard Grant, Executive Director of the Asia New Zealand Foundation (ANZF), visited Korea from 17-21 May. Dr Grant met with the President of the Korea Foundation, as well as Dr Han Sung-joo, Honourary Advisor of ANZF. Ambassador Coombs hosted a dinner in honour of Dr Grant with a number of key advisors. Dr Grant also met with Korean journalists who visited New Zealand under the ‘Seriously Asia Media Exchange Programme’, and gave a speech at Yonsei University.
A group of 26 New Zealand Korean War veterans, widows and family members arrived in Korea for a ten-day visit on 13 April. The New Zealand group was part of a larger group including veterans from Australia, Canada and the United Kingdom. Their visit was scheduled so the group could attend numerous memorial services in Korea including Kapyong commemorations on 18 April. For many of the veterans it was their first time returning to Korea since their service during the war.
The memorial services for the Battle of Kapyong were conducted on 18 April. The first service was a combined Commonwealth service at the Commonwealth memorial in the town of Kapyong. From there the veterans and accompanying military personnel moved first to the Canadian memorial and then to the New Zealand and Australian memorials where a joint ANZAC service was held.
Approximately 200 people attended the annual ANZAC Day dawn service on 25 April at the Korean National War Memorial. This year’s ANZAC Day service was organised by Australia and was followed by a breakfast for all those in attendance. While ANZAC Day is a normal school day in Korea, many Australian and New Zealand children were able to be present at the event.
The joint ANZAC service at the New Zealand and Australian memorials. |
New Zealand Korean War veterans at the New Zealand memorial. |
ANZAC Day commemorative service at the National War Memorial. |
A group of three New Zealand Officer Cadets and one instructor visited the Korean Military Academy at Taeneung from 11-16 May. While Korean cadets have visited New Zealand in the past, this was the first time New Zealand has reciprocated. The visit provided the Officer Cadets a great opportunity to experience the differences in the respective military cultures, and to see the live military situation that Korea faces every day.
New Zealand and Korean Officer Cadets with Prime Minister Helen Clark at the New Zealand Residence in Seoul.
Wing Commander Tony Millsom from the Royal New Zealand Air Force was attached to Korea National Defence University (KNDU) from 1 May-20 June as a Visiting Professor in a programme that has been running since 2004. As part of that programme he wrote a paper on the 'mindsets' attached to the reunification issue.
Researchers from two national research institutes visited New Zealand in June to learn more about New Zealand's education system. Researchers Dr Lee Jung-Woo and Dr Lee Hye-Won will lead a team from the Korea Institute for Curriculum and Evaluation (KICE) to visit the New Zealand Qualifications Authority (NZQA) in June. The team will research aspects of New Zealand's secondary school qualifications system (NCEA), secondary school examinations, and criteria and processes for progression to tertiary study. A good relationship between New Zealand education agencies (MoE, ERO, NZQA) and KICE has developed in recent years with several reciprocal visits for the sharing of information and best practice in education. Also in June, researchers from the Korea Research Institute for Vocational Education and Training (KRIVET) visited New Zealand to undertake research into VET qualifications, training and employment. Led by Dr Kim Mee-Souk, the team called on staff at various agencies, including the Department of Labour, Tertiary Education Commission, and NZQA.
Vice-President of the Korea Institute for Science and Technology (KIST), Professor Moon Kil-Choo, undertook a programme of calls at New Zealand universities in June at the invitation of the New Zealand Embassy. Professor Moon, visited Victoria University of Wellington, University of Canterbury, and University of Otago, in addition to making calls on government agencies to learn more about New Zealand's innovative research and science capabilities. During the visit, he met with senior university administrators to explore possibilities for research and other institutional linkages. KIST is a government-owned science and technology institute located in Seoul. It undertakes both basic and applied research in a broad range of areas from life sciences to nano-technology.
Amundsen’s interview in leading Korean daily JoongAng Ilbo.
New Zealand Photographer Fiona Amundsen, who is also a lecturer in art theory/history and photography at AUT, took up the second Asia New Zealand/Korea Foundation Residency from 8 April to 7 June. Amundsen was based at the Changdong Art Studio of the Korean National Museum of Contemporary Art during the residency. She worked on the Chonggyechoen Stream in downtown Seoul for nearly 2 months which was restored in 2005, to explore the cultural relevance and effect of the redevelopment of the stream, and had an exhibition of the work at the Changdong Art Studio from 27 May to 4 June.
The New Zealand Inc Team comprising the New Zealand Embassy, NZTE and Tourism New Zealand successfully hosted a third New Zealand wine and jazz night on 29 April at Once in a Blue Moon, an upscale jazz club in Seoul. It has been the New Zealand Team’s major annual event to promote New Zealand wine and food since 2006 and has been very well-received by guests and many others through wide media coverage.
This year over 350 guests attended, a crowd largely made up of Korean Government officials, lawmakers, movers and shakers in the wine and tourism industries, as well as leading restauranteurs and media contacts. While enjoying good quality New Zealand wine and food the guests were also impressed by well-known professional jazz and blues vocalist, and husband of New Zealand Ambassador Jane Coombs, Tim Strong’s performance with renowned Korean jazz band Han Sang-Won Band. The night gave the New Zealand Team in Seoul the opportunity to strengthen relationships with key contacts as well as to promote New Zealand wine and food through wide media coverage.
Jazz vocalist Tim Strong with Han Sang-won Band gives an impressive performance. |
Tim Strong sang fifteen songs including two Korean songs |
Over 350 guests enjoy New Zealand wine, food and a jazz performance. |
Grow Wellington and Gyeonggi Digital Contents Agency (GDCA) signed an MOU to strengthen business collaboration between Korea and New Zealand’s digital content sector on 24 April in Wellington. Both agencies expected the agreement would bring benefits to the film, TV, games and digital content industries in their respective regions. Under the MOU both parties will promote co-production projects between New Zealand and Korea.
New Zealand Trade and Enterprise (NZTE) successfully organised a New Zealand pavilion together with Zespri Korea and Meat & Wool New Zealand at the Seoul Food and Hotel which is the largest food and beverage exhibition in Korea with a 26 year history. Some 40,000 food industry representatives visited the fair from 14-17 May. NZTE displayed major New Zealand food and beverage products, and Zespri and Meat & Wool New Zealand organised tasting events. Richard Kidd Marketing (for beef) and Vynfields Martinborough (for organic wine) also participated from New Zealand. In addition, Korean importers showcased New Zealand products. NZTE Chairman Jon Mayson, Meat & Wool New Zealand Chairman Mike Petersen and Zespri Category Manager-Green Rosstan Mazey visited the New Zealand pavilion.
Meat & Wool New Zealand held a New Zealand beef promotion barbecue party at the Ambassador’s Residence on 6 June, inviting 20 families with children who had bought chilled New Zealand beef from Homever stores during the period of its beef promotion events from 22-25 May, and had won lucky draws. A professional MC ran the programme on the day and the children in particular had a good time enjoying arranged games as well as the New Zealand barbeque. Ambassador Jane Coombs made a welcome speech and posed with each family for photos. Homever, Korea’s fourth largest mega-mart, is currently selling chilled New Zealand beef at its 35 stores.
A Korean family with Ambassador Jane Coombs at a New Zealand beef promotion. |
Korean families enjoy a quiz contest. |
The New Zealand Centre for Culture and Education (NZCCE), a private educational establishment in Seoul, hosted two major events – the New Zealand School Experiment Day and a Children’s Gala Day – on 12 April and 5 May respectively. The New Zealand teachers at the NZCCE taught various subjects from the New Zealand school curriculum to the children who came for the event on 12 April which lasted for 2 hours. In addition, a special class to provide information about New Zealand and its education system was run for the parents who had come with their children.
Following last year’s inaugural event, NZCCE successfully held the 2nd Children’s Gala Day with over 500 guests on 5 May. The children at the event enjoyed New Zealand children’s games including skittles, 4 square and ‘rob the nest’ along with face painting and making pois. Jane Mulryan, New Zealand’s Deputy Head of Mission told a story: The Littlest Whale written by Margaret Albert, a well-known New Zealand children’s writer. In addition, New Zealand Trade Commissioner, Andrew French, ran a quiz game. The New Zealand Embassy supported both the Experiment Day and the Gala and gifted the Centre with New Zealand children’s books for these events.
NZCCE successfully hosted the 2nd Children’s Gala Day on 5 May. |
Trade Commissioner Andrew French runs a quiz game. |
Deputy Head of Mission Jane Mulryan tells a story: The Littlest Whale written by Margaret Albert. |
President Lee Myung-bak and President George Bush on 19 April held summit talks at Camp David in the US and agreed to upgrade the over half-century old military alliance into a "21st-century strategic alliance." The two countries will seek to expand common interests on the basis of universal values and strong trust to effectively address new security challenges and changes of the 21st century. To buttress this vision the two Presidents agreed to cooperate for an early ratification of the Korea-U.S. free trade agreement (which is still pending before both countries’ legislatures) and Korea’s entry into U.S. visa waiver programme. The meeting was the first summit for a Korean leader with a US President at the Camp David presidential retreat.
Following the summit with the US President, President Lee also had summit talks with Japanese Prime Minister Yasuo Fukuda in Tokyo on 21 April, agreeing to build future-oriented Korea-Japan relations and a mature partnership based on Lee’s pragmatic diplomacy. The two leaders agreed to enhance cooperation in dealing with the North Korean nuclear issues and to hold working-level consultations to restart stalled negotiations on concluding a bilateral economic partnership agreement (EPA).
In addition, Korea and China agreed to elevate their bilateral relations from the existing comprehensive and cooperative partnership to a “strategic and cooperative partnership” during summit talks held between President Lee and Chinese counterpart Hu Jintao in Beijing on 27 May. According to the new agreement, the two countries will broaden bilateral cooperation beyond two-way diplomacy, politics, economy, culture and environment. The two leaders agreed to closely cooperate to promote peace and stability in Northeast Asia as well as to progress Six-Party Talks. On the economic front, they agreed to reinforce practical cooperation and bilateral investment in the fields of information technology, financial services, atomic power generation, energy, science and technology. They also agreed to continue to study the feasibility of a two-way free trade agreement on the basis of joint academic, industrial and government research activities.
President Lee Myung-bak’s foreign and security policies are known as the “MB Doctrine”, a seven-point doctrine that includes expanding Asian diplomacy and strengthening the Korea-US alliance. The summit talks with his counterparts in the US, Japan and China were an early expression of this policy doctrine.
Prime Minister Han Seung-soo was engaged in diplomacy aimed at securing energy and natural resources through his 10-day visit to Central Asian countries such as Uzbekistan, Kazakhstan, Turkmenistan and Azerbaijan in mid-May. During the Prime Minister‘s visit to Uzbekistan on 12 May, Korea signed a contract to purchase 2,600 tons of uranium worth US$ 245 million from Central Asian countries between 2010 and 2016. In addition, state-run Korea Gas Corp. (KOGAS) signed a contract with its Uzbek counterpart, Uzbeknefgaz, on joint exploration of oil and gas fields in several regions of the natural resource-rich Central Asian country. They also concurred that the two countries will jointly develop molybdenum and tungsten mines in the region.
During the Prime Minister’s visit to Kazakhstan, a Korean oil consortium bought a 27% stake in the large Zhambyl oil field there. The 27% stake entitles Korean companies, including SK Corp., Samsung Corp., and LG Corp., to import to Korea at least 270 million barrels over five years, highly enhancing Korea’s self-sufficiency in oil energy. In Azerbaijan, the Prime Minister held talks with Prime Minister Artur Rasizade on joint development of the country’s energy and mineral resources.
The conservative governing Grand National Party (GNP) secured a slim majority in the National Assembly by winning 153 (37.4%) out of 299 seats in the 18 th parliamentary elections on 9 April, followed by the major opposition United Democratic Party (UDP) with 25.0%, and pro-Park Geun-hye Alliance with 13.2%. The Liberty Forward Party (LFP) won 6.8%, the Democratic Labour Party (DLP) 5.6%, the Create Korea Party (CKP) 3.7% and Independents 8%.
Although the GNP’s victory should enable President Lee Myung-bak to push through his reform agendas the number of seats won are not enough to rule without cooperation with other factions/parties as the GNP failed to secure an “absolute majority” of over 168 seats which would have given it a majority in all National Assembly Committees.
In the meantime, the opposition UDP failed to secure the 100 seats necessary to block the conservatives from changing the constitution, should they wish to do so, by winning only 81 seats. The UDP’s co-leader Sohn Hak-kyu lost his race in the local Seoul electorate where he was running.
Independents, consisting mainly of GNP minority leader Park Geun-hye supporters and those who failed to win party nominations, won a significant 25 seats. Minor parties such as LFP and the pro-Park Guen-hye Alliance also had a strong showing.
The voter turnout was a mere 46%, the lowest in Korea’s parliamentary election history. A total of 245 electoral constituencies were up for grabs, with another 54 legislators elected as proportional representatives.
President Lee Myung-bak replaced all seven presidential secretaries on 20 June, including his chief of staff. President Lee’s public support has plunged over the past several months and the President is facing a huge public outcry against his government’s agreement to resume US beef imports. The replacement of his secretariat is an attempt to resolve the current situation. With the new secretariat, President Lee has put a focus on communication with the public.
The new key presidential secretaries are as follows:
Major efforts have recently been made by North Korea and the US to progress the six party talks on ending North Korea’s nuclear programmes which have been suspended since last October. North Korea submitted its long-awaited nuclear declaration on its nuclear facilities and activities on 26 June and demolished the cooling tower at the Yongbyon nuclear reactor a day later. The US immediately lifted some sanctions and announced that it may remove North Korea from its list of state sponsors of terrorism within 45 days if the country meets all its obligations under the six-party talks. The participating six countries are expected to have another round of talks in early July to advance the discussions to a new phase.
Korea posted a trade deficit of US$5.7 billion in the first half of 2008, the first in 11 years due to the skyrocketing costs of importing oil and raw materials. In addition, a wide ranging truckers’ strike contributed to the trade deficit in June. The Ministry of Knowledge Economy reported that for the first six months of 2008, exports increased 20.5% annually to US$214 billion while imports jumped 29.1% to US$219.7 billion. Korea’s oil import bill amounted to US$43.4 billion in the first half, up 60.9% from the same period last year, accounting for 20% of the country’s total imports. Korea’s economy is heavily reliant on exports with China and the US combined taking one-third of the country’s exports, which are dominated by ships, computer chips, cars and oil products.
The Ministry revised its forecast for this year’s trade balance to a deficit of US$1.89 billion from its previous forecast at a surplus of US$13 billion, expecting a trade surplus of US$3.82 billion for the second half of 2008.
Meanwhile, Korea’s consumer prices grew at the fastest pace in nearly 10 years in June as surging oil and other imported raw material prices raised the cost of goods and services in the country. According to the National Statistical Office, consumer prices rose 5.5% in June from a year earlier, up from 4.9% gain in May.
The Bank of Korea estimated that Korea’s economy grew 5.4% in the first half of the year, boosted by strong exports. However, it predicted that inflation will grow faster than the economy in the second half and cut the country’s economic growth forecast for 2008 to from 4.7% to 4.6%. The Government has also recently lowered its growth expectation from 6% to 4.7%. The IMF and OECD have cut projected growth rates for Korea from 4.2% and 5.2% to 4.1% and 4.3% respectively.
Many economists forecast that the Korean economy would fall into stagflation – low growth coupled with high inflation – in the second half of the year.
Korea and six Arab Gulf states made up of Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Oman and Kuwait will hold their first round of FTA talks in Seoul on 9 July. Korea proposed holding FTA talks for the six-member states of the Gulf Cooperation Council (GCC) last year. According to a report released by the Korea Institute for International Economic Policy (KIEP), a free trade deal with GCC states could boost Korea’s GDP by 0.54%. Korea currently has FTA pacts with Chile, Singapore, the European Free Trade Association (EFTA — comprising Switzerland, Norway, Ireland and Lichtenstein) and the Association of Southeast Asian Nations. Korea signed an FTA pact with the US in June 2007, which is now awaiting ratification, and is also currently in negotiation with Canada, the EU and India.
According to the Ministry of Knowledge Economy, the Korea National Oil Corp (KNOC), Korea’s state oil firm will invest more than US$18 billion to raise crude production capacity six-fold in the next five years. KNOC will spend 19 trillion won (US$18.4 billion) buying oilfields and energy firms overseas to increase its daily output from 50,000 to 300,000 barrels. The Ministry said 4.1 trillion won would come from state coffers, with the remainder from the KNOC and private investors. Korea is the world’s fifth largest oil importer and has been severely hit by global oil price increases.
Korea’s first astronaut Yi So-yeon, a 29-year-old bio-systems engineer, returned to Earth safely after spending 12 days in space conducting various scientific experiments on the International Space Station (ISS). She touched down with two ISS crew members in Kazakhstan on 19 April. On 8 April, Yi became Korea’s first astronaut when she blasted off aboard a Russian spacecraft from the Baikonur Cosmodrome in Kazakhstan. She was transferred to ISS two days later.
The Ministry of Education, Science and Technology said that the test samples and data Yi brought back will contribute to the advancement of space exploration, biotechnology and the development of new materials. With Yi’s trip, Korea became the sixth Asian country to put a person in space. Korea spent 26 billion won (US$26.6 million) on Yi’s mission.
Meanwhile, Korea will launch a rocket, built with Russian assistance, from within Korea on 21 December this year. The country is also pushing to build a locally made rocket and to carry a satellite into space by 2020.
Hyundai Asan, the exclusive South Korean operator of tours to North Korea, is enjoying a boom this year, despite the lack of progress in inter-Korean relations. The number of South Korean and expatriate tourists who travelled to Mt Geumgang from January to May rose to 145,809, up 40% from 91,000 during the same period last year. The number of travellers to Gaeseong, just north of the border, reached 68,000 in May. Tours to Gaeseong began last December. The increase in the number of South Korean visitors to the North is surprising, given the rising tension between Seoul and Pyongyang over the past several months. Hyundai Asan officials said that a beach will be open at Goseong Port, near Mt Geumgang in July and they plan to offer a new tour to Mt Baekdu, which lies on the border with China.
Shee-Jeong Park finished her posting to Korea in June and will move to Spain to start Spanish language training in August before taking up her posting in Madrid next year. Her position as Second Secretary (Political) will be filled by Abigail Vink in July, who completes two years of Korean language training in June.
Colonel Harry Cockburn joined the Embassy as the Defence Attaché in June, replacing Colonel Tim Gall. Before taking up the position he served as Director of Logistics Development at New Zealand Defence Force Headquarters in Wellington.
Colonel Harry Cockburn |
Shee-Jeong Park |
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