Growth Outlook

[Anchor Lead]

The Bank of Korea has raised this year’s economic growth forecast to 5-point-9 percent. Another interest rate hike is also likely given rising inflationary pressure.



[Pkg]

The Bank of Korea projects the economy will grow 5-point-9 percent this year. The central bank had raised its forecast from 4-point-6 percent at the end of last year to 5-point-2 percent in April. The latest forecast even exceeds the official government forecast of 5-point-8 percent.



[Soundbite] Lee Sang-u (Bank of Korea) : “Given that exports account for more than half of the nation’s GDP, export growth will be the main factor contributing to higher economic growth.”



The bank also says consumption will likely grow nearly four percent thanks to stronger purchasing power by households and bigger financial assets. Facility investment is expected to expand nearly 21 percent due to global economic recovery and the IT industry rebound. The bank expects the creation of 330-thousand jobs this year and 230-thousand more next year. Inflation will exceed three percent after this year’s fourth quarter as consumer prices continue to grow.



[Soundbite] An Sun-gwon (Korea Economic Research Institute) : “If prices remain unstable and the U.S., Chinese and European economies don’t deteriorate, we can raise the interest rate by 0.5%p this year.”



Experts say the benchmark interest rate by the end of next year will likely match that before the global financial crisis.



2. Sejong Complex



[Anchor Lead]

Following the rejection of the revised bill on the development of Sejong City, the relocation of government agencies has begun in earnest. Thirty-five agencies will move to Sejong by 2014.



[Pkg]

This is the construction site of a government complex in Sejong. The construction of the primary zone, which will house the prime minister’s office, began in December 2008 and is 24 percent complete. The government says it’ll relocate 35 agencies, as originally planned. The relocation will proceed in stages. By 2012, the prime minister’s office and the Ministry of Strategy and Finance will move first. By 2014, the remaining agencies will follow. Six ministries and 16 agencies including the foreign, defense and justice ministries are not subject to relocation.



[Soundbite] Maeng Hyung-kyu (Minister of Public Administration & Security) : “We’ll make sure that the complex is built based on the original plan by completing all administrative procedures and minimizing the construction period.”



But the relocation of the Office of Ministers for Special Affairs and the Defense Acquisition Program Administration is still unclear. The government will decide on their relocation next month after holding a public hearing.



3. IMF Conference



[Anchor Lead]

The first Korea-IMF Conference has been held in the central city of Daejeon. The head of the International Monetary Fund says the Asian era has arrived, pointing to the bigger role of economies in the region.



[Pkg]

The theme of the first IMF conference held in Asia is "Leading the Way Forward." IMF Managing Director Dominique Strauss-Kahn has announced the era of Asia. He stresses the growing role of leading Asian economies, including Korea’s, in global economic policy.



[Soundbite] Dominique Strauss-Kahn (Managing Director, IMF)

He admits that back in the late 1990s, the IMF’s unilateral policy intervention caused Korea and other Asian economies to suffer more than needed. But Strauss-Kahn praised Asian nations for overcoming the global financial crisis better than the U.S. or Europe through comprehensive restructuring. Experts in a forum also urged Asian nations to shift their economic focus from exports to domestic consumption.



[Soundbite] Victor K. Fung (Honorary Chairman, Int’l Chamber of Commerce)



Some 300 international experts will discuss raising Asia’s voice and representation in global financial markets. The conference will end Tuesday.



4. Aging Society



[Anchor Lead]

By 2019, citizens over 65 will account for over 14 percent of Seoul’s population. The Seoul metropolitan government has devised a master plan to prepare for the aging society.



[Pkg]

Senior citizens pass time in parks because they can’t find jobs or engage in leisure activities. Those who have difficulty moving around just stay at home. Currently, 945,000 Seoul residents are over 65. By 2019, they’re expected to account for over 14 percent of the total population. The Seoul metropolitan government has become the first local government to introduce a master plan to prepare for the aging society. To create prime conditions for senior citizens, Seoul will invest over 3.2 billion dollars in 100 projects by 2020. The metropolitan government will also carry out 10 core projects, such as improving health care for seniors, expanding its involvement in society, enhancing transportation convenience and building infrastructure for the elderly. Seoul will also improve the social security network of seniors living alone and those suffering from dementia. The government has also vowed to create more jobs for seniors.



[Soundbite] Kim Myeong-yong (Seoul Metropolitan Office) : “We devised this master plan because we need more systematic and comprehensive measures to tackle the problems of an aging society.”



Other local governments are expected to follow suit as society has been aging fast due to the low birth rate.



5. Farm Exports



[Anchor Lead]

Agricultural and maritime products are becoming new flagship export items for Korea. Korea exports such products to around 150 countries, and the volume of shipments is growing.



[Pkg]

This is a rose farm. But bloomed roses are rarely found.



[Soundbite] Lee Un-ju (Rose Farmer) : “The supply doesn’t meet the demand, so we cut off the flowers for shipment as soon as they begin blooming.”



The farm exports most of its roses to Japan.



[Soundbite] Park Seong-gyu (Rose Farmer Association) : “Korean rose market dominates the Japanese market. We have a huge influence on the Japanese market. It may falter without Korean roses.”



The quality of Korean agricultural products is being recognized on the global market. Korea exported agricultural and maritime products worth nearly one-point-three billion U.S. dollars in the first five months of this year. The figure is up 21 percent year-on-year. More than 150 countries import Korean agricultural and marine products. Korea overtook Japan last year in the volume of agricultural and maritime exports.



[Soundbite] Yeom Dae-gyu (Agro-Fisheries Trade Corp.) : “The increased exports are attributable to our products’ excellent quality. We’ve also adopted marketing strategies tailored for foreign buyers.”



The Korean government aims to increase the volume of agricultural and maritime exports to six-point-four billion dollars this year. Korean exports of agricultural and marine products are expected to reach 10 billion dollars by 2012.



6. Kidnap Scheme



[Anchor Lead]

It has been discovered that Japan made numerous attempts to kidnap Emperor Gojong during the Russo-Japanese War. A German diplomatic document provides evidence that Japan tried to abduct the Korean Emperor before the Japan-Korea Protectorate Treaty.



[Pkg]

It has been found out that in 1905, when the Russo-Japanese War was underway, Japan had attempted to kidnap Joseon’s Emperor Gojong to take over the Korean peninsula. This is a telegram sent by the German diplomat stationed in Seoul at the time to his government. On February 14, 1905, the German diplomat reported that the Japanese tried to abduct Gojong, but the Joseon emperor strongly resisted, concerning that he would never return again. The telegram sent on June 2nd contains more specific descriptions. It says, "Japan has consulted world powers on making Joseon its protectorate, having Emperor Gojong step down from his throne and taking him to Japan. The telegram also reports that "Britain fully agreed, but U.S. President Roosevelt was opposed to it and denounced Japan." These telegrams are the first tangible materials to prove allegations that Japan tried to kidnap the Joseon emperor.



[Soundbite] Prof. Jeong Seong-su (Myongji University) : “Emperor Gojong fought hard for Korea’s liberation. He also tried to save the royal family. So he was the pain in the butt.”



Two years later in 1907, Japan forced Gojong to leave the throne holding him responsible for the Hague Secret Emissary Affair and took Joseon’s last Crown Prince Yeongchin to Japan. Historical facts show that Japan had long planned on colonizing the Joseon Dynasty by tearing apart the Joseon royal family.



7. Dokdo Abalone



[Anchor Lead]

A fisheries think tank has reproduced abalone indigenous to the islets of Dokdo. The reproduced shellfish have been released into the sea.



[Pkg]

About 10-thousand young ear shells indigenous to the Dokdo islets are being released into waters where algae is abundant. The abalone is five centimeters long and was reproduced by a fisheries think tank under North Gyeongsang Province. The abalone is one and a half years old. The Dokdo abalone contains more antioxidants such as omega-3 than ear shells produced in other regions. Antioxidants are known to help prevent aging and boost memory.



[Soundbite] Park Mu-eok (Dokdo Restoration Research Center) : “We implanted chips on the shells to monitor the growth of the shells. Their survival rate and travel routes will also be identified.”



The think tank will release the Dokdo abalone into the sea next year. Twenty-thousand young Dokdo ear shells are being cultured in a large water tank.



[Soundbite] Kim Tae-ju (Fishery Resources Development Inst.) : “We’ll discharge 20-thousand young abalone into the sea every year in a way to help restore maritime resources near the Dokdo islets.”



The discharged abalone will grow to be more than seven centimeters long three years later. They will help fishermen in the region earn more income.



8. Maestro Lee



[Anchor Lead]

A Korean man has been working to spread the Korean martial art taekwondo in Colombia for 43 years. A taekwondo competition is held to honor him.



[Pkg]

Donned in taekwondo uniforms, members salute a 70-something Korean man, Lee Kyong-deuk. During the practice Lee corrects the postures of each student. The taekwondo master smashes ceramic tiles himself with a bare hand. Lee’s taekwondo philosophy has taken root in Colombia.



[Soundbite] Lee Kyong-deuk (74, Taekwondo Master) : “It improves your personality. It’s more valuable than winning a prize at a competition.”



He has been working to spread taekwondo in the Latin country for 43 years. An annual taekwondo competition is held in honor of the Korean master. The competition was named after Lee.



[Soundbite] Student : “Master Lee taught me the skills of taekwondo and its philosophy.”



[Soundbite] Parent : “It improved my daughter’s concentration. She has a better personality now. We picked this academy because the master is well-known.”



Lee is also helping to introduce other traditional Korean cultures such as percussion quartet "samulnori" in Colombia.



9. Bamboo Crafts



[Anchor Lead]

Back in the old days, Koreans used bamboo to stay cool in the summer. Damyang in South Jeolla Province is the center of traditional bamboo art. From "bamboo wives" to bamboo fans and blinds, take a look at some of the bamboo crafts that help beat the heat.



[Pkg]

"Bamboo wives," or the Asian version of Dutch wives, contain holes that keep them cool.



[Soundbite]

“Our grandparents had this. It reminds me of the good, old days.”



[Soundbite]

“It’s cool.”



[Soundbite]

“It’s really cool if you hug it and keep it close to your face.”



Damyang is famous for its bamboo works. It’s home to many renowned bamboo artisans who still use traditional methods to make bamboo wives. Bamboo wives are made with three-year-old bamboo trees. The trees are cut into small pieces. The bark is skillfully separated from the inner layer. This requires special expertise.



[Soundbite] Kim Yeon-su (Bamboo Wife Master) : “Bamboo is a cool plant. It feels really cool.”



The weaving is the most complicated. This bamboo master meticulously constructs a bamboo wife.



[Soundbite]

“You should hold this and sleep after a nice, cool bath. You’ll fall a sleep right away.”



Bamboo blind weaving called "daebal" is also done according to traditional methods. Daebal blinds not only serve as shades but also let the breeze in through their small holes.



[Soundbite] Park Seong-chun (Daebal Master) : “Daebal is a shade. People outside can’t see what’s going on inside, while you can see everything that’s going on outside.”



Daebal blinds are made with thin bamboo strings, which are in turn made by crushing bamboo trees into tiny pieces. It takes more than two-thousand thin strings to make one daebal. Even the professionals can’t make more than one a month.



[Soundbite]

“Ancient noblemen, who were supposed to wear formal clothes every day, used daebal when they wanted to take off their clothes and stay cool.”



Fans are also an indispensable item in the summer.



[Soundbite]

“I had no idea that this small fan can be so useful.”



[Soundbite]

“It’s more like a shade rather than a fan. Isn’t it fabulous?”



This artisan has 25 years of experience in making fans. He’s the third generation in his family to make bamboo fans according to a traditional method.



[Soundbite] Kim Dae-seok (Bamboo Fan Master) : “Nobody makes fans by hand these days.”



From making the ribs of the fan to attaching the paper - everything is done by hand. The final touch is the picture. Traditional bamboo crafts give an artistic touch to everyday life and are a great substitute to air conditioners and electric fans.