ManufacturingIndustryDeKoreaAntiMarketPolicyMoon

In two years of anti-market policy of 

...Moon administration manufacturing industry "de-Korea"

https://japanese.joins.com/article/085/253085.html?servcode=200&sectcode=200
5/7 (Tuesday)
 
Foreign direct investment by Korean manufacturing industry has been
around $ 8 billion annually from 2007 to 2017 just before the financial crisis.
However, the situation suddenly changed last year.
It was $ 16.4 billion more than double the average year.
The number of direct investments has also reached 5,000 ,
the largest increase in the past five years .
It is a background that concerns the outflow of the manufacturing industry,
which is the main axis of the Korean economy .

By region, the Asia region accounted for 54% of the total, with $ 8.9 billion,
Latin America and Europe 16.5% each for $ 2.7 billion,
and North America 11.6% for $ 1.9 billion.
As a result, the ratio of direct investment in manufacturing
in Asia: Latin America: Europe: North America remained almost unchanged
between 2017 and 18 with a ratio of around 5: 2: 2: 1.
This means that last year's surge in foreign direct investment
in the manufacturing sector was not an increase in foreign investment in specific areas,
but it has increased widely overall .

There was a significant increase by country.
China surged from $ 2.4 billion to $ 4.4 billion, Vietnam from $ 1.4 billion to $ 2 billion,
and the US $ 800 million to $ 1.9 billion.
Australia was up $ 1.2 billion, India and Hong Kong were up $ 0.9 billion each,
and Poland was up.

What is the cause of the sharp increase in foreign direct investment
in the manufacturing industry?
First of all, the textbook hypothesis is a quick localization or global strategy
to get the global market first.
However, the possibility of a slowdown in the global economy
from the second half of last year, such as the US raising interest rates,
makes this hypothesis less convincing.
However, the acquisition of Toshiba Memory (approximately 4 trillion won and $ 3.5 billion)
of SK semiconductor completed last year can be interpreted as the result
of the globalization strategy.

The second textbook hypothesis is a localization strategy to avoid protective trade barriers.
This hypothesis can explain the increased investment in the United States, Mexico,
and Canada.
In fact, however, the investment in Mexico was reduced
from $ 400 million in 2017 to $ 100 million, and the investment
in Canada was also less convincing as there was no change in 2017 and 18 years.
Furthermore, this hypothesis can not explain the rapid increase in foreign direct investment
by manufacturers in China and India, which are actively expanding their open policies.

The third theory is the exit of production bases overseas due to deterioration
of domestic production environment or management environment .
If the domestic production environment gets worse due to wages, tighter regulations,
or reform of the legal system, domestic companies can only move to a country
with the best management environment.
In this case, the optimal country to enter may appear differently in the characteristics
of the industry.
Therefore, if foreign direct investment occurs for these reasons,
it is likely that it will be a form of expanded investment in areas
where traditional foreign investment has been made,
rather than sudden increases in foreign investment in new specific areas.

The hypothesis we should focus on is exactly this part.
Entering the Moon Jae-in government in 2017,
the business environment in Korea's manufacturing industry
has definitely deteriorated .
Raising corporate tax, sharply raising the minimum wage
for two consecutive years (16.4% and 10.9%),
legalizing 52-hour work system,
week rest and comprehensive wage guidelines, protection for 3 special rights,
etc. New labor regulations were introduced.
Such rapid changes in working conditions are presumed to have given managers
of the manufacturing industry an opportunity
to move their manufacturing bases overseas in all directions.

There are facts that support this third hypothesis.
For the past 30 years, there have been three cases in which the size of foreign investment
in the manufacturing industry has soared by more than 50% annually. Increased
from $ 600 million in 1993 to $ 1.5 billion in the next year, up 150%, from $ 1.7 billion in 2000
to $ 4 billion in the next year, up 135% from $ 8.5 billion in 2017 to $ 16.4 billion
in the next year That's a 93% increase.
Surprisingly,
three common backgrounds are a sharp increase in minimum wages
and a strong won .

As a result of the democratization movement of the 1980s,
the Minimum Wage Law was enacted on December 31, 861 and the minimum wage enforced
from January 1, 1988 was 15.0% in 1990, 18.8 in 1991. % Was raised by 12.8% in 1992.
 
This rapid increase in wages has led to manufacturers increasing foreign direct investment between 1993 and 1994.
The same goes for 2001.
The minimum wage in the same year was raised by 16.6%, and it increased
by 12.6% in 2002 the following year.
The minimum wages in 2018 and 19 also increased by 16.4% and 10.9%, respectively.

Besides the rapid rise in labor costs, it was the won that boosted foreign direct investment in the manufacturing industry.
On the one hand, the appreciation of the won tends to lower the price competitiveness
of domestic manufactured products, and on the other hand promotes
foreign direct investment in the manufacturing industry to simultaneously lower
the cost of relocating factories and the cost of overseas labor.

The former won's depreciation was reversed in the second half of 1992.
This acted as a catalyst to promote foreign direct investment in the manufacturing industry.
The won-dollar exchange rate dropped 15% and 5% in 1999 and 2000 respectively,
and the won-dollar exchange rate dropped 2-3% in 2017 and 18 years.
 
The appreciation of the won against the dollar, accompanied by a sharp increase in wages,
has made Korea's manufacturing industry less competitive in price
and has spurred foreign direct investment in manufacturing.
Therefore , foreign investment in the manufacturing industry is expected
to continue unless adverse conditions in wages and exchange rates improve.

The fact that manufacturing investment goes overseas means
that good domestic employment and income will decrease .
If the outflow from foreign investment in the manufacturing industry last year
was $ 16.4 billion, this would be 19 trillion won.
This corresponds to 12% of last year's nominal capital investment of 157 trillion won.
This amount is almost the same as the annual employment budget,
which is more than six times the employment stability fund (about 3 trillion won).
It's not time to boast that 260,000 jobs have occurred, especially in the months
of public works,
but it's time to prevent high quality manufacturing jobs from draining abroad.
More scary than fleeing property overseas is the " de-Korean rush " of factories .
It is concerned that this does not exceed the danger level.
 
 
One third of Korea's micro business operators
are closed and closed
http://www.chosunonline.com/site/data/html_dir/2019/05/07/2019050780004.html?ent_rank_news
 
According to a survey by the Small and Medium Enterprises Central Association, in Korea,
one in three small business owners (33.6%) said that they had been closed
for the past year and thought about going out of business .
As for the reason why they did not actually go out of business, most said, "
There was no seller."
If only the buyer was attached, it would have folded the store.
In addition, 77% of the respondents said that the sales since the beginning
of the year were lower than the previous year,
and 24% said that the sales dropped by more than 40% .
 
As for the outlook for the future,
the pessimism that the business situation will deteriorate further accounted
for 59.6% . It shows that micro enterprises and self-employed workers
who support the economy at the end of the economy
are being driven into serious situations .
 

The bottom 20% of working income in the October-December quarter

decreased 37 percent , reaching 4.12 million people who borrowed money

from high-interest money lenders last year.

The amount of the refunded money to cancel the insurance contract

and receive cash increased by nearly 2 trillion won (about 190 billion yen) in one year.

 

The credit card arrears rate for the January-March quarter of this year has risen sharply.

The application for personal rehabilitation proceedings to the courts

also numbered 23,300 in January and January, 10 percent more than a year ago.

 

Even though the currency crisis has not arrived,

a situation similar to the currency crisis is taking place in the common economy .

There should also be structural reasons, such as excessive competition

for self-employment and the spread of Internet shopping.

However, Korea Gallup implemented

"Evaluation of Moon Jae-in administration two years"

According to opinion polls, 62% of the population said that the government's economic management was wrong .

 

According to a public opinion poll conducted jointly

with the Korea Economic Research Institute,

58.9% of respondents reported that their lifestyle has deteriorated

since the Moon Jae-in administration was launched ,

especially for self-employed people Scored 82% .

 

The government, which was trying to fill the wallet of the weak, is putting the common people in trouble.

Even though the people are suffering, the Blue House (Presidential Office)

relies solely on external factors.

However, in addition to the economic growth of 3% higher than Korea,

the United States has recorded the lowest unemployment rate

for the first time in half a century.

China also had high growth of around 6%.

The common economy faces a crisis unless it breaks the policy of putting taxes on everything and promoting real policies that boost business and market vitality.

 

 

South Korea where the administration of the nation itself is hopeless .
Domestic demand will continue to decline as the IMF 's return is approaching
Personal debt bloats and there is no work
Foreign capital withdrawal, dollar denominated, yen denominated transaction amount shrinking

(If the situation with Japan continues to deteriorate, the yen-denominated suspension

or the curtailment of financing facilities may be sufficient)
The Japanese government should defend Japan from immigration. . . . . .

Recommendation 2159 　 Opposite 　 twenty four


 

It is a natural choice for business owners.
Markets that are sure to taper,
A labor force with high wages but low quality and productivity
For example, there is no choice but to seek overseas bases

as well as business partners.
Government and Ministry of Foreign Affairs invading companies in his country
I would like to ask for a measure that does not cause confusion in Japan.

Recommendation 1891 　 Opposite 　 19


 

Not only diplomacy, but also the literary genius of the economy ( Moon Jae-in )
I think that about this handicap is just right.
Please do your best.

Recommendation 1787 　 Opposite 　 14


 

You are steadily delivering results.
May the Moon Jae-in administration last forever ...

Recommendation 411 　 Opposite 　 0


 

It is not surprising.
It is possible to do it.

Recommendation 379 　 Opposite 　 1


 

It would be a natural result if this cost was spent on this level of labor.

I did this because the country had compensated for the deficit until now,

but it will not be the case from now on.

Japanese companies will get caught up too early if they can not give up .

Recommendation 367 　 Opposite 　 0


 

It is good if Korea's disastrous turmoil will not come to Japan,

so I hope the Korean government will try hard to stop the outflow

to other countries even if it is indebted to AIIB or IMF.

Recommendation 362 　 Opposite 　 0


 

In the meantime, Korea's population will also decline sharply.

Even though the birth rate is below 1 ....

The default is before that.

Recommendation 342 　 Opposite 　 2


 

Even the wall newspaper that the student wrote

"To go around" to become a police officer
I blame the administration.
We are going to build a "dictatorship"
We are promoting electoral system reform,
I'm trying to stop the opposition party becoming frantic
The bill passed, and the statement
It will be overwhelming in the next national election.

Recommendation 316 　 Opposite 　 2


 

"The battle between capitalism and socialism

on the Korean peninsula since the Cold War era ended with the defeat of capitalism.
It should not have given them money and freedom. "
I have an expert who says what.

Recommendation 294 　 Opposite 　 2

 

 

BTS members famous for atomic bomb T-shirts 
are crazy inside the bus
Videos leaked!
https://twitter.com/i/status/1062852872176451584

 

Overseas fans seem to be exactly the same

Suddenly overflowing with compliments of English praise. Creepy…

 

http://www.ekn.kr/news/article.html?no=398456
https://news.v.daum.net/v/20181106030037589

http://www.koreaherald.com/view.php?ud=20181114000854

 

 
A song called BTS "run". Members are suffering in waters in the water.
MV release date, March 11, It is the day of the Great East Japan Earthquake.
I can not forgive as a Japanese citizen.
 
BTS wearing a comfort Woman wear
Dokdo is also doing anti-Japanese act of singing our territory.

The capital flight started
World stock price / Korea KOSPI
Do not move, government intervention,
Trading suspension, circuit breaker activation,

power off of server,

Koria have a proven track record.

 

Yuzuru Sato
Korea attacks Japan by combining hands with North Korea and China
Propaganda neglect affects the recreation of the comfort women problem,

the activities of Japanese companies around the world
Possibility of losing in the image strategy at the US jury trial.

ttps://www.facebook.com/pages/Attapeu-One-Love-Original/1775535799339658

 

旭日旗、自衛隊P-3に韓国海軍のレーダー照射問題まとめ

朝鮮人戦時労働者問題まとめ

慰安婦問題まとめ

韓国経済まとめ2

韓国経済まとめ

한국인의 재해 정리

Lai đại hàn　Korean slaughter

DiffusionHopeGermanNGOSupportLaosAdoptVillage

DiffusionHopehttps://laos.oxfam.org/

ＢＴＳ防弾少年団、Kpopの反日マトメ

ＢＴＳ防弾少年団、Kpopの反日マトメ2

Englisharticles　futukiitihoyoujiyo

Englisharticles　2

LAOS DAM2

LAOSDAM

 

 

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