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The Koreas
Korea to roll back stimulus in first half

December 13, 2009.

The government is likely to withdraw most stimulus measures it took to avert economic ruin in the first half of next year, government officials said yesterday.

Observers also said that given the fast economic recovery, the central bank may start raising the interest rate in the first half.

According to officials at the Ministry of Strategy and Finance and the Bank of Korea, most of the liquidity dumped into the market has been rolled back.

The government withdrew the 18.5 trillion won ($15.9 billion) supplied for the purchase of repurchase agreements and the $19.5 billion provisions for the stabilization of foreign currencies.

Loans for local lenders through the currency swap line between Korea and the United States once reached $16.4 billion, but they declined to $3.1 billion as of the end of October. The trade finance support was reduced from $10.8 billion to $600 million, according to government data.

The 22.7 trillion won Fast Track program for extended roll-overs of corporate loans of small- and medium-sized companies has been extended only until June of next year and the 24.1 trillion won credit guarantees for SMEs will be scrapped by the end of the first half of next year, government officials said.

"Liquidity has been almost removed and we will phase out temporary stimulus measures in an orderly manner," Yoon Jong-won, director general of the economic policy bureau at the Finance Ministry, told reporters last week.

"The remaining part is the interest rate issue, which will be decided by the Bank of Korea's monetary policy committee," he said.

The central bank on Thursday left the interest rate at a record low of 2 percent for a 10th consecutive month.

However, BOK Governor Lee Seong-tae said the bank needs to make preemptive monetary policy decisions, saying that the current interest rate is far too low if the economy is to advance nearly 5 percent next year.

The Finance Ministry projects 5 percent GDP growth next year, while the BOK forecasts 4.6 percent growth.

(yoonmi@heraldm.com)

By Kim Yoon-mi


 
Dogs are bred to be eaten in South Korea
By the BBC's Caroline Gluck in Seoul

South Korean defenders of an old culinary tradition, dog meat eating, are launching a new initiative on Monday.

They are aiming to popularise canine cuisine in the run-up to the World Cup finals, which are being jointly hosted by South Korea and Japan in May and June.

A group of dog meat restaurant owners are to set up a nationwide federation, while a one day seminar will discuss ways of promoting dog meat.



 
The issue has become controversial, with animal rights activists around the world - including French campaigner and former actress Brigette Bardot - denouncing the practice.

Many critics are concerned by the illegal way that some dogs are killed to make the meat more tender, including beating and hanging.

Fighting back

The controversy surrounding dog meat eating in South Korea refuses to disappear.

Now around 100 dog meat restaurant owners are planning to fight back at their critics.

They are launching a nationwide federation to promote dog meat to foreign visitors in the run up to the World Cup.

They plan to launch websites in English and Japanese to promote the eating of dog meat and defend it as part of the national culture.

The sites will publicize restaurants near World Cup stadium and there are plans to hold sampling parties for foreigners.

Dogs are bred to be eaten in South Korea, mainly in a spicy stew called poshintang, which is said to improve health and virility and is considered a delicacy by many.

Recipes

During the seminar on canine cusine the restaurant owners will discuss ways of promoting the business.

At the meeting a food science professor, Ahn Yong-keun - nicknamed Dr Dog Meat - will present some of his 350 recipes for dishes using dog meat and discuss ways of developing the industry.

The meeting will also collect signatures backing moves by law-makers to introduce a bill legalizing the sale of dog meat.

Backers say if passed, the law would allow officials to regulate the industry and crack down on those who kill dogs in inhumane ways.


Report: North Korea Test-Fires 5 Short-Range Missiles

Monday, October 12, 2009 

SEOUL, South Korea —  North Korea fired five short-range missiles off its east coast on Monday, a news report said, even as South Korea proposed working-level talks with its communist neighbor.

Yonhap news agency, citing an unidentified South Korean government official, said the North test-fired the missiles on Monday afternoon from its eastern coastal launch pad.

Yonhap said the North has issued a no-sail zone in an area off the east coast Oct. 10-20 — an apparent indication it was planning missile tests.

Calls to the South Korean Defense Ministry seeking comment on the report were not immediately answered Monday.

Earlier Monday, South Korea proposed working-level officials of the two sides meet Wednesday discuss how to prevent floods in the Imjin River running through their heavily armed border. The South also proposed a separate meeting of Red Cross officials on Friday to discuss reunions of families separated by the 1950-53 Korean War.

However, Unification Ministry spokesman Chun Hae-sung said that Seoul had no plan to resume high-level dialogue with the North.

Pyonyang has recently reached out to Seoul, easing months of tension over the North's nuclear and missile programs.


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