Korea Finance – Aisa Net http://aisa-net.com/ Tue, 22 Nov 2022 04:06:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://aisa-net.com/wp-content/uploads/2021/05/aisa-net-icon-150x150.png Korea Finance – Aisa Net http://aisa-net.com/ 32 32 Seoul stocks open slightly higher on Tuesday amid concerns over China’s Covid-19 situation https://aisa-net.com/seoul-stocks-open-slightly-higher-on-tuesday-amid-concerns-over-chinas-covid-19-situation/ Tue, 22 Nov 2022 01:49:49 +0000 https://aisa-net.com/seoul-stocks-open-slightly-higher-on-tuesday-amid-concerns-over-chinas-covid-19-situation/

Electronic display boards at Hana Bank in central Seoul show stock and currency markets on Tuesday morning. [YONHAP]

Shares in Seoul opened slightly higher on Tuesday amid escalating concerns over China’s Covid-19 situation.

The Kospi added 2.86 points, or 0.12%, to reach 2,422.36 at 9:15 a.m.

Investors are paying attention to recent Covid-19 developments in China as Beijing could impose tougher virus restrictions, wreaking havoc on its economy. China is Korea’s largest trading partner.

Overnight, US stocks fell, weighed down by interest-rate-sensitive tech stocks, as investors stood on the sidelines to monitor the direction of Fed rate policy.

The S&P 500 fell 0.4%, the Dow Jones Industrial Average edged down 0.1% and the tech-heavy Nasdaq fell 1.1%.

In Seoul, most large-cap stocks started weak.

Samsung Electronics edged down 0.33%, while LG Energy Solution rose 0.35%.

IT stocks lost ground. Naver fell by 1.1% and Kakao by 1.07%.

LG Chem advanced 3.37% after announcing that it would open its new cathode plant in the US state of Tennessee next year.

The local currency was trading at 1,357.6 won against the dollar as of 9:15 a.m., up 2.9 won from the previous session’s close.

BY LIM JEONG-WON, YONHAP [lim.jeongwon@joongang.co.kr] ]]> South Korea Financial Markets | Business and finance https://aisa-net.com/south-korea-financial-markets-business-and-finance/ Sat, 19 Nov 2022 12:58:18 +0000 https://aisa-net.com/south-korea-financial-markets-business-and-finance/

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South Korea may delay capital gains tax on stocks https://aisa-net.com/south-korea-may-delay-capital-gains-tax-on-stocks/ Thu, 17 Nov 2022 06:20:13 +0000 https://aisa-net.com/south-korea-may-delay-capital-gains-tax-on-stocks/

(Yonhap)

South Korean financial authorities were on Thursday mulling a postponement of the law to levy a capital gains tax on equity investments that is expected to begin next year.

In a morning meeting, regulator Financial Services Commission met with market analysts from 10 local brokerages to discuss the effects of the new tax system on the market, according to industry sources. The move was widely welcomed by onlookers as a sign that authorities are actively considering postponing the tax review.

Analysts at the meeting expressed concern that the new tax overhaul would cause big investors to exit the market, which could lead to “chaos”, sources said. They reminded authorities that current market conditions are “different” from those in 2020, when the tax overhaul plan was first announced by the previous administration.

The ruling People’s Power Party and the main opposition Democratic Party have clashed over the issue. The PPP called for delaying adoption until 2025, while the DP proposed to carry out the plans on schedule.

In 2020, the previous Moon Jae-in administration announced that a new capital gains tax would be levied on equity investments from January 1, 2023. All investors who trade listed stocks with annual capital gains over 50 million won ($37,252) will be subject to a tax rate of 20%. Investors who hold more than 300 million won would be subject to a tax rate of 25%.

Instead, the stock transaction tax would be lowered and the revision would exempt retail investors with annual capital gains of less than 20 million won.

With opinions on the new capital gains tax code divided, experts say financial regulators and lawmakers should add details to the bill, comparing it with counterparts in other major economies.

The United States levies different capital tax rates depending on how long the investor has held the asset, according to a report by the Korea Institute of Public Finance. It also offers tax benefits to investors looking to sell shares that have been held for more than a year. Part or all of the long-term net capital gain may be taxed at 0% if the investor’s taxable income is less than or equal to $40,400 for singles or $80,800 for married couples filing jointly.

Korea currently levies a capital gains tax on major shareholders who hold shares worth more than 1 billion won in a single company. Their participation must exceed 1% of the total shares listed on the benchmark Kospi or 2% of the total shares listed on the secondary market of the Kosdaq if they are subject to capital gains tax.

(mkjung@heraldcorp.com)

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Medimaps Group Announces Partnership with OsteoSys to Bring Trabecular Bone Score to Korea’s Leading Bone Densitometry Platform https://aisa-net.com/medimaps-group-announces-partnership-with-osteosys-to-bring-trabecular-bone-score-to-koreas-leading-bone-densitometry-platform/ Mon, 14 Nov 2022 07:39:53 +0000 https://aisa-net.com/medimaps-group-announces-partnership-with-osteosys-to-bring-trabecular-bone-score-to-koreas-leading-bone-densitometry-platform/

GENEVA, November 14, 2022–(BUSINESS WIRE)–MEDIMAPS GROUP (www.medimapsgroup.com), a Swiss/global medical technology company specializing in image processing software for bone health assessment, announced today that its new method for improving osteoporotic fracture risk assessment, Trabecular Bone Score (TBS iNsight™), an AI-enhanced bone microarchitecture surrogate, is now available on OsteoSys Co. diagnostic platforms. , ltd. OsteoSys is the leading brand of bone densitometers in Korea and the third largest supplier of DXA scanning equipment in the world. .

TBS iNsight™ is available on Primus Whole Body DXA from OsteoSys, their high-end DXA scanning product. The agreement extends global access to Medimaps’ technology to clinicians from countries in Southeast Asia, Europe and South America. Financial terms were not disclosed.

Medimaps has obtained CE Mark 2797 for TBS iNsight™, FDA 510(k) clearance in the United States, and it is authorized in over 60 countries worldwide, including Japan and South Korea. The TBS is also now refundable in the United States and some European countries and is working towards reimbursement in Japan and Korea. The use of TBS is recommended by many local, national and international medical societies such as Switzerland, France, Italy, Germany, Spain, as well as the United States, China and Japan.

“Bone structure is just as important as bone mineral density (BMD) when diagnosing and treating osteoporosis,” said Dr. Young-bok AHN, CEO and Founder of OsteoSys. “Alongside BMD, Medimaps TBS iNsight™ provides a more complete picture of the patient’s fracture risk. We see TBS iNsight as a viable option integrated with our DXA scanners to treat osteoporosis, a rapidly growing health problem as the world’s population ages.

“Our proprietary and patented technology is enhanced by a multi-layered deep learning approach, making it applicable to a wide range of image modalities and resolutions,” said Professor Didier Hans, CEO and co-founder of MedimapsGroup. “TBS demonstrates improved diagnostic accuracy for primary and secondary osteoporosis and in women and men, and it appears sensitive to changes over time that result from effective treatment (with increasing TBS ) or continued bone loss in the absence of effective treatment (with TBS Because it is seamlessly integrated into the assessment of BMD, TBS will be applicable in a number of clinical settings, ranging from X-ray based opportunistic screening, patient risk profiling and presurgical assessments.

Osteoporosis is a condition of major concern among aging patient populations. Patients at risk for osteoporotic fractures often receive a BMD assessment, which only measures bone quantity but not bone quality. Medimaps Group’s TBS iNsight works alongside BMD and clinical risk factors to analyze bone micro-architecture as an assessment of bone quality. Within moments, the software application provides practitioners with an easy-to-interpret score to quickly identify and classify patients’ fracture risk and implement an intervention plan. Medimaps technology uses the same images acquired for BMD assessment (but also digital X-ray images or projected CT images). Patients are not exposed to additional radiation and the TBS integrates seamlessly into a physician’s clinical workflow to provide a comprehensive structured report.

About OsteoSys Co. Ltd.

Founded in 2000 and based in Seoul, South Korea, OsteoSys manufactures bone densitometer devices to treat and diagnose osteoporosis through a wide range of body and peripheral DXA scanning offerings. Learn more at http://osteosys.com/englsh/.

About Medimaps Group

Medimaps Group’s medical imaging software applications based on patented versatile technology with artificial intelligence capabilities provide healthcare solutions that integrate seamlessly into the workflow for the benefit of the patient. TBS iNsight™ (Osteo) has been used for years in clinical practice around the world in the field of osteoporosis. It has become the new gold standard for bone texture assessment in routine clinical practice. The TBS has gained international recognition with over 900 peer-reviewed scientific publications and is included in numerous guidelines and used by over 30,000 physicians worldwide, including leading healthcare institutions. Learn more at https://www.medimapsgroup.com/.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20221113005059/en/

contacts

Shelley Horn
+1 240 994 0248
shorn@medimapsgroup.com
www.medimapsgroup.com

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US Removes India from Currency Watch List https://aisa-net.com/us-removes-india-from-currency-watch-list/ Fri, 11 Nov 2022 15:44:00 +0000 https://aisa-net.com/us-removes-india-from-currency-watch-list/

By PTI IST (Released)

China, Korea, Japan, Malaysia, Germany, Singapore and Taiwan are the seven economies that are on the current watch list, the US Treasury Department said in its semi-annual report to Congress.

On Friday, the US Treasury Department removed India along with Italy, Mexico, Thailand and Vietnam from its currency watch list.

China, Japan, Korea, Germany, Malaysia, Singapore and Taiwan are the seven economies that are on the current watch list, the Treasury Department said in its semiannual report to Congress.

Countries that were removed from the list met only one out of three criteria for two consecutive reports, he said.

“China’s inability to publish foreign exchange interventions and the broader lack of transparency around key features of its exchange rate mechanism make it an exception among major economies and warrant close Treasury monitoring,” the report said. report.

Earlier today, US Treasury Secretary Janet Yellen met with Finance Minister Nirmala Sitharaman and India will continue to rely on close cooperation with the US to address global economic challenges in a more coordinated manner. Welcoming Yellen at the 9th India-US Economic and Financial Partnership Meeting in New Delhi, Sitharaman said India deeply values ​​its relationship with the US as a trusted partner.

The 9th meeting on the economic and financial partnership between India and the United States precedes India’s assumption of the presidency of the G20.

]]> S. Korea looks forward to continuing green cooperation with Egypt (Na Kyung-won) https://aisa-net.com/s-korea-looks-forward-to-continuing-green-cooperation-with-egypt-na-kyung-won/ Wed, 09 Nov 2022 10:38:58 +0000 https://aisa-net.com/s-korea-looks-forward-to-continuing-green-cooperation-with-egypt-na-kyung-won/

The world’s attention turned to Sharm el-Sheikh as it hosted the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27) from November 6-18.

Broad international participation from around the world is expected, with more than 40,000 people representing some 197 countries and dozens of international and regional organizations taking part in the annual climate change negotiations, with the aim of discussing the way forward to reduce the negative impacts of climate change. and adapt to its effects. On this occasion, Daily News Egypt interviewed Na Kyung-won, South Korea’s presidential special envoy for climate and environment, during her visit to Egypt to participate in COP27.

How do you assess relations between Egypt and South Korea?

Egypt and Korea are currently enjoying the best government-to-government cooperation since 2016, when the comprehensive cooperative partnership was established following President El-Sisi’s official visit to Seoul. We have also had many high-level exchanges recently such as the call between two presidents in October, the visit of the Korean president to Cairo in January and the visit of the speaker of the Parliament in 2021. All these show how important our relationship is. advanced.

I am attending the COP27 leaders’ meeting as the Presidential Special Envoy for Climate Change, as discussed during the phone call between the two leaders, which reflects Korea’s expectations for the success of COP27.

Nevertheless, we need the continued support of the peoples of both countries to sustain the excellent bilateral relations. Therefore, the South Korean government spares no effort to improve mutual understanding between the two peoples through active public diplomacy. I ask for the Egyptian people’s continued interest in developing the person-to-person interaction between Egypt and Korea.

What are Seoul’s priority issues in cooperation with Egypt?

Two countries show significant achievements in the field of economic cooperation. Many Korean companies like Samsung and LG have manufacturing plants in Egypt, and the El Dabaa nuclear power plant project and Hyundai Rotem metro car supply project are underway. This form of cooperation is not just about exporting Korean products to Egypt. On the contrary, the products are co-produced in Egypt for use in Egypt and exported out of Egypt. Our cooperation brings benefits to both sides, and we hope there will be more mutually beneficial products.

Recently, the area of ​​cooperation has expanded to broader topics, including defense industries. In February 2022, Korea signed to supply the K-9 howitzer to Egypt, and in August, the Egyptian and Korean air forces together presented Pyramids Airshow 2022. The cultural cooperation which has already started through the protocol of he bilateral agreement on the exchange of cultural heritage signed last January is another example of the expansion of cooperation

We also have various areas for future cooperation, such as tourism. In August, the Korean government lowered the travel alert level for Egypt, which will surely attract many Korean tourists to visit Egypt.

How does South Korea view Egypt’s hosting of COP27? What are the expected outcomes of COP27?

Extreme weather events, such as heat waves, forest fires, floods, droughts, etc., observed all over the world remind us that the international community must accelerate efforts to tackle climate change.

In particular, amid the energy and food security crises caused by the war in Ukraine, members of the international community should strengthen their cooperation so as not to delay implementation efforts to achieve the 1.5 degree goal. .

In this spirit, we highly appreciate Egypt’s efforts to host COP27 and maintain the momentum of the international community to fight climate change.

Based on these invaluable efforts, we must achieve balanced progress in the area of ​​climate change adaptation and we expect to have constructive discussions on loss and damage, the agenda in which developing countries are very interested. .

We look forward to seeing progress in the COP27 negotiations and discussions in the areas of mitigation, adaptation and climate finance.

Could you tell us about South Korea’s action plan to combat the impacts of climate change?

Korea, as a global hub state, will continue its efforts to realize the 2030 Nationally Determined Contribution (NDC) and 2050 Carbon Neutrality scenarios.

In particular, Korea will contribute to the success of COP27 by strengthening solidarity with the international community in the fight against climate change.

How can Egypt and South Korea cooperate in the future in the fight against climate change?

Egypt is already making tireless efforts to combat climate change, not only in Egypt but also across Africa. For its part, Egypt has already launched the national climate strategy 2050 and is launching many green growth projects.

Meanwhile, the Republic of Korea has chosen Egypt as a strategic partner for development cooperation from 2021 to 2025. In addition, we have selected “environment and energy” as one of the main areas of cooperation. .

In this context, two countries can strengthen cooperation for various programs or projects in the fields of renewable energy, transport and other environment-related sectors through ODA or cooperation with Korean companies equipped with technologies. relevant.

We look forward to continuing our green cooperation and gaining fruitful results in the future. Also, we will continue to strive to contribute to Egypt’s green growth effort.

© 2022 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

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15 largest Korean companies by market capitalization https://aisa-net.com/15-largest-korean-companies-by-market-capitalization/ Sun, 06 Nov 2022 14:48:01 +0000 https://aisa-net.com/15-largest-korean-companies-by-market-capitalization/

In this article, we will take a look at the 15 largest Korean companies by market capitalization. To skip our detailed analysis, you can go directly to the 5 Largest Korean Companies by Market Capitalization.

Although it has the 27th largest population in the world, South Korea has the 10th largest economy in the world and the 4th largest economy in Asia. South Korea in an incredible achievement of a country that has grown from an underdeveloped country to a country with a highly developed economy in a few generations thanks to which it is now part of the G-20 and the Organization of economically developed countries. Much of the success the country has achieved can be attributed to the country’s education system which has spurred a technological boom. Despite its incredible growth, South Korea is still considered one of the fastest growing economies in the world and is expected to be among the world’s leading economies by the middle of the 21st century. Another reason for South Korea’s economic strength is its export focus, where it is the eighth largest exporter in the world. Its economic resilience is why it was one of the few countries in the world to avoid a recession during the Great Recession and has gone from strength to strength ever since.

However, this does not mean that the company is completely impervious to global problems, as evidenced by the high inflation rate the country faced in 2022, in line with the record inflation levels faced by most countries in the world. world as fears of a global recession deepen. Despite high inflation, according to the OECD, the South Korean economy is expected to grow by 2.7% in 2022 and 2.5% in 2023. While consumption is expected to grow, a major improvement will be seen in 2023 due the strength of investments and exports. Other problems facing South Korea’s economy where the employment rate is below the OECD average while GDP per capita is 20% lower than the best performing countries in the OECD. In addition, income inequality is higher than in other advanced economies, while carbon dioxide emissions are above the OECD average and far from decreasing.

Largest Korean Companies by Market Capitalization

Pixabay/Public Domain

South Korea is home to many of the biggest companies in the world. In fact, in the Forbes 2000 list, South Korea has the 4th highest number of companies with 66, ahead of major powers like Germany, France, UK and Spain. Only the United States, China and Japan have more companies among the top 2,000 global companies. After isolating the 66 Korean companies on the Forbes Global 200 list, we then ranked them according to their market value. For market value, we checked Yahoo Finance for each company’s market cap as of October 30, 2022. Where market value is in local currency, we’ve converted it to USD based on the latest exchange rates. So, without further ado, let’s take a look at some of Korea’s biggest companies, many of which will be familiar to you, starting with number 15:

15. Woori Financial Group Inc. (NYSE: WF)

Total company revenue (in billions): 11.47

Total company profits (millions): 2,200

Total company assets (billions): 376.2

Total company market value as of October 30, 2022 (in billions): 6.2

Woori Financial Group Inc. (NYSE: WF) is a South Korean banking company. Formed in 2001 by the merger of four commercial banks and an investment bank, Woori Financial Group Inc. (NYSE: WF) employs more than 13,000 people.

14. Hana Financial Group

Total company revenue (in billions): 13.75

Total company profits (in millions): 3,010

Total company assets (billions): 422.7

Total company market value as of October 29, 2022 (in billions): 8.6

One of the four financial holding companies on the list of Korea’s largest companies by market capitalization, Hana Financial Group has more than 15 subsidiaries and is active in 24 countries on several continents with a strong presence in Indonesia, Vietnam and China.

14. Samsung Life Insurance

Total company revenue (in billions): 25.44

Total company profits (in millions): 1,280

Total company assets (billions): 287.1

Total company market value as of October 30, 2022 (in billions):

Korea’s largest insurance company, Samsung Life Insurance products include annuities, life insurance and health insurance. It had the largest IPO in South Korea’s history and has over 6,000 employees.

12. LG Electronics

Total company revenue (in billions): 66.12

Total company profits (in millions): 900.9

Total company assets (in billions): 45

Total company market value as of October 30, 2022 (in billions): 10.8

One of the largest electronics companies in the world, LG Electronics has four business divisions: mobile communications, home appliances, vehicle components and home entertainment. LG Electronics is the second largest television manufacturer in the world after Samsung Electronics.

11. KB Financial Group Inc. (NYSE: KB)

Total company revenue (in billions): 33.86

Total company profits (in millions): 3,790

Total company assets (billions): 560.38

Total company market value as of October 29, 2022 (in billions): 13.1

A financial holding company, KB Financial Group Inc. (NYSE: KB) provides banking and financial services and is considered a national systemically important bank. KB Financial Group Inc. (NYSE: KB) was formed from the restructuring of Kookmin Bank and acquired one of Korea’s largest life insurance companies in 2015. KB Financial Group Inc. (NYSE: KB) has 13 subsidiaries.

10. SK Group

Total company revenue (in billions): 85.9

Total company profits (in millions): 1,720

Total company assets (in billions): 139.1

Total company market value as of October 29, 2022 (in billions): 12

SK Group is a South Korean conglomerate and is the second largest conglomerate in Korea. SK Group consists of 186 subsidiaries and is involved in various industries including chemical, petroleum, energy, marketing, construction and broadband internet.

9. POSCO Holdings Inc. (NYSE: PKX)

Total company revenue (in billions): 66.66

Total company profits (in millions): 5,770

Total company assets (in billions): 77

Total company market value as of October 29, 2022 (in billions): 13.2

POSCO Holdings Inc. (NYSE: PKX) is a steel giant and is considered one of the largest steel manufacturers in the world. POSCO Holdings Inc. (NYSE: PKX) owns two steel mills in South Korea. While POSCO Holdings Inc. (NYSE:PKX) operated a joint venture with US Steel, the project was fully taken over by US Steel in 2020.

8. Shinhan Financial Group Co., Ltd. (NYSE:SHG)

Total company revenue (in billions): 29.3

Total company profits (in millions): 3,570

Total company assets (billions): 545.24

Total company market value as of October 29, 2022 (in billions): 13.2

Shinhan Financial Group Co., Ltd. (NYSE: SHG) is a financial holding company and is considered one of Korea’s Big Five financial groups. The services provided by Shinhan Financial Group Co., Ltd. (NYSE: SHG) are life insurance, securities, investment banking and banking. Shinhan Financial Group Co., Ltd. (NYSE: SHG) has 17 subsidiaries to manage its various business aspects.

7.C&T Samsung

Total company revenue (in billions): 30.1

Total company profits (in millions): 1,430

Total company assets (in billions): 46.5

Total company market value as of October 29, 2022 (in billions): 13.7

Samsung C&T is an engineering and construction company which was the very first Samsung company to be incorporated in 1938. Employing over 17,000 employees, the company focuses on real estate, trading and investments and of course building.

6. HyundaiMobis

Total company revenue (in billions): 36.42

Total company profits (in millions): 2,050

Total company assets (in billions): 43.3

Total company market value as of October 29, 2022 (in billions): 14.3

Hyundai Mobis is an automotive parts company and is the “parts and services” arm of major automakers Hyundai Motor, Kia Motors and Genesis Motors. Kia Motors owns more than 21% of the company.

Click to continue reading and see the 5 Largest Korean Companies by Market Capitalization.

See also:

Disclosure: none. The 15 largest Korean companies by market capitalization are initially published on Insider Monkey.

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North Korea fires artillery at sea as South Korea, US pledge cooperation https://aisa-net.com/north-korea-fires-artillery-at-sea-as-south-korea-us-pledge-cooperation/ Thu, 03 Nov 2022 22:45:55 +0000 https://aisa-net.com/north-korea-fires-artillery-at-sea-as-south-korea-us-pledge-cooperation/

SEOUL, Nov 4 (Reuters) – North Korea fired around 80 artillery shells into a maritime border area overnight, South Korea said on Friday, as defense ministers from Seoul and Washington meet pledged to show determination in the face of a deluge of missile tests by South Korea. North.

North Korea fired several missiles at sea on Thursday, including a possible misfired intercontinental ballistic missile (ICBM), prompting the United States and South Korea to extend aerial drills that angered Pyongyang.

Shortly before midnight on Thursday, South Korea’s military said it detected more than 80 artillery shells fired into the sea by North Korea, which it says violates a 2018 inter-Korean agreement.

The South has sent a warning communication to the North about the shootings, South Korea’s Defense Ministry said in a statement.

Meeting in Washington, US Defense Secretary Lloyd Austin and South Korean Defense Minister Lee Jong-sup pledged to seek further steps to demonstrate the alliance’s “resolve and capability” following repeated provocations North Korea, according to a joint statement from the two countries.

Tensions have risen as North Korea has carried out a record number of missile launches this year, including at least 23 on Wednesday alone and the launch of the ICBM on Thursday. South Korea and the United States also say North Korea has completed technical readiness to test a nuclear device at any time, in what would be its first nuclear test since 2017.

Pyongyang, meanwhile, has condemned Allied military drills.

On Thursday, Pak Jong Chon, secretary of the Central Committee of North Korea’s ruling Workers’ Party, said Washington and Seoul had taken a very dangerous decision by extending the drills and were “pushing” the situation out of control.

“The United States and South Korea will find they made a terrible mistake that cannot be reversed,” Pak said.

Diplomats said Washington asked the UN Security Council on Friday to meet publicly on North Korea, a request backed by fellow council members Britain, France, Albania, Ireland and Norway.

North Korea has long been banned from nuclear testing and ballistic missile launches by the Security Council, which has tightened sanctions on Pyongyang over the years in an attempt to cut off funding for such programs.

However, in recent years the 15-member council has been divided over how to deal with North Korea and in May China and Russia vetoed a US-led push to impose more restrictions. UN sanctions in response to North Korean missile launches. (Reporting by Josh Smith; Editing by Sandra Maler)

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[Aziz Durrani] Reset Southeast Asia’s Climate Agenda https://aisa-net.com/aziz-durrani-reset-southeast-asias-climate-agenda/ Mon, 31 Oct 2022 20:31:00 +0000 https://aisa-net.com/aziz-durrani-reset-southeast-asias-climate-agenda/

High inflation, rising interest rates, falling currencies and volatile energy prices, along with economic slowdown and post-pandemic fiscal issues, could increase pressure on ASEAN+3 – the 10-member Association of Southeast Asian Nations, along with China, Japan and South Korea – to reduce efforts to mitigate climate risks. While this policy change may be fiscally sound, it is a mistake that could have serious repercussions for the region and ultimately lead to slower economic growth and higher great financial instability.

If not taken into account, the risks that climate change poses to ASEAN+3 countries could have far-reaching implications for agricultural production, water availability, energy security, transport and the region’s infrastructure, tourism industries and coastal resources. Over the past two years, floods, cyclones, droughts, sea level rise and landslides have become an increasingly frequent feature of life. Myanmar, the Philippines, Vietnam and Thailand are among the 10 most climate-vulnerable countries in the world, having suffered the highest number of deaths and economic losses from weather-related disasters between 1999 and 2018. .

In addition to these physical risks, the transition to a low-carbon economy carries risks of its own. For starters, industries that rely heavily on fossil fuels increasingly face heavier regulatory burdens. Much of the region’s oil, gas and coal reserves could end up being left in the ground and discounted or written off entirely. Changes in energy policy are also likely to increase banks’ credit risks. If Indonesia, the Philippines and Vietnam meet their commitments under the 2015 Paris Agreement, for example, coal-fired power plants valued at $60 billion will become stranded assets in 15 years, instead of 40.

The green transition would most likely also affect the profitability of coal mines elsewhere in the region, such as in Indonesia. And European Union efforts to move away from palm oil-based biofuel and encourage the use of deforestation-free products could turn land banks in Malaysia and Indonesia into stranded assets. But despite these transition risks, doing nothing would ultimately be more costly for ASEAN economies.

Certainly, ASEAN countries have taken steps to mitigate climate risks. Brunei has put in place coastal protection structures. Indonesia has promoted mangroves and climate-tolerant crop varieties. Laos has developed sustainable crop management techniques. And Malaysia has pursued climate-smart technology and organic farming.

But despite these improvements, there is still a long way to go to meet the renewable energy targets of ASEAN+3 countries. Several initiatives could support the region’s efforts: the ASEAN Action Plan for Energy Cooperation, for example, aims to increase renewable energy to 23% of the region’s energy supply by 2025, compared to 14% in 2017. And the 2021 Carbon Forum – China, Japan and South Korea’s neutrality targets presented concrete ideas for achieving net-zero emissions through trilateral cooperation on innovation and technology.

Carbon pricing is essential to the green transition. ASEAN+3 countries have led discussions on the balance between pricing systems and the need to stimulate economic growth. In July 2021, China launched the operation of its national emissions trading system, designed to be a “significant market instrument” to help China achieve its climate goals. A year later, although still facing data quality issues, China’s ETS is the largest in the world in terms of emissions covered, and prices are steadily rising. Although calls have been made for a region-wide carbon tax, this idea seems unlikely in the short term, given the differences in tax regimes. Nevertheless, a carbon tax is likely to remain at the center of discussions within ASEAN+3 for the next few years.

Promoting sustainable finance will also be essential for a successful transition, as the financial sector could drive economy-wide change. In recent years, many central banks and financial supervisors in Asia have implemented, or started to implement, such measures, despite continued capacity and resource constraints.

In the short term, central banks and financial regulators in ASEAN+3 have significant leeway to incentivize the transition to a low-carbon economy by incentivizing businesses and lenders to reduce their carbon consumption. and to focus on renewable energy and green technologies. Such measures would encourage a similar shift across the economy, leading companies to integrate climate risks into their products and services.

By promoting low-carbon policies and encouraging green finance, policymakers could stimulate new renewable energy sectors and boost economic growth. Moreover, reducing their reliance on dollar-denominated fossil fuels would allow ASEAN+3 countries to redirect government revenues from maintaining large foreign exchange reserves to domestic policies.

To minimize the adverse effects of climate change on their people and economies, ASEAN+3 policymakers must implement risk mitigation policies that help prevent regional spillovers and encourage the emergence of new industries and technologies. It would also enhance energy security. Cutting off the sun and the wind is much more difficult than blowing up a gas pipeline.

Aziz Durrani

Aziz Durrani is a capacity development expert at the Singapore-based ASEAN+3 Macroeconomic Research Bureau. — Ed.

(Project Syndicate)

By Korea Herald Photo (khnews@heraldcorp.com)

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US says North Korea policy remains unchanged after nuclear remark raises eyebrows https://aisa-net.com/us-says-north-korea-policy-remains-unchanged-after-nuclear-remark-raises-eyebrows/ Sat, 29 Oct 2022 02:07:39 +0000 https://aisa-net.com/us-says-north-korea-policy-remains-unchanged-after-nuclear-remark-raises-eyebrows/

By David Brunnström and Simon Lewis

WASHINGTON, Oct 28 (Reuters) – The United States said on Friday its policy toward North Korea had not changed after a senior U.S. official responsible for nuclear policy raised eyebrows saying that Washington would be willing to engage in arms control talks with Pyongyang.

Some experts say recognizing North Korea as a nuclear-weapon state, which Pyongyang wants, is a prerequisite for such talks. But Washington has long argued that North Korea’s nuclear program is illegal and subject to UN sanctions.

Bonnie Jenkins, the State Department’s undersecretary for arms control, was asked at a nuclear conference in Washington on Thursday how much North Korea should be treated as an arms control issue.

“If they wanted to have a conversation with us…arms control can always be an option if you have two countries willing to sit down at the table and talk,” she replied.

“And not just arms control, but risk reduction – everything leading up to a traditional arms control treaty and all the different aspects of arms control that we can have with them. We made it very clear to the DPRK…that we are ready to talk to them – we have no preconditions,” she said, referring to North Korea by the initials of its official name.

Referring to North Korean leader Kim Jong Un, she added: “If he picks up the phone and says, ‘I want to talk about arms control,’ we’re not going to say no. I think we’d rather want to explore what that means.”

The United States and its allies fear that North Korea is about to resume nuclear bomb testing for the first time since 2017, which would be very unwelcome for the Biden administration ahead of the midterm elections in the country. beginning of next month. North Korea has rejected US calls to resume talks.

Asked about Jenkins’ comment, State Department spokesman Ned Price said, “I want to be very clear about this. There has been no change in American policy.”

Price said the US policy remained “the complete denuclearization of the Korean Peninsula,” while adding, “we continue to be open to diplomacy with the DPRK, we continue to reach out to the DPRK, we are committed to pursue a diplomatic approach”. stand ready to meet without preconditions and call on the DPRK to engage in serious and sustained diplomacy.”

“KIM JONG UN’S TRAP”

Speaking Friday at the same nuclear policy conference Jenkins addressed, Alexandra Bell, another senior State Department arms control official, also stressed that there were no changes. in American politics.

When asked if it was time to accept North Korea as a nuclear state, she replied: “Apart from, we are committed to the denuclearization of the Korean peninsula. We do not accept North Korea with this status. But we are interested in having a conversation with the North Koreans.”

Daniel Russel, the top US diplomat for East Asia under then-President Barack Obama and now with the Asia Society, told Reuters that Jenkins had “fallen straight into Kim Jong Un’s trap. ” with his remarks.

“To suggest that North Korea just has to agree to have a conversation with the United States on arms control and risk reduction is a terrible mistake, because it shifts the question of Korea’s right from North of possessing nuclear weapons to the question of how many she should have and how they are used,” he said.

“Kim would like nothing better than to advance his risk reduction agenda – the withdrawal of US troops from Korea.”

Other experts played down Jenkins’ remarks.

Daryl Kimball, executive director of the US-based Arms Control Association, said she was not making a statement recognizing North Korea as a nuclear-weapon state under the international non-proliferation treaty. .

“She recognized, like other officials in other administrations, that North Korea possesses nuclear weapons, but in violation of its commitments under the NPT not to seek nuclear weapons,” he said. at Reuters.

Kimball and Toby Dalton, a nuclear expert from the Carnegie Endowment for International Peace, which hosted the nuclear conference, said they did not see formal recognition as a nuclear-weapon state as a prerequisite in the arms control talks. Dalton said Jenkins seemed to essentially reaffirm the US position that he was willing to talk to Pyongyang without preconditions. (Reporting by David Brunnstrom and Simon Lewis; Editing by William Mallard)

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