24 July 2018

In memoriam: Roh Hoe-chan (1956~2018)

Roh Hoe-chan, one of the former leaders of the 'Towards the progressive party' movement, former chairman of the organizing committee for the 'Baek Gi-wan for president' movement in 1992[1], and former executive member of the Gukmin-Seungri-21(People's Victory 21) party in 1997, who had played an instrumental role in founding Minju-Nodong-dang(Democratic Labor party) in 2000, and house representative of the Justice party -- a successor of Minju-Nodong-dang, passed away on Jul. 23, 2018.

Members of the progressive parties movement built their party from the ground up, and had to make their way into the parliament with their bare hands in the 20th century, as
as the development of progressive political parties was unprecedented, and in some degrees, barricaded. This was mainly because the suppression by the military-led government and their propaganda which often identified these political groups with communists from North Korea communist party, in other words, Commies. They struggled their ways through this slander, prejudice and people's negligence.  And, in the course, some even lost their lives from illness, poverty and overwork.

Through this harsh environment and numerous ups and downs, when visible and invisible to the public eye, Roh still remained as one of the cornerstones in the 'party that leads progress' movement, focusing on the 'Politics for the laborer and the poor'. To commemorate him, I present the following acceptance speech for co-chairman of the Justice party, in 2012.





Three flowers for chairman while only one for board members... If I become a chairman, this inequality and budget waste should be uprooted (Laughter. Applause)

There is a bus, route number 6411.

Starting its route from 'Tree Park' in Guro district, through Gang-nam, to 1st apartment in Gaepo district, it runs its course in about two hours. Tomorrow morning, first one will start its run at 4:00. This one and following 4:05 bus, get full after 15 minutes from its departure. When it reaches Sindorim and Guro-market, seats are full, and passengers are packed and seated in corridors. This same weird scenary happens, day after day.

New passengers are rarely to be found. Exact same passengers every day. Even though it isn't a commute bus, there seems to be a designated seat. Every passenger knows who gets on which stop, who gets off at which stop. Such a peculiar bus it is. Those who use this bus are, ones that must wake up on 3:00, and arrive on their workplace in Gangnam office buildings by 5:30. For there's no subway train in this early morning, they have to commute on this bus. When one of the passengers happen to have absence, everyone knows; who from where missed the bus.

However, later that day, when it becomes regular commute time, when other citizens get on the bus in the daytime, when they get on the bus after their work and to their homes in nighttime, no passenger of this bus knows that, this 6411 buses in four AM gets nearly full from the garage, drop manifests of women in their fifties and sixties in many stops in Gangnam district, then goes back to garage. The same applies to their workplaces. Althought many young workers -- in the ages of their sons and daughters -- go in and out of that building, none of them knows that their offices are cleaned and maintained by the elders who starts their work at 5:30.

They have their names from their birth, but they are not called by their name. "Adju-money" (elder women) it is. Just that. One janitor worker who cleans. These ones, who get paid $800 a month, they are the 'invisibles'. They exist, but their existence we cannot recognize, nevertheless they live together with us. The same applies to subcontracted workers of Hyundai-motors on their strike over High-voltage-wire towers[2], to Ssangyong workers, 23 of whom lost their lives[3]. The same applies to the five who vanished in Namil-dang building, whose ground lies barren for years and years[4]. They are invisible.

I ask myself this; They are the ones who have no time to watch prime-time news shows, because they have to sleep. For that, it is no surprise that they don't know Shimin Yu, Sang-jeong Shim, and me, Hoechan Roh[5]. But, does that mean, that they don't go through hard moments when their lives are burdensome to them? WHERE WERE WE when they look for someone like us, when they were in trouble? Were we at the reach of their sight? Were we at the reach of their hands? Were we in the place where their voice can reach us?

I will blame no one. But, this party we now build together will only, when we exist for these invisibles who actually and actively maintain this country in its operation, find a fraction of its meaning. To face the truth, WE WERE INVISIBLES TO THEM IN THE MEANTIME. We spoke out politics for the weak, but we weren't there when they needed us, in the reach of their hands. We existed, but we were not seen. Invisible party, that were the progressive parties in this country.

Now I, would like to carry this party to where they can smell us, reach out their hands to grab us, with you. Now I ask you, whether you are ready for that.

River runs deep and wide while it runs towards its estuary. Ideals of people's party we speak of, will be achieved, only when we go down and low. I will accept this co-chairman's seat with burden on my mind, that you chose this man of insuffience for that reason. While this party exists, I will put my every strength to support Sang-jeong Shim, to achieve a regime-change we longed for, and to establish this party -- as we wish for -- THE PARTY FOR THE INVISIBLES, I will throw every piece of me. Come with me, thank you.

[1] Labor movements in South Korea can be roughly divided into two categories; ones that focus on class struggles on premise, to fight each issues and companies on the union ground; and ones that focuses on the politics that neglect the labor and the poverty, and establishing the party for laborer and the poor. Roh was in the latter group from late 1980's, to elect people's candidate to the president. He failed to achieve that in 1992, when Baek Gi-wan was the candidate.
[2] After 1997 crisis in Korea, conglomerates in Korea focused on outsourcing its core labors to subcontractors. Anti-precariat labor laws which enforced the employers to employ the laborers after two years of service, were sidestepped, by closing down the subcontractors and establishing the new subcontractors via paperwork, while the laborers worked consecutively on the same factory. Workers on Hyundai-motors company filed a lawsuit that this is a violation on labor law, and won their supreme court decision. Court forced Hyundai-motors to employ them by their name, but Hyundai didn't. Mentioned workers are those who climbed the high-towers to claim that the company follow the court order.
[3] Ssangyong motors were sold from Ssangyong group to Daewoo group, which soon became bankrupt, and after Government workout process, Ssangyong motors were sold to Shanghai motors. In 2008, based on falsely written financial assessment report, Shanghai motors fired thousands of employees. Labor union went on strike in 2009, but government quickly deployed SWAT team to lock them on the factory, cut the supplies including medicine and water, and launched para-military breakdown operation on them. After 70 days, struggles were closed down when all union members surrendered and got arrested. Many union members and their family suffered severe PTSD, and to this moment, 30 of them died.
[4] Yong-san district, formerly at U.S. Army disposal, were released to Korean government. Land prices soared high, and the redevelopment project ensued right after. The project owners were eager to start their project, so they hired local gangsters under the name of 'private security company' and harassed the tenants of the building. In Jan. 2009, some of them went on occupation at Nam-il dang building to speak out their harsh circumstances, but the government quickly shut down the building and deployed SWAT team to arrest them, right on that day. In due process, fire broke out, and five members of the occpuants and 1 police officer lost their lives. Court ruled against the occupants, that they are fully responsible for the deaths on that day, and sentenced them up to 6 years in prison.
[5] Those three were core members of Justice party, and most renowned members of the party. Shim was a factory-labor union legend and comrade with Roh, Yu was a famous public figure as critic, writer, political party organizer, and former minister in Mu-hyun Roh presidency.

15 November 2015

Police water-cannons a man to brain damage in a civilian protest

At 'People's General Protest' event held in Seoul, Nov. 14, police brutally fired water cannon to protesters, some of which was directly aimed to the protesters. Mixed in there were PAVA(https://en.wikipedia.org/wiki/Nonivamide) and Soy oil.

In that process, a 69 year old man was directly hit by water cannon in the head, got brain-damaged and fell down. Police even aimed the water cannon to those who ran to drag him out of the squall, resulting more severe damage. Police even aimed the cannon to the ambulance, which were dispatched to take him to hospital.

Mr. Paik, the victim, went into emergency brain surgery at 22:50(GMT +09:00) and still in surgery, at 25:40(GMT +09:00). Family was called for the worst situation. below are the footage from Media Mongoo, who was at the scene and captured the hit. Watch from 65 sec.



If can't see the footage in the blog post, click the link
https://www.youtube.com/watch?v=iyNryV9t-5E

Also included are articles with photos of this protest.

http://www.pressian.com/news/article.html?no=131140
http://www.vop.co.kr/A00000958082.html

This is a distress call from Seoul, South Korea. Please respond.

5 November 2015

There goes Hankyung again, a strange conference on Deaton was held.

In my last two posts, I introduced issues brought up by Gong-hoe Kim regarding manipulated translation on Angus Deaton's book <The Great Escape> by Hankyung BP, their hypocritical reaction to Kim's argument, claiming that there may be a connection between Corporate-driven organizations, newspaper, and a publishing house which was accused of such manipulation WHICH SHOULD BE KNOWN TO ANY SCHOLARS OR ECONOMISTS ABROAD, WHO CAN BE NEXT VICTIM OF MANIPULATION.

I hoped that their 'Free Economy Brigade' came clean of their guilt on publication ethics, or at least stop abusing Deaton's arguments to denigrate Piketty's study on inequality. But on Nov. 3, they went into whole different stage of forging a scholar's lifelong studies as something different; a cancelled symposium suddenly resurrected out of nowhere, and in no time, articles containing its key messages struck like a tropical squall in the right-wing media.

This article attempts to track these rather strange series of incidents, and further reveal the detailed connection between corporate and its various agencies, such as suspicious civilian groups and its think tank, news media and their subsidiary publishing company which serves as a factory of refences for this 'Free economy' ideology, or fantasy.
---
Korea Economic Research Institute(KERI) was going to hold a symposium <<The meaning of Angus Deaton's <The Great Escape> and its implications on Korean Economy>> on Nov. 3, at FKI Conference Center, where FKI is abbreviate for Federation of Korean Industries, an interest group of South Korean corporates. Below is the words from their invitation.
In his <The Great Escape>, he [Deaton] analyzes massive and real-world statistics data, concluding that humanity has won a great achievement, escape from poverty and disease, and it is solely by economic growth resulting from humanity's relentless endeavor. He goes on to stress out that it is growth which freed mankind from poverty and disease, lead them to happiness; not distribution. His such claim exactly describes Korea's triumphant growth from bleak poverty into the threshold of world economy leaders.

This stands as an exact opposite from Thomas Piketty's <The Capital in the twenty-first Century>, which created an uproar in S. Korea for Piketty asked for progressive tax on capital and income because growth does not improve distribution, but fixates the inheritance structure. In S. Korea where demand for distribution and welfare prevails even though the momentum for growth is plummeting, Deaton's argument stands out monumentally.
This invitation is now hard to find, for KERI cancelled the symposium on Oct. 29, after debates and concern about manipulation done on Deaton's book turned out to be a serious one. It's just rational for them to evade such risk on their reputation in holding such a conference like that. Is that right? ... No. not this time.

IMES, an institute whose homepage suddenly resurrected from 2-year cryogenic sleep for this symposium, took over and ran another symposium under exactly same name. It's not only name that is identical, but the content of the symposium itself resembles each other very much. Below is the comparison between two programs. Left is KERIs, and right is IMES' [links to their program]
  1. Opening statement  → Not Available on IMES program
    • Byeong-rak Song (Chairman, Center of Freedom and Creativeness, which happens to be operating under FKI)
    • Kyu-jae Jeong (Editor in chief, Hankyung, who you may be familiar with from my last post on his fanatic rant).
  2. Session I : Presentation
    • Key Messages in <The Great Escape> by Dong-geun Cho (Professor on Economics, Myungji Univ. and chairman of IMES)
      →  Name of the keynote not available in IMES program, but lecturer is the same.
    • <The Great Escape> and the Korean Economy by Jeong-geun Oh (Fellow researcher, KERI
      →  Name of the keynote not available in IMES program, but lecturer is the same.

  3. Session II : Discussion
    • Moderator : Jeong-geun Oh (same as above, Same on both program)
    • Panels :
      - Jung-sub Shin (Professor on Ethics, Kangwon Univ., Same on both program)
      - Chang-hyeon Yoon (Professor on Management, University of Seoul, Same on both program)
      - Jin-kwon Hyun (Chairman, Free economy institute, as seen on my previous post, Same on both program)
      - Dong-geun Cho (same as above, only on KERI program)
Even though the program seems to be very same, one thing was very different in these two symposiums; its SWIFTNESS. The announcement was posted in 10:40, Nov. 3. in IMES homepage and Citizens Union for Better Society(CUBS, under which IMES is operating). The symposium itself was held the same day at 14:30, and in 18:45, two articles regarding this symposium's key findings were already posted in Hankyung. If the programs were the same, IMES symposium would have ended on 17:30. Two articles were finished, ran through the editorial desk, graphics were made, posted to web in mere 75 minutes. A sure Blitzkrieg.
  
Two points have to be made. 1) Free Economy Institute and CUBS shares agenda such as; Strong support on loosened regulation, hatred upon labor union (especially Teacher's Union, which was outlawed by this government), pro-corporate issue making and education of such, abolishing government-certified textbooks and introducing single government-issued textbook in history education. 2) This pro-corporate issue surprisingly resembles FKI, Hankyung, and Hankyung BP's agenda. By coincidence, the last caused a turmoil by distorting arguments of Deaton by wrongfully translating and manipulating his text. Only the magnitude of provocativeness is different among them.

You can wonder and ask, how this mere coincidence be an evidence of their fraternity, in forefronts of 'Free Economy Brigade'? I'll answer to that question as, there is no evidence yet, like the relation between Americans For Prosperity and Koch industries remained hidden before media coverages. Like I did before, I'll translate two articles by Hankyung as before, to show that how pro-corporate ideologue -- not scholars in economics -- are trying to push their issues, to prevail the discourse on economics in Korea.

[Symposium on <The Great Escape>] "Korea is a country of The Great Escape. For the benefit of the poor, growth must go on"

Implication on Korean Economy : Low growth rate causes worse distribution

"'Miracle on the Han River' is THE great escape from poverty and disease"

Jeong-geun Oh, a fellow researcher in KERI said so in symposium <<The meaning of Angus Deaton's <The Great Escape> and its implications on Korean Economy>> held Nov. 3 in the Press Center at Taepyeong-ro, Seoul. He said that "Deaton, professor in Princeton Univ., stressed out in his book that mankind has achieved a great escape in 250 years after industrial revolution, during which dramatic economic growth led to increase in income and life expectancy, resulting in better life quality." and explained "Korea has achieve such escape by economic growth after 1960's".
GDP per capita of Korea in 1962, when first five-year economic development plan was initiated, was $90, about 45% of Myanmar. Last year, GDP per capita was $29,673. In 52 years, it grew approximately 311 times GDP back then.

Oh's analysis is that Korea achieved a great escape within rapid growth, but as growth rate decreased, distribution also got worse. Oh emphasized that "After General Labor Strike in 1987, annual growth rate rose up to 20%, which intrigued fixation in high-salary-low-yield-tendency. For that, Korean companies left Korea." Oh went on saying that "As a result, Korea went into Mid-growth era by 1992". Korea's average annual growth rate 9.5% in 1963~1991, fell down to 5.1% in 1992~2011. This year, it can be low as 2%.

He said that "When growth rate rose by 1%, Gini coefficient, which represents the magnitude of inequality, goes down by 0.3%", and concluded that "regress in growth rate lead to higher Gini coefficient, collapse in the middle clase, resulting in worse distribution scheme." Gini coefficient which was 0.255 in 1990, rose up to 0.308.

Oh emphasized that "To rebound economic growth rate and leap into the league of developed countries, we must succeed in labor reformation and regulation breakdown, to regain momentum for growth via revitalizing investment and foster high-valued service industries" and emphasized that "The most important thing is our strong will to achieve the great escape, to stand up on our feet, again."

Seung-woo Lee,  leeswoo@hankyung.com
Second one even gets worse.

[Symposium on <The Great Escape>] The Pikettian Jealousy mentality will let us fall into poverty again

IMES symposium <<The meaning of Angus Deaton's <The Great Escape> and its implications on Korean Economy>>
There's stark difference in Deaton's diagnosis and prescription from Piketty's
Globalization, Progress in technology gave rise to inequality -- Inequality in system must be fixed VS Inequality is deepened by inheritance -- Taxation on rich must be made;


The symposium to re-visit the argument in the book <The Great Escape> by Angus Deaton, Professor at Princeton Univ. and Nobel laureate of this year. Participants including Dong-geun Cho, Prof. at Myungji Univ. called him as a 'skeptical optimist' who emphasizes the advantage of inequality, while keeping one's eye on negative impact. His view is still on opposite french economist Thomas Piketty's. In Deaton's view, problems of poverty and 'bad inequality' is not solved by heavy taxation on rich people.

In <<The meaning of Angus Deaton's <The Great Escape> and its implications on Korean Economy>>, a symposium held by IMES at Press Center, Nov. 3, focused on the right way to read Deaton. Efforts on finding his key message marched on. Prof. Cho let out a lengthy remark in his keynote announcement about Deaton's 'ladder of progress'; In fifth chapter of his book, Deaton reviewed the changes in America's poverty rates. The rate went down to 22% in 1959 to 11% in 1973, but rebounded to 15% in 2010. Income per capita rose 60% during 1973~2010 period, but it didn't result in reduced poverty rates. For this fact, some argued that the economic growth is not efficient in reducing poverty.

"Systematic emphasis on positive effects of inequality"

But Prof. Cho explained that "Deaton criticized that the poverty standard was set a long time ago" and "his claim is that the other qualitative factors of 'well-being' must be considered". He said that living in Democratic Society, getting education, living in health, etc. also matters. He said that "It is an immovable fact that world has made a significant progress in health, life expectancy and education, by economic growth" and "this is the key message of Deaton's argument".

In discussion, he focused on Deaton's interview right after his award ceremony in which he mentioned the inequality as 'two-edged sword'. According to Deaton, inequality has a right function to motivate people to get better education and find a job. Prof. Cho added that "Deaton may be the first scholar with systematic emphasis on positive effects of inequality".

He pointed out that Deaton didn't lose his alert on negative effects of inequality. Deaton acclaimed Piketty's work on inequality, in Chapter 5 of his book. For this point, some regard Deaton as sharing a view on Piketty's one on inequality. But Prof. Cho stressed out; "That does not mean that Deaton agrees on Piketty, nor their arguments supplement each other." and "there's stark difference in Deaton's diagnosis and prescription from Piketty's."

"That does not mean that Deaton agrees on Piketty, nor their arguments supplement each other."

Piketty claims that inequality gets worse as the profit rate on capital exceeds economic growth rate. On the other hand, Deaton saw that not only the share of top income class is changed, but also its constituents and types is as well. Globalization caused the enormous amount of wealth flow into those with higher level education such as Bill Gates or Steve Jobs.

In discussion, a claim was raised that the solution on inequality resides in resolving 'inequal competition' backed by political lobbyists. Jung-sub Shin, Prof. of ethics at Kangwon Univ. said that "Deaton does not see that the inequality can be solved by ditching progress and focusing on distribution" and "he even opposed on the idea that aid on poor country can reduce poverty." 

Inequality is bad, if the system is unfair

Panels all agreed that the discourses on must not be fragmentary. Chang-hyeon Yoon, Prof. of Management at Univ. of Seoul said that "Who can say we should abolish cars because they let out exhaust gas?" and "Those who simplifies Deaton as a champion of inequality is, just wrong." 

Jin-kwon Hyeon, chairman of Free Economy Institute, said that "We must consider economic growth, inequality, rate of extreme poverty at the same time" and "resolution in poverty and growth in economy cannot be separated." He also said that "The Pikettian Jealousy mentality that the growth is based on poor people's sacrifice will let us fall into poverty again."

Prof. Cho claimed that "The fact is, in last 100 years, 'dramatic concentration of wealth' and 'democratization in quality of life' happened simultaneously" and "I suggest that we focus on the latter." He said that "As we saw on last Financial Crisis, Crisis on economy dramatically deepens inequality" and "there is nothing more important in resolving inequality than accelerating our economic growth in steady rate."
Key messages in Deaton's <The Great Escape>
  1. In modern age, Humanity achieved a great escape from the poverty
  2. Inequality is a byproduct of growth, and inequality is in itself the momentum of growth
  3. There's a bad inequality, where the winner exercises plutocracy to kick the ladder he climbed on
  4. Financial instrument which brings higher incomes to certain class, is weapon of mass finance destruction
  5. Aid to (poor) countries usually caused bad outcome
Yu-mi Kim, warmfront@hankyung.com
How far will they go? What is their limit of shamelessness? I now start to wonder.

2 November 2015

Hankyung overrides Deaton's word to undermine Piketty

In my last article, I argued that Hankyung BP's distortion on Deaton's <The Great Escape> was rather intentional than accidental or erroneous, and there's a connection in the 'Free Economy Brigade' with intention on undermining Piketty, whose study presents a severe threat to those who profit from low corporate taxes and various exemptions on the rich.
# Note that how Hankyung BP altered and distorted Deaton's idea is on my last post. This is to show their attitude on this matter, how they react to the sincere criticism with hoax, so if you want the full detail on this matter, refer to my last post and links in it.

In fact, their forefront of 'brigade' isn't Hankyung BP, but various 'institutes', one of whose biggest firepower being Free economy institute, who is one of the fiercest fighters in offending redistribution, taxation on rich, and welfare (not exactly worded 'welfare', but 'populism'). Their attack is fortified with Hankyung's support fires, in a form of a newspaper article, and columns from the author of their own choosing -- intention so conspicuous in the selection. Hankyung BP's alteration in Deaton's text can be placed in this context, and all those 'Free economy brigade' use Deaton's Korean (Hankyung BP's) version of the book as their supporting point, or reference against Piketty, for Deaton won THE Nobel Prize, which Piketty and Saez haven't won.

But, even after Princeton University Press' statement came out and Hankyung BP retreated in silence, Hankyung fired several support fires in their spaces. After Hankyoreh's full-3-page feature article on their Saturday edition which criticizes Hankyung BP's distortion on Deaton appeared, Hankyung ran an editorial that their -- Hankyung BP's -- intention was distorted by Hankyoreh, and demanded all those malicious attacks be stopped. Then, yesterday (Nov. 1, 2015), its editor in chief Kyu-jae Jeong released a rant in his facebook page -- official article not found in his own website, "Jeong Kyu-jae news".

So, I introduce Deaton's quotes on Hankyoreh, translate Hankyung's editorial and JKJ's rant, for it hilariously reveals who they are fighting for, and how strong their solidarity runs within 'Free market Fantasy', and amount of their hatred upon those who seek justice -- coincidentally, 'Free economy institute' even runs a lecture which denigrates Michael Sandell, author of the book, <Justice : What's the right thing to do?>

Deaton's Answer, quoted

-Hankyung BP, the publisher of the Korean translation of your The Great Escape, and its affiliate newspaper, The Korea Economic Daily, have represented your book in such a way that its main argument is ‘inequality is good in that it promotes growth’. They also insist that your winning the Nobel Prize signifies the committee’s decision to take side with ‘promoting growth’ rather than ‘fighting against inequality’. As a result, you are known in Korean society as a pro-growth (and even pro-inequality) economist. Would you agree to this view?
# Note : Korean Economic Daily reads Hankook(Korea) Kyungje(Economic daily), abbr. Hankyung. It owns Hankyung BP as its subsidiary.
=LIKE ALL SENSIBLE PEOPLE I AM PRO-GROWTH, BUT NOT AT ALL COSTS. INEQUALITY CAN BE A BY-PRODUCT OF GROWTH, IT CAN BE AN INCENTIVE TO GROWTH, BUT IT CAN ALSO CHOKE OFF GROWTH. SOCIETIES NEED TO BALANCE THE PROS AND THE CONS.

-It is obvious that inequality sometimes plays an important role in promoting the development of the economy as well as the persons living in it. But, recently, it appears that there is a growing concern from economists about inequality. Could you explain why? Perhaps this question is about the motivation which made you write The Great Escape in 2013, for it is in a sense exceptional in that your work has been mostly for scholars, not for the public.

=THINK THAT PIKETTY AND SAEZ’S WORK ON DOCUMENTING THE VERY TOP OF THE INCOME DISTRIBUTION WAS AN IMPORTANT IMPETUS TO THE BROADER DEBATE. BEFORE THAT WE DIDN’T KNOW JUST HOW MUCH OF THE GAINS WERE FOCUSED AT THE VERY TOP. I HAVE WORKED ON INEQUALITY THROUGHOUT MY LIFE, BUT LIKE OTHERS, FOUND THEIR WORK VERY IMPORTANT AND INSPIRING.

Hankyung's answer to Hankyoreh

Hankyung BP person replied to Hankyoreh's inquiry via phone call, stating that "Hyun's preface 'Piketty vs Deaton' was a marketing point, but is to be removed, and it is their mistake that translation was done on too short time and editorial process was outsourced. But no distortion or such an attempt was on intent.", admitting that the Korean Version was a flawed one.

Anyway, Hankyung ran an editorial. 

'Escape from the poverty' Thoughts on Angus Deaton Economy

The attack on Hankyung BP, who's been paying attention to Deaton, this year's Nobel Laureate, and introduced him to public earlier, has been going over the line.

Denounciation poured down on Hankyung BP, can be summarized into 4 points. Abbreviation on Preface and Introduction, Altering the sub-title, Inserting a preface by local academic, Partly omitting text. Hankyung BP already explained and admitted its wrongness. Reducing redunduncy, some parts of the subtitles changed, adding a preface is solely for reader's understinding, and done nothing to the nature of the work, and they have no reason to do so.

Hankyung BP's promise was, despite all the face, if there remains a part that can unnecessarily cause misunderstanding, all will be fixed in revised edition. Princeton University Press has understood and sent a letter, clarifying that "Queries regarding the new Korean edition should be directed to Hankyung BP." But, last weekend, the newspaper Hankyoreh, via 3 pages feature, attacks Hankyung BP, that they distorted the essence of the book, furthermore Deaton's studies. Even the their title translation on "Wi-dae-han tal-chul" on contrary to "dae-tal-chul" in Japanese version was on their weird list of criticism.
# Note : in Korean, dae(大) means big in size or magnitude, while Wi-dae(偉大) bears meaning which has to do with something grandioso, something with tremendous historical value. The movie by the name <The Great Escape> by Steve McQuinn, is also translated <Dae-tal-chul>.

Deaton's economic view is, to anyone who has sense, so clear and distinct that there is nothing to argue about. The message is that humanity has achived a great escape from the poverty in modern age. That's why the book is named 'GREAT ESCAPE'(sic). Hankyung published his book and has interviewed him because that the Korean history was such a great escape, and, for that reason, his views on economics has resonated greatly with our reality. Anyone who curses the history of the Republic of Korea, would have some grudgeness against the miraculuous growth and great escape.

Essence of Deaton's study is that 'via Great escape, humanity become much happier and achieved well-being', though there are many matters left. It is why subtitle of the book was 'poverty, disease, and inequality'(sic) This is the essence of Deaton economics. Practical analyses and many statistics cases prove this.
# Note : the subtitle of the book is wrongly quoted.

Those who curse the world is getting much worse, will feel unpleasant with Deaton's escape theory. So they even dare to play cheap tricks to provoke sundry quarrels, to plant distorted images on whole Deaton's economics to public. Now is the time we humbly receive Deaton's message of hope to those who succeeded to escape.

RANT from the editor in chief

Although I feel like puking already, I'll move on to Kyu-jae Jeong's rant.
Newspaper Hankyoreh's gibberish on Deaton, and Hankyung is certainly going YAHOO. As I cannot stay still, I'll give them some economy lesson, one by one. While I feel not willing, and had little time to play with them, this grows ridiculous. Alteration, manipulation, nonsense has gone off the line. To those who watch Jeong Kyu-jae TV, I'd like to summarize a few.

1. On Hankyoreh's surprise that Hankyung compared Piketty and Deaton.

If Hankyoreh sees that Piketty and Deaton are not so different and has their arguments resembles each other, It's call rape and lovemaking is same, for it is sexual. Piketty who throws curses on Capitalism, and Deaton who claims that Capitalism made humanity escape from poverty? How can they be the same? If they share something, it can merely be words such as inequality, life, death, happiness, problem. Can't Hankyoreh distinguish victim's scream from lover's whisper?
Can the statement that there remains some problems, be tantamount to cursing the history of human lives? If you think Hankyung falsely put Deaton and Piketty in opposite position, you should read Kenneth Rogoff, professor of Harvard University, and Nikkei book review on Deaton. By the way, Prof. Rogoff is a strong Nobel Candidate. It is best that our interpretation and report was unique and leading-edge, but I'm sorry that we are on standard.

2. Comment by Deaton, and claim that Hankyung put Piketty and Deaton on the opposite side.

Sorry, but NO. This is a lie, entirely base on ignorance. The one who first explaiend him as the opposite of Piketty is not Hankyung. Nor that we plagiarized. Of course, and naturally we put them on the opposite pole. The one who says that the world is getting better and The one who says that the world is getting worse, naturally and understandably, stands on opposite position. This is not something Deaton has to agree or not. Deaton just wants to stand aside the argument.
We can't compare these two, because Deaton says "Don't put me in this tiresome argument."? Saying his word is for Deaton, but Comparing Deaton with Piketty is for commentators and researchers. Neither Deaton nor Piketty has the right to say on this as pro or con.

3. on whether Decrease in volume means distortion on author's statement

When the book with 350 pages is translated, the amount is heavily increased. It is irresponsibility, that the text translated word-to-word, and serve it as it is to the public -- Translating into Korean requires much more pages. I am lost for words, that they say this as a distortion to the book's message.
Deaton's book says much about inequality, but constantly claims that happiness is on the rise, and life gets better and better. It seems that there are some claims that we hid his argument and distorted his view via editing, but that's not us. It is classic lefties tactics.
Deaton stands where the growth is not all that matters, but source of all evil (sic. I 'especially' cannot comprehend his argument in this sentence) Some phrases from some sentences can't alter Deaton's core argument.

4. For those who doesn't read this book, I'll post a lecture video of Deaton. Someone tell them, Please study harder.

Deaton even goes on to say that there is no need to aid troubled poor countries. He claims that aid does not improve the countries' conditions at all. On the other hand, he says that the aid for disease prevention is very urgent. It's just not right, to quote latter to claim that Deaton sees the aid to underdeveloped as crucial.

5. Inequality is a word for someone who failed to get on the road of growth, and those who have advanced forward. Like North and South of our country.

In other words, poverty still left matters. That's Deaton's opinion. It is why he stresses that much on economic growth. It's different from Piketty, who claims the solution by imposing taxes up to almost forfeitting 90%. Whereas Hankyoreh seems to want to claim that our reality is not heaven, but this country is just HELL. Oh my. jkj

Note that Neither Hankyung or Jeong does not use the word 'BP', and Kyu-jae Jeong uses more strong words, expressions, and under-the-standard logics. It's because it's subscription based cast like Rush Limbaugh, focusing more on those who longs for harsh words. It's a part of the tactics, where someone writes with grammars attached to his brains, someone goes maniac.

Yes, they are in fact one party. I'm too tired and smashed up translating this hoax in the word and sentiment they used, unlike they did with Deaton's. Feel like my head is contaminated.

I end this writing rather briefly, WITH WARNING TO SCHOLARS, CRITICS, MEDIA, AND ANY PERSON ABROAD : THIS IS HANKYUNG, THIS IS HOW ONES WHO CHAMPION THE CORPORATE DEMAND ALTER THE REAL OPINIONS INTO SOMETHING PRO-CORPORATE. THIS IS FREE ECONOMY BRIGADE. THEY WILL DISTORT YOU WITH THIS LEVEL OF SINCERITY AND DETERMINATION.

Links

[1] neubauten, How Hankyung's commitment to "Free economy" distorted Deaton's  
http://beneath41.blogspot.kr/2015/10/how-hankyungs-commitment-to-free.html
[2] Free economy institute front page.
As they don't provide english page, I do not know what CFE means - maybe, a 'Center' for Free Economy? All you can say is that, their chairman wrote preface that Princeton University Press demanded to remove, and their slogan on their page reads "Freedom is not free of charge."
http://www.cfe.org/
[3] Hankyoreh, " Deaton says, "Inequality can also choke off growth" ", Oct. 30, 2015
http://www.hani.co.kr/arti/culture/religion/715336.html
[4] Hankyung, " 'Escape from the poverty', Thoughts on Angus Deaton Economy ", Nov. 2, 2015
http://www.hankyung.com/news/app/newsview.php?aid=2015110111941 
[5] Kyu-jae Jeong, Untitled, Nov. 2,2015
https://www.facebook.com/jkjtv/posts/900631049992006?pnref=story

29 October 2015

How Hankyung's commitment to "Free economy" distorted Deaton's <The Great Escape>

Deaton vs Piketty

In 2014, Hankyung BP, a subsidiary of the Korea Economic Daily(Hankook Kyungje, abbr. Hankyung) published Angus Deaton's book, <The Great Escape>. After its publication, Hankyung promoted the book as a rebuttal to Thomas Piketty's <Capital in the twenty-first century> with articles such as "Which one is right, Piketty's <Capital in the twenty-first century> or Deaton's <The Great Escape>?", "'Inequality is an incentive for economic growth', Prof. Deaton, author of <The Great Escape> says.", ignoring Deaton's appreciation on work of Piketty and Saez, focusing merely on his opinions about economic growth, ignoring health. About a year later, after Prof. Deaton won Nobel Economic Prize, Hankyung hits it again, saying "'Inequality in the foundation of growth'...<The Great Escape> is a masterpiece revealing the void in Piketty's opinion"

Concerns raised

At Oct. 18, 2015, Gong-hoe Kim, researcher at Hankyoreh institute for Economy and Society, came forward and argued that this book's translation is founded on hoax and prejudice, altered Deaton's text, distorting his arguments about inequality, growth, and shrinking arguments on health. His criticism is as follows.
  1. Subtitle of the book is changed from "health, wealth, and the origins of inequality" to "how inequality fires up economic growth", which is not Deaton's key argument.
  2. Preface was omitted, and only one thirds of Introduction was translated.
  3. Titles of the parts, chapters, sections are changed.
  4. Several omissions in text were found.
  5. Parts of the text was truncated and placed in other position.
  6. Sentences which were not in original text were inserted.
  7. This problem is not limited to Preface and Introduction. Whole text of the book has undergone more serious manipulation.
He explains the result of this manipulation is as follows
  1. Discussion on health is largely omitted, narrowing the focus of the book into economic growth.
  2. Deaton's view on inequality is significantly distorted.

Hankyung BP strikes back

As criticism grows fiercer, Hankyong BP released a public statement on their blog, and facebook page in Oct. 20. It is as follows.
  1. Preface and Introduction seemed too redundunt and lengthy, bore a risk that readers of the book could be bored, neglect this entire book. For this reason, "editorial changes" were made. For complaints were raised, this changes will be reverted in next edition. 
  2. Kim's criticism on altering Deaton's intention was caused by this "editorial changes", and Cases in original text were correctly and precisely translated throughout the book.
  3. Although there are some arguments, these editorial changes were made to gain more readibility, while minimizing the alteration on text.
  4. For there may be misunderstandings in subtitle of the book, it will be restored in next edition.
  5. Inserting some copies in book cover which put Deaton against Piketty is solely marketting decision, to show that there are many opinions regarding inequality.
  6. Although there are suspicions on altering the main text, hereby we clearely declare here, that no other part of the text is manipulated, or changed.
  7. Hankyung BP explained about this debate to Prof. Deaton through agency, and promised these will be corrected in next edition.

Kim presents evidence on distortion

Kim had to come forward, again in Oct. 22, to show Hankyung BP statement was a total lie, and to present the evidence of how Hankyung BP severed Deaton's discussion, line by line.

on how Hankyung BP's alterations in table of contents twist the author's opinion.

From the table of contents, one can easily see that Deaton focuses equally on progress and regress, and states that progress in wealth and health domain is also the reason of inequality, and inequality became most serious nowadays.
But Hankyung BP's alteration on table of contents omits this view, and presents his view on history as humanity's success on escaping from disease to health, and from poverty to prosperity. Of course there are some left, and they are not to be treated lightly.
Kim compares the table of contents as below. Left is original title Deaton provided, and right is the altered version.
a) The Wellbeing of the World  →  Are lives of world population satisfactory?
-- Deaton stated in Introduction that this chapter is an "introductory overview", but it was moved under Part 1 by Hankyung BP.

Part I. LIFE AND DEATH  →  a Great escape from life and death
b) From Prehistory to 1945  →  How lives has undergone changes
c) Escaping Death in the Tropics  →  What makes inequality linger on?
d) Health in the Modern World  →  How to solve the health inequality

Part II. MONEY  →  a Great escape from Poverty
e) Material Wellbeing in the United States  →  Revolution in material well-being
f) Globalization and the Greatest Escape  →  Great escape gives birth to new inequality

PART III HELP  →  How to help?
g) How to Help Those Left Behind  →  Those who have failed to escape

Postscript: What Comes Next?  →  Epilogue: the Great escape continues

Table of contents, Chapter e)

After that, he moves on to scrutiny chapter e, and goes on to show how omission and insertion distorted Deaton's view on human history. It may be too lengthy to present all his criticism here, so I will briefly introduce his view on Hankyung BP's "editorial changes" (all page number refers to Korean version of this book)
Chapter e. Revolution in material well-being
i. Economic Growth in the United States  →  Golden apple called progress in material condition
ii. Poverty in the United States  →  Can't growth reduce poverty rates?
iii. The distribution of incomes in the United States  →  Redistributing income
(following three sections were merged into one, reducing their importance)
iv. Inequality at work  →  Inequality in work, politics, labor market
v. Politics and Inequality
vi. Earnings and families
vii. Top incomes in the United States  →  Changes in top incomes rate
viii. What happened and why does it matter?  →  Equal chances
Deaton's view on wellbeing seems ambivalent. Although it seems that United States has gained certain benefits from growth, there is dark sides, and he will present these two views within his writings. Like Piketty, he analyzes 'Top Incomes' in Unites States, and applauds works of Pikkety and Saez -- the book <Capital in the twenty-first century> was not published back then. Question is raised. Do the titles Hankyung BP altered present this view of Deaton?

Omission 1 : remarks on considering inequlity (in Chapter e), p.196)

Deaton's lengthy remark on importance in contemplating inequality was omitted. In this deleted sentences, Deaton emphasizes that role which inequality plays must be considered heavily.

Omission 2 : remarks on what role inequality played (in Section i. p.203)

Deaton's view can be summarized as a) economic growth is good b) happiness is, in some degree, independent from economic growth. c) fair distribution is crucial ingredient in happiness. Hankyung BP removed whole arguments about c).

Omission 3 : End of the section "Poverty in the United States" (in Section ii. p.214)

Deaton states that we may be winning the war on poverty, but it must not be ignored that the distribution of wealth lagged behind growth after 1970's, and wealth was not distributed to those who earns bottom income, arguing that United States is in second phase where inequality grows, while progress slows down. Hankyung BP erased whole 'But' paragraph, Presenting Deaton's view on inequality as his opposite.

Omission 4. Two whole paragraphs of Deaton's detailed explanation (in Section iii. ~ iv., p.222)

Deaton explains about inequality regarding inequality in expertise, and inequality itself is a part of a system that raises the living conditions of everyone. Then the author comes up with example about allowance based on cleanliness, claiming that incentive can raise inequality, and incentive and inequality have stark conflict between them. Deaton paid much attention in explaning this conflict, stating them in lenghty-two-paragrphed explanation. Of course, these two 'Then' paragraphs were removed, leaving his view as 'inequality is inevitable'.

Omission 5. Ratio between minimum income and average income (in Section v., p.233~34)

Deaton reviews how politics affected low-salaried workers, and even parliament sometimes intervenes to increse it, real value of minimum income has a downward tendency, and the fall is accelerated when real wage rises.
Hankyung BP deleted the acceleration part, and changed the prior sentences as minimum wages' value has downward tendency but politics can increase it (so it can be controlled).

Omissions 6~8 (in Sections vi.,vii,viii)

In pages 235~36, Deaton deals with jealousy towards rich people and Pareto's law, criticizing Martin Feldstein, who was one of the most furious in criticizing Piketty. Hankyung BP splitted the paragraph and omitted some sentences and mistranslated some to obscure Deaton's standpoint regarding Feldstein.
In page 236, Deaton raises the question about bankers, whether their high income can be justified. He then gives the answer, that those inequality is impossible to defend. Hankyung BP omitted the question and answer, and just leaves his statement that there are some debates around it.
In pages 243~44, Deaton criticizes the power elites who once have suffocated the economic growth. Whole criticism was removed by Hankyung BP, concluding the section with altered Deaton's standpoint.

Deaton steps in: public statement from U.S. publisher

In Oct. 25, Angus Deaton sent an e-mail to Kim, appreciated his effort on criticizing Hankyung BP, and notified him about press statement from Princeton University Press in Oct.22 regarding Korean version of the book. Princeton University Press said in this statement that a) Korean version does not reflect the original work, b) Added preface by Korean economist, which wrongly places author's view as opposed to Piketty c) all these changes were not vetted or approved by either the author or Princeton University Press. They demanded Hankyung BP, and agreed to the terms a) Sales of this edition be ceased b) new edition be published, this time under independent review to accurately reflect Deaton's book c) Added introduction that presents this book as Piketty's counterpoint be removed.

Hankyung's resilience

But, four days later, Hankyung releases an interview with Hankyung BP -- neither its spokesperson nor executive, but Hankyung BP itself. I translate the whole article, for it is worth a reading.

"There were no distortion" ... the publisher states.

Abbreviation on Preface and Introduction was sole editorial changes to improve readability.
Under agreement, renewed edition will be published.


In Oct. 26, Hankyung BP, publisher of <The Great Escape>, work of Princeton Univ. professor Angus Deaton, this year's Nobel laurate, stated that "There were no distortion on original text", regarding the debate about alterations on text.

Some fraction claimed that Preface and Introduction were merged and abbreviated, and subtitle "How inequality fires up growth" was different from original subtitle "Health, Wealth, and the Origins of Inequality". They also claimed that Hankyung BP added introduction by Jin-kwon Hyun, chairman of Free economy institute, distorting Deaton's view as opposite to French economist Thomas Piketty on inequality.

Hankyung BP explained that "abbreviation on Preface and Introduction was editorial changes for readers' comfort, and subtitle was merely marketing's executive decision, and this was not to distort Prof. Deaton's points.", and added that "Putting Chairman Hyun's introduction was to introduce various views on growth and inequality, aiding readers' comprehension" BP also stated that "Although there were no distortion, if there are some parts omitted during adjusting pages, it will be restored."

Princeton University Press' statement in Oct. 22, also says that "There were changes, omissions and added Introduction which argues that this book opposes Piketty's <Capital in the twenty-first century>" but the statement did not argue that author's views are "Distorted". Princeton University Press also stated that "new edition which reflect Deaton's original work accurately, and undergone independent review will be published." They also added that "For any other concerens, contact Hankyung BP".

Hankyung BP also said that new edition would be published, under deep mutual cooperation with Princeton University Press, in which some parts that raised the debate will be modified. a Hankyung BP person said that "some parts that raised the debate will be corrected under Princeton University Press' consult" and "sales of current edition is ceased". He explained that "We don't want Deaton's arguments be delivered incorrectly" and "His key messages are, millions were saved from death and poverty, and, in spite of lingering poverty and millions left behind, poverty and inequaility is driving force of progress that made this world the best dwellable one in history.

In academic circles local and abroad, the view that Deaton's approach in growth and inequality are significantly different from Thomas Piketty's one which argues that heavy taxation on capital and income as solution to inequality, is dominant one.

Jong-tae Chung, jtchung@hankyung.com
Last two paragraphs accurately reflect Hankyung and Hankyung BP's standpoint. They hate Piketty, for he demands heavy taxations on rich people, so much that anyone who shows difference with Piketty is, to them, enemy of Piketty. Last sentence nails it as it says that "vast majority of economists opposed Piketty's solution, and backs Deaton".
Yes. <The Great Escape> is really such a book to them. So it is just to add free-market ideologue Hyun's preface, to clarify Deaton's opinion. For this book is to attack Piketty, Deaton's clear opposition on Feldstein, can be blurred to ensure readability. Oh Gosh, they really want Deaton's position be rightfully delivered, as long as their view is aligned with Deaton's. Wrong and boring sentences can be "editorially changed", to correctly deliver Deaton's views to public.

Free market fantasy: Things behind the resilience

To understand this insanity, one might want to look at Hankyung BP's current condition. Hankyung owns Hankyung BP. Hankyung is owned mainly by conglamerates, namely "chaebol"s. Stocks of Hankyung is distributed among chaebols, by their voting right in Federation of Korean Industries(FKI).
FKI is an organization formed by companies in Korea, and champions free enterprise's principles, and commits to maintain pro-chaebol environment to ensure prosperity of country. Each company's voting right in FKI is decided by their amount of invest, and is equal to voting right in Hankyung board of directors.
This explains Hankyung's editorial policy which resembles Austrian school, which demands loosened regulation and crackdown on labor unions, making them be called "FKI bulletin", even though the board of directors does not explicitly intervenes editorial process.

Not to be forgotten: ethics in publication

But even if one can understand their surroundings and their aspiration towards free-from-regulation-and-redistribution-environment, and, as we are living in a 'free' world where freedom of publication must be guaranteed, there is one line that cannot be crossed -- a publisher must not alter or distort author's intent, or let it be wrongfully received, without author's explicit approval, let them wrongly champion the publisher, or ideology behind it. This is a line Hankyung BP crossed, way too much indeed. This incident proves two things -- Their firm belief in free-market ideology and absence of respect to author. Once the line is crossed, norms are violated, second crossing becomes much easier.
This is one fact that the economists and academics around world must be aware of. This incident shall not fall into oblivion, and true identity of Hankyung BP shall be remembered, until they explictly state and apologize their vices against authors, even if they publicly ensure that incidents like this will never happen again.

Links

last visit : 2015.10.29 00:00~02:00, JST(GMT +09:00)
  1. Hankyung, "Which one is right, Piketty's <Capital in the twenty-first century> or Deaton's <The Great Escape>?", 2014-09-12
    http://www.hankyung.com/news/app/newsview.php?aid=201409122322g
  2. Hankyung, 'Inequality is an incentive for economic growth', Prof. Deaton, author of <The Great Escape> says., 2014-09-18
    http://www.hankyung.com/news/app/newsview.php?aid=2014091772161
  3. Hankyung, Inequality in the foundation of growth'... <The Great Escape> is a masterpiece revealing the void in Piketty's opinion, 2015-10-13
    http://www.hankyung.com/news/app/newsview.php?aid=2015101372431
  4. Gong-hoe Kim, 'the Great distortion'? On Korean Version of <The Great Escape>, 2015-10-18
    http://socialandmaterial.net/?p=33921
  5. Hankyung BP Public Statement, 2015-10-20
    https://www.facebook.com/hankyungbp/posts/776763009097165
  6. Gong-hoe Kim, Hankyung BP's 'the Great Editorial' : How they distorted <The Great Escape>, 2015-10-22
    http://socialandmaterial.net/?p=33941
  7. Public statement from Princeton University Press, 2015-10-22
    http://wws.princeton.edu/news-and-events/news/item/press-statement-regarding-korean-version-great-escape-health-wealth-and
  8. Hankyung, "There were no distortion" ... the publisher states , 2015-10-26
    http://www.hankyung.com/news/app/newsview.php?aid=2015102611441
  9. The Federation of Korean Industries, About us
    http://www.fki.or.kr/en/about/Intro.aspx

12 July 2011

At Yeong-do shipyard, Prices for Hope was cruel

Jul. 12. 2011.

Workers on Crane
In Jun. 27, Union members of Hanjin Heavy Industries and Construction were dragged out of their protesting site. Power was cut, and workers were forced to climb onto the crane #85, where Jin-suk Kim has already lead a lone protest for 174 days since Jan. 6., where union delegate Joo-ik Kim hung himself in 2003 protest. Detailed information can be read here, here and here. Power was cut for two weeks (as of Jul. 12), and temperature fluctuates between 100 degrees and 40 degrees, Fahrenheit.


How Citizens in solidarity reacted, and how police reacted.
In Jul. 9, Citizens all over the country, who concern her conditions, gathered and rode on the bus to Yeong-do shipyard, Busan. Approximately 10,000 rode on Hope bringing buses and went to visit the workers at Yeong-do shipyard, where they were isolated by company hired thugs. Citizens gathered on Busan station, rallied through heavy rain, only to be blocked by police walls, to be shot with water cannons filled with tear gas solution and mob-marking pigments, and to be arrested. More than 50 were arrested and remaining members camped in front of the wall with no proper camping equipments. Detailed information can be found here.



Water cannon fired at the protesters. showing that they aimed at person. The solution contained PAVA, which British Police defines as "firearms".

Police breakdown as filmed by independent filmmakers


the Company strikes back.
After the rally breakdown, HHIC tried to install a safety net around the #85 crane in 14:00, Jul. 12. Jin-Suk Kim tweeted for emergency help, for it was a preliminary step to crash-in, an installment to protect the thug forces from fall during the operation, and a measure to prevent workers to throw themselves over the crane. After the "storm of retweets" and angry calls, HHIC explained that they were just cleaning up the scene, and installing of the net was cancelled.

But, that evening, HHIC threatened the members to cut the food supply for they blocked the net installation, and coerce Jin-suk Kim to sign the paper that says she admits her wrongdoing. Now HHIC, who sieges the workers, said that all the supplies for the crane, including food and water, is to be handed by them; The word "them" means, thugs who crashed the protest in Jun. 27, and drove workers to climb up the crane. 7pm that evening, Kim tweeted that she can't figure out what to do anymore. On 21:00 that evening, Kim tweeted once more, about her status on crane #85, via her twitter account @JINSUK_85
In prison, they don't torment you with food.
In prison, there is thing called electricity.
In prison, they give you book or newspaper.
In prison, no safety net is brought up.
No "riot police", No company-hired-thugs.
Even in prison, there is hope,
that you can walk out when you serve your time,
that you can live once again.
With no electricity, no heating or air-conditioning, she is still isolated, sieged by company forces. The only way to communicate to outside world is sun, which charges her cellphone via solar charger. Today marks her 188th day on crane.

29 June 2011

A (not so) brief story about Hanjin Heavy Industries and construction(HHIC)

2011.6.29.

On the top of a huge shipyard crane in Busan, South Korea, a banner reads - no, it screams - "LAYOFF IS MURDER".

Labor hero Jin-Suk Kim and other resilient workers have occupied the crane #85 in the Hanjin Heavy Industries and construction (HHIC afterwards) Shipyard for 2 days. Ah, correction. Kim was up on the crane and didn't come down since Jan. 6., protesting against the company's Reduction In Force (RIF afterwards) plan. Violating official agreements with the union, Hanjin plans to lay off 400 workers which accounts for 1/3 of the entire remaining union workforce and announced that it would ask for "voluntary retirement requests" from workers. On top of protesting against the undeserved layoffs, workers are arguing that this is the first step leading to an eventual shutdown of Yeong-do and Da-dae shipyard, which are some of the largest employers of Busan city.

To provide some background on this matter, I'd like to go back in time a little to when it all started. Not all the way back to when Kim started working as the first female welder in Korea in 1982. Not to 1986, when she first got fired for being involved in worker's rights movements. I'll go back to 2003, when a situation similar to this happened and took 2 lives.


2003 Layoff, Kim, and Kwak

Joo-ik Kim was the delegate of Hanjin Heavy Industries Union in 2003, when severe RIF swept through HHIC. He was the leader of the LNG protest in 1994 and got arrested for that. After a long hard struggle for reinstatement, he came back and was elected as the union representative in Oct. 2000. But the company pushed the union out of the edge. After several "voluntary retirements", "advised retirements" and forced discharges, 600 workers lost their jobs. During this RIF, Hanjin took 26 workers to the disciplinary committee, filed a lawsuit for damages against 14 workers, amounting to 1.5 million dollars. Despite Korean laws requiring a company to be in a critical management crisis to initiate an RIF, the company's revenue maintained 1.3 billion dollars with 20 mil. in EBIT, even though the workers were still on strike.

Joo-ik Kim climbed up on the crane #85 in Jun. 11, after a session with company executives was stopped. He claimed, "#85 will be my epitaph. If it's my life you want, I'll sacrifice it." After 128 days, he hung himself in the control room of #85. 15 days after Joo-ik Kim passed away, another worker lost his life. Jae-kyu Kwak was one of the "survivors", who had not lost his job in the RIF. He cried on his knee, before Joo-ik Kim's "altar without body" (Kim's body was still on the crane). He expressed his apologies and regret for being the survivor while Kim died. Eventually, he threw himself over the edge of dock #4 of the HHIC shipyard.

Jin-suk Kim, who is on the #85 now, stopped turning on the heating in her room from that day on, as her own way of not forgetting what happened. While consolidating the workers of Ssangyong motors on a strike, she recalled on Twitter ( @JINSUK_85 ) :

After Joo-ik passed away, I first realised that the human body could produce such an amount of tears. Tears spilt over whenever I got up from a chair, when I walked and I had a meal. It flooded into my ears, nose, every parts of my body. Jae-kyu was a close friend. He was almost invisible, wherever he participated. On holidays, he brought socks, long johns, smiled, and handed them to me. That man died. This time, nobody cried. Nobody, out of 1,000 comrades, opened his or her mouth. It was almost scary. They were like the ancient 'courtiers buried alive alongside their monarch'. This time, no one was able to cry. There's no punishment like this; You cannot cry, when every body part is soaked with tears and screams already. With words stuck in my heart filled with thick fog, I wandered around, pleading the workers that they eat their meals, sleep at nights. That was the only thing I could do. Right beneath crane #85 , there is dock #4 where Jae-kyu threw himself. I have never given a glimpse at that dock. So please, my brothers and sisters of Ssangyong, eat when you have to. Sleep when the night comes. Please, listen to what I say now.
Only then, after the two deaths, the government and HHIC gave in. Their claim of "critical management condition" was a lie. A new Union cafeteria was built, and even the salary was raised a little. A joint funeral was held on Nov. 16. The body of Joo-ik Kim was finally brought down from the 100ft. high crane. Jae-kyu Kwak's body was pulled over from 30ft. deep dock.


Fast Forward to Now

From that day on, the tens of thousands of workforce that once filled the shipyard has shrunken to 2,500 union and non-union workers. Now, among the remaining 1,200 workforce, additional 400 will be fired in this RIF (announcements for 352 were filed). During those years of massive layoffs, HHIC built another shipyard in Subic, Philippines.
It was from the beginning a severe violation against the special collective bargain in 2007 on the Korean worker's right protection. It specified the following: 1) HHIC will try to secure 3 years' amount ship building projects within S. Korea. 2) The company will maintain the current level of workforce. It will not push an RIF involving shut-down or reduction of domestic shipyards based solely on management decisions. 3) As long as overseas shipyards are active, no managerial action such as RIF shall take place which violates the mutually bargained retirement age.

It was all scrapped. agreement 1) went missing, when HHIC announced that the reason for the RIF is because they don't have anything to build in the Busan shipyard. The company placed all newly commissioned ships (priced up to 70 million dollars) to the Subic shipyard. The Union claims that this was a strategic move of HHIC to fire the workers out of their factory. In fact, more than 3,000 were fired in 2010 alone, and 300 more were forced into leave of absence. The shipyard in Ulsan, Korea was shut down.



Of Workers and CEOs

The workers of HHIC went into a full strike in Dec. 2010. In Jan. 4, Jin-suk Kim turned on the heating of her room for the first time in 8 years. On Jan. 5, She went to a public bath, also first time in 8 years. She texted her roommate, "Don't be surprised. Read the notes over my desk." It said that she "thought that I have gone through various things", and "there were so many decisions in this not-so-common-life", but "knowing what the crane #85 means to me", "this one was the toughest decision I have ever made.". On Jan. 6., she climbed up the #85. This was her note to her co-workers.

Last year.
To sit was like sitting on needles.
To lie was like lying on a bed of thorns.
Sleepless nights, sleeps jerked out by nightmares.
How on earth, can I do nothing and just watch my colleagues get fired?

There's no reason for living, without Hanjin Union workers.
I'll do everything I can, to protect my colleagues.

Much remorse do I feel, when I leave my warm, cozy room......
What would have Joo-ik, Jae-kyu felt? So many feelings, so many regrets......

I'll do one thing that Joo-ik could not do.
One thing that he yearned to do, but could not do.
WALKING DOWN THE CRANE ON MY TWO FEET.
That I will do, for sure.

I spend a day where Joo-ik sat,
lie where Joo-ik laid himself, and asked for sleep.
See the aspects of life, where Joo-ik saw in his life.
And one thing he could not do,
One thing he longed for,
WALKING DOWN THE CRANE WITH MY TWO FEET,
That I will do for sure.
Then this crane #85 will no longer be remembered as tears.
No more as grave sorrow, No more as stabbing pain,
but as a symbol of victory, and resurrection.
I will come back down, alive.
My first and my last love.
Union Workers, my brothers and sisters,
I will be beside you,
Till the day victory comes.


And now, to what happened in the last few days.

Jun. 6. 27, after Kim's 174 days protesting, electrical power to the crane was cut off. Then a breaking news came. "Settlement reached between Union leader Kil-yong Chae and company." However, it was far from the truth. Hanjin union is a branch of the Korea Metal Worker's Union(KWMU), so the authority for making that decision was not Chae but the representative of KWMU. The only way for Chae to override that would be to get a letter of authorization directly from a pre-delegated committee consisting of Hanjin Branch members, which was not the case. At 3:30am, after an endless debate, the workers agreed that they retreat to the Union building and regroup. Chae sneaked out and e-mailed the letter of settlement to the company and the press, without the Union's approval or knowledge.

When this news hit the mainstream media treadmill, it was reframed as a "total settlement." Without investigating further, many conservative mainstream news outlets spread this misperception nationwide. They quickly framed the workers who continued to protest as a small non-negotiable faction. And when the scheduled law enforcement came that morning in to remove the company grounds from the protesters, it was done with brute force with many company-hired thugs actively involved. The resisting workers grouped under #85, but the company-hired thugs under police protection pulled them apart. The workers who tied themselves to the crane, were taken away, one by one. At the end of the day, only about 30 were left. The Police and company-thug team piled up container boxes to block outside cameras. Also they prepared a plan to drive Kim out of her sky-high protesting site: using another nearby crane to lift up a container box to deploy policemen or even simply crash it into crane #85 if necessary.

Many mainstream media were telling people that everything was done for. The settlement had been reached, with a small fraction of extremists resisting. However, unfettered real-time witnesses on the Twitterverse pleaded to stop this ongoing madness.

That night, HHIC proposed that it could restore electricity when some of the workers come down. Over 10 came down, to make power available. After 24 Hrs, the power is still not restored. The only way for the ones on the crane to communicate to the outside world is through their smartphones. But without power, they will run out of batteries soon. The only way to communicate with outside world is to be cut off. The food supply has been also cut off. Some food was brought in, but Kim could not eat that, for she can only eat rice porridges -- her stomach was compromised when she went into a hunger strike. She filed an emergency petition to the Korean Human Rights Committee, on behalf of the protesters on the crane.

Meanwhile, HHIC's CEO, Nam-ho Cho has been refusing to attend the Congressional hearing about the company's real management conditions and whether his RIF can be justified at all.


Footages Taken at Yeong-do shipyard

Footages by protesting worker.
http://vimeo.com/25656913

Footages by Jin-suk Kim, her life on a crane
http://vimeo.com/25402322


Further Reading

Jeong-hwan Lee, trans. Hey-kyung Lee, Why they climbed the towering crane?
http://www.leejeonghwan.com/media/archives/002019.html

This article explains how well HHIC was doing, how soaring real estate value influnces HHIC's decision. In short, HHIC will turn black, and it's due to Subic shipyard. Conglomerates which gained current position by government protection by money, by labor oppression -- in other words, Jaebeol -- now goes on exodus. It has its values to be explored, which would have to consist another article. Original article can be found here:
http://www.leejeonghwan.com/media/archives/002015.html


People to reach, so you can hear more.

to be updated.


Sources

(Note: All are written in Korean. I must admit, that some part of article above were just quoted without proper attribution. This amounts to plagiarism. All those quoted will be properly be attributed, soon.)

a Hope bus, citizens gathered and visit Yeong-do shipyard, and gathered under #85
http://www.sisainlive.com/news/articleView.html?idxno=10546

Details behind Yeong-do layoff
http://www.vop.co.kr/A00000278694.html
http://www.vop.co.kr/A00000276225.html

History of Hanjin protest, since 1982
http://www.pressian.com/article/article.asp?article_num=30110330104351

Words of Jin-suk Kim was quoted from
http://blog.naver.com/PostView.nhn?blogId=idohan&logNo=80133384973

http://www.nahnews.net/news/articleView.html?idxno=5358

How much did Hanjin owner Nam-ho Cho receive as revenue share?
http://www.ilyosisa.co.kr/print_paper.php?number=11133

How the media framed the workers as extremist faction
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=102&oid=001&aid=0005134737

note. 1. : @hooniyaa77 twitted, that a union worked came to him and held his/her hand. He cried on his knees saying, please tweet this, make this known to the outside world. He hasn't got a smartphone, couldn't let his feelings be heard. It was him and @hooniyaa77, who made me write this. It is a work of that nameless worker, not mine. I feel sorry that I couldn't do more. I'm sorry.

note. 2. : It went through some revisions. @capcold edited my coarse words so that the fact be more clearer, sentence be more readable. All the factual errors and misinterpretation, is my responsibility.