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Understanding Korea. Korean Flag. Korea had generally occupied this region as a unified state for nearly 1000 years before division in 1948. Relation with the Rest of World.
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Korea had generally occupied this region as a unified state for nearly 1000 years before division in 1948.
Relation with the Rest of World • Military invasion by France (1866) and the United States (1871), which were attempting to establish trade relations with Korea. • In 1895 Japan defeated China in the Sino-Japanese War, • In 1905, Japan was victorious over Russia in the Russo-Japanese War. • 1910 Japanese annexation of Korea and the end of the Chosŏn dynasty.
JAPANESE RULE (1910-1945) • Protectorate Treaty (1905), forced on Korea after the Russo-Japanese War. Under this treaty, Japan assumed role of protectorate. • In 1910 Japan formally annexed Korea. • From 1910 to 1919 Japan solidified its rule by purging nationalists, gaining control of the land system, and enforcing rigid administrative changes. • During WWII, Japan imposed several measures designed to assimilate the Korean population, including outlawing Korean language and even Korean family names.
Korean War (June 1950 to July 1953) • North Korea invaded South Korea in June 1950 • Before the North Koreans were stopped in August, they had captured Seoul, and the Americans and South Koreans had been pushed back to Pusan. • In September, a daring amphibious landing at Inch’ŏn, MacArthur drove the invaders out of South Korea and pursued them to the Chinese border. • In October, China initiated a new conflict by sending troops into Korea, The Communists reoccupied P’yŏngyang on December 5 and, sweeping into South Korea, recaptured Seoul in January 1951. • Wanted to fight a total war with China, but “Fade away” • Under superior firepower, the Chinese slowly withdrew from South Korea. Seoul fell to the UN again in Mar 1951.
A Very Costly War • In July 1953, the truce agreement was signed at P'anmunjǒm. • The U.S. suffered 157,530 casualties; deaths from all causes totaled 33,629, of which 23,300 occurred in combat. • South Korea sustained 1,312,836 military casualties, including 415,004 dead; • Estimated Communist casualties were 2 million.
First South Korean Leader • Educated in Harvard and Princeton • 1919-41, president of a Korean government-in-exile based in Hawaii • 1948-1960, elected president, instituted several reforms in education and in the ownership of land
The Remarkable Park Chung Hee • a schoolteacher & a soldier in Japanese army in Manchuria • took over power in a coup in 1961 and became a dictator (KCIA) • launched energetic economic reforms and, despite widespread opposition • concluded a treaty with Japan in 1965 • Earned foreign exchange by sending troops and contract workers to aid the United States during the Vietnam War • Assassinated in 1979 by KCIA Father of the Korean Miracle (1961-1979)
Chun Doo Hwan: Transitional Figure • trained with the United States Army and led a regiment of South Korean forces during the Vietnam War • Took over power in a coup in 1979 • In 1980 he declared martial law, military troops killed several hundred civilian protesters in the city of Kwangju. • Following a series of mass protest in 1987, President Chun promised democratic reforms, including direct presidential elections. President of South Korea (1980-1988)
From Dictatorship to Democracy First Elected President (1988-1993) First Opposition President (1998-2003) First Civilian President (1993-1997)
A Remarkable Democracy Fighter • Born in a poor farmer’s family • Went to Shipping and publishing • Democracy leader, elected to National Assembly many times • Nearly killed in 1971 “accident” • Put in jail or house arrest many times and sentence to death in 1980, exiled in 1982 • Ran for president in 1987, 1992 and won in 1997.
Financial Ratings and Ratios Methodology: By comparing the financial ratios with rating tables, one can judge for yourself whether a company has a good financial health.
Financing Pattern 3 Question: Which country had too much financial leverage? Why France and Japan do not suffer from financial crisis?
Percentage Change in Fixed Assets Question: Why Asian countries (Korea) are investing feverishly?
Total Current Liability/total Liability (%) Warning: Most payment due within a Year!
Cash flow-EBITDA/Interest payable EBITDA-earnings before interest, taxes and depreciation. Interest payments too high and earnings too little for Korea.
Return on Capital Employed before Tax Deteriorating earnings may have contributed to crisis in investor confidence.
EVA = Return on Capital Employed (ROCE) - lending rate Korean companies were not making enough money to cover their cost of capital. France and German firms also were wasting their capital.
What Does Kim Jung IL Want? • A playboy known to like Disney Cartoons, Cognac XO, and Women • Leader of poorest nation on earth • Clever in play with US • Would like to end international isolation. “Great Leader” • Has launched economic reform by freeing prices • Like to learn from China’s reform experience, not like Castro • Would like to get three things from US: • a) Non-aggression b) Food Aid & Investment c) Respect
Could be A Very Costly War! • North Korea has thousands of artillery pieces and hundreds of missiles within striking range of Seoul. • At more than a million men under arms, North Korea's army is one of the largest in the world. • The CIA thinks North Korea has enough material to have constructed one or two crude nuclear bombs. • Pentagon estimate suggested four months of high-intensity combat would be required, using more than 600,000 South Korean troops and half a million U.S. reinforcements to the personnel already stationed in South Korea. • Expected 52,000 U.S. casualties in the first 90 days of combat alone! Civilian casualty could be in the millions.
