Azumi cancels trip to South Korea

Politics Aug. 18, 2012 - 06:30AM JST ( 40 )

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40 Comments

6

FarmboyAug. 18, 2012 - 07:26AM JST

I imagine the timing of all meetings are now inappropriate.
1

CrazyJoeAug. 18, 2012 - 07:37AM JST

Temporarily freeze the 5 trillion yen currency swap with South Korea. Azumi is an acrobat, not an architect.
0

OssanAmericaAug. 18, 2012 - 07:46AM JST

I am sure Lee knew all this would happen before he decided to escalate issue to the point of insult and singlehandedly destroy Soth Korean-Japan relations. If he didn't, well.....
1

FarmboyAug. 18, 2012 - 07:48AM JST

Sorry: correction "is now inappropriate"
1

ubikwitAug. 18, 2012 - 10:42AM JST

Lee is a tool.

The question is whose interests is he serving?
3

SamuraiBlueAug. 18, 2012 - 11:01AM JST

If you compare it with this event with the late Joseon dynasty you'll start finding various parallels. Corrupt government with an unstable economy. Ignorant people demanding many stating it is their RIGHTS ?! Japan providing soft loans to keep the Korean economy afloat but the Koreans trying to weasle out from those negotiations running to other nations which gets them into bigger problems.

I say let the Koreans go all the way. It's about time they hear their own music.
3

nigelboyAug. 18, 2012 - 11:11AM JST

What's pathetic is that Korea managed to pi$$ of the most Korean sympathetic party in DPJ. You have Noda who increased the Japan-Korean currency swap from $13billion to $70 billion last year to Azumi who in May purchased Korean government bonds (Korean Won denominated btw) just a few months ago.

SamuraiBlue is correct

North China Herald-May 1905

"No land could possibly make a greater showing for bribery and corruption than Korea herself. On no piece of ground have men deceived and been deceived more universally than in this peninsula. No Government ever existed that was more infected with rottenness to the bones, cheating, lying, defrauding. But Korea has grown accustomed to and unconscious of her own way of doing such things and sees only the fault of others."
-5

smithinjapanAug. 18, 2012 - 11:12AM JST

SamuraiBlue: "Japan providing soft loans to keep the Korean economy afloat but the Koreans trying to weasle out from those negotiations running to other nations which gets them into bigger problems."

Perhaps SK should demand the money back that it gave after 3/11 with 'due respect'. How much did they give Japan again? Wasn't it second highest of any nation in the world? It would be in extremely bad taste for them to do so, of course, but as Azumi said, "It's hard to separate the politics...".
1

SamuraiBlueAug. 18, 2012 - 11:30AM JST

smithinjapanAug. 18, 2012 - 11:12AM JST

Perhaps SK should demand the money back that it gave after 3/11 with 'due respect'. How much did they give Japan again? Wasn't it second highest of any nation in the world? It would be in extremely bad taste for them to do so, of course, but as Azumi said, "It's hard to separate the politics...".

By all means let them although it would look very bad in the international community demanding the return of donations .

Smithy you have a vary loose concept in grasping what the thread talks about and what is on your agenda so I suggest before posting, read what is the subject of the thread before injecting any of your thoughts.
-5

smithinjapanAug. 18, 2012 - 11:39AM JST

What Azumi and others are doing here is just plain selfishness on behalf of the island issue that they cannot handle. A number of posters and others have suggested "all ties be severed" with South Korea and worse, forgetting that South Korea helped Japan immensely when it really needed it, putting politics aside (which clearly Azumi cannot do). Japan so very quickly forgets.
5

biculturalAug. 18, 2012 - 11:40AM JST

Perhaps SK should demand the money back that it gave after 3/11 with 'due respect'. How much did they give Japan again? Wasn't it second highest of any nation in the world?

Link, please. Taiwan was very generous and so was America. South Korea? See below :

http://www.japanprobe.com/2011/04/26/anti-japanese-nationalism-sours-korean-efforts-to-donate-relief-to-japanese-tsunami-victims/

http://www.japanprobe.com/2011/10/01/countries-that-donated-to-japan-seven-eleven-stats/
3

nigelboyAug. 18, 2012 - 11:40AM JST

By all means let them although it would look very bad in the international community demanding the return of donations

Actually, one of the district in Seoul only allocated 20% of the donated money because the Japan's government's decision to include the Takeshima dispute in ONE of the junior high textbooks.

Let it be known that Korea is the ONLY nation that put strings on the donations. PATHETIC.
-4

smithinjapanAug. 18, 2012 - 11:50AM JST

nigelboy: "Let it be known that Korea is the ONLY nation that put strings on the donations. PATHETIC."

As Japan would have done, easily. As it is, they're putting strings on anything they can because they know they can do nothing.
4

nigelboyAug. 18, 2012 - 12:02PM JST

As Japan would have done, easily. As it is, they're putting strings on anything they can because they know they can do nothing.

???? Did Japan ever pull a stunt like that when China had their earthquake in Sichuan??
-5

DogAug. 18, 2012 - 12:09PM JST

nigelboyAug. 18, 2012 - 11:11AM JST

What's pathetic is that Korea managed to pi$$ of the most Korean sympathetic party in DPJ. You have Noda who increased the Japan-Korean currency swap from $13billion to $70 billion last year to Azumi who in May purchased Korean government bonds (Korean Won denominated btw) just a few months ago.

The whole issue of currency swap was a Korean sympathy swap for a Japan ravaged by the earthquake with a supposed high currency.

It would be very much in Korea's interst to let the Yen strengthen or the Won decrease in value (surely I don't have to explain why?) and the whole currency swap saga was about allowing Japan to buy something other than US treasury bonds to weaken the Yen. It also allowed the Japanese to strengthen the Won, relative to their own currency.

Now Azumi can go back to the old policy of using trillions of Yen buying others' paper currency money, investing in US treasury bonds or throwing it into the European endless pit.

It always makes me laugh how the less knowledgeable on here follow the Japanese government line of the world needs Japan more than Japan needs the world.

Japan needs China, Russia and Korea much more than they need Japan.. Japan runs a 10 billion dollar trade surplus with South Korea, guess who would suffer if Korea took this a step further and cut all economic ties with Japan?
1

nigelboyAug. 18, 2012 - 12:15PM JST

Dog.

This issue is already addressed in another thread. There is no benefit by Japan to assume to take a soft currency in exchange for a hard currency when many other options are available including the purchase of other hard currency denominated instruments (Euros, British ponds, Swiss Franc).

There is absolutely no doubt that the risk is greater than the reward for taking a Korean Won which has first and foremost, collapsed in 1997, higher reserve allocation required by IMF, and another crisis in 2008 which required more infusion/swap.
-5

DogAug. 18, 2012 - 12:31PM JST

nigelboy

Dog.

This issue is already addressed in another thread. There is no benefit by Japan to assume to take a soft currency in exchange for a hard currency when many other options are available including the purchase of other hard currency denominated instruments (Euros, British ponds, Swiss Franc).

There is absolutely no doubt that the risk is greater than the reward for taking a Korean Won which has first and foremost, collapsed in 1997, higher reserve allocation required by IMF, and another crisis in 2008 which required more infusion/swap.

You really don't know what you are talking about and my time is too valuable to school you in a basic lesson of currency rates and the FX.

To compare the Korea of 1997 with the Korea of 2012 is to compare Tokagawa Japan to late Showa Japan. South Korea has managed to triple its per capita GDP in dollar terms since 1997 and Korean foreign reserves now stand at 312.38 billion U.S.

And to say that Japan is a hard currency is laughable, either you don't have a proper understanding of what a hard currency entails .A hard currency will retain its underlying value on foreign exchange markets, regardless of periodic fluctuations because the economy for which it is the legal tender has the productive capacity and political stability to give confidence to both speculative and longer term investors.

I'd say both the Korean Won and the Japanese Yen are soft currencies, wouldn't you?
1

Craig DandridgeAug. 18, 2012 - 12:38PM JST

"It is difficult to completely separate" economic issues from the political dispute, Azumi said. "I felt the timing of my visit to South Korea is not appropriate."

No, it really is not "difficult" to separate economics and politics. In these dire times, it is absolutely "necessary" to do so. This type of pitiful and puerile political tit-for-tat is a luxury that regular folks simply cannot afford. In times like these, this type of "politics first" behavior castes a dark cloud over the economic future of East Asia.

Some sense of perspective, please...
1

nigelboyAug. 18, 2012 - 12:44PM JST

To compare the Korea of 1997 with the Korea of 2012 is to compare Tokagawa Japan to late Showa Japan. South Korea has managed to triple its per capita GDP in dollar terms since 1997 and Korean foreign reserves now stand at 312.38 billion U.

Again. I addressed in this another thread. Despite the comfortable $263 billion foreign reserves Korea had back in Jan of 2008, they still needed needed a rescue package from U.S., China, Japan in October of that year.

And to say that Japan is a hard currency is laughable

Dude. I'm laughing for you to deny this. Your reasoning about "the productive capacity and political stability to give confidence to both speculative and longer term investors" is the very reason why Yen is experiencing such high exchange rates despite numerous attempts by the Finance Ministry to dump it's own currency. Pleeez. Enough with the jokes.
2

rogoteyeAug. 18, 2012 - 12:53PM JST

Didn't Korea NOT end up sending most of the donations to Japan?
-6

DogAug. 18, 2012 - 12:55PM JST

nigelboyAug. 18, 2012 - 12:44PM JST

the productive capacity and political stability to give confidence to both speculative and longer term investors" is the very reason why Yen is experiencing such high exchange rates despite numerous attempts by the Finance Ministry to dump it's own currency. Pleeez. Enough with the jokes.

I really give up, what political stability?

The Yen's high value at present is determined by it running current account surpluses and being able to finance its debt domestically, without recourse to the international financial markets.

When both those variables disappear, which they will in the next 5 years, the Yen's value will drop like a lead balloon. This is so obvious and widely discussed among economic journals (the time period is disputed) that I wonder if you peruse anything other Japan Today for your so-called economic insight?

Hardly a hard currency and will be leaving anyone stupid enough to hold Yen in 5 year's time or a little later, depending on who you believe, with a lot of egg on their face.
3

nigelboyAug. 18, 2012 - 12:59PM JST

I really give up, what political stability?

Believe it or not. Yeah. Bureacrats still running the country.

The Yen's high value at present is determined by it running current account surpluses and being able to finance its debt domestically, without recourse to the international financial markets.

Thank you. So you're saying that account deficit along with debt being dependent foreign purchases disqualifies as being hard currency? Be careful when you answer this.
-9

DogAug. 18, 2012 - 01:08PM JST

nigelboyAug. 18, 2012 - 12:59PM JST

Thank you. So you're saying that account deficit along with debt being dependent foreign purchases disqualifies as being hard currency? Be careful when you answer this.

Can you elaborate on the US China and Japan financial rescue package for South Korea in 2008 first?
2

nigelboyAug. 18, 2012 - 01:09PM JST

Please enlighten us more on this fictional economic rescue package of the South Korean economy in 2008 by China, Japan for South Korea ?

Currency swap by those three in 2008. http://japanese.joins.com/article/575/117575.html?sectcode=A10&servcode=A00

, Yoon Jeung-hyun, Ministry of Strategy and Finance in 2009 criticized Japan for **NOT HELPING **earlier.
2

T_rexmaxytimeAug. 18, 2012 - 01:13PM JST

The thing I don't understand about the crazy Korea is that if they want to gain strength as a country, why would they need to use anti-japan movement and use Japan as a doormat or a stepping stone instead of just working with Japan which would be more productive. The way they are going about is counter productive and idiotic and our of date....
3

nigelboyAug. 18, 2012 - 01:16PM JST

I'll translate it for you. (Korean source)

"韓国が最も厳しい時に外貨を融通してくれたのは、米中日の中で日本が最後だ"

"During our country most troubled times, the countries that loaned as the foreighn currency were U.S., China, and Japan with Japan being the last to do so."

"今はそれほど必要な状況ではない。３００億ドルの枠がある現協定が切れる１０月に、延長の是非を含めて協議したい"

At this time, there is no need. However, the $30 billion package will expire October of 2009. The extension of this needs to be discussed"
-7

DogAug. 18, 2012 - 01:23PM JST

nigelboyAug. 18, 2012 - 01:16PM JST

During our country most troubled times, the countries that loaned as the foreighn currency were U.S., China, and Japan with Japan being the last to do so."

He's talking about 1997.....** not 2008**
3

nigelboyAug. 18, 2012 - 01:36PM JST

He's talking about 1997.....** not 2008**

Oh god!!! The article is dated 2009.

"昨年９月、グローバル金融危機の余波で外国為替市場に不安感が高まり、韓国は主要国と通貨スワップを推進、米国とは昨年１０月に、中国・日本とは昨年１２月にそれぞれ３００億ドル規模の協定を締結した。 "

Last year in September, the ripple effects of the global financial cris caused much concern in the foreighn currency market. Korea initiated a swap with major countries which includes U.S. in Ocotober followed by china and Japan in December whereby each country agreed to swap $30billion each"
-1

SamuraiBlueAug. 18, 2012 - 01:38PM JST

T_rexmaxytimeAug. 18, 2012 - 01:13PM JST

The thing I don't understand about the crazy Korea is that if they want to gain strength as a country, why would they need to use anti-japan movement and use Japan as a doormat or a stepping stone instead of just working with Japan which would be more productive. The way they are going about is counter productive and idiotic and our of date....

Koreans are basically thinking in nationalistic Confucianism in which they believe that Korean an older state are superior and/or better which leads them to think they deserve better than Japan being the younger state.
2

nigelboyAug. 18, 2012 - 01:49PM JST

Other people, please read the article offered by Nigelboy and tell me, is that article not about a currrency swap mechanism being established between the US, South Korea and CHina to replace the present one which was to expire in December 2008.

U.S. swap was dated October 30, 2008 which expired in 6 monts. China swap was dated December 12, 2008 which had an expiration of 3 years but was renewed and increased. Japan had an existing swap which would expire on June of 2010 but was renewed for another 3 years with last year's increased portion to be expired October of this year.
-7

DogAug. 18, 2012 - 01:49PM JST

nigelboyAug. 18, 2012 - 01:36PM JST

Oh god!!! The article is dated 2009.

'During our country's most troubled times'. Secretary Yoon is referencing 1997 as our country's most troubled times. He's not referencing 2008 as his country's most troubled times. The South Korean IMF financial crises of 1997.....

"昨年９月、グローバル金融危機の余波で外国為替市場に不安感が高まり、韓国は主要国と通貨スワップを推進、米国とは昨年１０月に、中国・日本とは昨年１２月にそれぞれ３００億ドル規模の協定を締結した。

Your Babelfish translation is letting ypu down. Let me give you a better translation

'Fear of increased volatility in the foreign exchange market, in the aftermath of the global financial crisis last September, has prompted Korea to promote major currency swaps. Japan, China has signed an agreement of 30 billion dollars each, last December and last October, the United States did.'

Not a word about an economic rescue package for South Korea by China, US and japan

Surely if this imaginery economic rescue package of the South Korean economy existed, you can supply a couple of more sources?
0

nigelboyAug. 18, 2012 - 01:52PM JST

Correct that to

Japan had an existing swap in October of 2008 in which they increased (expiration on June of 2010) which was renewed for another 3 years with last year's increased portion to be expire October of this year.
2

nigelboyAug. 18, 2012 - 01:58PM JST

'During our country's most troubled times'. Secretary Yoon is referencing 1997 as our country's most troubled times. He's not referencing 2008 as his country's most troubled times. The South Korean IMF financial crises of 1997.....

Let me guess this straight.

"韓国が最も厳しい時に外貨を融通してくれたのは、米中日の中で日本が最後だ"

During our country's most troubled times in 1997, the countries that loaned as the foreighn currency were U.S., China, and Japan with Japan being the last to do so

is this what you mean?
3

SamuraiBlueAug. 18, 2012 - 02:01PM JST

Dog

Not a word about an economic rescue package for South Korea by China, US and japan

Well Dog it sure does state that Yoon Jeung-hyun, Ministry of Strategy and Finance was fishing for help. Here is a passage within the same article;

尹長官は「日本は周辺国が大変な時は率先し、積極的に支援の手をさしのべてほしい。アジア諸国が日本にふがいなさを感じるゆえんだ」と述べた。

He states that Japan is copping out of their obligations to help out various Asian nations and wants Japan to actively provide aids to surrounding nations.

Now without naming his own nation I believe he was demanding Japan to provide Korea a rescue package to me.
1

nigelboyAug. 18, 2012 - 02:15PM JST

It's a simple question Dog.

Based on your argument that this Yoon Jeung-Hyun was referring to 1997,

"During our country's most troubled times (1997), the countries that loaned as the foreighn currency were U.S., China, and Japan with Japan being the last to do so"

This is your interpretation right? Yes or No would be suffice.
-3

PT24881Aug. 18, 2012 - 03:45PM JST

The out-spoken finance minister ( FM.. Almost took him for Foreign Minister ) did indeed not achieve any issues except critics on Eurozone.. The yen to dollar remains at 78-79. Judging from his track record, Traveling or not to SK does not make a difference ( speculation : China would have compensated for the missing billion on currency swap ). It will definitely save a lot of police effort to escort J. Azumi in Korea if he was making the trip out there !
-3

PT24881Aug. 18, 2012 - 03:50PM JST

@bicultural "Link, please. Taiwan was very generous and so was America. South Korea? "

Presuming another disaster takes place in Japan ( of course, I wish not naturally ), how Taiwan, Mainland China & SK would react this time ? Generous donations ended up with arrogant feedback from an apparently Right-wing J Govt.. and Current cabinet's ministers visiting the Yasukuni Shrine. Hence, cannot blame our neighbors.

On the chapter of currency swap, it would mutually beneficial for both -- SK economy may be smaller & not in good shape, but it sounds to me their overall performance remains ok as compared to that of Japan ( bigger size but much higher debt ). Hence, it is not one-sided. Who knows the PRC has not increase their swap with SK as a reward on united front against Japan on the disputed territory issues.

Days left for the trio Noda-Gemba-Azumi are numbered, hence, no other option but had to maintain a pseudo-tough stance to regain some unlikely supports as opinion poll score fell to < 20% !
-1

Sir_EdgarAug. 18, 2012 - 09:20PM JST

Taiwan was imperial Japan's first colony and served as a model for its colonialist plans. So the Japanese actually treated the Taiwanese the best. Also, today Taiwan is diplomatically isolated and Japan is one of the few countries that support its government (though does not officially recognize it). Also, because Japan is often "anti-China", it finds in Taiwan a good ally. So that's why you see a lot of pro-Japanese in Taiwan.

Korea, on the other hand, really has nothing to thank Japan for.
0

SerranoAug. 19, 2012 - 08:38PM JST

Good, this opens up some business class seats.
0

HikozaemonAug. 20, 2012 - 12:02AM JST

Korean cabinet office sent a message today affirming that the friendship with Japan is one of Korea's most important partnerships and that both sides should avoid taking steps to enhance conflict.

Well, THAT certainly seems to have gotten their attention...