New South Korean President is Struggling Early

Just sworn in, Lee Myung-bak already seems out in the cold

His thunder stolen internationally by the arrival of the New York Philharmonic in Pyongyang, Lee Myung-bak was sworn in as South Korea's 17th president on February 25th. In freezing weather in Seoul, Mr Lee pleaded for support. The audience, mostly from his Grand National Party (GNP), dutifully applauded—but with little enthusiasm. The president, elected last December, has made a poor start to his five-year term.

Mr Lee, cleared this month of any wrongdoing in a failed investment scheme, nevertheless faces public suspicion over the past business dealings that made him a multimillionaire. And some of his nominees for cabinet posts are already under clouds. Three of his ministerial choices—for sex equality, “unification” (ie, dealings with North Korea) and the environment—have resigned over criticism of their property dealings. This is a highly sensitive issue in Seoul, where many cannot afford to buy their own homes. Some of his nominees' children are foreign citizens. One was thus able to dodge the mandatory military service. This has raised hackles. Most South Koreans cannot afford to send their children abroad to acquire foreign passports.

Most economists think Mr Lee's bold promise of 7% annual growth is optimistic. His plan to build a canal system on the peninsula has united a coalition of civic and political groups in opposition. And his call for a “pragmatic not ideological'' relationship with North Korea has perturbed American leaders. In addition, Mr Lee has had to scale back his plans to trim the bureaucracy. Instead of 13 government ministries there will be 15, down from 18 under his predecessor, Roh Moo-hyun.

The president's difficulties are compounded by his shallow political base. In a pun on the name of a famous actress, South Koreans call it “Ko So Young”. “Ko” refers to his alma mater, Korea University, which has supplied him with prospective ministers and aides; “So” to the church he attends; and “Young” to the south-east of the Korean peninsula, which voted for him in huge numbers largely because Mr Roh is widely loathed in the region.

Even within the GNP, Mr Lee has few allies. Party heavyweights have long viewed him as an upstart without their own conservative convictions. Mr Lee is indeed a pragmatist. His landslide victory in December owed much to his success during his time as Seoul's mayor in solving practical problems, such as his reorganisation of the capital's traffic system.

Park Geun-hye, whom Mr Lee defeated to become the GNP's presidential candidate thanks to its system of open primaries, still commands more support within the party. She is engaged in a fierce struggle with him to have her nominees chosen as the GNP candidates at April's legislative elections. If she wins, or the GNP loses the election, the new president's legislative programme could be stymied.

Mr Lee is a somewhat remote and cold figure. He now needs to make himself popular. But both the economic and political climates on the peninsula seem to be worsening. Even when the snow that blanketed Seoul within hours of his taking the oath of office thaws, South Koreans may not warm to him.

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New South Korean President is Struggling Early

South Korea's First Astronaut

An artificial intelligence expert lost the chance to be South Korea's first citizen in space after reading and removing manuals from Russia's cosmonaut training center without authorization, the government said Monday.

Instead, a female bioengineer will conduct scientific experiments on a Russian voyage to the International Space Station next month, the South Korean Ministry of Education, Science and Technology said.

Russia's Federal Space Agency asked for the change last month, saying Ko San - the original choice - repeatedly violated regulations at the training center near Moscow, Lee Sang-mok, a senior ministry official, told a news conference.
He was replaced by Yi So-yeon, a 29-year-old with a doctorate in bioengineering who had been South Korea's second choice for the mission.

Russian authorities said Ko took his training manual out of the center without permission and sent it to his home in South Korea in September, Lee said. Ko later returned the manual, explaining he accidentally sent it home together with other personal belongings, Lee added.
In February, Ko again broke the rules by getting what was believed to be a manual used by space pilots from the center through a Russian colleague - material he was not supposed to read, Lee said. Ko had signed the center's instructions on the rules.

"The Russian space agency has stressed that a minor mistake and disobedience can cause serious consequences," Lee told reporters.

Lee said he believed the materials in question were not classified.

The state-run Korea Aerospace Research Institute - which employs Ko - has rebuked him, both verbally and in writing, Lee said.

The institute offered an apology to Russia both times, he said. The institute has no plan to take further disciplinary measures.

Anatoly Perminov, chief of the space agency, said in a statement on its Web site Monday that the change was because Ko "violated the code of conduct for cosmonauts," adding that the substitution would cause no complications for the mission.

Yi is scheduled to work aboard the space station for about 10 days with five other cosmonauts, including an American woman, according to Lee's ministry.

The Soyuz spacecraft is scheduled to lift off from a space center in Baikonur, Kazakhstan, on April 8, the statement said.

Ko, 31, will remain at the training center in Star City near Moscow and train with Yi, Lee said.
The mission will make South Korea the world's 36th country to send an astronaut into space, said ministry official Kim Ki-seok.

South Korea plans to complete its first space center by the end of next year as part of a program to lay the technological and scientific groundwork for space exploration in coming decades.
Since 1992, South Korea has had 11 satellites launched, mostly for space and ocean observation and communications. ◦

South Korea's First Astronaut

The Seoul of World Design

The Korean capital, soon to host the Design Olympiad, is funding projects to promote style in Korean brands—and help keep growth on track

Korea's economy has long been one of Asia's success stories, but pessimists fret for the future as Korea is sandwiched between fast-growing China and longtime rival Japan. Could a government-backed plan to raise Seoul's standing as a city focused on design help keep its growth on track?

Seoul Mayor Oh Se Hoon certainly thinks so. Oh, leader of a city home to nearly a quarter of the country's population of 48 million, is convinced Korea can stand out from its larger neighbors by establishing the capital as a international design center.

The 47-year-old mayor says thinking about design will have numerous benefits. At an individual level he believes cultural benefits can enrich the daily lives of work-obsessed Koreans. Just as important, a renewed creativity can help the economy.

"Design is everything," declares Oh.

The hyperbole isn't pure talk. Since taking office in July, 2006, Oh has set about turning Seoul into a global design hub with a slew of initiatives. He quickly established a new design division headed by a vice-mayor and initiated design competitions aimed at improving the city's looks. He has also begun offering training and seminar courses for young designers. The effort will kick into high gear in October when the city hosts the first Seoul Design Olympiad. It has also commissioned international "starchitect" Zaha Hadid to design the $98 million Dongdaemun Design Park.

Seoul Named 2010 World Design Capital
Oh's ambition got a huge boost last October when the city was designated as the World Design Capital in 2010. The title is bestowed biennially by the International Council of Societies of Industrial Design (ICSID), which represents some 150,000 designers from scores of countries.
These combined efforts, Oh reckons, will help increase the size of Korea's design market—measured by the total of revenues by design houses and investments in design by ordinary companies—to $15 billion in less than 10 years, from $7.4 billion last year. "In coming years we'll see aspects of design in our everyday life," predicts Lee Kun Pyo, president of Korea Society of Design Science and an acolyte of Oh.

Understandably, some find the challenge daunting. After all, Seoul isn't alone in seeking to boost its global standing through design. Hong Kong, Shanghai, Tokyo, and Yokohama all hold ambitions to be design centers. Then there's global competition from cities like London, Paris, Milan and New York, with many decades as leading arbiters of design. Yet Oh and design industry leaders insist there's big potential in Korea. For one, Seoul beat some 20 rivals, including Singapore and Dubai, to be named ICSID's first World Design Capital to be chosen through competition. (Torino, the first city to win the award, was named as pilot.)

Better Design Boosting Korean Blue Chips
Perhaps more important, Korean companies have also made great strides in recent years in improving brands through design. Companies like Samsung Electronics, LG Electronics, and SK Telecom (SKM) boast leading designers in the fields of digital displays, handsets, and mobile products and services, garnering international design awards along the way.

The fruits of their efforts are reflected in the improved global standing of Korea's blue chips. Last year Samsung overtook Motorola (MOT) to become the world's second-largest cell-phone maker (BusinessWeek.com, 12/16/07) after Nokia (NOK).

Samsung also beat all Japanese rivals to become the No. 1 flat-TV brand, and LG consolidated its position as No. 5 in handsets and No. 4 in flat TVs last year. "In the TV market, design will be a critical differentiator," Simon Kang, president in charge of LG's digital display unit told BusinessWeek earlier this year.

Promise from the Next Generation
The argument is straightforward: In a world awash with digital and high-definition TVs boasting super picture quality, it takes more than technological superiority to win business. Consumers may consider the purchase of a flat-screen TV as much for its look as a piece of furniture as for its technogical capabilities (BusinessWeek.com, 1/16/08).

Korea also has a remarkably large number of wannabe designers. In Seoul alone about 11,000 students are majoring in design at 18 universities, while another 2,600 students in 51 graduate schools attended design programs in 2007. Recognizing this potential talent, Japanese auto companies, including Nissan (NSANY), have begun hiring young Korean designers. "When I first saw the sketches that Korean students were drawing, I was utterly shocked. Their design is very emotional and powerful," Shiro Nakamura, Nissan's chief creative officer, said last year.

The city government has set aside $180 million to finance projects ahead of Seoul becoming the first World Design Capital, part of which will go to sprucing up Seoul's streets, buildings, parks, and the Han River running through the city. Big business, sensing an opportunity, will lend a helping hand by dispatching senior designers to help out on projects. Cha Kang Heui, chief designer at LG's handset division, reckons the overall effect could echo the impact of the Seoul Olympics in 1988. "Just as the Olympics often serve as a coming-of-age party for a developing country, design could provide momentum for Seoul," he says.

All Eyes on Seoul This October
For Seoul mayor Oh, though, the highlight of the design drive will be the Design Olympiad in October. Oh plans to invite top designers from fashion, graphics, and other different design fields. He's counting on attracting 2 million people to the 21-day event featuring competitions, exhibitions, live performances, and light shows. If that doesn't whet the world's appetite for Korean design, perhaps nothing will. "I want people around the globe to say, 'If you want to check out the latest in design trends, go to Seoul,'" says Oh.

For more, see BusinessWeek's slide show.

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The Seoul of World Design