The sinking won, some insight

There was a great posting over at the Marmot's Hole about the falling won.  It is noted:

It’s no secret that the won’s value is falling like it’s going out of style. It seemed as if the bottom fell out last Thursday, where during the trading day the won dipped as low as 1,484.90 per dollar, the lowest level since the Asian financial crisis of 1998, before finally rebounding to close at 1,383.30. The one month tally? A drop of over 25% from 1,101.3 to 1,385.0

He notes that the cause of the won's drop is more than just the recent financial crisis:

The simple fact of the matter is that Koreans are too fond of exchanging their won for other currencies (as evidenced by the current account deficit).

You’re Welcome: The cost of living (Part 2/2)

This is the second part of my answer to CW’s question about the cost of living in Geoje.

Food/Drink

Generally, it is a little cheaper living here in South Korea than in the US.  A meal out at a modest Korean restaurant around Geoje can coast as low as 5-8,000 (more if order alcohol).

Drinking is cheap if you are drinking soju.  Soju, Koreans native and ubiquitous alcoholic beverage (its not strong enough to be called liquor).  Costs about 1,500 for a small bottle.  Beyond two bottle of soju and you are on your way to intoxication.  Hence, the streets being littered with drunk men too incapacitated to talk home without falling.

Beer or western liquors are quite expensive.  A .75 bottle of Jim Beam whiskey goes for about 25,000 to 30,000--when you can find it.  A 1.75 liter plastic bottle of Korean beer goes for about 5,000.

Western food is more expensive.  I have an ad Domino’s taped to all the doors in my hall and the large pizza’s range from 19,000 for pepperoni to 32,000 for a “Double Crust Steak” pizza.  Pizza prices are reduced 20% if you pick up at the store rather than have delivery.  However, that discount goes away if you eat the pizza in the restaurant.

Western staples like bread, butter, peanut butter, and cheese are also more expensive since they aren't part of a Korean's normal diet.  A half-loaf of so-so white bread goes for about 1,500.  Cheese is at least 2-3 times the cost in America with a smaller selection.

Utilities

Electricity is much cheaper.  I was amazed--about a third of what I paid for my studio apartment in the states.  For July, when I ran the air conditioner almost constantly, my bill was a little over 80,000.  However, with no air conditioner, its usually half that.   The gas, which is used to heat water and the room is more expensive--those bills can run between 25,000 in the summer when I just use it for cooking and heating water, to 80,000 or so when its also heating the floor in the winter months.

Internet/Cable runs about 45,000 a month.  And the internet is blazing fast.  That’s nice.  The prices are similar to broadband prices in the US, but the speed is much faster for what you pay.  My phone bill is about 15,000 a month (and that's without a rate plan!).

Transportation

A city bus costs 1,000 won.  A ferry to Busan costs 22,000.  A bus to Seoul costs 31,000.  The taxi rate in Geoje starts at 1,800 during normal hours (morning-11pm).  I can get from Gohyeon to Okpo for just about 9,000.  That being said, I usually take the bus.

Overall, without any careful budgeting, I've been able to send about half of my paycheck home most months.  The past few months, I've been budgeting much tighter and have been able to send about 1,300,000 home.  That's still not living too tightly.  Spending about 15,000 a day to buy groceries or eat out and using the rest for utilities.

If you are budgeting to send money home for savings or paying off debt, you have to keep the exchange rate in mind.  Its not good right now in the slightest.  the first year I was here, it was pretty steady at about 1,000 won to $1.15-1.20.  As of today its at 1,000 to $0.71!  So, keep that in mind when doing mental calculations.  The previous rule of thumb of 1,000 to $1 doesn't work any more when you are thinking about sending money home.

You’re welcome.

You’re Welcome: The cost of living (Part 1/2)

Today, I received this e-mail from a future Geojite (or is that Geojean?):

American in Korea,
I am set to come to Korea in January to teach English in Geoje.  I found your blog by performing a Google search and I wanted to ask you a question.
Can you give me an idea of the cost of living in Geoje?
I'm sure that you are busy, but if you find time, it would be great if you could help me out.
Thank you for your time.

Sincerely,

CW

Well, CW that’s a good question.  And of course you’re welcome before you even thank me.  I want to answer your question in two parts.  Today, I want to look a a general snapshot of Korean money compared to US money.
I don’t know your situation but if you are paying off any loans or debt or have the goal of saving up dollars—or any other currency for that manner—Korea is going to be mighty expensive.
I previous wrote about the sinking Korean won a few weeks ago.  Then, I took the hit and exchanged my money and sent it to America.  I’m glad I did then, because its gotten much worse.  The won is now at a 7 1/2 year low against the US dollar!  The only time its been worse in recent history is when it was forced into an IMF loan in 1998.
Here’s today’s chart from Google Finance:

Its down about 33% the past year, and down about 10% the past three weeks.  I re-did my end of term budget to plan in my final payments from Korea (last paycheck, severance pay, and pension disbursement) and was shocked at the results.  I lost $600 compared to what I would have received if September had been my last month!  That’s what a 10% drop in a currency means for ex-pats sending money back overseas.
Teachers with prior experience or a teacher’s degree usually get a 2.2 million won a month contract.  When I first came, this was worth about $2,400 a month.  Add in the benefits—health, the severance pay at the end, and the paid housing and the deal was good.  Now the same 2.2 million won month contract is worth about $1,600 a month!  That’s $800 less than the beginning of term!  Because of the sinking won, many teachers have taken a de facto pay cut of $800 a month!

	Korean Won	US Dollars
October 2007	2.2 million	$2,400
October 2008	2.2 million	$1,600

Those wanted to save money or send money home are at a serious disadvantage.  However, if you are looking to travel around Asia during breaks, around Korea on the weekend, and be immersed in a foreign culture, Korea would still be a great choice.  It just might be a good idea to keep the money you earn here until the won goes up a bit before sending any of it home.
Also, while the weak won hurts the exchange rate, it hasn’t caused a huge inflation.  I’m speaking as a consumer here not an economist.  So your won aren’t as worthy overseas, but here in Korea, they are just right.  Tomorrow, I’ll talk more about.
You’re welcome.

An amazing talk about “developing countries”

A million people can’t be wrong…or can they?

South Korea hosted the largest demonstration in twenty years on June 10th.  Protestors estimate that over a million people gathered across the country with half of those in Seoul.  Of course, police drop the number to less than half of that.  The main topic for the protest was beef.

Of course there are always other issues that are bound up here, and I'll readily discuss how irrelevant they are with anyone who asks.

Leading up to the protests, police barricaded the paths to the presidential palace with shipping containers.  They welded shipping containers together, two-high, filled them with sand and greased them up so protestors couldn’t climb them.

Below is a picture a barricade from the Korean blog Modern Day via The Marmot’s Hole (the comments here are also interesting).

Here is a picture of the protest in progress from Chosun.com via Korea Beat.

Here’s a roundup of links for those wanting to read more about the protests and the controversy:

• My own look at the controversy last week. [An American in Geoje]
• The reneging of the beef deal will cause trouble with the Korea-US Free Trade Agreement. [World Politics Review]
• How the Lee Myung-Bak’s government and US trade officials are scrambling to save the agreement [BBC]
• News that Korean auto workers were considering a strike so they could join anti-US beef protests. [Trading Markets]

And in regard to the auto-workers potention strike, I have an idea: you can continue to implement a protectionist trade policy and keep US beef out under the guise of a public health issue.  Then, we could ban Korean-made cars since they could potentially be deadly.

Or, we could prevent the sale of Samsung or LG cell phones since they may cause brain cancer.  This is also pretty damning since Korea is a de facto closed market when it comes to cell phones.  Hey, if the signal from a cell phone can pop a popcorn kernel, they what is it doing to our brains?  We must stop this threat.

Leaving North Korea

Here's a pretty amazing BBC piece about North Koreans escaping from the horrible conditions in their country.  The footage was originally captured by a South Korean newspaper undercover in China at its border with North Korea. 

Mad cows and electric fans

Below is a picture from the BBC of a clash between riot police and protestors near Korea's Blue House (the counterpart to the US White House).

 

What was the cause of the violence?  Was it an unjust war?   No.

 

Were the protestors fighting for civil rights?  Nope.

 

Was the mob protesting an election fraud or coup?  Uh uh.

 

They are protesting beef.  Seriously. 

I am disappointed in South Korea's common sense.  The issue of US beef imports, which are cheaper and of better quality than domestic beef, has been brewing for some time.  This hysteria has been fueled over an irrational fear of mad cow disease.

Teens have been the most visible force behind this movement to continue the ban on US beef.  There have been several high-profile and well-attended candle light vigils protesting the resumption of beef imports next week.  The campaigning by teens was driven by SMS and instant messages.  I can understand teens being caught up with an issue that has been tied to nationalism and deemed important.

These teens have been flooding message boards with such politically emo comments as, “Are we fated to die so young?” and “I just want to live and fulfill my career dreams, not die mad like an American cow."

These statements have found their way onto Youtube.  One of the most ridiculous is the following video.  My favorite quotes are:

IS THIS ANOTHER US FORIEGN POLICY OF INVADING THE WORLD?  IRAQ FOR NUCLEAR WEAPON AND SOUTH KOREA FOR MAD COW DISEASE?  WHY KOREAN GOVERNMENT IGNORE OUR VOICES, DO NOTHING TO STOP THIS? [sic]

and

WHAT IS U.N. DOING?  WHY DONT THEY INTERVENE TO THIS POSSIBLE MASSIVE GENOCIDE FROM HAPPENING? [sic]

Genocide?  Seriously?  One commenter on the above video noted, "mad cow is the new fan death."  I had to look it up.  Korean urban legend says that fans left on overnight will cause death.  I always wondered why Korean fans had a shut-off timer built in.  Korean news programs even keep a running tally as they report each "fan death" the occurs.  The problem is there isn't science to back it up.

The same is true with this mad cow hysteria.  I thought adults would not be so gullible, but as that first picture shows, the mob has proved me wrong.  The fact is, that this whole movement is really just economic protectionism under the guise of a public health issue.  Korean beef farmers wouldn't be able to compete with US beef.  So, they are trying to bring up these irrational health concerns.

Here are some reasons why this fear is ridiculous:

1.  If you don't want to eat American beef, then don't buy it!  In Korea, beef is clearly labeled as being domestically or foreign produced.  Currently, most foreign beef comes from Australia.  Koreans can vote with their won.

2.  The US has about 100,000,000 cows.  There have been 3 cases of mad cow.  So, for every cow that was found to have mad cow 33,333,333 don't have it.

3.  The US has a human population of over 300,000,000.  There have been 3 cases of vCJD, the human counterpart of mad cow.  That's a 1 to 100,000,000 ratio.  Even the UK, with more than 100,000 cases of mad cow had only 163 human cases, which works out to be .0000027% of their population.

4.  Koreans are far more likely to be hit by a car than come come to harm from mad-cow tainted beef.  As I've noted before, the child traffic accident fatality rate for Koreans is the highest in the industrialized world.  Why isn't the mom starting a campaign for parents to buckle their kids in the car instead of focusing so much attention on such a silly concern?

I'm confident that beef imports will resume as scheduled, and that in time, Koreans will begin to appreciate the quality and price of US beef.  I plan on eating pounds and pounds of US beef a week just as soon as I can get my hands on it.  And I'll continue to defy fan death by sleeping with the fan blowing in my face, and with the air conditioner on at the height of summer.  I know I'll be fine, but I'm just a little worried  to see what the mob will focus its irrationality on next. 

Ignorance was bliss...

I haven't kept up much on Korean news. I was talking with some other foreigners about how safe Korea is. But it's not safer than the West--it just seems that way because we don't have Nancy Grace to tell us what to be afraid of.

This past week I've been getting wind of some really sad, sick stories in Korea. Just this past Sunday, a women in Gohyeon threw her two children out the window. One died and the other fell into a tree and survived. Nothing in the news about it, just people at the crowded apartment complex saw it happen.

There also seems to be this growing awareness of sexual predators in Korea. First, my school director made a comment about kids not being outside as much because of recent kidnappings. Then this story really made me sick to my stomach. The attempted kidnapping of a girl by a convicted sexual predator was caught on security camera. The girl was threatened with a knife, then beat and kicked. When he tried to drag her out of the elevator (by her hair) she screamed. A neighbor ran to help and the guy bolted when we saw her.

Despite the witnesses and video evidence, when the mother reported the incident to the police, they tried to downplay it, and write it off as a simple assault by drunk man. I guess an brutal, attempted kidnapping by a sexual predator requires more paperwork than an ajeossi who had a bit too much to drink.

Brian in Jeollanam-do has followed the story well and has a great write-up here. Here's a video from a Korean news site that shows the attack (the music is really cheesy--I suggest muting before playing). Warning, its very disturbing.



If the assault wasn't bad enough, the poor response from police compounded the problem. This line from the story really got me:

With criticism growing, the police station launched a full-scale investigation three days after the incident took place, examining the CCTV which recorded his face and his beating the girl. The move came after the parents had already distributed leaflets about the incident to neighbors to catch the suspect.

The guy was later caught and confessed. Then, to add to the circumstance of the attack and poor response, the background of the attacker really got me:

He was previously in jail for 10 years for habitually sexually assaulting minors and was released two years ago, police said.

Despite the fact that this guy was known to be a habitual offender, due to Korea's insane laws that protect the identity of criminals, they won't release his name or mugshots. So, if he ever gets out of prison (again), he'll be free to attack another kid (again). Hopefully, Korean police will learn from this incident and actually do their jobs to prevent these crimes, or at the very least, investigate them when they happen.

Also, I hope lawmakers step up and change laws to protect the public at least releasing the identities of criminals.

Since I'm really powerless to do anything about these problems as a foreigner in Korea, I kind of wish I was just ignorant again.

I Like Mike (and John)

As I've noted in the past, I have a dismal record of supporting losers in elections. The only break from that was in 2004 when I voted for Bush for President, and Matt Blunt for Missouri's governor.

In the past, I've waited long and hard before deciding for whom to vote--usually at least past the primaries. But I did my homework early this year that in most election seasons.

When I get my ballot in the mail for the upcoming primary, I'm going to vote for Mike Huckabee. There's lots of information out there, but here are the main reasons "I like Mike":

• He's not a millionaire. I'm tired of people like Mitt Romney and John Edwards (and even Obama) saying they know what the working man is feeling with their multi-million dollar bank accounts.
• His support for the Fair Tax (I like the idea of getting rid of the IRS)
• He's pro-life
• He has 10+ years experience as a governor
• His support for a pro-active "health" system to prevent problems instead of just an healthcare program to respond to problems
• He has a primary goal of energy independence. Renewables and cleaner technologies are vital for the environment, but it is hard to argue that America can prevent many foreign entanglements if we didn't rely on OPEC for our energy. Huckabee said it best, "I would love to be the president to tell the Middle East we need their oil as much as we need their sand."
• He showed real crisis management skills after Hurricane Katrina. Its actually one of the few shining examples of what happened well. His state absorbed 75,000 evacuees and handled the change much better than northern Louisiana, Texas and Mississippi did.
• Last but not least, I trust him

Huckabee won Iowa primary, and McCain looks like he'll win New Hampshire. However, McCain isn't ahead anywhere else. It looks like Huckabee has a good chance at this. I can't wait to see what happens, and I can't wait to cast my ballot.

[Edit 4/15/2008]
Huckabee is long out of the race. Most of the attention the past month and a half has been in the Democratic candidates. Without hesitation, I will vote for John McCain in the fall. He has the most experience, shares most of the same views as I do, and I trust him the most.

Beijing Bound

I'm at a cheap motel near the Nambu Bus Terminal. The plan is to wake early, take a taxi to the City Air Terminal at COEX, check in there and go to Beijing.

Then, I look at the news, and see that Beijing is under a pollution warning. Boy, I picked a good time to visit.

The following picture and paragraph are from an AP story at Breitbart. Note the haze is pollution not fog.

Beijingers were warned to stay indoors on Thursday as pollution levels across the capital hit the top of the scale, despite repeated assurances by the government that air quality was improving.

"This is as bad as it can get," a spokeswoman for the Beijing Environmental Protection Bureau told AFP.

"Level five is the worst level of air pollution. This is as bad as it has been all year."

According to the bureau's website, 15 out of the 16 pollution monitoring stations in urban Beijing registered a "five" for air quality rating.

Japan Day 3: Earthquake #2

Day 3 in Japan: Early this morning, we got word there had been another earthquake, this time in the sea between Korea and Japan. I didn't feel this one. However, I was a bit concerned about the news of a radioactive leake. Several hundred gallons of radioactive water was released into the sea.

Hmm... Let just hope that that earthquake combined with the radioactive material doesn't awaken the greatest Japanese disaster of all: Godzilla!

Jangma (장마)

It has been a week since the clear dusk was overtaken by a shadow of gray clouds from the east. The clouds first rolled around the mountains and then over them. By the time the sun had gone down, the entire sky was covered. And so it remains. The end of the world? Nope, just the seasonal monsoon season or jangma (장마).

The land now lies covered in a blanket of muggy moisture. Occasionally, the moisture reaches a critical point and begins to fall as mist--like sweat from above. Then sometimes, the rain gushes down. I've heard we have yet to see the worst of it.

I happen to like rainy weather don't think the rain will bother me much. However, the head and mugginess that often accompany the jangma will not be welcomed. I've heard from past survivors of this annual weather pattern that once the clouds roll in, they don't leave for three or four weeks.

I guess this the price for that amazing spring that has just ended.

Driving in Korea: a Serious Note

Upon hearing that some friends will let me borrow their car while my family is visiting, I started reading more about driving in Korea. The past posts in my series have been light-hearted. This one is serious.

From the US Dept. of State website:

The Republic of Korea’s roads are well paved, traffic lights are functional, and most drivers comply with basic traffic laws. However, the Republic of Korea has a significantly higher traffic fatality rate than does the United States. Causes of accidents include excessive speed, frequent lane changes, running of red lights, aggressive bus drivers, and weaving motorcyclists. Pedestrians should be aware that motorcycles are sometimes driven on the sidewalks and drivers of all types of vehicles do not always yield to pedestrians in marked crosswalks. It is safer to use pedestrian underpasses and overpasses, where available.

That phrase "significantly higher traffic fatality rate" made me curious. So I looked it up. According to the World Health Organization, Korea's traffic fatality rate is 22.5 per 100,000 people. In the USA, its 14.5 per 100,000.

One stat that really makes me mad is the number of child deaths. Most Koreans don't even have their children in seatbelts, much less car seats. It is not uncommon to see children standing up in the back seat. Koreans have 7.5 child deaths per 100,000 in traffic accidents--the highest rate in the world. The best numbers I've been able to find for the US, put that rate at 3.1 per 100,000.

So, its not just my perception, Korean drivers really are bad drivers.

" Tightrope acts cross the Han solo"

Apparently, the headline wasn't in reference to the Star Wars character Han Solo. Its about a much less exciting stunt across the Han River in Seoul.

Shut your mouth...

Korea, this is yet another reason why you are struggling to compete in the area of English education:

A fellow English teacher/blogger is being sued for libel by his former Korean employers. Libel here in Korea is different from our American concept. In America, libel is saying something that is harmful and untrue. Here, it just has to damage a person's reputations. Get this

"Unlike the United States, Korea does not exalt free speech as a constitutional right. However, the Korean Constitution does recognize a right to reputation. In other words, reputation enjoys higher standing under Korean law than free speech." -- Brendon Carr, a law consultant quoted in the Korean Herald

I used to subscribe and link to ZenKimchi. I was alerted to this situation by a fellow blogger, Torgodevil, at A Geek in Korea. After reading about this, I switched that last blog about one of my bosses to friend-read-only mode on Facebook.

This is scary stuff. I can't imagine what I'd do if I ran into major problems like this with my employer. Overall, my complaints are minor--normal work problems. The only big problem I had was at the beginning of my job when I got paid a week late. I had tried to contact people to find out why, and I got ignored and blown-off.

A Geek in Korea recounts a story about a Korean friend of his:

She went to the labor board twice to complain because her school refused to pay her wages due...In fact, the hakwon that refused to pay this woman actually demanded an apology from her. They said they’d pay only if she apologized for them to court.

Unbelievable! The thief demands an apology for being exposed as a thief.

Korea, you expect great things from your foreign English teachers, but don't protect us when we are wronged. Then, you allow those who have wronged us to come after us for pointed out their wrong.

---
Links:
ZenKimchi
A Geek in Korea
Korea Herald's Article

Joshua: the interview

Someone has noticed the insightful analysis I bring to the field of expats teaching English in Korea. Hah. I was recently interviewed by Expat Interviews. I think its safe to say that this is decidedly non-controversial (don't want to add more fodder for the hatters right?)

If you are thinking of moving overseas, or just want to understand the life of an expat, I recommend the site. Its design isn't very flashy, its the content that's important right?

---
Links:
Expat Interviews

Virginia Tech Shootings

Its too soon for much meaningful commentary on the mass-killing in Virginia yesterday, but I did want to say a few things now that two US new cycles have run their course.

It turns out that it was a South Korean national that was responsible for the shooting. Today, both of my English co-teachers had talked with me between classes about they they were hearing through Korean news sites. Apparently, the comment boards were a buzz with Korean students in the US afraid of a backlash against them if the shooter turns out to have been Korean (this is before his nationality was known). Hopefully people can see this for what it is: the horrible acts of a very disturbed man.

There might be some commentary that needs to be made about gun control in the US. Although I've been on the record for 9 years in favor of gun-control, it sounds like nothing less than banning guns completely would have prevented this. Maybe this incident says something about Korean culture. Maybe this says something about American culture. Maybe, it just says something about the fallen condition of man.

I included this image, which was distributed on Facebook today, to show my firm belief that this really could have happened anywhere--even at my alma mater, the University of Missouri.

My thoughts and prayers are with the loved ones and victims from the shootings.

Three Steps to Fixing English Education in Korea

I just read this article about English education in S. Korea. President Roh is again emphasizing the importance of English. He's repeating the goal of having a native English speaker in every middle school by 2010.

Frequent readers, and those who know me here in Korea know how critical I am about the English education system here. Just importing more of us foreigners isn't going to be very helpful. The guys up top need to make some fundamental changes to the way English education is carried out here. The problems with English education are not number problems; more money and more native teachers will not fix the issues.

First, it is important to emphasize conversational English. When I asked my middle school students the meaning of the word "meant" they all shouted "PP!" PP stands for "past participle." However, not one of them could use it in a sentence! Who cares if you know the exact grammatical function of a word if you can't use it in a sentence. Is the goal of English education here to be able to diagram a sentence or to communicate?

Second, native speakers need to be included in the curriculum. One of the greatest frustrations that I've felt is that I have no standards or curriculum to base my lessons upon. I do my best to chart a course to improve the English of my students. However, the random, non-integrated lessons of native speakers in general does little to improve the nation's language proficiency.

Third, native speakers need to be treated better. In Korea, most native English teachers are treated like a commodity. They are imported in by the hundreds, given little guidance, face numerous hassles, and are given little consideration for the hardships of living as foreigners. If Korea wants to gain quality foreign teachers to come and to stay for several years they need to provide better support for these teachers.

In general, South Korea has a reputation among the ESL teachers community as having the best pay, lowest qualifications for teachers, and either really good or really bad working conditions. Korea has a long way to go to

Shout out

Wanted to offer shout out to a friend who recently posted his 400th blog entry. He's been at it for over four years--back before Blogger was owned by Google. He introduced me to blogging and taught me the word blog.

By the Numbers: South Koreans vs. North Koreans

To the left is a graphic taken from a Korean newspaper. It shows the height difference between an average South Korean and an average North Korean. It is amazing. In only fifty years--maybe two generations, there is a measurable difference. Also, factor in the fact that until the 1970s, the two Koreas were pretty similar in terms of economy. In fact, by many measures, the North's economy was in better shape through the early 1980s.

I think the argument can be made that it isn't necessarily the greater availability of food that is causing a height increase, but possibly just the introduction of more western foods into diet.

The small chart in bottom right quadrant of the infographic shows projections for the year 2025. South Korea is blue and North Korea is south.

Maybe there's something to the infamous statement by McDonald's Japanese President, Den Fujita back in 1971:

"the reason Japanese people are so short and have yellow skins is because they have eaten nothing but fish and rice for two thousand years...if we eat McDonald's hamburgers and potatoes for a thousand years we will become taller, our skin become white and our hair blonde."

If those words came out of the mouths of a white person he'd be labeled a racist. However, I guess its still possible for a person to be racist against themsleves. Anyone who is familiar with the Boondocks, and the character Uncle Ruckus would know.

Things are changing.