One hundred thirty-five years ago the financial journalist, Walter Bagehot, "In England, after a great calamity, everybody is suspicious of everybody; as soon as that calamity is forgotten, everybody again confides in everybody."
If he was alive today he might have been talking about the financial calamity of today. The financial industry turned out to be one of the most frightful years in history, while the policy makers and bankers are looking for a way out of this calamity. No matter how bad 2008 was and in all respect it got worse and entering 2009 could not be any worse. Due to the fact that in October of 2008 the financial system came close to a theater of war. The crisis had crippled the real economy. This proved that the crisis was too, long and too, deep and the citizens lost their confidence. However, thanks primarily, too foreign investing, and by granting more loans to future entrepreneurs that bestowed hope, inspiration and confidence for the economy. Fiscal authorities, too, need an exit strategy. Their response was instrumental in avoiding a collapse of the financial system.
Korea First to Recover
Korea was one of the first countries to weather out of the calamity because of foreign investing into infrastructures such as education and networks. Therefore, by investing into education led to a superior working class and the government encourage the production of labor-intensive exporting. Also, with the growth of the semiconductor market early this year and when the economy started to recover Korea was one of the first countries to invest.
Hype about the recovery of Korean stocks was red hot; however there were 20 other markets in the world that performed better. Samsung Securities places the Kospi as 21 which had a 48.1 percent growth in 2009. Last year Russia was ranked 63, but this year they took top honours. More outstanding is the fact that Korea is ranked second in Asia as the best country to invest in. KOTRA stated Korea's top score came from the category of "Mature Technology" it took a top score of 8.03 points.
Exports stated, "South Korea's foreign direct investment (FDI) in the first nine months of 2009 has been reduced to almost half the size reached during the same period last year." According to the Ministry of Strategy and Finance claimed, "South Korea's total outbound direct investments dipped to US$13.35 billion in January-September, down 48.7 percent from the same period a year earlier, when the total reached US$26.05 billion."
Lee Myung-bak announces for a private-led economic recovery. The policy will be put into effect until the private sector is stable. The Korean government reinforced for a proactive fiscal policy because they expect lots of consumption and invest.
Six countries from Asia Pacific, Australia, China, India, Indonesia, Japan and Korea are to contribute 2.4 million tons (41.4 percent) reduction in CO2 emissions. Japan is the only top-tier country who scored 16, which means out of all the G20 countries they have the most potential in reducing CO2 emissions. The index ranks Korea fourth.
The Korean government is planning on building a new structure known as the Global Green Growth Institute (GGGI). GGGI will bring together the top educated people as well as climate specialists from around the globe to contribute to an eco-friendly world. GGGI, will also, be the global think tank for all information on how to make an eco-friendly environment.
Top Ten in Exporting
On the 46 Trade Day Korea was celebrating by entering the top ten in the world as a exporting country. The Ministry of Knowledge Economy stated that exports reached US$260 billion to be ranked ninth.
The Korean IT industries show resilience and perseverance while foreign competitors are on the verge of bankruptcy. With Korean companies developing innovative technologies in LCDs, smartphones, semiconductors and ram. Exports stated, "Samsung's DRAM global market share increased from 29 percent in 2008 to 36 percent in 2009, while Samsung's NAND flash memory currently accounts for 40 percent of worldwide sales."
South Korea has focused on the development in mobile devices which has resulted in huge dividends. Companies such as Samsung and LG Electronics have penetrated the market with sleek gadgets from MP3 players to smartphones. BusinessWeek stated, "Samsung this year has increased its market share in the mobile phone market and positioned themselves as the number two player ahead of Motorola."
The global semiconductor market contracted from last year by 28 percent from US$7.35 billion to US$5.30 billion. The materials they use consist of wafer fab has been on a steady rise for the last four years. The projected forecast for this market is US$6.5 billion by 2010.
Korea Deals With the Calamity Head on
Overall Korea did very well this year unlike the rest of the world which looked like Armageddon. President Lee taking the initiative and shifted his economic agenda at the end of 2008 and early 2009 to deal with the global economic calamity which led to Korea being first out of the gate to recover. By taking the initiative in mobile devises, semiconductors, privatized recovery this led to Korea being in the top ten in exporting and having a record GDP growth of 2.3 percent in 2009.
What is 'IN' for 2010 and what is 'OUT' for 2009
We will present to you a list of what is IN for 2010 and what you will see more of in 2010 than we saw in 2009. Keep in mind that OUT does not mean it will be extinct.
IN Notebook or mine notebooks - OUT Desktops
IN Web-based applications - OUT self-built custom software
IN Core i7 - OUT Pentium
IN Telecommuting - OUT the 8-5 work day
IN Internships - OUT Filling up positions
IN Personal brands - OUT Corporate brands
IN Real-time search - OUT Index search
IN Change in business - OUT Change in communication
IN Macs in the corporate world - OUT Vista
IN Smartphones - OUT Notebooks that replace desktops