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About the talk:

Despite a short history of economic development, Korea has produced a number of leading products; the Korean economy's success is based on the technological and innovative capabilities it has accumulated over several decades.

However, a major structural weakness is the concentration of its economic power in the capital city of Seoul and its outskirts, where most industrial firms are located. In addition, eastern Korea is more industrialized than the west. This technological and innovative imbalance will lead to a gloomy outlook for the Korean economy.

Having recognized this problem, over the past decade the central and regional governments have been making great efforts to enhance regional economic and innovative potential development. Daeduck Science Town, in the center of the Korean peninsula, along with a number of technoparks are evidence of these development strategies.

Dr. Chung will present and discuss the history and characteristics of Korean regional innovation strategies for this seminar.

About the speaker:

Dr. Chung received the Ph.D from the University of Stuttgart in Germany. He worked at the Fraunhofer-Institute for Systems and Innovation Research (FhG-ISI) in Karlsruhe, Germany.  He has been a senior researcher at the Science and Technology Policy Institute (STEPI), under Korea's Ministry of Science and Technology (MOST).

In 2004, on the basis of his research work, Dr. Chung was selected as the youngest lifetime fellow of the Korean Academy of Science and Technology (KAST) (Korea's equivalent of the National Academy of Sciences). Since March 1, 2008, he has worked as Director of KAST's Policy Research Center.

In 2008 he established the William F. Miller School of MOT (Management of Technology) at Seoul's Konkuk University. Dr. Chung currently serves as Dean of the Miller MOT School.

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Sunyang Chung Dean Speaker Miller School of MOT, Konkuk University
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Matthew Augustine
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We are pleased to bring you the second dispatch of the year in our series of Shorenstein APARC Dispatches. This month's piece, "Forced Labor Redress in Japan and the United States" comes from Matt Augustine, the Northeast Asian History Fellow for 2009-10 at Shorenstein APARC.

Last month, on October 23, the Nishimatsu Construction Company reached an agreement in the Tokyo Summary Court to set up a trust fund for Chinese who had been forced into labor in Japan during World War II. According to the Asahi Shimbun, the trust fund—worth ¥250 million—will compensate 360 Chinese citizens who were compelled to work at a hydroelectric power plant in Hiroshima Prefecture. Under the terms of the summary settlement, Nishimatsu acknowledged that these Chinese workers were forcibly brought to Japan and apologized for their suffering.This outcome was both overdue and unexpected, particularly since Japan's Supreme Court in 2007 rejected the original lawsuit that five Chinese plaintiffs brought against the construction company in 1998.  Nishimatsu officials maintain that they want to set a new precedent for "social responsibility" in the wake of the corporation's recent scandal involving political donations.  The timing of Nishimatsu's decision coincides with the rise of the new Hatoyama administration, which has promised to improve Japan's relations with China and other Asian neighbors.

Former forced laborers and their bereaved families have pursued litigation against the Japanese government and the corporations that employed them, not only in Japan but also in the United States. The Hayden Bill, which passed the California State Senate in July 1999, opened the door for Chinese and Korean victims to sue Japanese corporations and demand compensation for their hard labor in inhumane working conditions. Although the U.S. Supreme Court thus far has rejected such cases, the unresolved issue of Asian forced labor redress has now been introduced into the U.S. legal system, indicating that the United States has become involved in Japan’s historical disputes.

In fact, the United States was intimately involved in the issue of Asian forced laborers during the Allied Occupation of Japan between 1945 and 1952. U.S. Occupation forces initially attempted to retain Korean coal miners until Japanese repatriates replaced them, but riots in Hokkaido and elsewhere forced authorities to abandon this policy in November 1945. Responding to strong Korean demands, in May 1946 a military government team in Hokkaido gathered over ¥3 million worth of wages, bonuses, and death benefits owed to Korean miners. This amount was but a small fraction of the more than ¥215 million that corporations throughout Japan deposited into an account at the Bank of Japan by 1948. Occupation authorities made several unsuccessful attempts to persuade unwilling Japanese officials to pay back the financial assets owed to Koreans, while U.S. policy gradually changed to oppose reparations demands against Japan. Article 14(b) of the American-drafted San Francisco Peace Treaty signed in September 1951 waived all reparations claims, and the unpaid wage deposits of forced laborers remained a well-kept secret of the Japanese government.

When former forced laborers from South Korea and China began appearing in Japanese courts in the 1990s, their lawsuits helped to clarify the historical record of wartime abuse and postwar cover-up. Lawyers, journalists, and researchers supporting the redress movement dug up hidden official documents, such as the voluminous reports by the Foreign Ministry on Chinese forced labor and by the Welfare Ministry on the unpaid financial deposits of Korean laborers, both compiled in 1946. Although the Japanese government refuses to make such ministry reports public, the Tokyo High Court in 2005 confirmed that the state continues to hold the ¥215 million deposits, which have never been disbursed. While Japanese records remain largely closed, declassified American records can help to answer important questions, including how closely the United States was involved in the process of postwar Japan’s forgetting and neglecting Asian victims of forced labor.

An Asahi Shimbun editorial on October 24, 2009 admonished the Japanese state to take action in the wake of Nishimatsu settlement, since other corporations facing litigation have vowed not to pay reparations unless the government becomes involved. The new Hatoyama administration should first make an unambiguous apology, the editorial contends, then propose a new framework whereby the government and corporations can establish a joint trust fund to compensate former forced laborers and bereaved families. The United States can support this reconciliation process by revisiting the unresolved issue of forced labor—which also included Allied POWs—and reinterpreting the San Francisco Peace Treaty to enable these victims to file legal claims in American and international courts. Proactive U.S. involvement at the government level should also be matched by an enhanced effort toward nongovernmental cooperation between researchers in the United States and Northeast Asia. Shorenstein APARC has been contributing to this effort through its Divided Memories and Reconciliation research project, now in its third year. The Center will also host a colloquium series titled “The American Role in Northeast Asian Reconciliation” during the 2010 winter quarter.

 

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Shorenstein APARC Dispatches are regular bulletins designed exclusively for our friends and supporters. Written by center faculty and scholars, Shorenstein APARC Dispatches deliver timely, succinct analysis on current events and trends in Asia, often discussing their potential implications for business.

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Although South Korea is recovering relatively quickly from the worldwide recession in the wake of the U.S. financial sector crisis, it must address major structural weaknesses if it is to sustain growth over the long term. The Korean manufacturing sector is one of the world’s strongest and most efficient, but the services and (much smaller) agriculture sectors remain weak. Former senior South Korean economic policy official Byongwon Bahk argues that only by benchmarking the near miraculous success of its manufacturing sector can Korea convert traditionally weak sectors into new sources of job creation and foreign currency earnings. He will explain the necessity of, and obstacles to, inducing capital, technologies, and marketing from advanced companies in advanced countries; supporting R&D activities and education and training in weak sectors; and opening weak sectors to domestic and foreign competition.

Byongwon Bahk, a former senior South Korean government official, is the Korean Studies Program’s 2009-2010 Koret Fellow. During the past decade, he was in charge of the management of Korean macro-economic policy at the Ministry of Finance and Economy, including as vice minister. Most recently, he served in the Blue House as the senior economic advisor to President Lee Myung-bak. He received a BA and an MA in Law from Seoul National University, an MA in Industrial Engineering from Korea Advanced Institute of Science and Technology (KAIST) in Korea, and an MA in Economics from University of Washington.

This event is supported by a generous grant from the Koret Foundation.

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Shorenstein APARC
Stanford University
Encina Hall E301
Stanford, CA 94305-6055

(650) 723-9744
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2009-10 Koret Fellow
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Byongwon Bahk, former Senior Advisor to President Lee Myung-bak of Korea, joined the Korean Studies Program as the recipient of the Koret Fellowship for 2009-10 academic year.

Mr. Bahk served as Vice Minister of the Ministry of Finance and Economy in Korea and was a senior advisor to President Lee Myung-bak briefly.  While at the Center, he will lead a reach project on economic affairs of Korea in relations to the U.S.

The Koret Fellowship, generously funded by the by Koret Foundation of San Francisco, was established at the Center in 2008 to bring leading professionals in Asia and the United States to Stanford to conduct research on contemporary U.S.-Korean relations, with the broad aim of fostering greater understanding and closer ties between the two countries.

Byongwon Bahk 2009-2010 Koret Fellow, Asia-Pacific Research Center Speaker
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Karen Eggleston
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How do countries in the vast and diverse Asia-Pacific region differ in “prescribing cultures”? How do health systems in the region balance access to pharmaceuticals with incentives for innovation? How do the forces of globalization shape, and in turn are shaped by, cultural legacies about health and health care? These are the key questions addressed by the new Asia Health Policy Program book, Prescribing Cultures and Pharmaceutical Policy in the Asia Pacific.

AHPP held a book launch event September 23rd with three authors of the book detailing how pharmaceutical policies are interlinked globally and at the same time deeply rooted in local culture. 

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The coming to power of a new party in Japan, with a strong mandate to rule, is unprecedented in the postwar era. In the aftermath of the Japanese elections in August of this year, there has been much discussion, particularly in the Japanese media, about the foreign policy orientation of the new Democratic Party of Japan (DPJ)-led administration. Some commentators see an “anti-American” tilt—evidenced by differing views on the relocation of U.S. bases in Okinawa and the renewal of Japanese naval refueling operations in the Indian Ocean.

This viewpoint misses the foreign policy forest for its trees. The paradigm-shifting potential of this change lies much more in the DPJ’s desire to re-center Japan’s foreign policy on Asia. Across the spectrum of the DPJ, from former socialists on the left to those who came out of the conservative Liberal Democratio Party (LDP), there is broad agreement on the need to put much greater emphasis on Japan’s ties to the rest of Asia, particularly to China and South Korea.

The new Asianism in Japanese foreign policy was on display at the October 10 triangular summit of the Chinese, South Korean, and Japanese leaders, held in Beijing. It was only the second time these three have met on their own and the meeting was substantive, covering everything from coordinating on North Korea and economic stimulus policy to taking initial steps toward formation of a new East Asian Community. “Until now, we have tended to be too reliant on the United States,” Prime Minister Yukio Hatoyama told reporters after the meeting, adding that “The Japan-U.S. alliance remains important, but as a member of Asia, I would like to develop policies that focus more on Asia.”

The dominant foreign policy camp in Japan has been what Hitoshi Tanaka, a former senior foreign ministry official and close advisor to the DPJ, calls “alliance traditionalists,” whom he defines as those who “place the maintenance of a robust alliance with the United States above all other foreign policy priorities.” In the view of some DPJ policy advisors, the previous conservative governments mistakenly tried to cope with the challenge of a rising China by getting as close to the United States as possible. The decision to send troops to Iraq and the Indian Ocean was prompted not by any deep support for those causes but rather by the belief that this would ensure U.S. support in any tensions with China, and with North Korea.

All this took place as Sino-Japanese relations descended into their most troubled phase in the postwar period, prompted by former Prime Minister Koizumi’s provocative visits to Yasukuni Shrine, which honors Japan’s war dead. High-level contacts with China were frozen, tensions rose over territorial issues in the East China Sea, and rising nationalism on both sides culminated in the outbreak of government-sanctioned anti-Japanese riots in 2005 and a Chinese campaign to block Japan’s permanent membership in the United Nations Security Council.

There was an attempt by Koizumi’s conservative successors to roll back some of these tensions. But those signals were always mixed with the persistence of anti-Chinese views and the powerful camp of rightwing nationalists in and around the LDP who cling to a revisionist view of Japan’s wartime role, some even indulging in a vigorous defense of Japanese imperialism.

In the view of DPJ policy advisers, this pseudo-containment strategy is doomed to failure. Given the increasing economic interdependence between the United States and China, and their overlapping strategic interests, the United States will never form an anti-China front. Japan cannot rely solely, these advisers argue, on the U.S.-Japan security alliance to deal with China’s bid for regional hegemony.

Nor can Japan afford to indulge fantasies of confrontation with China, given its own extensive ties to its economy and society. Rather, the greater threat, in the view of many Japanese analysts, is being abandoned by the United States through the formation of a U.S.-China “Group of Two” that effectively excludes Japan, or relegates it to second-level status in the region.

Japan, those policymakers argue, needs to preempt that threat by engaging Asia on its own—not only China, but the entire region, from India back to Korea. The DPJ’s own policy vision, articulated by Prime Minister Hatoyama, Foreign Minister Katsuya Okada, and party strongman Ichiro Ozawa, remains vaguely defined but has three clear elements:

  • The U.S.-Japan security alliance remains the cornerstone, but with limits.
  • Japan plays a leadership role in East Asian regionalism.
  • The “history” question must be resolved.

What does this mean? There should be little question, particularly after the initial meetings between the new government and the Obama administration, that the DPJ seeks to back away from the security alliance. Over the past fifteen years, the DPJ leadership has not only supported, but even led, the expansion of Japan’s security role, beginning with the passage of the 1992 law permitting Japanese participation
in peacekeeping operations and including the initial dispatch of naval forces to the Indian Ocean in response to 9/11. Though the DPJ has made commitments to reduce the U.S. presence in Okinawa, it is already realizing how difficult that is to accomplish; some kind of compromise on this issue is imminent. Similarly, Foreign Minister Okada’s visit to Afghanistan and Pakistan demonstrated a willingness to contribute, mostly through economic aid, to the security effort in both countries.

Prime Minister Hatoyama presented his somewhat romantic desire to reproduce the European experience to create an East Asian Community in September before the United Nations General Assembly. Hatoyama has indicated that he understands this is a long process, and has been careful to make clear that Japan has no intention of excluding the United States’ role in the region, nor the use of the dollar as a reserve currency. As Hatoyama put in his UN address:

Today, there is no way that Japan can develop without deeply involving itself in Asia and the Pacific region. Reducing the region’s security risks and sharing each other’s economic dynamism based on the principle of “open regionalism” will result in tremendous benefits not only for Japan but also for the region and the international community.

Given the historical circumstances arising from its mistaken actions in the past, Japan has hesitated to play a proactive role in this region. It is my hope that the new Japan can overcome this history and become a “bridge” among the countries of Asia.

I look forward to an East Asian community taking shape as an extension of the accumulated cooperation built up step by step among partners who have the capacity to work together, starting with fields in which we can cooperate—free frade agreements, finance, currency, energy, environment, disaster relief and more. Of course, Rome was not built in a day, so let us seek to move forward steadily on this, even if at a moderate pace.

DPJ policymakers advocate pursuit of an East Asian community as only one of a nest of regional structures, including a regional security system that might grow out of the Six Party talks on North Korea. They also embrace the idea of a Japan-U.S.-China strategic dialogue, based on their own perception that without the combined muscle of the United States and Japan, they cannot bring China to the table on a range of issues from energy to intellectual property.

The last element of the DPJ’s policy vision is to take another major step in clearing away the legacy of the wartime past. Hatoyama personally reaffirmed his government’s adherence to the statement on war responsibility issued by then Prime Minister Murayama in 1995, at the time of the 50th anniversary of the end of the war.

Hatoyama, Ozawa and others in the DPJ leadership are determined to confront the history issue in a way that eases tensions with China and South Korea and also closes doors backward. They will not only refuse to go to the Yasukuni Shrine but also want to remove the Class A war criminals whose “souls” are enshrined there by decision of the shrine authorities, to the consternation of the Emperor, among others. The DPJ led the hue and cry over the unapologetic revisionism of former Japanese air force chief of staff, General Toshio Tamogami, who wrote an essay justifying Japan’s colonialism and wartime aggression, including the attack on Pearl Harbor. Foreign Minister Okada has backed the creation of a joint history textbook by China, Japan and South Korea, based on the model followed by France and Germany. These are stances the LDP has been historically incapable of taking.

The DPJ draws some inspiration from the anti-imperial form of Asianism—“Small Nipponism”—championed by the late Tanzan Ishibashi, who served briefly as premier in the mid-1950s and who was allied to Hatoyama’s beloved grandfather, and former premier, Ichiro Hatoyama.

In the coming months, the Hatoyama government will have numerous opportunities to develop its new policies, particularly in the run-up to Japan’s hosting of the APEC summit next year. Undoubtedly, it will be difficult to implement in practice, but this new Asianism marks a clear turning point in Japan’s postwar foreign policy.

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About the talk:

Korea's National System of Innovation (NSI) is characterized by a group of 'strong large firms and weak small firms'--innovative large firms able to exploit technological and market opportunities abroad, and laggard small firms. Under the liberalized environment that emerged rapidly after the 1990s financial crisis, coordination and networking of innovative actors and resolution of mismatches in the system of innovation have become urgent issues in Korea's bid to become active in knowledge generation and to effectively utilize technology from abroad.

Lim shall discuss the characteristics of and changes in the Korean NSI, a system which has experienced a radical shift to adapt to the global environment after the 1997 financial crisis. His 3-year research project on the Korean NSI is part of an international research project published as Small Country Innovation Systems (Edward Elgar).

About the speaker:

Chaisung Lim has focused his research on management of technology in catching up with advanced country firms in his capacity as leader of the Research Institute for Global Management of Technology for Catching Up (GMOT). He has participated in committees and project teams providing consultation on industrial and technology policies for the Korean and Turkish Governments. He is currently a Professor at the Miller School of MOT and the MOT/MBA program at Konkuk University, Seoul. He received the PhD in Technology Management at SPRU at the University of Sussex. He previously worked for the industrial analysis division of the Korea Development Institute, a leading think tank in Korea.

Daniel and Nancy Okimoto Conference Room

Shorenstein APARC
Stanford University
Encina Hall, Room E-301
Stanford, CA 94305-6055

(650) 723-6530
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Visiting Scholar, 2009-2010
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Chaisung Lim has focused his research on management of technology in catching up with advanced country firms in his capacity as leader of the Research Institute for Global Management of Technology for Catching Up (GMOT). He has participated in committees and project teams providing consultation on industrial and technology policies for the Korean and Turkish Governments. He is currently a Professor at the Miller School of MOT and the MOT/MBA program at Konkuk University, Seoul. He received the PhD in Technology Management at SPRU at the University of Sussex. He previously worked for the industrial analysis division of the Korea Development Institute, a leading think tank in Korea.

Chaisung Lim Speaker
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