What's happening in Korea_Jan. 31

- The government is mulling over granting special pardons to ‘economic’ prisoners in an attempt to demonstrate its willingness to revive the sagging economy. About 59 prisoners including former Daewoo chairman Kim Woo-joong and former Doosan chairman Park Yong-sung are on the list.

- The Ministry of Government Administration and Home Affairs is working on a law revision under which the government can automatically intervene in illegal labor strikes at ‘national infrastructure facilities’ such as railway, airports, hospitals, and power houses.

- POSCO said yesterday a controlling shareholder of the company changed from SK Telecom with 2.85 per cent to National Pension Service with 2.86 per cent.

- According to data from the national statistical office, December industrial output growth rate hit a record low for the last two years and two months and the output index stood at 146.9, only up by a disappointing 2.3 per cent year-on-year. The figures indicate an expected sluggish economic performance in the first half of this year.

- Government Administration Minister Park Myung-jae and Health Minister Yoo Si-min are reported to have verbal arguments yesterday morning over civil servant pension system reform. The Health Ministry has been pushing ahead with a strong reform while the Government Administration Ministry allegedly balks at such a sweeping reform.

- Japanese Yomiuri paper reported today a person believed to be Kim Jong-nam appeared in Macao yesterday. The sources quoted by the paper said he might visit Macao in relation to the BDA issues.

- Service account deficit hit a record high last year largely due to a surge in overseas travel, up $5.1 bn from a year ago to $18.7 bn.

- Korea’s credit card use is found to be the highest among 19 countries in the Asia Pacific region in 2005 with $181.2 bn, followed by Japan with $151.3 bn and Australia with $131.5 bn.

- The survey by Korea Chamber of Commerce and Industry shows the companies cite more flexible labor relations as the problem that needs improving the most in order to improve business performance, followed by the establishment of a measure to fend off hostile M&A attempts.

- Eighty per cent of overseas funds from Korea are flown into emerging markets, which raise concerns for more cautious investment.