Moon Jae-in. Hong Hae-in / Yonhap via AP
Moon Jae-in. Hong Hae-in / Yonhap via AP
Moon Jae-in. Hong Hae-in / Yonhap via AP
Moon Jae-in. Hong Hae-in / Yonhap via AP

Newsmaker: Moon Jae-in


Colin Randall
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Moon Jae-in’s presidency of South Korea began with admirable pledges to handle an unpredictable and belligerent next-door neighbour, North Korea, and tackle economic problems.

He will also tackle broader regional tensions, China’s outrage at the United States THAAD missile defence system in South Korea and rising fears over that same northern neighbour‘s nuclear programme. But one other challenge may be almost as crucial in determining the success or failure of Moon’s term of office.

The left-leaning new head of state, who once declared the job wasn’t really up his street, must also live up to a vow to avoid the stain of corruption that has polluted South Korea’s political environment for years.

In a striking moment of his post-election press conference in the presidential Blue Room in Seoul, the 64-year-old former human-rights lawyer offered an unequivocal commitment: “I take this office empty-handed and I will leave this office empty-handed.”

If fulfilled, that alone would stand as a worthy achievement after the procession of allegations levelled at his three immediate successors.

Roh Moo-hyun – Moon’s guiding influence – was the first South Korean president to face impeachment, accused of illegal electioneering. The impeachment decision was later overturned, but after leaving office, Roh committed suicide in May 2009 by jumping off a cliff, as an investigation into bribery claims intensified.

Roh’s replacement, Lee Myung-bak, was variously suspected – though never convicted – of tax evasion, nepotism in favour of a brother who went to jail for corruption and irregular property dealing.

Most recently, the country’s first female president, Park Geun-hye, was forced from office and is now imprisoned pending trial after an influence-peddling scandal.

South Korea’s constitutional court voted unanimously in March to remove her from office, prompting her arrest on charges of bribery, abuse of power, coercion and divulging government secrets. She denies any wrongdoing.

If Moon keeps to his word, he will leave his mark on the office. But to do that, he will have to break the mould of dubious ties between government and big, family-owned business empires, or chaebols, while also improving – without betraying weakness – glacial relations with North Korea and its aggressive ruler Kim Jong-un.

In the latter task, he has a strong personal motivation for wanting reconciliation with the north. His parents were refugees from what is now North Korea – the peninsula was divided in an inconclusive settlement of the bloody Korean War in 1953, the year Moon was born – and he has described his powerful desire to take his ageing mother back to her hometown of Hungnam, 300 kilometres east of the capital Pyongyang, where her younger sister is also still alive.

Moon also says he’s willing to meet Kim in Pyongyang if the circumstances are right, as part of his declared mission of seeking conciliation. Sixty-four years after the conflict ended, the armistice remains unsigned and the two countries observe a ceasefire while technically being at war. Little wonder then that more-hawkish South Korean politicians sneer at him for being altogether too friendly to the north, a charge that he dismisses.

Moon, who is the leader of the Democratic Party, won the election in style, seizing 41 per cent of the vote, leaving Park’s conservative Liberty Korea Party and the centrist People’s Party candidate, Ahn Cheol-soo, lagging behind on 24 and 21 per cent respectively.

Despite the comfortable victory, the hard work is to come and will test Moon’s resourcefulness and resolve. He wasted no time in offering a hand of friendship to opponents, saying he would “serve even those who did not support me”.

Those in South Korea demanding change, and the young people who supported Moon will expect effective action on youth unemployment – which is low by many western standards at about 10 per cent, but reflecting a worrying rise – and the economic dominance of the family-run chaebols.

If the lessons of childhood have meaning, Moon may succeed in serving as an incorruptible president. He seems to attach little importance to material possessions and personal enrichment. His parents were poor, his mother strapping him to her back as she sold eggs to supplement his father’s income as a labourer in a prisoner-of-war camp. He has said he would like to end his days back in the area of his parents’ roots, working as an unpaid lawyer.

Moon Jae-in, one of five children, was born on January 24, 1953, on Geoje, an island off the southeastern port of Busan where his parents had settled. They had fled turmoil in the north, but life was hard in the south, too. Moon would queue for American air drops and charity handouts of corn flour and powdered milk.

A bright student, he began studying law at Kyunghee University, but became involved in student activism, leading protests against the dictatorship of Park Chung-hee, the father of the woman he has now succeeded as president, and was briefly held in jail.

He was expelled from university, but completed his legal studies. After obligatory military service, he launched a law firm with Roh Moo-hyun, the future president.

They remained close friends until Roh’s suicide. Moon was acting for him legally in his fight against corruption allegations and announced his death on television. Three years later, he wrote: “What does Roh Moo-hyun mean in my life? He really defined my life. [It] would have changed a lot if I hadn’t met him. So he is my destiny.”

When Roh was elected president in 2003, Moon worked for him as a senior aide, becoming known as “shadow of Roh”. Observers found him shy or “ridiculously awkward”, and Moon himself, more comfortable practising law, wrote years later that he always felt ill at ease with political life, “as if wearing clothes that did not fit”.

The bond with Roh evidently persuaded him to follow in his late mentor’s footsteps and put himself forward as a leader. Once elected, he solemnly undertook to be a “president to all people”.

There’s undoubtedly a good deal of idealism in the approach that the new president, married to a woman he met as a student and father to a son and daughter, takes to domestic and international affairs. Critics are sceptical about his abilities and outlook.

Moon, nicknamed Dark King after a character from a Japanese manga series, is about to find out whether his desire to be friends to all amounts to more than fanciful dreaming and can be made to work in a turbulent real word.

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'Worse than a prison sentence'

Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.

“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.

“They were living in perpetual mystery as to how their futures would pan out, and what that would be.

“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.

“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.

“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”

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Manchester City 1 Sheffield United 0
Man City:
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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

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Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.