South Korea’s impeached President Yoon Suk Yeol was arrested on Wednesday in a large police operation, with the embattled leader defiantly insisting an investigation into him is illegal and he only complied to prevent violence.
His arrest, the first for an incumbent president, is the latest episode of turmoil for one of Asia's most vibrant democracies, which has a history of prosecuting and imprisoning former leaders.
In a video message recorded before he was escorted to the headquarters of South Korea's anti-corruption agency, Mr Yoon said the “rule of law has completely collapsed in this country”.
The operation to arrest Mr Yoon involved about 3,000 police officers after he had been holed up for weeks at his residence in Seoul while vowing to “fight to the end” against efforts to oust him. He had been guarded by a small army of personal security that blocked a previous arrest attempt.
The saga began on December 3 when Mr Yoon declared martial law for the first time in 44 years, saying it was needed to tackle “anti-state” opposition using their legislative majority to thwart his political agenda. He deployed troops around the National Assembly but legislators managed to get through the blockade and vote to lift the measure.
His declaration shocked South Koreans, rattled Asia's fourth largest economy and started an unprecedented period of political turmoil.
Parliament impeached Mr Yoon on December 14 over the martial law attempt and his presidential powers were suspended. The Constitutional Court is deliberating on whether to uphold that impeachment and permanently remove him from office or restore his powers.
Wednesday's arrest attempt began before dawn, with hundreds of thousands of South Koreans watching live feeds showing bus loads of police arriving near the presidential residence, pushing past Mr Yoon's supporters and walking towards the gates carrying ladders and wire cutters.
Anti-corruption investigators and police officers engaged in an hours-long standoff at the compound’s gate with presidential security forces but otherwise encountered no meaningful resistance.
Some police officers used ladders to climb over rows of buses placed by the presidential security service near the compound’s entrance. Despite a court warrant for Mr Yoon’s detention, the presidential security service had insisted it was obligated to protect him.
Anti-graft officials said Mr Yoon was brought into custody about five hours after investigators arrived at the presidential compound and about three hours after they successfully entered his residence.
A convoy of black SUVs, some equipped with sirens, were seen leaving the compound with police escorts. Mr Yoon was later seen stepping out of a vehicle after arriving at the agency’s office in the nearby city of Gwacheon. He was expected to be sent to a detention centre in Uiwang, near Seoul.
The president was being held for questioning on Wednesday afternoon but was refusing to talk, an anti-corruption official told Reuters. Mr Yoon could be kept in custody for weeks. The anti-graft agency, which is leading a joint investigation with police and the military over whether the martial law declaration amounted to an attempted rebellion, has 48 hours to request a court order for a formal arrest. If it fails to do so, Mr Yoon will be released.
Mr Yoon’s lawyers have claimed that a detainment warrant issued by a Seoul court was invalid. They said the anti-corruption agency had no legal authority to investigate rebellion allegations.
“I am truly appalled to see illegalities upon illegalities upon illegalities being carried out and procedures being forcefully conducted under an invalid warrant,” Mr Yoon said in the video. “My decision to comply with such illegal and invalid procedures is not an acknowledgement of them, but rather a willingness to prevent unfortunate and bloody incidents.”
South Korea’s acting leader, Deputy Prime Minister Choi Sang-mok, on Wednesday urged law enforcement and the presidential security service to ensure there were no “physical clashes”.
Park Chan-dae, floor leader of the liberal opposition Democratic Party, which drove the legislative campaign that led to Mr Yoon’s impeachment on December 14, said his detention was the “first step towards restoring constitutional order, democracy and realising the rule of law”.
The Constitutional Court held its first formal hearing on the impeachment case on Tuesday, but the session lasted less than five minutes because Mr Yoon refused to attend. The next hearing is set for Thursday, and the court will then proceed with the trial whether or not Mr Yoon is there.
Minor scuffles broke out between pro-Yoon protesters and police near the presidential residence on Wednesday, a Reuters reporter said. Throngs of those protesters had gathered before dawn in sub-zero temperatures.
“It is very sad to see our country falling apart,” said Kim Woo-sub, 70, who was protesting against Mr Yoon's arrest.
- With agencies
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
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%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%3Cbr%3E%3C%2Fp%3E%0A
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The struggle is on for active managers
David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.
The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.
Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.
Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.
Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.
At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn.
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
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Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
UAE currency: the story behind the money in your pockets
Juliet, Naked
Dir: Jesse Peretz
Starring: Chris O'Dowd, Rose Byrne, Ethan Hawke
Two stars
Fourth Arab Economic and Social Development Summit
As he spoke, Mr Aboul Gheit repeatedly referred to the need to tackle issues affecting the welfare of people across the region both in terms of preventing conflict and in pushing development.
Lebanon is scheduled to host the fourth Arab Economic and Social Development Summit in January that will see regional leaders gather to tackle the challenges facing the Middle East. The last such summit was held in 2013. Assistant Secretary-General Hossam Zaki told The National that the Beirut Summit “will be an opportunity for Arab leaders to discuss solely economic and social issues, the conference will not focus on political concerns such as Palestine, Syria or Libya". He added that its slogan will be “the individual is at the heart of development”, adding that it will focus on all elements of human capital.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
