UN Command begins talks with North Korea over detained US soldier


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The UN Command said it has begun talks with North Korea over the detention of a US soldier who crossed into the country last week, the US-led council said on Monday.

Pvt Travis King of the US Army ran into North Korea on July 18 during a tour of the demilitarised zone on the South Korean border.

He was to return to the US from South Korea on disciplinary grounds but joined a border tour after he went through security at an airport.

Talks between the UN Command and North Korea began through “mechanisms” established under the Korean War armistice, said Lt Gen Andrew Harrison, the UN Command's deputy commander.

He did not say when discussions took place or how North Korea responded. He also did not provide details about Pvt King's condition.

“None of us know where this is going to end, so I am remaining optimistic, but I will leave that for now,” he said.

North Korea has remained silent on the soldier.

"We have not had any substantive communications with North Korea," State Department spokesman Matthew Miller told reporters.

"We have made outreach to North Korea to let them know that we wanted to ascertain the whereabouts of Pvt King, that we wanted information about his safety, but we have not received any response to that at all."

US officials have said they do not know why Pvt King ran across the demilitarised zone, which was established in 1953 as part of the Korean Armistice Agreement.

UN Command, the multinational force created to protect South Korea, was set up around the same time.

A TV screen shows an image of US soldier Travis King at the Seoul Railway Station in Seoul, South Korea. AP
A TV screen shows an image of US soldier Travis King at the Seoul Railway Station in Seoul, South Korea. AP

The incident comes during a time of increased tension between Washington and Pyongyang. North Korea last week conducted ballistic missile tests hours after a US nuclear-armed submarine arrived at a South Korean port.

On Monday, the nuclear-powered USS Annapolis arrived at a port on Jeju Island in South Korea.

Washington and Seoul have increased their defensive co-operation since last year.

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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.”

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How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

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Updated: July 24, 2023, 6:51 PM