By Look who is going to be stopping by the White House next month:
The Presidential Office announced that President Lee Myung-bak will make a state visit to the United States in mid-October on the invitation of U.S. President Barack Obama.
During his visit, President Lee will attend an official welcoming ceremony in Washington D.C. and then join Obama for a summit to discuss bilateral issues, including the South Korea-U.S. free trade agreement and the North Korean nuclear situation.
Aside from the state dinner hosted by President Obama and First Lady Michelle Obama, Lee will attend a luncheon co-hosted by Vice President Joseph Biden and Secretary of State Hillary Clinton with the aim of strengthening bilateral ties.
The Presidential Office said Lee’s visit will be the fifth by a head of state to the U.S. since Obama took office. The office said this trip should strengthen the South Korea-U.S. bond based on the solid mutual goodwill and trust the two leaders have accumulated. [KBS Global]
It really is amazing that after all this time the KORUS FTA has yet to be implemented between the two countries. I really don’t have a problem with the KORUS FTA considering similarities in labor and environmental protection between the two countries. I think it would most likely be a win-win for each country though I am interested to see if goods from the Kaesong Complex in North Korea will be allowed to be exported to the US.
I guess we will see what happens next month with the FTA.
She hasn’t seen...
4:52 pm on September 15th, 2011 1
Two way EU-Korea trade is already up 50% since that FTA passed. The Kaesong stuff is supposed to be excluded. As I have noted before, the US auto union’s (and Ford Motor) arguments are utterly false. Point by point fabrications targeted for the ignorant. Given the recent drop in US exports to Korea it is important to bolster the US trade position in Korea and act as a balance to China and EU trade. Here is a recent list of US organizations opposed to the KORUS FTA. http://www.causes.com/posts/519040?user_viewed=1
9:49 am on September 16th, 2011 2
#1
I thought US auto unions agreed to the deal?
6:25 pm on September 16th, 2011 3
A lot of union locals still do not support it as well as more radical elements of the national Democratic Party. In fact the main Union concessions were met with the exemptions for US import car engine size and related emmissions problems and some other small safety related issues with US market cars being allowed, up to some 30,000 unit limitm for unmodified US market cars. In fact US made car imports will find it hard to meet that generously awarded allownace number from Korea as it would mean either displacing the top three Germans in the import category or cuttng into the Korean domestic share. It was a sop to save face for the US auto unions more than anything else. The real bill problem issues now are some unrelated, to KORUS, riders that the administration has atached to the dual FTA’s. One stumbling point is that Columbia’s Govt. is anti-Communist and anti-FARC: both big negatives to Democrats in Congress, so the co-bill KORUS suffers too. Many unions in Columbia are Communist fronts, hence their appeal to US unions and the US Democratic Party. If Columbia looked like Mexico the US Dems would probably all be on board for KORUS and Columbia.
4:06 am on September 17th, 2011 4
#3, so are you saying the US auto makers and their unions are against this deal because they know they can’t sell their allotted number of cars that have been exempted from Korean rules and regulations for all cars, and that they just want to save their face?
That’s what I said. They know they can’t sell jack s*it in Korea, so they’re making excuses NOT to compete even with greater advantages that they were given over other makers from other countries including Korean makers.
5:40 am on September 17th, 2011 5
Let’s face facts.
American cars suck.
The designs are uninspired. The quality is below average. The price is above average. And there is absolutely no prestige associated with the brand… especially for Koreans who lived in America where BMW and “Benz” are also considered top-shelf but a Chevy is just a car.
No matter how many American cars they allow to be sold in the Korean market, it doesn’t matter if nobody wants to buy them.
Can anybody who has a strong opinion on this give me a reason Koreans would want to buy an American car?
4:06 pm on September 17th, 2011 6
# 4 and 5, right on! They were not agsinat because they can’t sell the alloted cars: they fought for “something” to save face and make some profit and the allotment is what they got. They’ll sell a few high margin SUV’s and Tauruses and accept it. The really odd part is that Ford, Chrysler (now owned by FIAT) and GM all have European built cars that are at least on the prestige level of a Peugeot or VW, the “cheaper alternative” brands for Koreans who can’t afford a Benz or BMW and could gain some serious volumes in Korea. But, it would take some time. Peugeots pretty much suck and are often compared with today’s Kias and Hyundais in Europe but, here in Korea, a Peugeot 308 costs almost double a Hyundai i30, its direct competitor in Europe. A Germann built Ford Mondeo diesel sedan would sell here too, vs. a VW Passat, same as in Europe. You see how many Koreans re-badge Daewoos cars as Opels (German GM) or Vauxhall (GM UK). GM has the cars and brands too, but their big push now is to globalize the Chevy brand at all costs and of course, sell Camaros here…. Fiat? They have Alfa Romeo. That’s prestige. So…the answer seems to be that the US car companies (and Fiat) want higher US-built profit margins for the more or less crappy US market cars noted so well #5 above.
The main KORUS FTA proboem though, right now, is the tie in with the Columbian FTA. Korean stuff is pretty much settled, face saved. Columbia has done an admirable job in wiping out Communist Front “labor unions” in recent years, as well as FARC. This does not sit well with US labor and the US Democratic Party.
7:41 pm on September 17th, 2011 7
“Can anybody who has a strong opinion on this give me a reason Koreans would want to buy an American car?”
Even Japanese cars like the Toyota and Honda that used to be popular, the sales have crashed – despite greater incentives and much lower prices than they used to be few years ago. Now there’s not much price difference between Korean and Japanese cars, yet the Japanese are struggling.
WHY?
Because the Korean cars have improved immensely in quality over the last few years, so there’s no point buying Japanese (which are basically redundant to Korean cars), and – Korean people have wised up and realized there’s no magic touch of Japanese cars which have fallen seriously behind the Korean cars in design and appeal.
On the other hand, German and European cars are selling like hot cakes because they have what Korean, Japanese, and American cars don’t have – brand prestige. Korean people like prestige that comes with the brand. Korean people don’t like cheap stuff with no brand value (AKA American cars). Koreans will buy products that are more expensive just because they think the pricier it is, the better the quality.
See? American politicians, and their unions just don’t understand what Koreans want, nor do they understand the Korean market. Nor are they interested in knowing what Koreans want. Their attitude is, we’ll make and sell to you what we think is going to be best for you people because your market is small anyway so it’s not really worth our effort to do any market research or put any other effort in after sales support. So now whether you like it or not, you’re going to buy our cars!
On the other hand, Europeans understand what the market trend is in Korea, and they know exactly what they’re doing when they do not reduce their prices DESPITE the FTA with Korea. Smart move! Sure, they won’t sell as many if they had discounted them, but their profitability is way higher!
But poor Americans and their leaders… they think they can sell their cars in Korea, only if it’s the cheapest price in the block. You know them poor Asians who can’t afford to buy rice mobiles, let alone be able to afford real cars.. they’ll be on their knees begging to buy our affordable top quality American made cars.
Good luck with that.
7:55 pm on September 17th, 2011 8
Why would some Koreans buy an American car?
Well, the Volt might be a good deal for some. American cars, like the Ford F-150 might be the best in some niche markets.
8:05 pm on September 17th, 2011 9
Tom 7 likes Europeans. He is not a racist.
9:50 pm on September 17th, 2011 10
Kushibo,
“Well, the Volt might be a good deal for some.”
After looking at the specs for the Volt, I’m not sure if the Volt is a good deal for anybody.
Korea should be the global leader in electric cars… with a massive domestic market which would jump all over them if marketed correctly… and a country of short-distance commutes in which a charging infrastructure could be quickly set up.
“American cars, like the Ford F-150 might be the best in some niche markets.”
I’m not sure what that niche might be.
If you want to haul stuff, a Korean-style pickup does just as good of job… but with “tailgates” on all three sides, a lower rear end for easier access, better fuel efficiency, and widespread inexpensive service. This makes Ford impractical for any business.
The couple of Koreans I know with American pickups are just trying to live an American cowboy dream. That is a small niche.
I would love to have a pickup in Korea… except that I frequently park in a mechanical parking tower. Since they only accept car-height vehicles, it leaves few choices.
The El Camino has been discontinued since the 80s, the Pontiac G8 was cancelled, the Chevrolet SSR is a great idea… except it is a $40,000 piece of shyt and shows the true disconnect of American car companies.
I have been threatening to take a Koran sedan and cut the arse-end out with the plasma cutter, form a diamond steel plate bed and weld it in, weld the back doors closed, take it down to the car center for repainting and make my own pickup… a 4 weekend project if I do it all by myself.
Of course, this is needlessly illegal in Korea… but I don’t generally follow laws made to control my self-only-affecting actions when done under the guise of “safety” but actually used to protect connected corporations and stifle innovation.
Anyway, that’s that.
10:02 pm on September 17th, 2011 11
The Chevy Volt will be outdated by the time this comes out in Korea in 2013.
http://comcar.co.uk/news/2011/Aug/South-Korean-technology-could-provide-viable-Global-EV-charging-infrastructure–/0438003208/
Korea will lead the world in electric cars with electric charging strips dug under the roads, to charge the cars while they are on the move (without stopping for lengthy waits).
10:31 pm on September 17th, 2011 12
Tom is really making my day…
11:04 pm on September 17th, 2011 13
Chickenhead, make a Kia Ranchero!
The Volt can’t sell in the US with tax subsidies and Government Motors getting all the free media help it needs. Run A/C in traffic jams here; heat in the cold winter? Impossible. The big improvement in Korean cars, to second tier Euro levels (Skoda, SEAT, etc.) at very good prices is the key barrier to US product entry on any grounds. No prestige/no quality or style benefit in a US market car.
12:45 am on September 18th, 2011 14
What’s the problem, USinKorea 12? Tom 11 linked to a Voice of America story – your tax dollars at work. It looked to me like a promising Korean innovation. I would like to know how the driver pays for the energy he gets from the road.
12:50 am on September 18th, 2011 15
What, Glans? I didn’t throw in any racial barbs to make it OK? Or didn’t antagonize enough people to warrant defending? 11 should be viewed in isolation – without other things said today or over the years? It’s not OK to laugh out loud at the idea of electric streets with hundreds of thousands to millions of vehicles sucking up the juice in Seoul?
4:24 am on September 18th, 2011 16
#15, like Glans said, what’s the problem, USinKorea?
If this works out, even just for taking care of the public transporation system (minus the private cars), it will save Korea $30 billion a year.
The laughs on you, buddy. You’ll see in couple of years.
4:30 am on September 18th, 2011 17
It will be great for Korea — coming about the time Korea straightens out the US health care system by opening up a whole lot of Korean franchise hospitals — about the same time pigs fly (and you choose to live in Korea…)…
4:34 am on September 18th, 2011 18
#17, agreed about the broken US health care system which can never be fixed. But for the rest, never say never.