■SOUTH KOREA
Economy may shrink 2.4%
The South Korean economy is expected to shrink 2.4 percent this year as a global recession dries up export demand and domestic demand stays weak, the central bank said yesterday. The forecast by the Bank of Korea is a downward revision from its estimate of 2.0 percent expansion made last December. Asia’s fourth-largest economy grew 2.2 percent last year. The bank said the country was tipped to record growth of 3.5 percent next year. On Thursday the bank froze its key interest rate at a record low of 2.0 percent for the second straight month, saying a sharp fall in economic activity had moderated.
■FINANCE
China cuts executive pay
China has ordered pay cuts for executives at state-owned banks and other finance firms as public anger grows over their high salaries amid the global economic crisis. Last year’s pre-tax income for top executives, including salaries, bonuses and benefits, must not exceed 90 percent of their earnings in 2007, the Ministry of Finance said in a statement on its Web site late on Thursday. It added that the cap would be 80 percent for executives at financial companies whose operating profits fell last year.
■AVIATION
Three airlines to pay fines
Three international airlines have agreed to plead guilty to price fixing and pay a total of US$214 million in criminal fines, the US Justice Department said on Thursday. The move brought to 15 the number of companies fined by the US in a long-running criminal investigation of the industry. The latest charges implicate Luxembourg’s Cargolux Airlines International SA, Japan’s Nippon Cargo Airlines Co Ltd and South Korea’s Asiana Airlines Inc. The plea agreements must still be approved by a US court. Under the deals, Cargolux will pay US$119 million and Nippon US$45 million for fixing cargo rates over a six-year period starting in 2000. Asiana was fined US$50 million for price fixing of both passenger and cargo rates over the same timeframe.
■STEEL
POSCO’s net profit sinks
South Korea’s top steelmaker POSCO said yesterday its net profit plunged 68.5 percent year-on-year in the first quarter to 325 billion won (US$244 million) because of the global downturn. Operating profit in the first three months slumped 70.7 percent to 373 billion won as demand from automakers and construction companies declined sharply. For this year, POSCO has set a production target of 28 million tonnes of crude steel, down 15 percent year-on-year, and sales of 25 trillion won, down 18 percent.
■COMPUTERS
Conficker virus mutating
A computer virus that has spread worldwide began mutating overnight, German government computer experts warned on Thursday. The Conficker worm uses the Internet to install new functions on millions of infected computers, the government’s BSI information technology agency said in Bonn. The creators of the virus intend to create a botnet or network of zombie computers to do their bidding. BSI said it was still analyzing the new Conficker code, which spreads thanks to a security gap in the Windows operating system. BSI advised computer users to update their Windows, Web browsers, Acrobat Reader and Flash software and use firewalls and anti-virus software to defeat the virus.
BACK IN THE NEIGHBORHOOD: The planned transit by the ‘Baden-Wuerttemberg’ and the ‘Frankfurt am Main’ would be the German Navy’s first passage since 2002 Two German warships are set to pass through the Taiwan Strait in the middle of this month, becoming the first German naval vessels to do so in 22 years, Der Spiegel reported on Saturday. Reuters last month reported that the warships, the frigate Baden-Wuerttemberg and the replenishment ship Frankfurt am Main, were awaiting orders from Berlin to sail the Strait, prompting a rebuke to Germany from Beijing. Der Spiegel cited unspecified sources as saying Beijing would not be formally notified of the German ships’ passage to emphasize that Berlin views the trip as normal. The German Federal Ministry of Defense declined to comment. While
‘UPHOLDING PEACE’: Taiwan’s foreign minister thanked the US Congress for using a ‘creative and effective way’ to deter Chinese military aggression toward the nation The US House of Representatives on Monday passed the Taiwan Conflict Deterrence Act, aimed at deterring Chinese aggression toward Taiwan by threatening to publish information about Chinese Communist Party (CCP) officials’ “illicit” financial assets if Beijing were to attack. The act would also “restrict financial services for certain immediate family of such officials,” the text of the legislation says. The bill was introduced in January last year by US representatives French Hill and Brad Sherman. After remarks from several members, it passed unanimously. “If China chooses to attack the free people of Taiwan, [the bill] requires the Treasury secretary to publish the illicit
A senior US military official yesterday warned his Chinese counterpart against Beijing’s “dangerous” moves in the South China Sea during the first talks of their kind between the commanders. Washington and Beijing remain at odds on issues from trade to the status of Taiwan and China’s increasingly assertive approach in disputed maritime regions, but they have sought to re-establish regular military-to-military talks in a bid to prevent flashpoint disputes from spinning out of control. Samuel Paparo, commander of the US Indo-Pacific Command, and Wu Yanan (吳亞男), head of the People’s Liberation Army (PLA) Southern Theater Command, talked via videoconference. Paparo “underscored the importance
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
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