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

Newsmaker: Moon Jae-in



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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10pm: Longines Moon Phase Master Collection Dh170,000 Handicap 2,000m.
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Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

RESULT

Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')

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Directors: Anthony Russo, Joe Russo

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Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
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In numbers

Number of Chinese tourists coming to UAE in 2017 was... 1.3m

Alibaba’s new ‘Tech Town’  in Dubai is worth... $600m

China’s investment in the MIddle East in 2016 was... $29.5bn

The world’s most valuable start-up in 2018, TikTok, is valued at... $75bn

Boost to the UAE economy of 5G connectivity will be... $269bn 

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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.”