07-01-03 Korea does not produce a single drop of oil so it is largely dependent on imported energy. It is one of the biggest energy consumers in the world, spending enormous amounts of dollars it earns from exports to buy petroleum and natural gas.
International prices of oil are skyrocketing, adversely affecting the country’s international balance of payments and consumer prices. The international crude market has been hit by the imminent US-Iraq war, a general strike in Venezuela, the fourth largest oil exporter in the world, and the reduction of oil production by OPEC members.

As of the first weekend of the New Year, the price of WTI (West Texas Intermediate), the standard crude to determine the fluctuation in international prices, exceeded $ 33 per barrel and is expected to soar up to $ 40 in case of a US-Iraq war.
No doubt, the sharp increase in crude oil price will worsen the profitability of most domestic industrial firms seriously. For instance, the airline industry will suffer big lossesas a one-$ increase per barrel results in an additional $ 27 mm in costs a year. The trend is feared to deal a fatal blow to the national economy, which has already entered a phase of recession.

The country has no proper means to effectively counter soaring international prices. We cannot expect all economic entities to be able to adapt themselves to the new circumstances in the era of high oil prices.
According to authorities, the country now has crude for the use of 104 days in stock. The shock from a sharp increase in oil prices can be absorbed considerably through lowering of oil-related value-added tax and tariffs on imported oil. However, we have no choice but to reduce the consumption of oil to the maximum possible extent in order to tide over the difficulty. Currently, we are using too much oil.

We are wasting energy at home, streets and elsewhere. Most apartments, particularly located in such affluent districts as Kangnam in Seoul, are overheated with the indoor temperatures lingering at more than 25 degrees Celsius, much higher than the recommended 18 to 20 degrees.
The notorious all-day-long gridlock in major cities is also largely responsible for the waste of energy, not to mention the worsening of air pollution. Basically, however, we have to reduce the degree of our economy’s dependence on imported oil. The government should drastically increase investment in research and development related to alternative energies such as solar, tidal or wind power. Now is an opportune time to kick off a pan-national campaign for energy conservation.

A chronic social phenomenon is disturbing the daily life of citizens at the very start of the New Year, frustrating high expectations of improved welfare and a better society to live in.
The trade unionists of the Seoul Metropolitan Subway Corp. (SMSC) launched a partial strike in protest against the one-hour operation extension of the transit system without their consent, causing inconvenience to commuters and traffic congestion as well. The expansion of operating hours has already been in force for about one month.
The strikers are criticizing the Seoul city government for its implementation of the new schedule without paying heed to their demand that before extending operating hours, it take necessary measures to enhance the safety of passengers, adjust the working system and employ more workers. They ask the city administration to keep its promise to raise their year-end allowance by 300 % for the extended service.

They are threatening to launch a full-dressed strike from Feb. 14, heralding severe traffic havoc in and around the metropolitan area, unless their demands are met. Whatever their motives are, they should normalize the subway operation through negotiations as quickly as possible. Also, they should know citizens are fed up with the recurrence of such collective action at public firms, designed only for their own interest. As long as they insist on such illegal practices, they will fail to win even a shred of sympathy from the public.
Meanwhile, Seoul city authorities should do away with the practice of making such decisions unilaterally, ignoring suggestions from the other parties involved. The timing of the subway strike is viewed as not good for unionists in consideration of the general public sentiment that it would deal a blow to President-elect Roh Moo-hyun, who is credited with supporting labour rather than management.

The fresh social row also forecasts rough sailing for Roh and his new administration which are already vexed with internal and external burdens, ranging from North Korea’s nuclear weapons program to the serious impact on the economy the foreseeable US attack on Iraq will have.
In this regard, the strike should come to a peaceful end at the earliest possible date to enable Roh and the incoming government to prepare more wisely and efficiently ways to administer state affairs ahead of its inauguration on Feb. 25.