South Korean Blogger Jailed For Criticizing Economic Policies

This is a story you might expect to hear come out of Pyonyang, not Seoul. How much longer will it be before the internet is regulated by some kind of international treaty which will make it illegal, according to international law, to criticize international trade or financial policies? If that ever does happen, which is not beyond the realm of possibility, to what other areas could this lead in the way of regulation? Don't laugh, international regulations of the internet of various types have already been discussed, though typically this involves the use of internet communications involving things such as sex crimes and alleged terrorist communications. Now, in the face of the current and seemingly never-ending global financial crisis, we have the following story from the International Herald Tribune.

Among governments struggling to contain the global financial crisis, South Korea set a rare and controversial example over the weekend by arresting a popular blogger who was accused of undermining the financial markets but worshipped by many Koreans as an online guru.

The man, known throughout South Korea by the pen name of Minerva - after the Roman goddess of wisdom - upset the government with his doomsayer's forecasts for the economy and his satirical attacks on President Lee Myung Bak's policies.

But when some of his predictions on the markets proved right, he gained a huge following among South Koreans fretting over an uncertain economic future.

Park Dae Sung's arrest on Saturday on charges of spreading false online information with a harmful intent - a crime punishable by up to five years in prison - came as the South Korean government was escalating its efforts to fight the fallout of the global financial turmoil. Last week, Lee's administration established an emergency economic task force to be based inside the presidential Blue House's "war room," an underground bunker fitted with security hot lines.

"I wrote articles to help those people alienated from the government - small merchants, individuals and ordinary people who had suffered from the financial crisis," Park told journalists on Saturday before he was jailed. "I plead not guilty."

For months, both the media and the authorities have scrambled to identify Minerva, who has uploaded more than 100 anonymous postings in Daum, the country's second-largest Web portal. He achieved a prophet's status after he predicted the collapse of the U.S. investment bank Lehman Brothers, the crash of the Korean currency and the effects of the toxic U.S. mortgage crisis eventually engulfing South Korea.

The commentary that got him in trouble was his claim on Dec. 29 that the government issued an "emergency order" to financial firms and major corporations to stop buying U.S. dollars in a dire effort to arrest the fall of the Korean won. The government was forced to issue a denial to calm the market, though officials had previously appealed to large companies to stop hoarding dollars.

Kim Yong Sang, a judge at the Seoul Central District Court, approving Park's arrest, said his blogging "affected foreign exchange markets and the nation's credibility."

According to the article in the International Herald Tribune, this guy got typically one hundred thousand readers per post. You can bet if he had spent the majority of his time promoting the economy and the Korean markets, and defending the Korean government, I wouldn't be blogging about this, because I never would have heard of the guy. Yet, wouldn't that under the circumstances be more of a crime? Criminal activity is all too often defined by law-makers and by law-enforcement in self-serving and manipulative ways, and this is certainly an example of that, albeit an extreme one.

I promise you will never hear of some stock market analyst, professional or otherwise, being prosecuted for promoting certain stocks, bonds, or market funds-save for those rare cases involving conflict of interest-regardless of how ill-advised it might turn out to be to heed their advice. Why then should someone be prosecuted for advising the opposite. It shouldn't be illegal to be a wet blanket. What if someone had sounded the alarm years ago over Bernie Maddoff's suspicious fund, and warned us all that it sounded more like some kind of advanced Ponzi scheme than a legitimate investment opportunity? Yet, of course as we all know now, that turns out to have been the case.

This guy predicted the collapse of Lehman Brothers literally days before it happened, something nobody here saw coming, yet he has a mere two year college degree-not an economics degree, but in some kind of tech-related field. He established an on-line persona as some old Korean farmer with an inexplicably advanced knowledge of economic language and trends. He is actually in his early twenties, and probably devised the persona out of a perceived need to protect his anonymity in the face of growing controversy. Yet, his persona was not that far removed from reality.

There are people that just seem to have a natural knack for seeing into certain things for which they have no advanced training or background. There are far too few of them, and they come along far too seldom, but when they do, they can have a huge impact. Had he been trained in this field, he probably would have kept his mouth shut and been just another cog in the wheel.

I would also like to note that the South Korean government in this case, in doing what Minerva accused them of doing while denying they did it and accusing him of a crime for blogging about it, may have broken some kind of international law by attempting to interfere with the international trade in dollars. The only thing Mr. Sung seems to have gotten wrong is his statement that there was some kind of "emergency order" as opposed to what the government described in almost cordial terms as an appeal to stop hoarding US dollars.

Yet, he got his facts slightly wrong, which gave the government the wriggle room they needed to pounce. That is the beginning of an authoritarian state, and may be yet another sign of the imminence of the coming ultimate collapse-to me, a welcome one-of the much-lauded "global economy". It should not let the door hit its ass on the way out.