SEOUL // Between the shops selling bamboo-handled paintbrushes and sweet rice cakes, a young man smothered in an oversized yellow jacket struggled to get his arms around a sign bearing the cartoon face of a politician.
Jong-min Hong, a third-year history student at a university here in Seoul, doesn't have much to say about the candidate.
His support for the Democratic United Party goes only as far as the 70,000 South Korean won (Dh227) he is being paid to wear a bright yellow jacket with the opposition party's name.
But the 20-year-old's mercenary political attitude disappears when he gets on to the topic of nuclear energy.
"Nuclear is harmful to my DNA, you understand?" he says, struggling to find words strong enough for his convictions. "Nuclear is out."
His bare fingers fumbled in the icy morning air for his iPhone so he could look up the English words for the alternatives he favoured. Wind energy. Tidal power.
A generation of Koreans such as Mr Hong has grown up versed in the health risks of radiation and imbued with the belief that renewable energy is more reality than dream. Governance that has inched from military-style rule to today's fractious democracy has opened up more possibilities for public debate in the past half century.
And accidents such as Japan's Fukushima Dai-ichi triple meltdown and a cooling failure at a plant here in South Korea have dampened public support for nuclear energy in the past year.
Now South Korea is increasing its effort to convince people such as Mr Hong that atomic power is good here and abroad in nations such as Vietnam and Turkey, where South Korea is looking to sell its nuclear technology.
Representatives of the Korea Nuclear Energy Promotion Agency (Konepa), the government body tasked with raising public acceptance levels, have travelled to South East Asia to share techniques. In South Korea they are distributing to children as early as kindergarten comic books starring a popular cartoon baby dinosaur named Dooly.
This year, Konepa's budget rose by 30 per cent, passing the US$10 million (Dh36.7m) mark for the first time to pay for a reform in outreach strategy and risk management in the aftermath of Fukushima, according to officials.
Fostering public acceptance is vital for South Korea, which plans to build seven more nuclear power plants to add to its fleet of 23. Atomic power, which accounts for about a third of the country's electricity generation, has helped to meet demand that has grown tenfold from 5.46 million kilowatts in 1989 to 58.99 kilowatts in 2006 thanks to South Korea's economic and industrial transformation from a developing nation to a donor country.
On the south-east coast, Korea Electric Power Corporation (Kepco) is building its latest form of reactor technology, the same APR1400 model that has been selected for Abu Dhabi.
"For a nuclear power project to begin, public acceptance is very, very important," said Jun-yeon Byun, Kepco's chief nuclear officer, in an interview at the company's headquarters in Seoul. "In other words, safety is top priority. And so without the support from the public, no government can begin the nuclear project."
Public acceptance efforts are common across nuclear nations. In Russia, Rosatom helped to fund a film starring a youthful nuclear scientist called Atomic Ivan. Emirates Nuclear Energy Corporation, Abu Dhabi's nuclear company, holds town hall meetings throughout the emirate and has worked with the education authority to bring a nuclear-related curriculum to schools.
In South Korea, regulators, nuclear-plant operators and the promotional agency stressed the need to regain public trust after an incident at Kori 1, the country's oldest plant.
The plant was undergoing a routine shutdown when its regular and backup power systems failed, stopping the cooling systems for the high-temperature core and spent-fuel ponds. The temperature of the core coolant rose from 36.9°C to 58.3°C and in the used-fuel pond from 0.5°C to 21.5°C in the 12 minutes before workers managed to restore power.
Korea Hydro & Nuclear Power, the reactor operator and the contractor and co-operator in the UAE's planned nuclear plant, did not immediately report the incident, and a report by the regulator released last month said staff had deleted records of the event.
"The major problem of Kori unit 1 is the forgery - forgery, concealment and cover-up - of the incident that actually took place one month ago," said Youn Won Park, the president of the Korea Institute of Nuclear Safety, the government's technical agency. "Fukushima impacted quite a lot the public acceptance, so after the Fukushima accident the public acceptance slowed down.
"And now Kori unit 1 gives another impact on the public acceptance - not just for the safety matter … but the concealment or cover-up. That really damaged quite seriously the public confidence."
Until the early 1980s, South Korea enjoyed extensive public support for its nuclear-energy programme. Its smartest scientists joined the cause, western-educated Koreans working abroad moved back to help the programme, and in 1978 Kori 1 went live.
"It was a time when people were very submissive towards government policy," recalled Kim Dong-won, the nuclear energy promotion division director at Konepa. "Now we're living in a very transformed democracy period where the individual voices are highly regarded."
Konepa came into being in 1992, after the government encountered resistance against a low to mid-level radioactive waste storage site proposed for an island. The storage site never came into being, and to this day all of Korea's highly radioactive spent fuel waits out an uncertain fate in cooling ponds that are expected to start filling up within a decade.
South Korea has also developed a strategy for the operators: pay off the people.
In a public-assistance programme that launched in 1989, the operator or local government provides funding to people in neighbouring areas of 0.25 won for every kilowatt hour produced at the plant.
The money covers income increases, education, welfare and investment in local businesses throughout construction and operation. In contrast, operators of renewable-energy facilities pay 0.1 won per kilowatt-hour and coal-fired plants 0.15 won, according to Konepa.
Six years later, the government introduced a programme in which the operator provides assistance equal to 1.5 per cent of the plants's total cost for every year of its construction. An extra 0.5 per cent is tacked on if the neighbourhood voluntarily welcomes the plant.
That has not held the public back from voicing concerns about safety and transparency after Fukushima and the incident at Kori 1. Last month, protesters steered a lifeboat to the waters just outside Kori 1 and unfurled a yellow banner emblazoned with a radioactive hazard symbol and the words "KORI No. 1 OUT!"
"As within any country, interest in safety has greatly increased after the Fukushima accident," said Mr Byun of Kepco.
"But in Korea, I think that maybe the safety issue has been a little bit exaggerated, because in Korea this year we have several political events. And so the opposition party is emphasising and sort of exaggerating the issue at hand."
Since Fukushima, Konepa has published a hardcover guidebook on promoting public acceptance of nuclear, covering a range of topics including handling interviews with the media and hosting community events.
The first image is a double-page photo of children frolicking with inner tubes and swimming goggles at the beach in front of a nuclear plant.
"We were not established to resolve the issues," said Yang Young Jin, Konepa's planning and administration director. "Our job is to make the best effort to minimise the public distrust between the public and the operator and the government."
He paused, picking his words carefully.
"It's not even our job to get rid of public distrust. It's always going to be there as long as the democratic government exists."
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Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
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Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
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You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
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.”
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