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Korean Bank Run Spreading: Eighth Bank Closes Following "Massive Withdrawals"

Tyler Durden's picture


The quietest bank run that has so far completely evaded mainstream attention, that of Korea, is spreading, and an eighth bank has now shuttered after "Domin Bank, a savings bank with a capital adequacy ratio below 5
percent, voluntarily decided yesterday to suspend its operations
temporarily because of massive withdrawals." As JoongAng reports: "The decision took both depositors and financial regulators by surprise
since it was the first time that a local bank shut its doors on its own." Apparently the courageous decision by the Financial Services Chairman Kim Seok-dong to deposit $17,864 in a troubled bank has not done much if anything to prevent the locals from realizing that their banking system is built on a house of cards.

From JoongAng Daily:

Domin Bank, which has six branches in Gangwon, was placed on a watch list last week by the Financial Services Commission. The move triggered a bank run on Domin Bank.

According to Domin Bank, deposits amounting 31.8 billion won ($28.2 million) were withdrawn since last Thursday, including 18.8 billion won on Monday.

The news of Domin Bank’s temporary closure came as FSC Chairman Kim Seok-dong was visiting Mokpo, South Jeolla, where recently suspended Bohae Savings Bank is located.

Seok-dong unhappy:

“This savings bank was supposed to submit a management improvement plan
to the FSC by Feb. 24,” said Kim. “We will now have to review whether
[the closure] is even legally O.K.”

More classic quotes follow:

Bae Joon-soo, senior FSC deputy director, said, “I think it is legally and morally wrong for a financial firm to do such a thing.”

Now we get it: according to the banking cartel's ethical standard it is "legally and morally wrong" for a bank to admit it is insolvent. Perhaps if America had made this clear 2 years ago, we could have spared ourselves two years of fingerpointing and fictitious lawsuits. After all, say what you will about the tenets of banker national socialism, at least it's an ethos.

The financial regulator and the Federation of Savings Banks failed to persuade Domin Bank to resume its operation yesterday.

The bank in notices posted on the doors of every branch said that it had taken the move “as a means to soothe the crisis involving massive withdrawals.”

The notice continued, “We will resume operation after we are reborn as a sound savings bank by increasing our paid-in capital to achieve a capital adequacy ratio of 8 percent.”

We repeat our appeal for the FDIC and Treasury to send our crack fraud and book cooking team to guarantee to the Koreans that their bankrupt banks are perfectly ok before this thing gets really out of control, and migrates to China, where a billion man bank run will be a little harder to keep under wraps.

h/t Paulo


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Tue, 02/22/2011 - 20:30 | 986954 FOC 1183
FOC 1183's picture

"Domin", not to be confused with "Domino"

Tue, 02/22/2011 - 20:41 | 986985 bonddude
bonddude's picture

The IndyMac/Sonoma Valley Bank and

$400 + Million fraud continues waiting for

enforcement actions. You'll love the way you're

not to big or small to fleece.

Tue, 02/22/2011 - 22:09 | 987195 DoChenRollingBearing
DoChenRollingBearing's picture

Oh noooooooooo, not the KOREAN banks, our company in Peru gets 60% of our bearings from there...

Ai yai yai!

Wed, 02/23/2011 - 05:39 | 987908 Sudden Debt
Sudden Debt's picture

Ours all come from Germany.

Korean bearings suck because the hardness of the metal isn't consistent overall. You should do some quality checks on them.


Wed, 02/23/2011 - 05:57 | 987921 Michael
Michael's picture

The Bank-Run Blogs, like the Housing Bubble Blogs, are starting up.

Let the World Wide Bank Runs Begin: First up, South Korea 

By John Galt
February 20, 2011

"While the mainstream media and Bubblevisions have been ignoring the capital flight and bank runs in Greece and Ireland, it is going to be pretty hard to ignore this one:

S. Korea bank runs cause more suspensions

(China Post, Sunday February 20, 2011)

The largest South Korean savings bank in terms of assets, Busan Savings Bank, had their operations suspended Saturday due to an old fashioned bank run where panicked depositors stopped believing their government that there was no imminent financial crisis and the system was stable. While the government is adding liquidity to the system to stabilize the institutions, it does not take much imagination to see this phenomenon spreading like wildfire around the world. Thus get ready for March to come roaring in like a lion and a summer of high temperatures and instability unseen since the anti-colonial revolutions of the 1950′s and 1960′s in the Third World.

Thus it is time to  review the check list to insure that everything is in place to create panic, one nation, one financial system at a time so there is justification for imposition of a new globally designed geopolitical and financial structure:"

Wed, 02/23/2011 - 09:46 | 988051 jus_lite_reading
jus_lite_reading's picture

Whoops! If you think SK bank runs are lollipops, wait until the cat is out of the bag on German banks... don't forget, Germans think everything is great!

Wed, 02/23/2011 - 07:39 | 987961 RafterManFMJ
RafterManFMJ's picture

Fuckin' Banksters; nothin' changes.

Tue, 02/22/2011 - 20:35 | 986969 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

What are they doing with the withdrawn cash? Any evidence of where these "massive withdrawals" are going?

Tue, 02/22/2011 - 20:39 | 986980 Hugh G Rection
Hugh G Rection's picture

I'm going long puppymills

Wed, 02/23/2011 - 03:46 | 987844 4xaddict
4xaddict's picture


Wed, 02/23/2011 - 03:45 | 987845 4xaddict
4xaddict's picture


Tue, 02/22/2011 - 23:21 | 987406 squexx
squexx's picture

Under their mattresses...........

Tue, 02/22/2011 - 23:54 | 987496 logically possible
logically possible's picture

They are investing it in the U.S stock market. (From the frying pan into the fire.)

Wed, 02/23/2011 - 09:52 | 988073 Overflow-admin
Overflow-admin's picture

+1000 (with jury award)

Tue, 02/22/2011 - 20:36 | 986976 max2205
max2205's picture

Koreans are a superstitious bunch. Or the price of dog meat is out of control

Tue, 02/22/2011 - 21:06 | 987031 Gully Foyle
Gully Foyle's picture


Fan death

Fan death is an urban legend prevailing in South Korea in which an electric fan left running overnight in a closed room can cause the death of those inside. Fans sold in Korea are equipped with a timer switch that turns them off after a set number of minutes, which users are frequently urged to set when going to sleep with a fan on.[1]



The Korea Consumer Protection Board (KCPB), a South Korean government-funded public agency, issued a consumer safety alert in 2006 warning that "asphyxiation from electric fans and air conditioners" was among South Korea's five most common seasonal summer accidents or injuries, according to data they collected.[1] Also included among the five hazards were air conditioner explosions and sanitation issues, including food poisoning and opportunistic pathogens harbored in air conditioners. The KCPB published the following:

If bodies are exposed to electric fans or air conditioners for too long, it causes [the] bodies to lose water and [causes] hypothermia. If directly in contact with [air current from] a fan, this could lead to death from [an] increase of carbon dioxide saturation concentration [sic] and decrease of oxygen concentration. The risks are higher for the elderly and patients with respiratory problems. From 2003 [to] 2005, a total of 20 cases were reported through the CISS involving asphyxiations caused by leaving electric fans and air conditioners on while sleeping. To prevent asphyxiation, timers should be set, wind direction should be rotated and doors should be left open.




In summer, mainstream Korean news sources regularly report on cases of fan death. A typical example is this excerpt from the July 28, 1997, edition of The Korea Herald, an English-language newspaper:

The heat wave which has encompassed Korea for about a week, has generated various heat-related accidents and deaths. At least 10 people died from the effects of electric fans which can remove oxygen from the air and lower body temperatures...

On Friday in eastern Seoul, a 16-year-old girl died from suffocation after she fell asleep in her room with an electric fan in motion. The death toll from fan-related incidents reached 10 during the past week. Medical experts say that this type of death occurs when one is exposed to electric fan breezes for long hours in a sealed area. "Excessive exposure to such a condition lowers one's temperature and hampers blood circulation. And it eventually leads to the paralysis of heart and lungs," says a medical expert.

"To prevent such an accident, one should keep the windows open and not expose oneself directly to fan air," he advised.



Tue, 02/22/2011 - 21:50 | 987163 max2205
max2205's picture


Wed, 02/23/2011 - 03:47 | 987847 4xaddict
4xaddict's picture

absolutely exquisite trivia roflmao

Tue, 02/22/2011 - 22:02 | 987179 zaphod
zaphod's picture

I have lived in Korea before and have to comment.


Fan Death is not considered an urban legend there. It is believed by most doctors and well educated (western educated too) people. Just about everyone I met believed in it.


For this bank run thing. These are small very local credit union type organizations going down. The Korean banking system is different from these saving banks and they are fine (at least for now)....

Tue, 02/22/2011 - 22:09 | 987194 YHC-FTSE
YHC-FTSE's picture


Thank you Mr.Beeblebrox. About the only guy who has posted actual knowledge based on personal experience.

Tue, 02/22/2011 - 23:00 | 987343 Dr. Porkchop
Dr. Porkchop's picture


You know why Africa is such a wasteland? They have no fjords!

 - Slartibartfast

Tue, 02/22/2011 - 23:20 | 987398 squexx
squexx's picture

Yes, a lot of Koreans believe the fan thing. But when I lived in Taiwan, many Taiwanese would drive with their lights off at night believing that having them on drained your battery. Strange beliefs are not limited to one country or region.

As for the bank runs, yes so far it is only the small ones in Pusan and now Daejun. But it's hard to say where it will end. Consider that land prices in Korea are out of sight, just like China, Korean's are generally over their heads in plastic debt, etc... Korea is even potentially more precarious than China, since they are dependant on the USA and China for most of their trade.

Wed, 02/23/2011 - 01:12 | 987676 Sheepneck
Sheepneck's picture


I am living in Seoul right now, and what zaphod says about both fan death and the banks is true.

Tue, 02/22/2011 - 22:15 | 987200 DoChenRollingBearing
DoChenRollingBearing's picture

That's very interesting stuff you posted Gully, thanks!  That sure is weird, the fan-running idea...

I am filled with gratitude, however, that the Koreans make good bearings, whatever urban legends they have.

Wed, 02/23/2011 - 05:44 | 987910 Going Loco
Going Loco's picture

Confidence in electric fans can disappear overnight. The population of an entire country including educated persons like doctors can have a strong belief in electric fans but this is a fragile thing and can turn to mistrust and fear in a very short period of time - almost instantaneously. Electric fans can be a benefit to society one day and a lethal weapon of societal destruction the next. A bit like banks really.

Wed, 02/23/2011 - 07:04 | 987945 Sathington Willougby
Sathington Willougby's picture

I live very far away from Asia, I have real knowledge on the subject.  I hear the fans are creating air molecules devoid of oxygen to blow on people. Fans Implicated in Asphyxiation Taiwan.

Tue, 02/22/2011 - 20:37 | 986978 reader2010
reader2010's picture

Some of those Korean banks were heavily into the commerical RE projects here in the US at the height of the RE boom. Many of those projects ended up in tears. 

Tue, 02/22/2011 - 21:14 | 987056 Troll Magnet
Troll Magnet's picture

not true.  south korean banks stayed away from the real estate boom in america and therefore escaped its collapse relatively unscathed.  but they are heavily invested in their own real estate bubbles which the government is propping up by any means necessary.

Tue, 02/22/2011 - 21:34 | 987115 topcallingtroll
topcallingtroll's picture

I feel myself strangely attracted to you.

Tue, 02/22/2011 - 21:39 | 987129 Jendrzejczyk
Jendrzejczyk's picture

Highly humorous.

Tue, 02/22/2011 - 21:44 | 987149 Wynn
Wynn's picture


Tue, 02/22/2011 - 22:15 | 987203 DoChenRollingBearing
DoChenRollingBearing's picture

+ 2 to the trolls!

I needed the laugh after a rough day!

Wed, 02/23/2011 - 00:50 | 987620 AbbeBrel
AbbeBrel's picture

Man what a magnetism / yin/yang / strange experience it must be to live in Seoul, around 60 km from the border with a Blank Space (on Google Maps) to the North.   I imagine a fuzzy bearded teenager could fly a Cessna (or Asian equivalent) and land on the capitol steps pretty easily, in either direction.

And then if you do a bit of historical overview of the chaebol, stir in some downturn and price drops on all panel flavor technology, and you wonder how long the supports for Korean industry can hold out with flattening demand and ASP (average selling price) plummetting...

Makes you wonder why the sheeple have waited this long to get just a bit nervous and start bleating about their money.  Especially if the elites have floated rumors about fans to hold down domestic demand for electricity!  Goodness sakes.   Let's see who gets nervous next!  - AB


Tue, 02/22/2011 - 20:39 | 986981 Buck Johnson
Buck Johnson's picture

Why are the Koreans withdrawing their money out of the banking system? 

Tue, 02/22/2011 - 20:42 | 986986 Jerry Maguire
Jerry Maguire's picture

The usual.  They want to spend it.  They don't trust the bank.  Some combination of the two.


Tue, 02/22/2011 - 21:16 | 987061 Troll Magnet
Troll Magnet's picture

maybe they'll export their paper money to china.  i hear they can make rice out of paper.  magic time!

Tue, 02/22/2011 - 21:27 | 987093 traderjoe
traderjoe's picture

If your bank was leveraged 20 to 1 - matching demand deposits (short tem liabilities) with long term assets, wouldn't you take your money out too?

Tue, 02/22/2011 - 22:16 | 987206 Dr. Richard Head
Dr. Richard Head's picture

How many black swans are flying around these days anyway?  1@?  12?

Tue, 02/22/2011 - 20:42 | 986983 max2205
max2205's picture

Have to laugh. The FDIC has like 800 banks on watch and no one here moves money to safer banks. In Korea you put a couple names on the list and bam they close the doors. I'd buy the FD in the US but there are about 350 million of them here

Tue, 02/22/2011 - 20:42 | 986987 Convolved Man
Convolved Man's picture

Time for Kim Jong-il to blitzkrieg the South Koreans with counterfeit $100 US FRNs, à la The Bernank.

Tue, 02/22/2011 - 22:01 | 987181 Quinvarius
Quinvarius's picture

I think Ben has them all booked up for a the next 6 months.

Tue, 02/22/2011 - 20:43 | 986988 buzzsaw99
buzzsaw99's picture

...before this thing gets really out of control, and migrates to China, where a billion man bank run will be a little harder to keep under wraps.

Moist Chinese are too smart to trust a bank.

Tue, 02/22/2011 - 20:47 | 986993 Mozzer
Mozzer's picture

I prefer my Chinese DRY, thank you ;)

Tue, 02/22/2011 - 21:29 | 987101 GoinFawr
GoinFawr's picture

Hehe, that was pretty opportunistic.

Tue, 02/22/2011 - 21:32 | 987108's picture

The Wet Head is dead. Long live the Dry Look.

Tue, 02/22/2011 - 21:19 | 987068 Troll Magnet
Troll Magnet's picture

most chinese are dirt poor and can't afford to bank.

Tue, 02/22/2011 - 20:46 | 986992 camaro68ss
camaro68ss's picture

thats why i only have the Bear minimum in my bank. Or maybe thats because im poor. eather way they cant hurt me. muhahahaha

Tue, 02/22/2011 - 21:29 | 987090 topcallingtroll
topcallingtroll's picture

If you are unlucky enough to become wealthy you will realize you dont control wealth. It controls you.

The free and happy people seem to be the ones with few possessions to tie them down and consume their time. They really cant hurt you!

I've grown obama-rich at the expense of my health and free time. I might have chosen the middle way had I had the wisdom earlier.

Grab a back pack and rough it overseas while you are young. Get a job under the table teaching english. Be a ski bum, a beach bum.

Tue, 02/22/2011 - 21:43 | 987140 Troll Magnet
Troll Magnet's picture

see, i'm the opposite.  i did all that when i was young.  drove around the country with my girlfriend for 3 months after college, packed some clothes and trekked around the globe, learned new (survival) languages, learned new cultures, boozed, partied, etc, etc.  then i got married, had kids and thought, "shit!  i should've been making money all along!"  the grass is always greener on the other side.

Tue, 02/22/2011 - 22:21 | 987225 Dr. Richard Head
Dr. Richard Head's picture

However; young, dumb,and full of cum can take the best of opportunities and blow them.  Having become more worldy sure had afforded you a view how to make money.  Where as a drunk irish pussy hound like myself didn't find out how to make money until my debts claimed my soul.  

Wed, 02/23/2011 - 00:54 | 987629 Troll Magnet
Troll Magnet's picture

However; i honestly can't remember much about my travels.  ahhh the 90s... :)

Wed, 02/23/2011 - 03:57 | 987852 4xaddict
4xaddict's picture

DRH, just default on them. 

Tue, 02/22/2011 - 22:22 | 987228 DoChenRollingBearing
DoChenRollingBearing's picture

Wow, both Trolls are on fire tonight (a good thing)!

I got a lot of that out of my system when I was young as well.  Learning (survival) languages brings back a lot of memories...

My advice to the young here is to do just that: go travel awhile, as far away as possible...  That's how I met the girl who became my wife and mommie to our daughter...

Wed, 02/23/2011 - 00:39 | 987603 Hugh G Rection
Hugh G Rection's picture

That's how I met your wife too!


I think better advice for the young crowd is, don't waste your currency on travel and pussy. Put every ounce of disposable in Au/Ag, learn how to survive, gardening etc. Or if possible secure employment in Asia before the dollar collapses.

Then get all the pun tang you want later.

Tue, 02/22/2011 - 21:21 | 987005 Spaceman Spiff
Spaceman Spiff's picture

Well if that don't Seok-Dong

Tue, 02/22/2011 - 20:56 | 987013 Robslob
Robslob's picture

Next up Amerika

Tue, 02/22/2011 - 21:11 | 987046 Cash_is_Trash
Cash_is_Trash's picture

Bang Da Hoe has lost his job.

Tue, 02/22/2011 - 20:58 | 987019 RobotTrader
RobotTrader's picture

PPT trying to U-Turn the ES futures, they are now jamming the New Zealand stocks upwards after the quake.

Nothing that cannot be fixed by huge waves of paper.

Tue, 02/22/2011 - 21:06 | 987033 Cursive
Cursive's picture

We need an Intrade contract on the possibility of a TBTF bank run while SPX is above 1010.

Tue, 02/22/2011 - 21:20 | 987077 traderjoe
traderjoe's picture

Nothing that can be fixed by huge waves of paper.

There - fixed it for you.

Tue, 02/22/2011 - 21:21 | 987078 Bastiat
Bastiat's picture

Except shortages of deliverable commodities.

Tue, 02/22/2011 - 21:29 | 987103 Careless Whisper
Careless Whisper's picture

@ robo

how's that JPM long workin' out for ya?


Tue, 02/22/2011 - 22:26 | 987245 Dr. Richard Head
Dr. Richard Head's picture

See?  Shovel ready projects can drive the economy and the wealth effectm just as war can drive the economy  and trickle down prosperity.  The Gods have spoken.

Wed, 02/23/2011 - 01:58 | 987746 dogbreath
dogbreath's picture

Nobody has junked you automatically yet.  They are converting to fans of yours.

Tue, 02/22/2011 - 21:04 | 987029 Robslob
Robslob's picture

Except flushing it down a toilet called the "free market"

Tue, 02/22/2011 - 21:08 | 987035 apberusdisvet
apberusdisvet's picture

When are we going to see the executions on TV.  I can envison a fantastic weekly reality show:  The "Guillotined Heads of Wall Street"

Wed, 02/23/2011 - 00:55 | 987609 Hugh G Rection
Hugh G Rection's picture

Aww dangit you made me hard again...

How about a snuff film for Blythe? I envision Ron and Rand doublestuffing her to cheering crowds at times square, counting down the blade drop ( made of silver of course ).

Tue, 02/22/2011 - 21:11 | 987047 Misean
Misean's picture

Wheels are coming off the carts fast now...

Tue, 02/22/2011 - 21:12 | 987050 Jendrzejczyk
Jendrzejczyk's picture

OT.....Anybody seen Merehuman around? Been needing a dose of his medicinal words lately.

Tue, 02/22/2011 - 22:28 | 987249 DoChenRollingBearing
DoChenRollingBearing's picture

Been a few days since I last saw him Jendrzejczyk.  I miss him too, come on back to us merehuman...

ALWAYS nice to see more Polish names around...


Tue, 02/22/2011 - 21:13 | 987055 gwar5
gwar5's picture

"Never trust any banker who wears socks." -- Anonymous


Tue, 02/22/2011 - 21:23 | 987082 Jackfish
Jackfish's picture


"Never trust any banker you can sock!." -- Anonymous


Fixed it for you.

Tue, 02/22/2011 - 22:55 | 987329 cranky-old-geezer
cranky-old-geezer's picture

"Never trust any banker." -- cranky-old-geezer

Fixed it better.

Tue, 02/22/2011 - 21:17 | 987064 topcallingtroll
topcallingtroll's picture

Seriously this doesnt make any sense with deposit insurance because any government will monetize anything and everything to make sure an insured depositor loses zilch. The actual amount of deposit insurance on hand means nothing.

If they were getting out of fiat then it might make sense but they are probably staying in such case i dont understand putting your life savings in fiat under a mattress if someone has an insured account.

Tue, 02/22/2011 - 21:32 | 987113 Troll Magnet
Troll Magnet's picture

the problem is you can't really invest in precious metals in korea because they don't mint coins or sell bullions there.  you can buy jewelry but you'll be paying spot + design fees + premiums = not worth it.  so i'm sure they're just moving their paper money from one (small) bank to another (big eg "safer") bank.  on a side note, i've had some money in the korean stock market (mostly samsung, LG & hyundai) for about five years and though it's been volatile, the returns have been really good so far.  i'm looking to get out though so i can buy more PMs & oil futures.

Tue, 02/22/2011 - 21:38 | 987125 topcallingtroll
topcallingtroll's picture

So they dont believe in their deposit insurance then.

Tue, 02/22/2011 - 21:50 | 987160 Troll Magnet
Troll Magnet's picture

many koreans don't believe in anything because they were ruled by a dictator for decades and since then, every president they ever elected has laundered millions and billions of dollars while in office and have gone to prison for it each time.  and i love that because they're not afraid to prosecute and imprison their former presidents.  hell, even the chairman of samsung went to jail a few years ago for cheating on his taxes IIRC.  and samsung is

Tue, 02/22/2011 - 22:32 | 987257 DoChenRollingBearing
DoChenRollingBearing's picture

You two Trolls are really kickin' some serious a** tonight!

Our bearing company needs to see Korea maintain itself as a functioning country, or 60% of our bearings will not be available...  Scary.  

I think I'll pour myself another drink.

Wed, 02/23/2011 - 02:02 | 987752 Founders Keeper
Founders Keeper's picture

[...i dont understand putting your life savings in fiat under a mattress if someone has an insured account.]---topcallingtroll

Thanks for your post.

(This is not a direct reply to your inquiry.) The question arises, will we see bank runs in the US, in spite of FDIC assurances? IMO, yes. Everyone feels cocksure about their personal bank and the FDIC . "Oh, I'm not worried. My money is insured for way more than I am worth." Did FDR and the New Deal make bank runs a thing of the past?

Don't kid yourself. Panick is a predictably recurring human emotion. Bank runs are returning to the US.

Maybe one day while you are at the gas pump, your BofA debit/credit card gets declined. At the grocery store, declined again. That evening you try to make an online payment to your utility company, but you can't Log-On. Then the ATM is "out of order" again. Banking hours are shortened on weekdays, and eliminated altogether on weekends because "Your friendly bank is avoiding layoffs by trimming workers' hours."

Then one day, just in passing your bank, you see a long long line of anxious banking customers. And thinking, Is that a police officer standing guard? And, I've never seen those banking tellers before; where are the kids that usually work here?



Tue, 02/22/2011 - 21:34 | 987114 High Plains Drifter
High Plains Drifter's picture

time to start a war?

Tue, 02/22/2011 - 21:44 | 987147 Azwethinkweiz
Azwethinkweiz's picture

Not yet.

China has to bleed GLD and SLV dry first.

Then Gaddafi can light the fireworks and start the show.

Tue, 02/22/2011 - 21:42 | 987136 YHC-FTSE
YHC-FTSE's picture

Oh FUCK OFF. I've just been on the phone with several colleagues in Seoul, and things are not exactly kicking off. Alright, ZH has been spot on with the ME revolutions, but major bank runs in Seoul? Give me a fucking break, more like piss poor Northern Rock Part II. The word on the street - the older generation of S.Koreans are a lot more savvy about the margins of smaller banks and they go spastic at the first sight of trouble. NO BIG DEAL. (Probably have to retract this in a few months, but wtf). 

Tue, 02/22/2011 - 21:48 | 987157 Azwethinkweiz
Azwethinkweiz's picture

I had several colleagues who over the weekend had no idea people were angry in Libya.

Maybe your colleagues were playing a little game called, 'who's kimchi breath smells worse?'

Tue, 02/22/2011 - 21:59 | 987176 Troll Magnet
Troll Magnet's picture

what are you talking about Az?  kimchi is frickin' delicious!  i never eat my steak without it.

Tue, 02/22/2011 - 22:19 | 987212 YHC-FTSE
YHC-FTSE's picture

Probably my colleagues are slightly less retarded than yours if yours really had no idea people were angry in Libya during the weekend.

Tue, 02/22/2011 - 21:51 | 987165 chump666
chump666's picture

Korean banks are the most illiquid in the world, same with aussie banks.  research early  liquidity shocks  - re Chohung Bank, been happening since 2003

Tue, 02/22/2011 - 21:42 | 987141 chump666
chump666's picture

wow good stuff ZH,

Korea's liquidity crisis seems to be heating up, next maybe Taiwan, then of course China

Tue, 02/22/2011 - 21:43 | 987144 Aristarchan
Aristarchan's picture

Korean banks have always been suspect in the overall scheme of things. They went out of their way to finance the bubbling Chaebols, they financed the  commercial and residential bubble, and they have always lived or died by their political connections. I lived in Korea when the Chaebol bubble was inflating (I played my small part in it), and to bank, you had to have a small, bamboo "chop" with a rubber stamp with your name on it in Korean characters. At the end of the month, when the German company I worked for sent all the payroll into the bank in Seoul, I would head down there with my chop and withdraw the cash for living expenses for employees, chop the withdrawal sheet, and stuff tons of Won in every pocket I had...even down my pants. The guy who was there previously had used a grocery bag, but had been hit coming out of the bank and lost the whole wad. So, I just stuffed it every available orifice, and usually had a Korean guy with me that was really fucking huge and, other than being our translator, spent his life perfecting his Tae-Kwon-do. The only time I ever got worried was when an old man ran up to us and started screaming in my face in some kind of terrorist Korean.....the big guy intervened and took him away from us with a gentle jerk on the front of his shirt. Come to find out, he was just an old, traditional Korean who was offended by the bar girl that was hanging with us who was wearing a halter-top and miniskirt.

Tue, 02/22/2011 - 21:57 | 987173 YHC-FTSE
YHC-FTSE's picture

......And which pharmaceutical product did you imbibe whilst this was happening? "Screaming in my face in some kind of terrorist korean"? LOL. Why spend so much time typing bullshit? That's not a chaebol - that's some chickenshit outfit you describe, unless you worked in Korea during the fucking war. Jeeeeezuz. 

Tue, 02/22/2011 - 22:21 | 987222 Aristarchan
Aristarchan's picture

In using the word "terrorist," I was describing my view of his attitude, not his affiliation. Per that last paragraph, I went afield of the Chaebols to describe a personal experience. Some time these standard literary tools are hard for some people.

Tue, 02/22/2011 - 22:45 | 987291 YHC-FTSE
YHC-FTSE's picture

....Right. The word, "Terrorist" is a literary tool. Must have missed that when I studied English in England. Keep digging. Sorry mate, I actually worked in S.Korea for one of the "Chaebols" after the IMF beat the crap out of them in the late 90's. Let's not bullshit, please. Now you say you went further afield - lovely. Must have been fascinating working in Lilliput. 

Tue, 02/22/2011 - 23:21 | 987354 Aristarchan
Aristarchan's picture

I spent time with Hyundai and Samsung. My experiences are mine, if you don't care for them or do not believe me, fine. If you do not like my brand of English, then I suggest you not read my fact, that would suit me just fine, old chap, it really would.

Wed, 02/23/2011 - 00:38 | 987599 RockyRacoon
RockyRacoon's picture

So you were a negotiator by the sound of your words.   Thanks for your civility.

Wed, 02/23/2011 - 00:58 | 987639 Aristarchan
Aristarchan's picture

Actually, I was just a project manager. I am not normally civil when attacked, but, I have to care about the veracity of the attack for it to matter. In this case, it did not.

Wed, 02/23/2011 - 08:04 | 987972 YHC-FTSE
YHC-FTSE's picture

Must be edifying for someone to buy your bs. Civil or not, anyone with actual work experience in S.Korea can see right through this thread, mate. 

Tue, 02/22/2011 - 21:50 | 987159 ewmayer
ewmayer's picture

At least the South Koreans have quality escapist TV to help them escape their banker-Ponzi worries...seriously, they got some real high-quality quasi-historic ninja-foo costume-drama soap operas: Emperor of the Sea, Jumong, ... Currently showing on NTDTV: "The Great Queen Seondeok". Only annoyance is that about every 4th episode they randomly switch the subtitles from English to Chinese, which is not only annoying but dumb, because on NTDTV the whole shebang is dubbed from Korean into Chinese to begin with. I asked a Chinese coworker about that and he said it's quite common for shows in (or dubbed into) Chinese to be subtitled in the same...and we're talking about the same dialect, it's not a case of dubbed-into-Mandarin and subtitled-in-Cantonese.

Anyway, I digress...Robo will appreciate this: those costume dramas feature some *fine* looking women. Little different style than the women Robo adorns his posts with - big silk and huge hairdos that must take hours - but fine nonetheless.

See - what bank runs?

Whereas here in the stupefied USofA, we have "Biggest American Loser Idol Desperate Bachelor Housewives of Orange County Redux" to look forward to, night after night. I wish they could dub *that* into Chinese.

Tue, 02/22/2011 - 21:57 | 987174 Zon
Zon's picture

Or how about SNSD? Now that is some good music. A bit americanized but still better than ours.

Tue, 02/22/2011 - 22:01 | 987182 Troll Magnet
Troll Magnet's picture

SNSD plays music?  i thought they were playboy bunnies?

Tue, 02/22/2011 - 22:24 | 987234 Itsalie
Itsalie's picture


eeeor, you are betraying your ignorance with that phrase. There's only one written chinese script regardless of dialect, no such thing as "subtitled in cantonese".

Tue, 02/22/2011 - 22:36 | 987267 ewmayer
ewmayer's picture

Ah, OK, that makes more sense ... so all the different dialects can read from the same written text? I've seen Chinese shows where it looks there are 2 different subtitle streams, that's what made me think there were different text versions of the different dialects. (Even if they use the same basic characters).

Could the fact that many Chinese words/syllables sound very similar (and not just to us ignorant westerners) also have something to do with it?

Wed, 02/23/2011 - 07:49 | 987965 The Credible Hulk
The Credible Hulk's picture

Your case of two subtitle streams could perhaps be explained by simultaneous subtitles in simplified (standard in PRC) and traditional (standard in Taiwan) characters.


The fact that a syllable may have many meanings (even with the same tone) is generally resolved through context, though, not subtitles. Think about it - it wouldn't work terribly well when spoken, would it? OTOH it does happen that Chinese speakers resort to "drawing" signs on their hands when the one spoken to doesn't get what is ment, because a sign (and, if there are multiple, a corresponding syllable) indeed together fix a meaning... well, more or less. It's a lot of fun if you like messes.


(edited out remarks about written Cantonese (, because I don't really know that much about it.)

Tue, 02/22/2011 - 21:50 | 987162 franzpick
franzpick's picture

U$D gapping down tonight to 77.68 is threatening the 4 month uptrend from the 76 Nov. low: an additional 2% dollar index drop to 76, with the dollar-denominated Au/$index steady at 18X, puts Au at a near-new high at $1424.  

Despite the volatility, haven't Au/Ag held up very well in the first few days of an oil-threatened, now collapsing equity market ?  Non-hard asset index drops of 3%, such as NDX, as well as lesser across-the-board index-sector declines, look like hi-level, downside, outside reversals, but I see PMs climbing the bullish, proverbial wall of worry.

Tue, 02/22/2011 - 22:03 | 987185 treasurefish
treasurefish's picture

...meanwhile, in America, controls on reserve requirements have failed.  Connection?

Tue, 02/22/2011 - 22:06 | 987187 franzpick
franzpick's picture

If the anxious withdrawal line circles counterclockwise in a northern hemisphere bank, it's all going down the drain.

Tue, 02/22/2011 - 22:07 | 987189 savagegoose
savagegoose's picture

at least when the shit hits the fan over there, it wont make as much mess.

Wed, 02/23/2011 - 05:03 | 987888 saulysw
saulysw's picture

My vote for funniest comment of the day... and there have been some good ones!

Wed, 02/23/2011 - 08:06 | 987973 Moe Howard
Moe Howard's picture

+ Won more time.

Tue, 02/22/2011 - 22:08 | 987193 Caviar Emptor
Caviar Emptor's picture

Got Gold?

Tue, 02/22/2011 - 22:35 | 987263 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, maybe not quite enough yet though...

Wed, 02/23/2011 - 01:01 | 987647 Troll Magnet
Troll Magnet's picture

how much is enough, DC?  seriously, how much gold do you think is enough?

100 oz?  1000?

Wed, 02/23/2011 - 01:23 | 987698 DoChenRollingBearing
DoChenRollingBearing's picture

I would put in in percentages...

10% of your non-indebted assets puts you MUCH better than the average American.  10% in PMs is where I am at.

Here is my rough & ready calculation:

If an American is worth (say, in $) 10 x times the world average, then EACH one in your family should have 10 oz of gold in physical possession (as there are approx. 6 billion oz for the 6 billion people on Planet Earth).  10 x as rich means you should have 10 oz per family member.  Physical gold in your own possesion...

If you both have a kid, for example, you should have AT LEAST 30 ozs to cover yourselves.

Just one man's opinion...

Wed, 02/23/2011 - 05:10 | 987891 saulysw
saulysw's picture

Doesn't this mean that you have just stolen 1oz of gold off 9 people? Where is your conscience man?!

I wonder.... take this logic the the extreme : what if you had ALL the gold in the world, and everyone else had none. Would you still be rich? I would say not - nobody would own it or have any experience of it. You can't want what you don't know about. If nobody else values your gold, it's worthless, right?

Wed, 02/23/2011 - 09:23 | 988031 Rusty_Shackleford
Rusty_Shackleford's picture

Well, you could use this argument for any form of currency/wealth, right? 

"What if you had all of the non-redeemable paper ticket currency in the world and everyone else had none.  Would you still be rich?"

Tue, 02/22/2011 - 22:19 | 987215 americanspirit
americanspirit's picture

Astute observation savagegoose - Fan Death is indeed caused by the shit hitting the fan. Likely to be a widespread phenomenon in ROK in the coming weeks. Thousands of bankers going home, maybe writing a sad little note to their family, and turning on the fan.

Wed, 02/23/2011 - 01:05 | 987658 Troll Magnet
Troll Magnet's picture

doubtful.  their current president is just as bad as obama.  maybe worse because president lee doesn't work for banksters.  he's their big boss.

Tue, 02/22/2011 - 23:38 | 987452 Bansters-in-my-...
Bansters-in-my- feces's picture

On a foot note,Silver sales in Korea have increased substantially.

Tue, 02/22/2011 - 23:44 | 987469 RobotTrader
RobotTrader's picture

So far, the Kospi is hanging tough, no violet selloff.

Wed, 02/23/2011 - 00:04 | 987524 chump666
chump666's picture

Asia CDS's are widening...nasty, that an Thailand bond yields just jumped.  All oil baby, mix that with illiquid banks.


Wed, 02/23/2011 - 00:23 | 987571 chump666
chump666's picture

India's bonds down...fuel spike fears.

Wed, 02/23/2011 - 00:45 | 987615 ebworthen
ebworthen's picture


Listen now Mr. Tyler,

All the central bank has to do is type in some binary figures into the database then the bank is NOT insolvent.

Keyboard.  Type.  Digits.  Understand?

Why don't you people understand this?

Reality = Binary Data

Reality = Perception

Perception = What we say

What we say = What you follow

What you follow = What you do

What you do = Reality

Understand now!?!?!

Stupid Amerikans!

Where is Timmah (Turbo Tax) Guythner when you need him!?!


Wed, 02/23/2011 - 08:29 | 987989 taint
taint's picture

lets say just to pick a number you had 800,000 in the bank and quite a nice stash of food, ammo, guns and PMs. 


Honest question, what the f would you do with the money?   Lets also assume you don't day trade and happen to be very handsome.

Wed, 02/23/2011 - 09:27 | 988036 MonsterBox
MonsterBox's picture

not to suggest we should start a run, but you'd be foolish to think your ATM, credit cards and Bank will always work.  On some glitch, virus or "national security issue", you could be cut off from your cash.

have a couple thousand, in small bills, hidden well in the house.  AND DON"T TELL ANYBODY!!

Wed, 02/23/2011 - 09:49 | 988060 anontrol
anontrol's picture

> What are they doing with the withdrawn cash?


creating inflation...

Wed, 02/23/2011 - 10:51 | 988252 HedgeFundLIVE
HedgeFundLIVE's picture

our PM talking about this korea news among other headlines in his morning recap from today:

Tue, 03/29/2011 - 08:12 | 1112088 V07768198309
V07768198309's picture

? La Nouvelle Économie. is the only plausible alternative against the rise of the authoritarian temptation due to the impoverishment of the People and the inexorable decline of his purchasing power and hence his confusion.

Everybody want the politic Elite out but what is the alternative economic project?

? La Nouvelle Économie. is the only one that fills this deficit of ideas. What is your risk? What you got to lose? What is your other option?

? La Nouvelle Économie.

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