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Stephen Dunphy / Times staff columnist
South Korean growth lags

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The country's neighbors are posting growth rates 1 to 2 percentage points higher. In the first quarter, South Korea grew 5.3 percent compared with the first quarter of 2003. But Taiwan grew 6.3 percent, Hong Kong 6.8 percent and Singapore 7.5 percent.

Even Japan, recovering from a long period of stagnation, saw 5.6 percent growth in the first quarter.

South Korean capital investment and household spending were both negative in the first quarter, while places such as Singapore posted strong growth. Household spending rose 6.5 percent in Singapore and Hong Kong compared with the first quarter of 2003.

With economic and political uncertainty increasing, South Korean investors are shifting to foreign real estate. The Bank of Korea said outflows increased from $178.5 million in the first quarter of 2002 to $394 million in the first quarter of 2004.

Big conference here

A major conference co-sponsored by the Center for Global Media Studies at Washington State University and the Korea Press Foundation will open here tomorrow. The conference will look at communication and globalization.

Scholars from the U.S. and South Korea will present papers and research on subjects ranging from globalization's impact on the Internet and new media to the keynote speech Saturday by Melvin DeFleur and Margaret DeFleur of Louisiana State University on "Learning to Hate Americans: How U.S. Media Shape Negative Attitudes Among Teenagers in Twelve Countries."

The conference is an example of South Korea's ties to the Northwest. The country was the state's fifth-largest trading partner in 2002, with two-way trade of more than $6.3 billion. It was the seventh-largest destination for Washington state exports, at $2.1 billion.

Asiana, a South Korea-based airline, has nonstop flights between Seattle and Seoul three times a week. Hanjin Shipping, one of the major global shipping companies, calls at the Port of Seattle's Terminal 46.

Will United drop its 747s?
 
Keep an eye on United Airlines and its fleet of 747s. Following the government's rejection of its loan application, the airline must make more cut costs. Airline analysts at J.P. Morgan suggest one place United might cut is its 747 fleet.

United is one of the largest operators of 747-400s, with 33 in service and 12 parked in the desert. All are less than 15 years old and have an average age of 9 years. Analysts speculate that if most of these planes end up on the used market, airlines in the market for 747 freighters will buy them instead of placing new orders with Boeing.

Boeing's 747 backlog is only 35 jets, and 22 are freighters. Boeing says it's not worried; demand for the 747-400 special-freighter conversion is expected to be high, with as many as 200 planes eventually converted. Other analysts put the figure much higher, upward of 300 planes.

Marco Cavazzoni, director of the special-freighter program, said Boeing is treating the freighter conversion like it is a separate aircraft. "We are running it like an airplane program," Cavazzoni said. "There is enough volume and duration to the program to do it that way."

Health-care costs rise sharply

Washington state companies continued to struggle last year with medical-premium increases. Almost 30 percent received premium increases of between 11 and 15 percent while another 30 percent saw increases between 16 and 30 percent.

The figures come from an annual employee-benefits survey by Kibble & Prentice, a leader in the Northwest insurance and financial-services industry. The survey covered 200 Washington companies.

Stephen H. Dunphy's columns appear Tuesdays-Fridays and Sundays.

Phone: 206-464-2365. Fax: 206-382-8879.

E-mail: sdunphy@seattletimes.com