Tag: Business and Economy

  • As South Korea draws visitors chasing beauty, dodgy practices pose risks

    As South Korea draws visitors chasing beauty, dodgy practices pose risks

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    Seoul, South Korea – When Alex looked into the price difference between rhinoplasty, commonly known as a “nose job”, in the United States and South Korea, she thought that flying to the Asian country for the surgery was a no-brainer.

    “$30,000 or $6,000, the choice was clear,” Alex, who asked not to be referred to by her real name, told Al Jazeera, describing her decision to undergo the procedure in the country “known to be number one in plastic surgery”.

    But less than a year later, the entertainer found herself grappling with severe complications.

    The implant from her surgery had begun protruding through her skin, necessitating emergency removal back in the US.

    “Had I known what I know now, I would have never done it,” she said, visibly distressed as she described her ongoing struggle with complications, including a crooked nose and visible hole that required corrective surgery.

    “I don’t think I’ll ever go back to Korea to do surgery because of this.”

    South Korea has the highest rate of plastic surgery procedures per capita in the world, according to Expert Market Research, with a market worth $1.7bn in 2023.

    The sector is expected to grow to be worth $5.19bn by 2032, driven by the global popularity of Korean pop culture, or “hallyu”, which has popularised Korean beauty standards and fuelled interest in Korean cosmetic procedures worldwide.

    In the capital Seoul, the affluent district of Gangnam is awash with clinics and hospitals specialising in cosmetic procedures and surgery, offering everything from double eyelid surgery to facial contouring, liposuction and breast augmentation.

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    A pedestrian walks past an advertisement for a plastic surgery clinic at a subway station in Seoul on March 26, 2014 [Jung Yeon-Je/AFP]

    While they also cater to local customers, international patients are a highly lucrative part of their business.

    Last year, South Korea attracted 605,768 non-resident foreign patients for medical services, according to the Ministry of Health and Welfare, with the highest numbers coming from Japan, China, the United States and Thailand.

    Plastic surgery accounted for 16.8 percent of procedures – more than 114,000 surgeries – making it the second most sought-after medical speciality after dermatology.

    But beneath the glossy marketing and viral social media videos luring medical tourists from around the world, foreign patients face a multitude of barriers to access, misinformation and deceptive practices, putting their health at risk, an investigation by Al Jazeera has found.

    One of the biggest challenges for medical tourists is the language barrier.

    In key markets like China and the US, prospective patients often turn to a variety of online platforms for advice, including open chat groups, Reddit pages, and even niche forums ostensibly dedicated to topics like designer handbags.

    These murky digital spaces are filled with anonymous users discussing procedures while exchanging clinic and doctor recommendations, procedure tips, so-called blacklists and translator contacts.

    The abundance of unverified information and lack of accountability make it challenging for users to discern genuine experiences from potentially biased accounts or covert advertisements.

    They are also a hunting ground for illegal brokers who can make substantial commissions for simply referring clients.

    While soliciting to foreign patients is legal, it requires a government licence. Eligible companies must have a registered Korean office address, maintain specified capital and carry insurance.

    Hospitals face more stringent requirements to be able to legally receive foreign patients, including having at least one specialist per medical department and higher levels of medical malpractice insurance.

    When posing as a potential patient on a number of platforms, Al Jazeera was approached within minutes by anonymous facilitators who admitted they did not have the required certification.

    In 2020, the dangers of the industry were thrust into the spotlight when Bonnie Evita Law, a heiress to a Hong Kong fashion empire, died during a liposuction procedure at a Seoul clinic.

    Law was reportedly introduced to the hospital through an illegal broker.

    The operating surgeon, later revealed to be an orthopaedic specialist rather than a plastic surgeon, was charged with professional negligence resulting in death. The outcome of the case was not publicly revealed.

    While only certified specialists can officially call their practices “plastic surgery clinics”, any licensed medical doctor in South Korea can legally perform cosmetic surgeries as Korean medical law does not restrict doctors to only working in their specialised field.

    In a more recent case, a Chinese woman died in January shortly after receiving liposuction surgery at a clinic in Gangnam.

    The problem of Chinese cosmetic surgery patients falling victim to unscrupulous and unsafe practices has become so prevalent that the Chinese embassy in Seoul in January issued a notice warning its citizens to “be wary of advertising and risks” and “carefully choose intermediary agencies”.

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    Pedestrians walk outside the Chinese embassy in Seoul on January 10, 2023 [Anthony Wallace/AFP]

    The Ministry of Health and Welfare, through the Korea Health Industry Development Institute (KHIDI), operates a centre for reporting illegal soliciting of foreign patients.

    The number of reports has risen significantly – from 11 cases in 2021 to 16 in 2022, to 59 last year.

    An official at KHIDI, speaking on condition of anonymity, said that “cases handled as suspected violations are subject to follow-up measures such as fines and penalties”.

    “Those confirmed as illegal solicitation are administratively disposed of by local governments in accordance with the law,” the official said.

    However, when pressed for specifics on how many cases were actually investigated or processed, the official did not provide figures, only stating that the number would “inevitably be lower” than the number of cases reported.

    Kang Ki-yoon, a lawmaker with South Korea’s ruling People Power Party, last year raised concern about the lack of clarity around the handling of cases, suggesting that despite the increase in reports, there appeared to be little follow-up action.

    “It’s a national disgrace for foreigners seeking our country’s world-class medical technology to fall victim to unethical practices by some medical institutions,” Kang said, calling for more rigorous management of such cases.

    Speaking on condition of anonymity, a friend of Law, the deceased Hong Kong heiress, expressed concern about the risks associated with overseas surgeries.

    “With social media glamourising Korea’s beauty industry, people treat getting surgery in Korea as casually as getting beauty treatment. They should be aware of the dangers and the difficulties of seeking recourse if complications arise,” the friend told Al Jazeera.

    Another concern is the prevalence of misleading and potentially illegal reviews.

    While Korean medical advertising law prohibits the use of influencers for testimonial marketing, the practice is widespread, especially involving foreign patients, which complicates enforcement.

    Al Jazeera reviewed a contract that required a foreign influencer to produce multiple promotional videos and social media content about a plastic surgery clinic in exchange for free surgery, with the clinic dictating specific positive language to be used in posts.

    The clinic required that that influencer produce the content before knowing the final results of the surgery, stipulated that it would review all content before its release, and included confidentiality terms that effectively prevented disclosure of the sponsored nature of the surgery.

    The influencer delivered the required content but expressed reluctance to use specific positive language demanded by the hospital as she was not happy with the results of the surgery.

    The hospital claimed that she had not fulfilled her agreement and demanded that she pay for the surgery and other associated costs, including airfare.

    However, according to correspondence from her lawyer, these threats abruptly ceased when the hospital was reminded about the illegality of such practices under medical advertising laws.

    ‘Conveyor belt’

    The case is not isolated.

    Al Jazeera spoke to three patients who claimed they were offered discounts in exchange for positive reviews.

    Claiming damages for a “medical accident” where “damage occurs to a person’s life, body, or property due to the medical practice of a healthcare provider” is possible through dispute mediation, but both sides need to agree to arbitration.

    Alternatively, a lawsuit can be filed, but the process can be lengthy and costly.

    Many large clinics boast on their websites that they are “accident-free”.

    Such claims are difficult to verify, as patients who share negative experiences publicly can face legal consequences under South Korea’s defamation laws, which can penalise even statements that are true.

    Alex, the American who travelled to South Korea for a rhinoplasty, said she found herself rushed into surgery within an hour, despite reservations and the absence of an in-house translator.

    Post-surgery, she experienced severe complications, including disfigurement due to the implant protruding through her skin, necessitating emergency removal surgery in the US.

    “I felt abandoned, like I was on a conveyor belt,” she said.

    “Once they had done the surgery, they didn’t want to deal with me any more. They kept saying I was still healing when I knew something was seriously wrong.”

    Frustrated by inadequate aftercare and unable to secure a refund, Alex wrote a review with photos on the Gangnam Unni app, a popular plastic surgery review platform marketed as Unni outside South Korea.

    Eager to avoid negative publicity, the hospital offered a full refund, but only after she agreed to delete the review and sign a confidentiality agreement.

    The document, which was reviewed by Al Jazeera, prohibits her from discussing the contents of the agreement and her experience on any platform, with failure to comply resulting in financial penalties.

    On Gangnam Unni, users can only sort reviews by “recent” or “recommended”, with no option to filter from lowest to highest rating, making it difficult to find negative reviews.

    Al Jazeera reached out to Healing Paper, the company behind the app, for comment on their handling of negative reviews and the practice of patients being pressured to remove critical feedback, but received no response.

    While risks exist, many patients have positive experiences with plastic surgery in South Korea, and efforts are being made to improve safety and transparency in the industry.

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    Gangnam Medical Tourism Centre [Raphael Rashid/Al Jazeera]

    One such initiative is the Gangnam Medical Tourism Centre, run by the Gangnam district office in Seoul.

    As a public entity, the centre does not receive commissions or make referrals, but instead, aims to help foreigners navigate the system and connect with professional, licensed medical translators.

    The centre maintains a list of vetted medical institutions, providing an additional layer of security for foreign patients seeking reliable care.

    As part of its vetting, the centre verifies that hospitals are registered to treat foreign patients, have specialists in each department, maintain proper malpractice insurance, and possess adequate facilities and staff to handle emergencies.

    The centre also conducts on-site inspections of partner institutions and provides training for medical interpreters.

    An official at the centre emphasised the importance of careful consideration when seeking medical procedures abroad. “We advise patients to prioritise their health and safety above all else.”

    “While cost is a factor, it shouldn’t be the primary consideration when choosing a medical provider or procedure,” the official told Al Jazeera, requesting anonymity.

    Jeet Dhindsa, who runs a licensed medical tourism facilitation company that has also helped patients who fell prey to illegal brokers and deceptive practices, stressed the importance of due diligence. “It’s crucial to verify the credentials of both the medical facilities and any intermediaries involved in the process,” Dhindsa told Al Jazeera.

    “It’s always best to contact people who are transparent about who they are.”

    Reflecting on her experience, Alex said: “Make sure you have someone who can advocate for you if things don’t go as planned.”

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  • Despite stark differences on worker rights, unions split on Trump, Harris

    Despite stark differences on worker rights, unions split on Trump, Harris

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    Early voting is under way across the United States ahead of Tuesday’s presidential election. Republican candidate Donald Trump and Democratic candidate Kamala Harris have both made last-minute efforts to court union voters – a core voting bloc, especially in swing states like Michigan, where groups like the United Auto Workers (UAW) have significant sway among the electorate.

    Vice President Harris has garnered endorsements from important unions across the country, including the UAW, AFL-CIO and Service Employees International Union.

    Harris also has the support of the International Association of Machinists and Aerospace Workers, the union behind the latest Boeing strike, which is now entering its eighth week. Boeing picketers say that if she hits the picket line with them, it could help her win more votes.

    Meanwhile, former President Trump has also solidified union support, limited though it may be. Members of the Teamsters union have shown stronger support for the Republican nominee. Although the International Brotherhood of Teamsters opted not to endorse either candidate, the union’s president, Sean O’Brien, has campaigned with Trump and appeared on conservative-friendly media outlets in support.

    Trump also received an endorsement from the International Union of Police Associations. It comes despite Trump’s false claims about the high rate of crime in American cities, his 34 felony convictions and his campaign owing cities across the US hundreds of thousands of dollars, much of it for police overtime pay.

    While Harris has wider support among union members – a 7 percent lead on Trump as 50 percent of union members say they believe Harris’s policies would be better for unions than Trump’s – the latter has garnered support among union members by tapping into issues that are top of mind for the broader electorate like immigration.

    “Union members who are likely or could support Donald Trump are really not focused on collective bargaining or economic power but issues that have to do with immigration, issues that have to do with a sense of danger because of levels of crime,” Bob Bruno, professor of labour and employment at the University of Illinois Urbana-Champaign, told Al Jazeera.

    Despite Trump’s success in stoking fear about “migrant crime”, violent crime in the US has steadily declined during the administration of President Joe Biden. The most recent FBI data shows a 10.3 percent decline in reported violent crime compared with last year.

    Al Jazeera analysed where the candidates stand on key issues important to union workers like collective bargaining and wages. Here’s what we found:

    On organising

    Harris has a pretty consistent record of being pro-union and was an original co-sponsor of a key workers rights bill – Protecting the Right to Organize (PRO) Act.

    The PRO Act, which originally was proposed in 2019, would prevent employers from interfering with union elections, allow for the National Labor Relations Board to hand out financial penalties to companies that violate labour laws and expedite reinstatement of work if workers lose their jobs as a result of a strike.

    The bill was reintroduced in 2023 but has not passed the US Congress. Harris said she would sign it into law if elected.

    “The Harris campaign is by far the more supportive of organised labour and collective bargaining, and the Trump campaign is outwardly hostile to the idea,” Bruno said.

    JD Vance, Trump’s running mate, voted against the PRO Act and has been a vocal critic of the legislation. Vance also rejected several Biden administration nominees to the National Labor Relations Board. In 2020, then-President Trump threatened to veto the PRO Act if it made it to his desk.

    The Trump White House also made it harder for workers to organise, including in 2019 when it got rid of a protection implemented during Barack Obama’s presidency that allowed workers to use company email to organise.

    “When it comes to Trump, his presidency was an absolute disaster for working people and for union members. His entire term was doing the bidding of corporate CEOs and big corporations from the massive tax giveaways that he bestowed upon them to making it more difficult for workers to organise as a union,” Steven Smith, deputy director of public affairs for the AFL-CIO, told Al Jazeera.

    In her capacity as vice president in the Biden administration, Harris spearheaded the White House Task Force on Worker Organizing and Empowerment, which aimed to help better communicate workers rights throughout federal agencies.

    On the other hand, Trump has been openly hostile towards workers who are pushing for better working conditions.

    In a recent interview with billionaire supporter Elon Musk on X, the social media platform Musk owns, Trump floated the idea of firing workers who are on strike, which would violate federal labour law.

    The claim led the UAW to launch a formal complaint with the National Labor Relations Board to investigate Trump and Musk for interfering with workers rights.

    On wages

    Harris has said that if elected, she would try to raise the federal minimum wage to $15 per hour – an important issue for workers in the service industry and their respective unions because the minimum wage has been stuck at $7.25 an hour since 2009. Since then, its purchasing power has declined by almost 30 percent.

    Donald Trump hands fries to someone during a campaign stop at a McDonald's
    Republican presidential candidate Donald Trump works behind the counter during a visit to a McDonald’s restaurant in Feasterville-Trevose, Pennsylvania [File: Doug Mills/Pool via Reuters]

    When he was asked about whether he would raise the minimum wage at a campaign event at a Pennsylvania McDonald’s franchise, Trump dodged the question.

    In 2020, he said he would prefer minimum wages to be decided by the states.

    “I think it should be a state option. Alabama is different than New York. New York is different from Vermont. Every state is different. It should be a state option,” Trump said at the time.

    Thirty-four of the 50 US states have raised their minimum wages above the federal minimum.

    That means the remaining 16 still have a minimum wage of $7.25 an hour. So for people who work full time at 40 hours per week at those wages, their annual pay would be only $20 higher than the poverty line for a single person household.

    When Biden first took office, he pledged to raise the federal minimum wage for all workers. But his efforts to get Congress to pass the legislation were blocked by Republicans and a handful of Democrats. However, Biden did what the administration could do unilaterally and raised the federal minimum wage for federal workers.

    Both Trump and Harris have pledged to end income taxes on tips if elected.

    Harris has long fought to improve wages across the economy. During her time as attorney general in California, she launched a task force that was intended to crack down on wage theft in the state.

    However, it’s not clear how well those efforts performed. By 2022, it was reported that even when workers won wage theft cases against their employers, only one out of seven were paid out those lost wages within five years.

    Trump, however, has repeatedly argued against raising wages.

    In 2015, he said wages were “too high”. During that time, he also said auto manufacturers should move operations to the southern part of the US to “lower-wage states”.

    Despite these policy positions, Trump won the union-heavy state of Michigan in 2016. Biden won the state by 2.8 percentage points over Trump in 2020, and now it’s a dead heat between Harris and Trump in the state. An aggregate of political polls compiled by the poll-tracking website FiveThirtyEight shows Harris has a small lead in Michigan but well within the margin of error.

    In 2018 while president, Trump used an executive order to scrap  annual pay raises for civilian federal employees.

    The Biden administration, however, has fought to improve wages for middle class workers. In several job creation programmes, the administration included a prevailing wage clause that requires companies bidding for contracts to pay a living wage to their employees.

    “The middle class is going to earn prevailing wage on all of those construction and factory-related jobs that come with that large federal subsidy,” Bruno said.

    On overtime pay

    At the end of Obama’s second term, the Department of Labor said any full-time workers making less than $47,476 qualified for automatic overtime pay.

    A judge in Texas blocked the rule before it could take effect. When the plan threshold came up for re-evaluation in 2019, the Trump administration slashed it. The cuts meant employers only needed to pay overtime for salaried workers making $35,358 a year or less.

    When the rule was up for reconsideration again this year, the Biden-Harris administration raised the threshold to $43,888 on July 1. It will increase again on January 1 to $58,656. The plan will likely continue if Harris is elected next week.

    As for Trump, his allies at the Heritage Foundation think tank want him, if he wins, to reverse the rule.

    Trump has a long history of failing to pay overtime during his time in the private sector. A 2016 report from USA Today found that his companies violated overtime and minimum wage laws 24 times.

    He echoed that sentiment in a campaign speech this month. The Republican nominee told supporters in Michigan he “used to hate to pay overtime”.

    “People are shocked and they’re scared because if Trump takes away their overtime, they’re not going to be able to make their rent at the end of the month. That’s the kind of thing that’s at stake here,” Smith said.

    Trump, however, has said he wants to end taxes on overtime pay  as part of a bigger tax plan if he is re-elected.

    “It’s time for the working man and woman to finally catch a break, and that’s what we are doing because this is a good one,” Trump said at a campaign rally in Arizona in September.

    Neither campaign replied to Al Jazeera’s requests for comment.

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  • What economic challenges await Kamala Harris as US president hopeful?

    What economic challenges await Kamala Harris as US president hopeful?

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    As Democratic presidential nominee Kamala Harris overtakes her Republican opponent Donald Trump in opinion polls – she is now leading in five crucial swing states – experts warn she will face “a heavy road” when it comes to passing economic legislation should she become the next president of the United States.

    The year 2025 will be one filled with political negotiations as several significant pieces of economic legislation are set to expire, including tax cuts for individuals under the Tax Cuts and Jobs Act and the reinstatement of the nation’s debt limit, which was suspended last year.

    But with voters choosing members of both houses of the US Congress – all of the lower House of Representatives and a third of the upper chamber, the Senate – in November as well, Harris’s ability to push through any legislation will depend on how Democrats perform in those elections.

    “The House is up for grabs, but if the Senate is Republican – a likely outcome – Harris will have a heavy road in getting any legislation passed,” Gary Clyde Hufbauer, nonresident senior fellow at the Peterson Institute for International Economics, told Al Jazeera.

    Among those major pieces of legislation are the individual provisions under the Tax Cuts and Jobs Act, which are due to expire at the end of next year when they will revert to the levels of a 2016 law.

    The 2017 law, which was signed by Donald Trump, provided dramatic tax breaks to US corporations while families at all income levels saw a drop in income tax from 2018 with the largest benefits going to the rich.

    “If Harris wants to extend any of the provisions on the individual side or make them more favourable to lower-income people, she will have to contend with the Senate. That will be a huge horse trade,” Hufbauer explained.

    There will also be negotiations on the US government’s debt limit, including the perennial challenges of avoiding a government shutdown, said Bernard Yaros, lead US economist at Oxford Economics.

    “In the low probability that Democrats fully sweep the elections, we don’t expect Harris’s economic agenda to change. She’s running on a platform of continuity, and she’s going to want to implement all the Build Back Better agenda that didn’t get enacted,” such as the caregiving and family support policies, Yaros told Al Jazeera. “We don’t see much difference between her and [incumbent President Joe] Biden’s policies. She will want to run to finish the job.”

    ‘Pivot to the centre’

    Harris’s economic views and policies are so far largely unknown. While Trump is trying to seize on her statements before the 2020 Democratic presidential primaries when she had positioned herself on the left as she tried to win the ticket to be her party’s nominee, economists have largely dismissed those statements.

    Her campaign in “2020 was under different circumstances,” Yaros told Al Jazeera. “Now she’s in a general election, so she has to pivot to the centre. She has to appeal to moderates in swing states who will not be enthused by a 35 percent tax rate, for instance,” Yaros said referring to Harris’s 2020 stance when she suggested hiking the corporate tax rate to 35 percent from the current 21 percent.

    Medicare for All is another policy that the Trump campaign has seized upon to discredit Harris as a viable candidate for the top job but, again, one that economists are not worried about. “I wouldn’t take that seriously,” Yaros said. “She needs to pivot to the centre.”

    The one thing that could hurt her chances is inflation. Even though the consumer price index is at 2.9 percent and finally within spitting distance of the US Federal Reserve’s target of 2 percent, compared with historic highs of 9.1 percent in June 2022, actual prices are still substantially higher than before the pandemic.

    ‘Carrying the baggage’ of inflation

    “Her approval rating has been very co-related with Biden’s on inflation and fell like Biden’s in 2022 during high inflation,” Yaros said. “The Democrats and she will still carry that baggage. But now that people are starting to know her more, she’s now more out and front. If her approval rating is on the rise, voters may not penalise her for what happened under the Biden presidency in terms of inflation.”

    Hufbauer added: “Inflation, immigration are just killer issues for Democrats, and I don’t think Harris could escape those.”

    Harris’s “advantage is that she doesn’t have much of a record in the economic sphere, so that gives her freedom to manoeuvre and do things”, Hufbauer said. These could include political efforts like bringing down petrol prices by releasing US reserves in the run-up to the elections, capping rent hikes at 5 percent and lambasting everybody’s pet peeve – corporate greed.

    Prices have gone up and “young people are really unhappy” because house prices have gone up 30 percent to 40 percent and that’s “way more than wages”, Hufbauer pointed out. He added that while Harris cannot really bring down those prices, she can offer sympathy and be forward-looking by addressing issues such as how to tackle the situation using rent control, help for new families coming into the housing market with tax deductions, “things that look like she’s actually addressing that”, Hufbauer said.

    On Thursday, the Reuters news agency reported that Harris would announce 3 million new housing units in a speech on Friday and outline new tax incentives for builders who construct properties for first-time homebuyers.

    Trade, another big economic issue

    Trump has proposed imposing a 10 percent across-the-board tariff on all imported goods and levies of 60 percent or higher on Chinese imports, an idea derided by economists. “That would be a shock to the world system,” Hufbauer warned. Biden, for his part, has kept many of Trump’s tariffs in place and added targeted ones.

    Businesses typically pass higher tariffs on to their customers, raising prices for consumers. That could also affect businesses’ decisions about how and where to invest.

    The one area that could really hurt Harris is an expanded war in the Middle East as that will also stoke inflation and send prices skyrocketing again.

    “If the US gets on more of a war footing, that’s her danger point on inflation,” Hufbauer said.

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