:00:08. > :00:11.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:12. > :00:14.Voting is under way in South Korea - but will new leadership make
:00:15. > :00:20.Kante break the cosy relationship between big business and government?
:00:21. > :00:34.Live from London, that's our top story on Tuesday 9th May.
:00:35. > :00:38.South Korea's massive conglomerates dominate the country's economy,
:00:39. > :00:41.but the election frontrunners say that more needs to be done to tackle
:00:42. > :00:53.Who will win and what can they achieve?
:00:54. > :00:56.Also in the programme, there's a new kid on the block
:00:57. > :00:59.in the world of online payments - can the Chinese giant
:01:00. > :01:05.Alipay give Paypal a run for its money in the US?
:01:06. > :01:11.We will take you three winners and losers in Europe, on the they are
:01:12. > :01:12.all up. Also in the programme,
:01:13. > :01:14.we'll get the inside track on a smartwatch that allows parents
:01:15. > :01:17.to keep tabs on their children. But is wearable tech really
:01:18. > :01:41.the solution to parenting problems - Welcome to the programme. Please get
:01:42. > :01:44.in touch with your views on that story about parenting, wearable
:01:45. > :01:45.technology, or anything else we are covering.
:01:46. > :01:47.South Korea is just a few hours away from finding out
:01:48. > :01:51.The election comes after the former President Park Geun-Hye was removed
:01:52. > :01:55.from office as part of an ongoing investigation into corruption.
:01:56. > :01:58.The country's economy bounced back strongly
:01:59. > :02:00.following the 2008 financial crisis, but in recent years,
:02:01. > :02:18.quarterly growth has struggled to break above 1%.
:02:19. > :02:20.What are the presidential hopefuls offering to try to change the
:02:21. > :02:22.fortunes of South Korea? The current frontrunner Moon Jae-In
:02:23. > :02:28.has vowed to boost government spending and create
:02:29. > :02:30.over 800,000 new jobs His main rival - Ahn Cheol-Soo -
:02:31. > :02:34.feels the government should be more cautious with its spending plans,
:02:35. > :02:47.but both candidates are united over Big business is still reeling from a
:02:48. > :02:48.money for influence scandal that has seen several top executives grilled
:02:49. > :02:51.by politicians. This includes the bosses of massive
:02:52. > :02:53.corporations such as Samsung, In the past, large conglomerates
:02:54. > :02:57.were credited with South Korea's rise to economic prominence,
:02:58. > :03:00.but now many experts are questioning whether the country has
:03:01. > :03:03.become too over-reliant To give you a sense of scale -
:03:04. > :03:12.the biggest company in South Korea is Samsung,
:03:13. > :03:16.the group spans every aspect of life and its business
:03:17. > :03:19.accounts for roughly 20% of Currently the 10 biggest companies
:03:20. > :03:24.in South Korea account for nearly a quarter of the country's total
:03:25. > :03:33.corporate tax revenue. With me is Agathe L'Homme,
:03:34. > :03:45.Asia analyst at the Sally getting into some of the
:03:46. > :03:48.details there about how the chaebol works, the influence they have over
:03:49. > :03:52.the South Korean economy. How dominant are they, how much pressure
:03:53. > :03:56.can they exert on politics and economics? They are very dominant
:03:57. > :04:02.and can exercise a lot of pressure. I think that is what we have seen
:04:03. > :04:06.with Park Geun-Hye, the former President, that was impeached. The
:04:07. > :04:11.Vice President of Samsung is in jail on bribery charges, which he denies.
:04:12. > :04:14.They have a very cosy relationship. The candidates running in the
:04:15. > :04:21.election right now have been campaigning on that topic very
:04:22. > :04:25.intensely. We do expect changes in that regard. How likely is it they
:04:26. > :04:29.can break up that cosy relationship? We posed the question at the start
:04:30. > :04:32.of the programme, the links are so intertwined with many parts of
:04:33. > :04:36.society and the economy. Is it realistic to expect there will be
:04:37. > :04:42.cut overnight? They will not be cut overnight, I don't think that is
:04:43. > :04:47.desirable. But there should be some reining in happening. The leading
:04:48. > :04:55.candidate, Moon Jae-In, has been campaigning on that topic. There are
:04:56. > :04:59.already bills in the pipeline. Should he be elected, that is
:05:00. > :05:02.forecast, he will have momentum to pass them through the National
:05:03. > :05:05.Assembly. It is probably easy as outsiders to criticise the system.
:05:06. > :05:09.We should also remember that system is what has but South Korea on the
:05:10. > :05:12.map will stop economically, some of the most well-known names in the
:05:13. > :05:19.world have come from South Korea, Samsung or the other is that Sally
:05:20. > :05:24.Ryan through. It is a double-edged sword, it works, but we have seen
:05:25. > :05:27.the downside? Yes. Domestically, what is problematic is that they
:05:28. > :05:36.have such a strong hold on the economy that there is no trickling
:05:37. > :05:39.down any more. A lot of SMEs are suffering, suppliers of the big
:05:40. > :05:44.chaebol, they don't really see growth happening. A word on North
:05:45. > :05:51.Korea, we can't talk about the south without concern for the North, what
:05:52. > :05:56.effect could not have? We see Moon Jae-In wanting to re-engage with the
:05:57. > :06:00.North. We think they could rekindle the Sunshine Policy, and to the
:06:01. > :06:02.regime. That is one we will all watch closely. Really nice to see
:06:03. > :06:06.you. Let's take a look at some of
:06:07. > :06:12.the other stories making the news. Toshiba has told its memory chip
:06:13. > :06:14.partner Western Digital not to interfere with the sale
:06:15. > :06:16.of its chip unit. Western Digital claims
:06:17. > :06:19.that the Japanese firm has breached a contract between the two
:06:20. > :06:21.by transferring rights it doesn t Toshiba says it will use
:06:22. > :06:26.all available remedies if Western Digital continues
:06:27. > :06:31.to pursue the complaint A woman who alleges she was sexually
:06:32. > :06:34.harassed at Fox News has asked UK media regulators to block 21st
:06:35. > :06:36.Century Fox's planned Ofcom is examining the bid
:06:37. > :06:41.for the UK broadcaster, Dr Wendy Walsh's legal team says
:06:42. > :06:48.the deal would allow Fox to bring a "culture of sexual and racial
:06:49. > :06:50.harassment" to the UK. The company says it has addressed
:06:51. > :06:53.the allegations and made The International Monetary Fund has
:06:54. > :06:57.raised its growth forecast for the Asia Pacific region to 5.5
:06:58. > :07:00.percent from its previous But the IMF also warned
:07:01. > :07:09.that the near-term outlook for the region is "clouded
:07:10. > :07:15.with significant uncertainty". In a report, the fund said
:07:16. > :07:18.medium-term growth faced difficulties from a slowdown
:07:19. > :07:20.in productivity growth in both Alipay, China's biggest
:07:21. > :07:39.online payments platform, is stepping up its global expansion
:07:40. > :07:41.with a major foray into North America -
:07:42. > :07:44.the home of PayPal and ApplePay. Leisha Chi is across
:07:45. > :07:56.the story from our Asia Tell us what Ali pay has in mind?
:07:57. > :08:00.PayPal is the 800 pound gorilla in the room when it comes to mobile
:08:01. > :08:04.payments. But this new deal for Alipay puts it in the same league as
:08:05. > :08:09.ApplePay. Basically, users will now be allowed to use the app to shop at
:08:10. > :08:11.4 million merchants in the US. That is quite significant. The Chinese
:08:12. > :08:18.billionaire that owns Alipay has billionaire that owns Alipay has
:08:19. > :08:23.declared his intention is to expand his business empire globally. He is
:08:24. > :08:26.looking at the US, the world's biggest consumer market. In China,
:08:27. > :08:34.Alipay already dominates the mobile payment landscape, together with
:08:35. > :08:41.rival they account for most of the market. If the foray into the US is
:08:42. > :08:45.successful, they can expand into other countries where they don't
:08:46. > :08:48.have a presence. It's a smart move, we are seeing increasing numbers of
:08:49. > :08:52.Chinese travelling each year and they will be able to use Alipay to
:08:53. > :08:56.book cabs, hotels and so forth. book cabs, hotels and so forth.
:08:57. > :09:02.Interesting, we will keep an eye on that.
:09:03. > :09:10.Lets see how markets fared. Japan down by 0.25%. A mixed picture in
:09:11. > :09:14.Asia. Most markets down slightly because the previous day was such a
:09:15. > :09:21.strong start to the week. Over 2% gain on Monday. A bit of a sell-off.
:09:22. > :09:28.Sony is one of the big winners. Let's look at how Europe is faring.
:09:29. > :09:32.Markets across the board or edging slightly higher. Oil prices are flat
:09:33. > :09:38.after yesterday's jump off the back of rumours... Well, not rumours,
:09:39. > :09:42.statements from Opec about plans to keep production cuts in place for
:09:43. > :09:46.longer, to try to keep the price of oil higher. Now what is ahead on
:09:47. > :09:47.Wall Street. Two media companies will be
:09:48. > :09:49.reporting earnings on Tuesday, The recent film Beauty
:09:50. > :09:54.and the Beast will help lift But the other part of the company,
:09:55. > :09:58.ESPN, it has been losing The company will have to pacify
:09:59. > :10:06.investors with a plan to strengthen ESPN, whilst also finding a capable
:10:07. > :10:08.replacement to chief executive Bob Iger, who will be
:10:09. > :10:13.stepping down in 2019. The decline in newspaper advertising
:10:14. > :10:15.will certainly heard News Corp's earnings,
:10:16. > :10:23.they own newspapers like the Wall Street Journal,
:10:24. > :10:25.the Dow Jones newswires As part of its digital push,
:10:26. > :10:29.the company has been cutting jobs, Joining us is Jeremy Cook,
:10:30. > :10:48.Chief Economist, World First. Staying with the American team, the
:10:49. > :10:57.issue that was being raised there, a lot of corporate news? But also we
:10:58. > :11:00.heard from the Fed? Yes, trying to re-energise the communication coming
:11:01. > :11:04.out of there. It has gone quiet in the last couple of weeks. Almost a
:11:05. > :11:09.100% probability they will raise rates in June. It is a case of
:11:10. > :11:13.whether they will come out and say, yes, we are going to do something in
:11:14. > :11:16.June. Much like we heard from the IMF in Asia, there is still
:11:17. > :11:24.uncertainty and clouds around this, they are not going to 2% any time
:11:25. > :11:33.soon. They should call them the Fed Talk, you know, like the TED talk?
:11:34. > :11:35.With Sony, quite interesting, following the fact that Emmanuel
:11:36. > :11:41.Macron did get the election in France, it has gone quite quiet? It
:11:42. > :11:44.has, we were expecting a bit of a bump and we got the tiniest bump,
:11:45. > :11:48.and then everybody said, well, now the focus turns to the legislative
:11:49. > :11:51.elections and whether he can get a mandate within Parliament to be able
:11:52. > :11:56.to get up there and do what he was elected to do. The main conversation
:11:57. > :12:00.I heard on Sunday night was, yes, France, but what about Italy?
:12:01. > :12:03.Everybody is talking about the possible Italian election. Sony is
:12:04. > :12:08.interesting, that has been around for years and years. Every time you
:12:09. > :12:13.see Sony, it is new profit warnings. But they are starting to come back,
:12:14. > :12:20.we are getting upgrades by Goldman Sachs. The oil price is going to be
:12:21. > :12:23.capped, largely due to the fact that Opec are going to keep the cats
:12:24. > :12:27.going into the market, the price remains pretty stable. An
:12:28. > :12:33.interesting place to leave it, you're going to talk about how
:12:34. > :12:35.petrol stations work out how much to charge? Robots are controlling as!
:12:36. > :12:39.We know that already. Is wearable tech really the solution
:12:40. > :12:42.to parenting problems - Should kids be left to be kids? We
:12:43. > :12:56.will find out later. on a smartwatch that allows parents
:12:57. > :13:00.to keep tabs on their children. You're with Business
:13:01. > :13:07.Live from BBC News. Theresa May has promised to end
:13:08. > :13:11.the injustice of rising energy costs by including a cap
:13:12. > :13:13.in the Conservative general The Prime Minister says the energy
:13:14. > :13:19.market "is not working", with vulnerable people worst hit
:13:20. > :13:22.by rip-off bills. Industry groups have
:13:23. > :13:24.criticised the plan, first announced last month,
:13:25. > :13:25.saying it could lead Labour, which offered its own bill
:13:26. > :13:31.cap ahead of the 2015 election, accused the Tories
:13:32. > :13:33.of desperate stuff. Chris Mason is at
:13:34. > :13:45.Westminster for us. We are getting some details ahead of
:13:46. > :13:51.the manifesto launch about what they might want to talk about today,
:13:52. > :13:55.energy? It is. Energy is the big focus today. The Conservatives,
:13:56. > :13:58.quite striking, trying to put themselves on the side of consumers
:13:59. > :14:01.rather than the big energy providers. The other thing that is
:14:02. > :14:08.striking is that it has a ring of familiarity about it. Why? Well,
:14:09. > :14:11.here is the Labour manifesto from two years ago. Labour will freeze
:14:12. > :14:16.energy bills until 2017, ensuring they can fall but not rise, and will
:14:17. > :14:21.give the regulator the power to cut bills this winter. The Conservatives
:14:22. > :14:24.seem to have done a bit of a cut and paste job. The idea was popular when
:14:25. > :14:28.it Ed Miliband floated it, Conservatives decided to take it on
:14:29. > :14:33.board two years on. They say it is different and more subtle, it is
:14:34. > :14:40.less crude. But the similarities are pretty striking. The question is,
:14:41. > :14:45.will it be a vote winner and is it a promise they can keep? They will
:14:46. > :14:48.hope it is, that is the short answer to the first question. In terms of
:14:49. > :14:52.whether it is something they can keep in terms of a promise, this is
:14:53. > :14:58.where it gets a bit complicated. It would involve the regulator, of
:14:59. > :15:03.common. There will have to be a consultation. -- of common. If there
:15:04. > :15:08.are variations in the wholesale price, bills could still rise and
:15:09. > :15:09.fall. The extent to which consumers will notice instantly, we will have
:15:10. > :15:20.to wait and see. When we get news about the
:15:21. > :15:25.manifesto, we'll fill you in. If you want more details on the energy
:15:26. > :15:28.story, you'll find it on the BBC Business Live page.
:15:29. > :15:35.It has details from Labour, of course, as you heard from Chris
:15:36. > :15:46.Mason who already proposed it in a previous election campaign.
:15:47. > :15:58.This is Business Live. Today we're focussed on South Korea. In a few
:15:59. > :16:03.hours we will find out who the next Prime Minister will be. We have been
:16:04. > :16:08.looking at what influence business has on politics in the country.
:16:09. > :16:12.Let's look at markets quickly to bring you up-to-date. In Europe,
:16:13. > :16:17.they were up by a quarter of a percent when we last looked. We'll
:16:18. > :16:21.bring you the numbers later. The numbers are on the screen.
:16:22. > :16:24.That's what Europe is doing. So details there. As you can see,
:16:25. > :16:44.another rise in the CAC and the DAX. Imagine losing your
:16:45. > :16:51.child at a theme park - something most people
:16:52. > :16:52.would rather forget. But witnessing another parent's
:16:53. > :16:55.panic resulted in our next guest giving up her career in investment
:16:56. > :16:58.banking to become Last year, Colleen Wong launched
:16:59. > :17:03.a smartphone watch, the Gator, it allows parents to keep track
:17:04. > :17:05.of their kids, without having But Colleen says being a start-up
:17:06. > :17:14.boss is not glamorous. As well as running a company,
:17:15. > :17:17.she is a busy mum To keep costs down she employs two
:17:18. > :17:24.flexible staff who look after IT and social media marketing,
:17:25. > :17:27.and three advisors who are friends So far, the business has received no
:17:28. > :17:32.outside investment yet, but Colleen With me is Colleen Wong,
:17:33. > :17:36.developer of the Gator watch and founder of child tracker firm,
:17:37. > :17:45.TechSixtyFour. Explain how the Gator watch works.
:17:46. > :17:50.So it has a button here that can call mum or dad or up to ten other
:17:51. > :17:56.members of the family and it is a tracker as well. Parents can
:17:57. > :18:02.download the Gator app and track where their child is and uses GPS
:18:03. > :18:09.when the child is outdoors and wi-fi when it is indoors. It is something
:18:10. > :18:14.kids would probably want to wear. We touched on there why you saw the
:18:15. > :18:18.need for it. Talk us through the moment when you realised this could
:18:19. > :18:23.be a great product? I was with my two kids at a farm park and I
:18:24. > :18:27.witnessed a mum running around looking for her five or six-year-old
:18:28. > :18:31.son... It wasn't me, was it? That mum could have been looking for my
:18:32. > :18:35.child and it does cause a moment where your heart stops for a few
:18:36. > :18:40.minutes. In terms of how this works, you put the sim in yourself. So, if
:18:41. > :18:44.we were to purchase this watch, we have to come to you to get the sim
:18:45. > :18:49.and to get it up and running and it links up to any mobile network
:18:50. > :18:54.wherever you happen to be, Vodafone, O 2 or EE or anything? No. I've done
:18:55. > :18:58.it this way. As a parent, we don't have that much time. I wanted to
:18:59. > :19:02.make it, easy solution for parents when they buy the watch, they sign
:19:03. > :19:06.up for the service plan online and it connects within 24 hours. I guess
:19:07. > :19:10.it varies where you are in the world. We posed this question at the
:19:11. > :19:15.start of the programme, could kids not be kids? Part of the fun of
:19:16. > :19:19.doing a kid you had independence just as you were starting to grow
:19:20. > :19:23.up, as long as you didn't go too far and your parents would know you come
:19:24. > :19:27.back at the end of the day, does that ruin that element? I think
:19:28. > :19:31.times have changed and parents are more worried when their kids are out
:19:32. > :19:35.and about on their own. So, when they want to give there. When they
:19:36. > :19:39.think about giving their child a snOn, that increases other worries,
:19:40. > :19:45.access to the internet, too much gaming, too much screen time. So
:19:46. > :19:49.what's the happy medium? I think my solution offers that. You can stay
:19:50. > :19:52.connected, but you don't have to have them using a smartphone and
:19:53. > :19:57.getting access to too much information. The difficulty I have
:19:58. > :20:01.to say, my children haven't got smart devices, but my son who is
:20:02. > :20:05.nine, who I might get one of those for because he is all over the shop
:20:06. > :20:11.and wild and I'd love to know where he is half the time. He would like
:20:12. > :20:14.an Apple watch and he would want to swipe around and play games and do
:20:15. > :20:17.all this stuff and that doesn't provide that. I would have a job
:20:18. > :20:21.convincing him to wear that, I think? No, I agree. And that's the
:20:22. > :20:26.thing, it's trying to keep that on a child. What I'm trying to do is work
:20:27. > :20:31.with various partners to make it more exciting for children. So when
:20:32. > :20:33.I do my crowdfunding and when I raise funds licensing would be
:20:34. > :20:37.something I would be looking at. So I imagine this watch with the strap,
:20:38. > :20:43.with Star Wars on it. Something to keep the child interested as well.
:20:44. > :20:46.A word about your background. Investment banking to creating
:20:47. > :20:55.watches for kids. Join the dots for us. OK, so I used to work in foreign
:20:56. > :20:59.exchange sales. I left the business to have children. And then yeah,
:21:00. > :21:04.that was it. That light bulb moment came when I took my kids to the
:21:05. > :21:08.farm. Have you ever looked back? No, I love what I'm doing. You look
:21:09. > :21:12.after the children and try and run this company at the same time? I
:21:13. > :21:18.have an amazing childminder, but yes, it is a juggle every day and I
:21:19. > :21:23.don't have much sleep. But, it's amazing and exciting and I love
:21:24. > :21:26.every single minute of it. You're wide awake on this show. Thank you
:21:27. > :21:34.for coming in. Interesting. Thank you.
:21:35. > :21:48.Here is a reminder of how to get in touch.
:21:49. > :21:58.We want to hear from you too. Get involved on the BBC Business Live
:21:59. > :22:04.web page. On Twitter we're at BBC business and you can find us on
:22:05. > :22:16.Facebook. Business Live on TV and online whenever you need to know.
:22:17. > :22:22.Today, your comments on the smart watch for tracking kids. A viewer
:22:23. > :22:27.says, "Honestly, it sounds like a breaking of trustment don't spy on
:22:28. > :22:34.your kids when they say they can go somewhere without you." I love
:22:35. > :22:38.Annie, "Just give your kid the watch, it can set an alarm for
:22:39. > :22:43.bedtime so you don't need a baby-sitter." ." Tea being dinner,
:22:44. > :22:50.not a cup of tea for the childminder. If it is the north of
:22:51. > :22:53.England, it is tea. Tea is what? Tea is your evening meal. It's not
:22:54. > :22:56.something in here? No, that's a brew! OK. Just to be clear. It is a
:22:57. > :23:09.builder's. What's tea for you? It's a hot
:23:10. > :23:15.refreshing drink! Let's talk Wall Street Journal. Why are the gas
:23:16. > :23:20.prices changing and it is to do with computers? It is. It is to do with
:23:21. > :23:23.software that petrol stations and these big oil companies are using to
:23:24. > :23:28.make sure that they are constantly matching the demand this they are
:23:29. > :23:32.seeing on the fore courts with higher prices. And only cutting
:23:33. > :23:38.them, it seems, when demand is very, very low. Now, you normally see that
:23:39. > :23:40.with this higher level of competition, classical economics,
:23:41. > :23:43.would say that the prices will therefore have to fall, but
:23:44. > :23:47.actually, in the Netherlands, it's where most of this seems to have
:23:48. > :23:52.been trialled just outside of Rotterdam, we're seeing prices rise
:23:53. > :23:56.and people are paying eight cents more per gallon. Some allegations of
:23:57. > :23:59.collusion. They look at what everyone else is doing, they're
:24:00. > :24:04.charging higher and I'll put mine up? There is probably evidence of
:24:05. > :24:10.collusion in similar industries which are low margin, very, very
:24:11. > :24:16.high volume, but also, you know, things like groceries and food. The
:24:17. > :24:24.algorism story is something we talk about a lot in markets and
:24:25. > :24:28.algorisms, Emmanuel Macron win by French stocks, we are starting to
:24:29. > :24:34.see that in real life. So your job will be redundant soon? Yes, I'll go
:24:35. > :24:37.and sort out a smart watch company. The Independent has got a story that
:24:38. > :24:45.our economics editor has written about as well. This chap here,
:24:46. > :24:55.Matthew Taylor who is leading a review. This is to do with the rise
:24:56. > :25:00.of the gig economy and Uber and we are less fulfilled? Yes, whether you
:25:01. > :25:04.come home and that's your day done or whether you are having to do more
:25:05. > :25:09.and more hours to bring the cash in to pay the bills. Most of the
:25:10. > :25:14.western economies are still seeing that, unemployment is at 30 year
:25:15. > :25:19.lows, nearly 40 year lows here in the UK, but the level of pay that
:25:20. > :25:24.people are getting and obviously the level of GDP that you would assume
:25:25. > :25:27.with everyone in work for nine hours a day for example isn't actually
:25:28. > :25:34.coming through and whether we are starting to see these zer hour
:25:35. > :25:38.contracts, you look at places like JD Sports and whether we need to see
:25:39. > :25:43.a more political change for that moving forward. Jeremy, thank you
:25:44. > :25:47.very much. That's all from us today. Same time same place tomorrow. Yes,
:25:48. > :25:51.I will have my statistic ready. Good. I'll look out for it. See you
:25:52. > :25:55.soon.