Introduction
Some
years ago, Islamic bank and finance attempted to establish business in South
Korea. It is still remembered to me that the Sukuk bill, regarding Islamic bank
and financial business, was proposed in the congress but due to the negation and
protest of many Christians, the proposal was rejected. When reading this
article in a newspaper at that time, it seemed to me that the Islam tried to
overpower the Christian dominance in South Korea by launching different approach.
Prior to effort of launching Islamic banking and finance In South Korea, it is
evident that Islamic economics successfully accumulated its strength and
managed the surplus from oil business. In this paper, two things will be
analyzed. First, the beginning of Islamic economy is to be examined and a
specific character of Islamic financial sector will be outlined. Second,
Islamic efforts and inroads into South Korea from perspectives of
socio-cultural and economical will be examined. As a result, the probable
efforts and strategies will be contemplated.
Beginning of Islamic banking and finance
Generally
speaking, banking and financial business is categorized as the tertiary
industry, which names itself the service sector. Many developed countries experience
both primary and secondary stages of industrial development of prior to the
establishment of banking and financial industry. However, progress of
technology and production of commercial goods are not imaginable to most
Islamic countries. Instead of transitional phase from each stage of industries,
Islamic countries effectively conserved their ultimate resources to start
financial sectors due to the strategic management of oil production surplus in
1970s. Timur states
“A milestone in the evolution of Islamic
economics was reached with the Arab oil boom of the 1970s. Led by Saudi Arabia,
the boom’s major Arab beneficiaries felt obliged to step up their support for
pan-Arab and pan-Islamic movements, and Islamic economics was among the cause
that received vast assistance. Accordingly, the first Islamic commercial bank
started operation in 1975, as did the Islamic Development Bank, established to
transfer petrodollars to predominantly Muslim developing countries through
interest-free instruments. The period of the oil boom saw also the environment
of the institutional infrastructure of Islamic economics.”[1]
When some of Islamic countries experienced the surplus of oil production,
it seems that they were concerned with two imperative issues. These two
concerns were the management of “the overflowing cash of oil revenue and the
economic concern about the post-oil era.”[2]
Massive amount of oil production revenue are enough to attract the interest of
people who are working in financial sector of global level. London seems to be
one of strategic cities from a perspective of Islamic countries. Abdul Karim
states that,
“The attraction of oil wealth has
influenced the strategy of the financial authorities, as they now aim to
promote London as the future global centre for Islamic finance. Moreover, the
growing wealth of British Muslims in the United Kingdom represents a new source
of funding that requires special facilities. Islamic banking can be described
as the ideal way to approach this new source of funding.”[3]
From the above quote, it can be inferred that London had been utilized as
an incubator in order for Islamic economics to accumulate the strength. In the
meantime, through the infusion of Islamic immigration into United Kingdom, it
seems that the environment wherein Islamic banking and financial service are
favored has been launched. In addition to this, the increase of Islamic wealth
and people influenced conventional banking and financial institutions to invent
financial products. Shahzad asserts that “Most conventional financial
institutions and banks have offered and are successfully offering Shariah-compliant products alongside
traditional Western-style products.”[4]
It seems to me that when syndicated cartel among Islamic massive revenue of
natural resource and infusion of Islamic people is established, conventional
banking institutions are forced to accept Islamic principle partially and
reluctantly to make profits. Abdul Karim says “Many conventional banks, such as
HSBC and Lloyds TSB, have started offering Islamic financial products.”[5]
Although the reluctance and unwillingness of conventional banking institutions
are demonstrated in applying the Islamic principles into financial products, it
seems that their modifications are what Islamic countries want to see and one
of gradual process in Islamizing the capital.
Specific characters of Islamic financial
sector
Islamic banking and financial
sector are, in itself, messengers of Islamic principles. First and foremost,
“The prohibition and elimination of interest is the core of the Islamic
financial system.”[6]
Because the unique approach of interest is preceded by the interpretive application
of Quran, it can be implied that all kinds of monetary transactions are
established on the religious foundation. In other words, if one individual is
involved with Islamic banking and financial institutions, this person is encouraged
to proselytize for the acceptance of a small minimal amount in Islamic
principles unconsciously. Nasser says “Any person approaching on Islamic bank
should be given the impression that he is entering a sacred place to perform a
religious ritual, that is the use and employment of capital for what is
satisfactory to God.”[7]
Similarly to the concept of interest, essential concepts such as profits,
creation of value and risk-management in economic activities are understood differently
in Islamic setting as well. From the Islamic perspective, a rapid exchange of
capital for the income without creating any values and the creation of
derivatives based on all types of debts, which is speculated as the main cause
of global crisis in 2008, are not acceptable. Furthermore, even for many
Christians, it seems that the certain degree of exploitation of natural
resources and labours are generally accepted in comparison to the Islamic
viewpoint. Bader-Saye says
“The Old and New Testaments reject usury based
on the exploitation of the poor and are largely silent on the question of
lending for commercial ventures. Lacking specific biblical commands regarding
commercial lending, it is not surprising that medieval theologians turned to
Aristotle and natural law to help them think through the logic of usury as
applied to the context of a developing market economy.”[8]
Based on the above quote, it can be contemplated that in front of
capitalism, the application of Biblical scripture is compartmentalized alongside
Christian identity. Further, it seems that many Christians fail to Christianize
the capital. It is evident that the integration of essential elements is not
achieved, wherein Islamic case is contrasted. It is ironic and unfortunate that
those who claim to recognize Jesus as the ultimate supremacy, experience
failure to integrate and apply Biblical teachings concerning the economy.
Unfortunately, it is a sad reality that people from either Islamic or Judaism
background seem to be more proficient in integrating many elements of their
religious teachings concerning economy while rejecting the acceptance of Jesus.
In other words, Christians who believe the truth but are seem be not good at
implementing Biblical principles concerning finances practically while Muslims
who do not have a foundation in truth seem to be able to integrate their
religious teachings on finances practically into their economy. From a
different angle of examination, Bader-Saye says “The economic wisdom shared
among Christian and Muslim thinkers in the Middle Ages has been preserved by
Islam but left behind by the Christian churches.”[9]
Due to all these characters of Islamic principles in economics, Islamic
banking has been considered as the alternative option with microfinance to replace
“the exploitative logic of modern finance.”[10]
Especially, it is strongly advocated that
“If the Islamic requirement that people can
“sell only what they actually own” were enforced, this restriction would have
prohibited the securitization of mortgages and thus would have protected
against the creation of a speculative meta-economy composed of hedges and
derivatives.”[11]
However, it is
speculative that due to the supreme hierarchical status of religious components
in Muslim, Islamic banking institutions are to be directed different from
becoming the substitution of contemporary economic system.
Analysis of socio-cultural inroads into Korean society
Regarding this section, the English translation of a
specific documentation written in Korean language will reveal how Islamic
dominance has tried and is trying to develop their ground and introduce various
strategies. See the appendix A and B.
Conclusion
Recently, I
have seen the reading article regarding the acceptance of Islamic university in
one satellite city in Korea. Some Christians spread this article through many
social network services to boost the intercessory prayer to stop advancing the
process. But, it turned out to be a rumor. However, it seems that in the very
time, Islamic leader group will launch their carefully designed plan
dramatically and aggressively in comparison to what they did in the past.
Due to a huge blessing from God, Korea could
have been the country in charge of foreign mission works. However, it is easily
heard that many churches leaders are spiritually challenged with many issues
such as sexual depravity, monetary issues, religious unification, inroads of
communists into Christianity and so on. Islamic forces and influences are one
of the obstacles Korean churches should deal with. If Korea becomes Islamized,
the expansion of God’s kingdom will be adversely impacted. Especially, the
fundamental system of Islam is that religious value and Sharia laws are top
priority. This is why the honor killing is not regarded as wrongdoing in
Pakistan which is the Islamic country. Based on the exploration, Islamic
expansion has been achieved very successfully by Islamic banking system,
immigration, infusion of Islamic workers and so on. Problem is that by up to the
certain stage of power gaining, aggressive infringement on every sector of
Korean society will be established. This speculation can be inferred from
previous example of what have happened so far in many European countries. What
if the terrorist attack is established in the highly condensed area in Seoul?
South Korea is the top ranking city where population is crammed, packed and highly
condensed, especially, in cities.
Even if
there have been many efforts of inroads into South Korea and the acceleration
of Islamic penetration is seriously achieved, I wish that all Korean Christians
would defend all their infiltrations so that Korea may dedicate God’s work to
the end.
Bibliography
Aldohni,
Abdul Karim. “The Emergence of Islamic Banking in the UK: A Comparative Study
with Muslim Countries.” Arab Law Quarterly 22, no. 2 (January 1, 2008):
180–98.
Bader-Saye, Scott. “Disinterested Money: Islamic Banking, Monti Di
Pietà, and the Possibility of Moral Finance.” Journal of the Society of
Christian Ethics, March 1, 2013.
KURAN, TIMUR. “The Genesis of Islamic Economics: A Chapter in the
Politics of Muslim Identity.” Social Research 64, no. 2 (July 1, 1997):
301–38.
Pervez, Imtiaz A. “Islamic Finance.” Arab Law Quarterly 5, no.
4 (November 1, 1990): 259–81. doi:10.2307/3381929.
Qadri, Shahzad Q. “ISLAMIC BANKING: AN INTRODUCTION.” Business Law
Today 17, no. 6 (July 1, 2008): 58–61.
SULEIMAN, NASSER M. “CORPORATE GOVERNANCE IN ISLAMIC BANKS.” Társadalom
És Gazdaság Közép- És Kelet-Európában / Society and Economy in Central
and Eastern Europe 22, no. 3 (January 1, 2000): 98–116.
[1]
KURAN, “The Genesis of Islamic
Economics,” 329.
[2]
Aldohni, “The Emergence of
Islamic Banking in the UK,” 185.
[3]
Ibid., 198.
[4]
Qadri, “ISLAMIC BANKING,” 61.
[5]
Aldohni, “The Emergence of
Islamic Banking in the UK,” 181.
[6]
Pervez, “Islamic Finance,” 262.
[7]
SULEIMAN, “CORPORATE GOVERNANCE
IN ISLAMIC BANKS,” 101.
[8]
Bader-Saye, “Disinterested
Money,” 125.
[9]
Ibid., 132.
[10]
Ibid., 119.
[11]
Ibid., 132.
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