Three countries deserve a special attention:

• Japan: While the new Prime Minister is trying to change the country's major economic structure, Japanese publishers have gone through more changes in the last 12 months than in the last 30 years. First, they are discovering the world of mergers and acquisitions (see details below in "Magazine Developments in Asia Pacific"). Three Japanese publishers have recently acquired another magazine company: Kadokawa Shoten (Tokyo Walker, Marie Claire) bought SS Publications (Lettuce Club), Yiomiuri Shimbun acquired Chuokoron-Shinsha and the bi-weekly business magazine President was purchased by Shogakukan (Can Cam, Oggi, Weekly Post). Second, Japanese publishers are suddenly opening to gaijins (foreigners) and several Japanese publishers are starting to actively look at European or US companies to licence the local edition of an established concept. Finally, two major American companies (the Reader's Digest and Martha Stewart) are currently receiving a lot of attention by local partners to publish the Japanese edition of their multi-million circulation magazine. Any of these three directions would have simply been unthinkable 18 months ago. It may not be the perfect time for Japan as the economy is entering its fourth recession in 11 years. However, as one of our former employers, used to say: "a bad year in Japan is better than a good year in most countries". Today, Japan represents a new opportunity for publishers like never before to establish a presence in the second largest consumer market in the world.

• China: The world's largest nation appears unaffected by the global economic downturn. While the economy grew at annual rate of about 7.9% (and retail sales increased by 10.3%) during the first half, most magazines sectors - except the computer magazines - have increased their revenues by 15 to 30%. ACNielsen even reports women's magazines enjoyed a first half of the year increase of 55% compared with the same period last year. With its WTO membership (most likely next October), China might become more vulnerable to global economic trends. However, the Chinese publishing industry should still remain complex to access for foreign company for the next 12 to 18 months, while China goes through a period of important political transition in its leadership.

• Korea: Whereas the overall market has been slightly negative for the first half, there are objective signs for a solid increase in advertising bookings by the year-end. Magazines like Vogue and Elle expect to have their highest revenue performance since they launched less than a decade ago. As the world economic engine slows down, Korea has become vulnerable to its economic model based on exports growth, however - and that's good news for magazine publishers - domestic consumption recently grew by 2.9%. In a down market, such an increase is solid progress. It is also an indication the domestic market is becoming a stronger component of the Korean economy, which already has a growing need to attract consumer spending and increase advertising expenditures.
  

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