Taiwan's national security authorities should assess and prepare for a worst- case scenario as tensions on the Korean Peninsula have risen since the sinking of a South Korean warship on March 26. The reaction of the Taiwanese people to the Korean situtation has been mixed. But the fact is that before any outbreak of war on the Korean Peninsula, global stock markets have already taken a nosedive. The world economy could sink into a new recession if a new Korean war erupts. It's time to stay cool-headed and on guard. With every key player around the world commenting on the situation, Taiwan should not pretend that nothing is happening out there. South Korean President Lee Myung-bak has been dealing with the situation cool- headedly. He has demonstrated shrewd leadership by making rational judgements based on the advice of his aides. It reminded us that upon learning of the warship incident, President Ma Ying- jeou, who was on a state visit in the South Pacific, immediately convened a national security meeting and activated the national security mechanism. He also gave instructions for close monitoring of the situation in order to verify the information and to assess any developments. Ma's actions were panned by his critics as an overreaction. But the president was right. No one can afford to take national security matters lightly. (May 30, 2010) 