Establish a Reformative Leadership

Does the Korean economy have a future?

Since protective trade drawn by the excessive supply has been strengthening and most major industries of Korea have been challenged by China, worries about the future of Korean economy is growing.

In addition, since most member countries of WTO have been establishing Free Trade Areas (FTA) to strengthen the economic cooperation in their boundaries, it is worried that Korea, not included in any FTA, might be ostracized from the international society.

By the surging of `China, the factory of the world,` the trend is likely to be more distinctive.

Korea is really preparing for the future, carefully watching over the changes and streams of the world?

Experts are anticipating that Korea will not be able to maintain a decent industry to earn a living of the people in 10 years, implying that Korea might sink right before a gate to the advanced countries if we are not perfectly prepare for it.

Korea had succeeded in driving the Korean economy into the world 13th through a continuous rapid growth by the catch-up strategy, catching up the Japan`s economic model for 40 years until the foreign exchange crisis.

However, the problems of finance and business system revealed by the foreign exchange crisis in 1997 proved that such method would not work anymore. Since then discussions for a new development model have continued without finding a clear alternative.

Then, what would the Korean people make money with for a living after 10 years?

In the past, Korea had focused on textiles, petroleum chemistry, steel, shipbuilding, autos, and semiconductors. However, Korea has failed to develop a new staple industry, wasting times through 1990s while the world is moving forward biotechnology (BT) and nanotechnology (NT) after Information technology (IT).

Experts emphasize that Korea must concentrate to increase added values of current major industries, to create new future-industries, to bring up creative human resources, and to establish productive politics and administration system for a bright future of the Korean economy.

Choi Woo-Seok, chairperson of Samsung Economy Institute, remarked that “new ideas such as technology shifts or digitalization are overflowing but comprehensive and constructive idea based on such ideas are rarely found. To change the national system, the leadership is crucial and a rapid reformation is necessary.”

Rae-Jeong Park youngkim@donga.com · ecopark@donga.com