By Jeffrey Jones
It doesn't take long for foreign residents of Korea to figure out that the most common word spoken in the Korean language is "Balli,” meaning “hurry” and using it only once is not normally enough. So it gets spewed out as “Balli Balli."
There is no doubt that Koreans are in a hurry to get where they are going and complete what they are doing so they can move on to the next task and hurry up and get that one done so they can move on to the next one.
The cycle continues all day and through the night. There is no “manana” in Korea. Everything has got to get done today and it seems that life in Korea can be characterized as living in a continuous state of mind falling somewhere between panic and crisis.
Of course, this constant need to get things done in a hurry, the absence of time to "smell the roses" and living life in a continual state of unease has its benefits and this, among a few other traits common in Korean culture, has been responsible for the unusually great progress in Korea.
By any standard Korea is doing well. In education, culture, arts, sports and the economy, Koreans are showing the world a new standard of excellence.
The economic benefits of the Balli Balli Syndrome are obvious. Products are manufactured and services are rendered faster than most places around the globe. Despite the onslaught of the Chinese as the world’s factory, the Koreans remain number 1 in shipbuilding, semiconductors, cell phones and television sets. Notwithstanding Apple’s success, Samsung remains the largest technology company in the world.
Koreans have the highest literacy rates in the world with the highest percentages of high school and college graduates.
Korea leads Asia in fashion trends and Korean entertainers are the envy of Asia and gaining some popularity in the west. Korean sports figures are common place on the world stage and Korean women have made themselves the dominant force in professional golf.
The slogan "Dynamic Korea" is well deserved and there are few places on earth more deserving of the dynamic label than Korea.
Given the size and complexity of the Korean economy today, however, like the old centrally controlled economic system that was shed 10 years ago during the “IMF” financial crisis, it is time for the Korean regulatory structure to be less dynamic and opt for consistency and predictability.
While businesses need to be flexible, responding effectively to changing environments, and adapting to new competition, one of the worst things for business and particularly investment is surprise, particularly as a regulatory matter.
Companies and investors demand predictability and transparency before they are willing to invest in the future. Being able to predict a regulatory and political environment is key to not only inducing foreign investment, but encouraging domestic investment as well.
Without a stable regulatory environment, the confidence needed to invest in the economy will simply not exist.
To meet the new challenges of increasing competition for investment dollars, the regulatory environment in Korea needs to be less dynamic and more predictable.
Greater stability in the regulatory environment will also help to promote a greater respect for the law domestically and foster acceptance by the population of a rule-by-law environment.
Despite the wonderfully impatient nature of the Korean culture, there are three major changes that can be adopted to make Korea an even stronger nation with transparency and a more predictable regulatory environment that will foster the future investment needed to ensure a strong economy.
First and probably the most difficult is that the government needs to be less reactionary and more disciplined in its governing attitude.
In response to accidents and extraordinary events, in an almost emotional reaction, new laws or regulations are enacted or existing laws and regulations are given a new interpretation.
This is not necessarily just a Korean problem and overreaction to unusual events is not uniquely Korean, but often the intensity of the overreaction is greater. This type of regulatory overreaction is very damaging to the business environment and has a dampening effect on the economy.
Secondly, one of the common difficulties in the regulatory environment is the lack of clarity and transparency in Korea’s laws and regulations.
Greater detail and specificity is required which makes the rules less ambiguous and susceptible to interpretation. Regulatory reform is not just getting rid of too many regulations, but it also involves ensuring that the rules are definitive and detailed enough to be certain that they are understood and that there is no need for interpretation.
Businesses today, both foreign and domestic, understand too well the need for compliance. Greater clarity in regulations will permit companies to be in compliance.
Thus, when reviewing or creating regulations, the government should not be so concerned with simplicity, but be focused more on the side of specificity.
Thirdly, one of the common problems faced by businesses is the constant rotation of government officials. This is understandable as a means of training and personnel advancement.
The combination of constant personnel changes and an overly vague regulatory system results in a less than transparent regulatory environment and is damaging on growth and investment in the economy.
It would be nice to see a policy enacted that would ensure that officials are in assigned positions for not less than two to three years and this alone will make for a much less dynamic regulatory environment.
The Balli Balli Syndrome has been a real means of progress in Korea. With the achievement to date, however, it may be time to trade this in for a more stable environment.