Grand Prize Korea urged to better utilize human resources
Olivia Han
By Olivia Han
South Korea's rise from the traumatic experience of the Korean War to its current position as the 11th largest global economy was due to careful planning, bold leadership, risk taking entrepreneurs supported by the state, and resilient, hardworking workers.
Due to South Korea's economic prosperity, the nation reached a high literacy rate, lowered infant mortality to that of developed nation status, supported the rise of a solid middle class, and led to one of the highest average life expectancy in the world.
In addition, South Korea's economic prowess has allowed the country to host two highly successful Olympic Games highlighting the nation's elite athletes ranging from swimming to archery to figure skating. Furthermore, South Korea's highly educated workforce has allowed for the rise of globally recognized companies like Samsung Electronics and Hyundai Motors.
President Moon Jae-in speaks at a meeting to discuss strategies for a “fair economy” at COEX, southern Seoul, Nov. 9. The meeting was attended by the ministries of justice, industry, health and SMEs as well as the Financial Services Commission and business leaders. / Korea Times photo by Ryu Hyo-jin
Just as importantly, South Korea's creative brilliance was unleashed through highly entertaining dramas and K-pop music, which are considered sui generis. Despite all these successes, the country is confronting economic challenges. This essay will attempt to make suggestions as how to spur its economic growth.
An important factor for economic growth is natural resources. Middle Eastern countries that have large oil resources have developed their economies through profits garnered from oil production.
Other countries that have abundant coal and iron ore deposits, fertile farmland, and shale oil all contribute greatly to the economic wellbeing and prowess of the nation. As Korea does not have natural resources, this lack will always be a detriment to economic growth.
Therefore, the current actions taken by the South Korean government to improve relations with North Korea, which hopefully, someday will lead to reunification, is greatly helpful. Either after reunification or after establishing closer political and economic ties, South Korea can utilize the abundant natural resources possessed by North Korea, decreasing reliance on expensive imports. Therefore, reunification is crucial if South Korea hopes to be economically viable in the future.
Deregulation is another important driver for economic growth. The government has made a strong commitment to implement business-friendly policies which will hopefully lead to the creation of innovative products and services.
The government is attempting to ease regulations limiting non-financial companies from owning large stakes in Korean banks, while the president has intimated at the possible deregulation of the internet-only banking industry, which has been mired in heavy regulations despite the potential for growth.
Although a positive start, the government must implement more aggressive deregulatory measures across various industries instead of resorting to just cosmetic changes. The government should realize that by doing so, there will be more economic benefits across various sectors of the country, while still pursuing their political goals. Through deregulation, free trade should increase, leading to less protectionism, allowing for stronger economic growth.
Technology has been pivotal for economic growth. Through deregulation and by supporting venture companies and SMEs, the government should allow for a more aggressive development in this sector, outside the purview of chaebol. The government should shelter talent from being poached, or for the products to be bought or copied by conglomerates, and allow them to reach viable commercial production.
In order for Koreans' true creative and innovative nature to fully blossom, the government should allow the millennial generation and those young at heart to give full outlet to developing technology which has been bypassed by the large conglomerates. Technology ultimately drives business growth, leading to increased employment, which drives economic growth.
The way a nation utilizes its human resources can either greatly help or hurt a nation's economic growth. For instance, India's well educated workforce, buttressed by a strong democratic system, has led to that country's rise from a poor country to a fast growing economy.
On the other hand, Japan's mistreatment of the female work force has kept the country from performing better economically, despite the current demand for more qualified workers due to its ageing society.
South Korea must also more aggressively better utilize its human resources by providing equal opportunity for women, older workers, and technically educated high school graduates, while allowing college graduates from non-STEM departments to be actively recruited by corporations.
More importantly, companies' human resources departments should make a greater effort to include more foreigners or Koreans who have lived abroad into the workforce by creating a work environment which allows for diversity and acceptance of outsiders.
The factors mentioned are obvious and straightforward. What keeps these factors from being fully implemented are political infighting and rising social inequality. It is the role of the government interacting with corporations and citizens to ensure that these factors are implemented effectively to ensure economic growth and prosperity for all.