LONDON — It’s been hard not to think about Korea this week. But I have different things on my mind. Not the loss of a dictator. Not the worry that still has South Korean’s practicing evacuations like WWII Britain and Cold War America.
I am thinking about Korea’s fertile business culture and the country’s uncanny ability to reinvent itself, rebuild and refocus just in time for tremendous success.
See if you can read this bit without stopping in your tracks:
- in 1961 South Korea ranked 117th in the world for arable land per capita (behind Saudi Arabia and Somalia)
- in the last 50 years Korea’s per-capita GDP has grown at 23,000 percent
- today the tiny country (smaller than Iceland) has the world’s 12th largest economy by purchasing power
- unemployment is 3.2 percent
- one of the world’s lowest rates of public debt
- 80% of the 49 million people live in urban areas
- Koreans are four times as likely to have high-speed internet access as Americans and they pay very little for it
A series of seemingly prescient government decisions have constantly shoved the economy in the right direction. Even through the tough economic times in the late 90s and mid 2000s the countries has seemed to make the right choices.
Today they are pushing — against their own traditions — for more entrepreneurship. And I wouldn’t bet against them.
In fact, I’d like to be there now. If the chaebols’ would give us a call? Samsung, LG, SK… we’d like a word.
/df
Let me be a little bit frank with you although we do not know each other: it is bullshit. Well, actually it is not exactly bullshit, but more the result of the South propaganda (less strong than in the North but still impressive).
“in 1961 South Korea ranked 117th in the world for arable land per capita (behind Saudi Arabia and Somalia)”
In 1961 Korea just exit from one of the most violent war, with most of their infrastructure destroyed. South Korea was not “that” poor before the second world war.
“in the last 50 years Korea’s per-capita GDP has grown at 23,000 percent”
We agree it is impressive, although we should probably not forget that has been possible thanks to extremely strong control of the government over the economy and little or not freedom for the people.
“unemployment is 3.2 percent”
Just come in Seoul to understand that most of the job are completely useless and people are having hard tome to live with so small wage. (There is people to open the door in the shop for instance…).
“one of the world’s lowest rates of public debt”
And a very high consumer debt…
“80% of the 49 million people live in urban areas”
No choice… You cannot live in the mountain…
“Koreans are four times as likely to have high-speed internet access as Americans and they pay very little for it”
Result of the previous statement, it is much easier to create the necessary infrastructure for Internet in a small country with large cities.
“Today they are pushing — against their own traditions — for more entrepreneurship.”
South Korean government has been pushing entrepreneurship along with the big chaebol for half a century. Just look at the incredible number of small shop and small company in the street. The work condition in big company are extremely bad, so people prefer to create their own business.
But it is still extremely hard to see a small company becoming big. Fex succeed (in Video Game especially). And almost none of them moved global (see the failure of CyWorld for instance). Korean company are only working on the Korean market.
“If the chaebols’ would give us a call?”
I am working for a Chaebol in Seoul now. Probably not the right place to be for a foreigner. These companies have global operation, but are far away being “global players”. They are not able yet (and probably not in a near future) to integrate international work-force, they are wasting global talent because they do not know how to manage them (and are just enough happy to hire them to show that to their client…).
Although I do believe Korea is walking on the right path, they are never going to go to the western direction and are probably going to keep their “odd” management style forever. Because it works for them, although almost no foreigner will be able to join this country.
As well as Japan, Korea will probably remain an extremely closed country. The effort to integrate this culture will remain extremely high and will probably bounce back most of the international worker willing to work in South Korea.
Wow. What a great response. Thank you for taking the time to write a detailed and interesting argument.
I am obviously in no position to answer any points and wouldn’t want to try to argue with you. Because I am not from the region and have not worked in Korea at all.
I do know a thing or two about nationalism and industry, and I think your piece above raises interesting points on the intersect of the two.
I live in a very small country (the UK) where people live mostly in the cities too. This country was fairly badly beaten up in the Second World War… but took much more than 30 years to recover.
I also come from a country with big mountains (Canada) that has a few stand-out industries, but is riddled with insecurities. We have one (1!) world-class company — RIM — which is teetering on the edge. Much as Nortel once did, and many more before that.
I have consistently found that it is much easier to live as an expatriate than in my native country:
- the local news doesn’t embarrass you
- you are always a novelty, never a ‘fellow citizen’
- everything seems fresh and fun
But living at home and supporting and growing what we do in our own countries is a more important and vital job.
I can say without question that Korea and other countries in the region that I have visited are better at adapting, improving, adjusting and excelling than we are further to the West.
And in the short and the long-term that will always give you a more promising future than it will us.
/df