The Korean Factor
By Greg Atienza, MBM 1983
The AIM Asian Immersion Program of the Washington SyCip Graduate School of Business last September 2010 was a marvelous occasion to learn about a fascinating neighbor whose people are known for their intense fortitude resulting in an impressive economic growth that has been referred to as the East Asian Miracle.
Korea is remarkable not only because of the great strides it has taken to develop itself, but also because of its people’s tenacity and perseverance. An American professor who has stayed in Korea for most of his life, Prof. Joe Dewberry of KAIST University identified two key traits in the Korean psyche: the first being what they call Han. Han is a kind of bitter resentment drawn from the colonization of their country by the Japanese in the Second World War. The other value is called Gi. It is taken from the Chinese Qi and means vigor, energy and strength and stamina. Koreans take the fire from their angst, Han, and use it towards productive ends. Another Korean characteristic is the need for speed, called pal-ri (pronounced pa-li) A trait borne out of necessity in a time of war, today’s Koreans act quickly and decisively, making fast decisions. While this trait is desirable within the country, people of other nationalities may not necessarily understand this characteristic, causing agitation with Koreans away from their native land.
Perhaps one of the most apt imagery that validates this intensity as a people was when their past president, Park Chung-hee was delivering a speech in August 1974 to celebrate the nation’s freedom from Japanese colonial domination. An assassin fired a gun at Park from the front row but the bullet missed the president and hit his wife Yuk Young-soo instead. Park continued his speech as his dying wife was carried off the stage so as not to give the enemy the satisfaction of the moment.
Although many countries were devastated by World War II, Korea’s struggle to rise above its turbulent history resulted in three decades of astonishing growth, driven by its peoples’ strengths and determination. Now the 13th largest economy in the world from being one of the poorest agrarian economies in the 1940’s, Korea’s success story has culminated in a position in the Organization for Economic Cooperation and Development (OECD) in December 12, 1996.
The country’s accelerated postwar growth was fueled by exports, high rates of savings and investment, and an education boom which has resulted in technological advancement, industrialization, rapid urbanization, and a brisk rise in living standards. This phenomenon has been referred to as the Miracle on the Han River, in reference to the “Miracle on the Rhine”, which was used to describe the economic rebirth of West Germany after World War II . From a per capita GNP of less than $ 100 after the Korean War in 1953, it has now risen to US$ 10,543 at current prices.
One could say that today, Korea has the best of the market – but it also had the worst. After the Korean War, the country could barely support itself with its exports; today, its GNP is over US$ 400 billion. Literacy was also low, at a meager 30%; nowadays, 99.8% of the Korean population is literate.
Korea commands a considerable chunk of today’s markets; however, the lower prices of Korean products are usually their defining trait. While this may seem good to consumers, for Koreans, this is a source of dissatisfaction. They are caught in a ‘sandwich’ between Japan and China: the former marketing high-quality, high-tech, high-value goods, and the latter producing high-volume, low-price, medium-quality products. Just to compete, Korean businesses have had to slash prices by up to 30%, branding Korea as a ‘cheap market’. While Koreans understand that this is a component of competition in today’s economy, it is nonetheless a situation that bothers them, part and parcel of moving from the backwater to being a global economy.
Remarkably, the advance in the Korean economy was matched by a great hunger to move forward in society. To address rapid globalization and to secure a better future for their children, Koreans desire to master the English language and to send their children to study overseas. This has become the norm in the Korea of today – a practice so common place it has its own social connotations, such that it is a parent’s responsibility and ultimate goal to bring their child overseas to learn English and acquire an advanced education.
This strong emphasis on education is one of the key factors to Korea’s success. A Korean proverb “One should not step even on the shadow of one’s teacher” defines the country’s high degree of respect for its educators. This hunger for higher education is also a nationwide response to globalization, so that Korea could be on the same level as other countries.
This has resulted in a reverse trend where the father stays in the country and the mother and child are sent abroad for the studies. They joke about the father, on whether he is a goose or penguin. The goose represents the richer kind of paternity, where the father flies to meet with his family abroad. The penguin refers to one who cannot join the family overseas. It has become such a widespread phenomenon and a reverse OFW occurrence.
With advances in healthcare and the emphasis on studying abroad, unique problems have been created in Korea such as an aging population and multi-cultural marriages. As more and more members of the population go abroad to study or settle in urban areas, mismatches in marriage occur because of the conflicting educational levels of the partners. 25% of marriages in the countryside are mixed marriages with Chinese and Filipinos, which lead to social and cultural problems.
Another concern of Korea is how to integrate its citizens into the global community. Prior to the phenomenon of globalization, Korea was a Confucian society, homogenous and concerned only with its own affairs. That radically changed in the 70’s, when English began being taught and the concept of a worldwide society was introduced – a notion that was initially met with much resistance – and has become paramount today. A Korean professor and AIM alumnus, Sang-kee Min had shared that the country had almost, if not completely failed to train its people in the conduct of the international community – to teach the typical Korean student that there are others in the world who think, act, and feel differently and to accept them, as well as to live in a way acceptable to global citizens. In this regard, Prof. Min acknowledges that Koreans have a lot to learn from the Filipino people, who are better able to mingle with whatever cultures they are immersed into.
That is their objective – to be loved and appreciated. There is a campaign spearheaded by the government itself, with AIM alumnus Euh Yoon Dae leading the National Branding efforts, using media to address both the economic ‘sandwich’ and the psychological objectives, as well as greatly improve Korea’s image in the global community. A great many of their universities are now internationally accredited due to Mr. Euh’s efforts as former president of the Korea University. As a leader of change, he increased English taught classes from 20% to 60%, raised USD400 million in four years and made Korea University one of the top 200 in three years.
Our AIM alumni in Korea such as Euh and Min, as a result of their training, are more global in perspective. They are making large contributions to their society, shifting the paradigm, and making big differences in their own ways. But they realize that the rest of the country needs to shape up and improve their image so that the rest of the world will not misunderstand them.
With its meteoric rise in the global economy, Korea has many lessons to share with the world, as well as to learn to address unique issues brought about by rapid economic change. As the first non G-8 country to chair the Group of 20 (G20) this November, Korea recognizes a breakthrough in the country’s history as it addresses global financial issues along with the powerful economies of the world.
