Economic and Social Aspects of Korea-related Issues
The Korean economy faces both opportunities and challenges. China has become South Korea’s number one trade partner and the most important destination for South Korean foreign investment. Economic interdependence among the countries of Northeast Asia is increasing. Moreover, the recently agreed Korea-US FTA could provide significant momentum for Korea to upgrade its overall economic system. Other FTAs might follow soon, including one with the European Union.
On the other hand, some experts in South Korea believe that their country is sandwiched between the fast-developing and advanced countries—not yet catching up with the advanced economies while being chased closely by the rising ones (especially China). They argue that owing to militant labor unions and regulations, the country’s international competitiveness is declining and is facing a crisis in technology, profits, market domination and high-tech industries. As big economies such as China and India expand rapidly and demand grows, acquiring energy and other raw materials in a global market becomes more expensive and difficult. This represents a serious challenge for resource-poor countries like South Korea.
South Korea is also experiencing problems common to post-industrial societies, such as a gap between the rich and the poor, social polarization, social welfare issues, and environmental degradation. Low fertility is another serious challenge to the Korean economy, as is an aging society that will contribute to a slow down in economic growth.
What are the strengths and weaknesses of the Korean economy? How will the Korea-U.S. FTA change the Korean economy? What are the prospects of economic integration in Northeast Asia and implications for the Korean economy? How will the increasing welfare burden affect Korea’s economy?
The following topics will be the focus of the POSCO Visiting Fellowship:
- South Korea’s economic trends and long-term outlook
- Korea-US FTA: Issues and challenges
- Prospects of an FTA with the European Union, Japan or China
- Asian regionalism
- Social issues of South Korea, such as low fertility, aging population, social welfare, income distribution, and environment, and their comparison with other countries
