[The Editors' Verdict] The Economics of 'Parasite'

Director Bong Joon-ho's film 'Parasite' has caused a nationwide sensation by winning four awards, including Best Picture, at the 92nd Academy Awards. Amid the nationwide emergency caused by the novel coronavirus infection (COVID-19) originating from China, the news of Parasite's victory was enough to inspire hope in the entire nation.

Despite depicting a distinctly Korean situation, Parasite was able to win four Oscars not only because of its outstanding artistic quality but also because the wealth gap portrayed in the film is a common issue worldwide.

The resolution of poverty and polarization, which inevitably arise during stages of economic development, remains a major challenge in modern economics. Last year, the Nobel Committee awarded the Nobel Prize in Economics to three professors?Esther Duflo, Michael Kremer, and Abhijit Banerjee?who have long studied poverty issues, reflecting this context. The economic community largely responded to their award by saying, "The scholars who deserved it received it." This shows that poverty eradication has become a timely topic in economics as well. The reason why the film Parasite received praise from audiences and critics alike is that, while addressing the issue of polarization, it completely broke away from the conventional dichotomy of "the rich are evil and the poor are good." Moreover, it did not try to force the lesson that the poor can be happy and prosperous if they work hard.

An interesting aspect of the film is the process by which the families of Ki-taek and Geun-se fall into poverty. Coincidentally, both share the experience of running a Taiwanese castella cake shop. After failing in various businesses, both families eventually fall into poverty or extreme poverty. Despite not being lazy and living diligently in their own way, they faced hardships.

At one time, Taiwanese castella cake shops were noticeable throughout the city. Now, they have almost disappeared. Not only Taiwanese castella shops but countless self-employed businesses are closing due to management difficulties today. Those who once had decent jobs are pushed out and often turn to self-employment as their first option, but the situation is harsh. Only a few survive, while the lives of those who fail in business become increasingly difficult.

Currently, traditional industries centered on manufacturing in Korea are collapsing. Amid rapid industrial restructuring, the number of people losing jobs is increasing significantly. According to Statistics Korea, the number of manufacturing workers had been declining for 21 consecutive months but rebounded by 8,000 in January. The group most affected is people in their 40s. The number of employed people in their 40s has been decreasing for 51 consecutive months. Those who cannot find new jobs are turning to self-employment. However, the situation is not easy. As of January, the number of self-employed without employees increased by 153,000, and unpaid family workers increased by 9,000, while self-employed with employees decreased by 164,000. This means that due to management difficulties, self-employed people have eliminated employees and are increasingly working alone or with family.

With everyone rushing to start businesses, excessive competition has emerged, and with the activation of online commerce, self-employment is becoming increasingly difficult. Government missteps have also played a role. The rapid increase in the minimum wage has raised wage burdens, and the introduction of the 52-hour workweek has caused evening customers to drop sharply. The COVID-19 crisis has further heightened the sense of crisis among self-employed people.

The film Parasite only depicts the reality of wealth disparity but does not provide answers on how to resolve it. President Moon Jae-in is said to have a luncheon with Director Bong Joon-ho on the 20th. It is hoped that the conversation will not only cover the film but also seriously discuss the potential Ki-taeks and Geun-ses who live precariously day by day.