[Viewpoint] Korea at the Threshold of Becoming an Advanced Nation

Choi Guk-hyun, Professor of Business Administration at Chung-Ang University

The current government has started and is already approaching the end of its fifth year in office. Time truly flies like a fleeting stream. The current administration, launched with great hopes, has implemented many social reforms under the motto of fairness and justice. While some meaningful achievements have been reported, many reforms remain incomplete. As our country stands at the threshold of becoming an advanced nation, it is urgent to establish social values that all members of society can empathize with to reconcile deepened social conflicts. This historical mission is a crucial proposition that must be established not only for Korea to cross the threshold into advanced nation status but also for the survival and development of our country. Just as a bicycle with two wheels cannot move forward and falls if it stops, the harsh internal and external environment of the Republic of Korea cannot afford to halt continuous growth and development. Growth and development in the 21st century cannot be sustained without progressing alongside society and coexisting with its members. In this regard, growth and development are like two wheels of a bicycle, turning together in harmony with public welfare and coexistence.

During the industrialization period, Korea achieved quantitative economic growth through the government’s focused support of key industries. With relentless efforts surpassing those of any other country, Korea has now become a nation with an economic scale and leading industries comparable to the world’s foremost advanced countries. The United Nations Conference on Trade and Development (UNCTAD), under the UN, officially classified Korea as an advanced country in July 2021. Nevertheless, Korea faces stagnation in the middle class and widening wealth inequality, with the Gini coefficient?a representative measure of backward-type inequality?also worsening. Beyond the middle-class concept calculated by income, when measured by the standards expected by our people, more than half of Koreans classify themselves as lower middle class or below. One of the goals of the current government’s Korean New Deal economy, transitioning from a society of inequality to an inclusive society, seems to have failed to even sprout hope, buried under initial policy trial and error, the COVID-19 pandemic, and soaring real estate prices. Rather, economic and social inequality in Korean society has continued to expand, as evidenced by the increasing number of Koreans who evaluate themselves as middle class or below.

Despite the accelerating global competition for technological supremacy in the 21st century, the transition to an intelligent society in the era of artificial intelligence and technological convergence paradoxically sparked resistance and concerns about preserving and fostering humanity. Companies are pursuing a transformation from profit-centric management to ESG (Environmental, Social, and Governance) goals to ensure sustainable survival and growth. They are choosing the two wheels of public welfare and coexistence for growth and development. Although the beginning is difficult and the process arduous, members of our society have united their strength and wisdom to share a partnership-based common goal. While the first step may not be fully satisfying, if we consider that starting is half the battle and proceed to implement the remaining half without undue delay, a truly advanced Korea will approach all of us.