Korean Job Discussion Forums

[Binch Lover]

There's quite a good article on South Korea's economy in the Economist this week.

http://www.economist.com/node/21538104

For those who are interested in Korean history and political economy, it's a good read.

[uklathemock]

[Charriere]

Yes, Korea has followed a similar path of development to that of Japan up to this point. That does not mean to say however that it must continue to do so.

Whilst immigration might not be popular, it is one of the few ways in which growth can be supported as the participation rate (number of working age people) falls. As was mentioned in the article, low rates of tax are seen as a way of encouraging work, which is fine, however, it does mean that social security systems are less generous. This conflict will mean that over time something will have to give; greater immigration or higher taxes.

This is just one area, which is particularly relevant to the rich East Asia economies. Excessive protection of domestic markets is another, and imo shows that Korea is willing to go beyond the Japanese model. Whereas the Japanese have always shied away from removing the quotas and tariffs on domestic products (esp. agricultural ones), Korea has been agreeing FTAs with both the US and the EU. Now, i'm not saying that Korean markets are perfectly competitive, of course they are not. But, these agreements show a definite commitment on the part of the Korean government to progress.
This has to be a good thing not only for consumers in Korea, but also for those Korean firms that emerge stronger and more competitive because of it.

[Malislamusrex]

The Economist is going for the FTA hard sell.

[Yaya]

The writer of that article or the copy editor didn't do a proper check of facts. It's "Li Kai-shing," not "Lee Kai-shing" and Cheonggye Stream, not Cheonggyecheon stream.

The latter indicates a problem in the use of names in Korea like Namdaemun gate (redundant considering that "mun" means gate). It's like saying "How can I get to Seoul-eok Station?"

[atwood]

[strange_brew]

[tran.huongthu]

[uklathemock]

[liveinkorea316]

Thousands upon thousands if not millions of SK graduates are unemployed and many more are underemployed and you think that South Korea needs more workers?

Are you crazy?

yEAH, BUT NOT IN OUR LIFETIMES...

[uklathemock]

[liveinkorea316]

Yes I read the article. But I have discussed this issue with Koreans and they just cannot see how any more people can fit into this small piece of land. South Korea's per capita GDP is actually pretty good and improving at a good clip. People would clamour to get in here but should they be allowed in faster than they are being let in? I struggle to agree. People are allowed in now where there is a demonstrable need. Leave it at that. There is just too many people here.

[The Floating World]

[liveinkorea316]

In a closed labor market this problem is simply solved by the wages for those "undesirable" jobs going up. In the sad case of the USA and other Western countries however, where immigration is too liberal, wages are kept low because demand and supply for labour are never forced to actually meet. Whenever it seems that it is hard to find someone to clean a toilet, even remotely, someone complains to their local politician and borders open up, more people are let in and wages are kept low because too many people are allowed in who will clean that toilet for a loaf of bread and a glass of mik per day.

An exaggeration. But the point is that the problem is not the Korean workers distain for blue collar work it is therir distain for low ages which is TOTALLY natural. It would stay that way if the borders were opened up like in the West.

So the problem, in fact, is more immigration. Not less of it.

[Charriere]

@uklathemock
The main thing that has held Japan back over the past two decades is her inability to recover from the huge bust which affected all manner of assets at the end of the eighties. This led to the continued, albeit belated attempts, on the part of the government to engineer an economic stimulus. Not only has this proved ineffective it has now left the Japanese with an almighty debt burden. One which, in spite of the country's propensity to save, will be almost impossible to refinance indefinitely.

Korea on the other hand, has as yet to experience such a bubble. They were badly affected by the financial crisis of 97/98, but looking back, this has had a positive effect on the country as a whole. It highlighted the excessive levels of debt being carried by many of the conglomerates at that time. And as a result, the less efficient ones fell by the way side. I have seen it written that housing in Seoul is verging on bubble territory. I don't see the situation being much different from other capital cities around the world, though.