Why Korea’s manufacturing has dwindled and what has replaced manufacturing?; What are the ramifications of this?

Declining manufacturing sector is a sign that Korea is on the path to economic demise.

The gutting of Korea’s manufacturing should be seen in light of global growth and downward spiral. The global business model is reaching its peak…

Korea’s dwindling manufacturing base which is closely associated with the demise of the middle class has been caused by several factors including...

I have stressed that Korea as a nation shouldn’t let the financial service sector become the main element of the Korean economy.

Korea is heavily dependent on the U.S. and China for their trade. The U.S. won’t be the prime export market any longer. China’s bubble economy started to show a sign of slowing.

Korea needs the domestic consumption base to fall back on. This means that Korea needs the solid middle class with disposable incomes. The faltering manufacturing sector leads to decreasing working class incomes.

When people can’t invest profitably in manufacturing, the money tends to flow into finance and speculation. This could be averted by the appropriate policy instrument.

Was the 1997 financial crisis, along with the U.S. monetary policy, foreshadowing the beginning of the end?

Korean chaebols have reportedly increased their affiliates and asset holdings. Where have their expansion and growth come from?

Where have increased capital inflows flown into? Have outside forces compounded by the domestic structural flaws and ineptness been fuelling the financialization of the Korean economy?

As the case of the U.S. has demonstrated, the shredding of manufacturing and increase in predatory finance have led to the demise of the middle class, concentrating its wealth in the top end of food chain.

The widening income gap would have far-reaching effects down the line, economically and socially.

(A detailed analysis on this topic won’t be shared due to the proprietary nature of the content.)