Can Korea Sevelopmental Atate Nurture Entrepreneurial Ventures To Create Jobs At Home?

Those who have read my blog would understand why Korea has pursued export-led, chaebol-centered economy and how they have succeeded in it in the global context. I have also pointed out how the Korean model was flawed from the start. As noted, the top 10 Korean conglomerates account for 80% of the Korea’s GDP but employ less than 6% of the workforce.


Korea’s skewed industrial structure has had special consequences and risks. Among them, unemployment is high, especially among college graduates. The investments in productive capacity by the Korean firms are increasingly being made overseas because that’s more profitable for them.

Korean chaebols couldn’t exist without Korea developmental state which was initiated by the current president Park Guenhye’s late father, the president Park Chunghee in the early days of industrialization.

Can Korea developmental state nurture entrepreneurial ventures which will create good jobs for the younger generations at home in a similar way? Korea’s policy is to reward companies for generating and keeping good jobs in Korea. Institutional setup is needed in this context.

How does the current Park administration promote technology innovation in conjunction with the productive capacity in such a way that it serves the broader social interest? I hope they are well aware of the shortcomings of the Korean economic growth model and innovation model, which I have discussed several times on this blog. Has Korea achieved a sufficient degree of productivity and innovation capacity to sustain its economy?

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