Influence of Confucianism in South Korea’s Economy Oscar Yiu Todd Lam

Content 1.Origin and Traditional Concepts of Korea’s Confucianism 2.Argument and Stance 3.Confucianism and Chaebol(s) 4.Confucianism and Governing 5.Pros and Cons 6.Conclusion

The origin of Korea’s Confucianism  Confucius’ philosophy in ancient China  Sociocultural principal of family life  Political force of personal conduct  Introduced in the 5 th century AD.  In Koryo, Wang Kon ( ) persisted Confucianism  emulate Tang China  Political ruling ideology of a centralized state since Yi dynasty (1392 – 1910).  East Asian cultural sphere ( 동아문화권 ): Korea, China, Japan, Taiwan, and Vietnam share a Confucian philosophical worldview

Traditional Confucianism  Authoritarianism  The emperor or national leader to lead the nation  Hierarchy  Patriarchy  the rule of men over women.  Seniority  the father of the family to rule the family vs Filial Duty of sons  Rank based social structure The Four Occupation:  Scholars, Officials  Farmers  Artisans  Merchants  Goal: Social harmony

Point of Interest:  Whether implanting Confucianism into the roots of Korea’s economy was a good or bad idea  Whether continuing to embed Confucianism into future decision making would lead to a prosperous or unbeneficial future

Looking at Korea through Confucianism  Social vs. Independent (SvI)  To work hard to benefit  Oneself vs. Society  Improvement of oneself  Great human capital  Back to SvI  High school graduates  Colleges = 2 nd Highest % in the world  Can do!  Countless work hours  1975 and 1983 were 50.5 and 54.3

Confucianism’s Relationship Structure  Father and Son relationship  Master and Servant  Husband and Wife relationship  Increased value of Mutual Friendship

Confucianism and Government “The Will of Heaven” “The Universe” “The Power of the State” Relationships

Confucianism and Chaebol(s)  A Chaebol company consists of  The core group  The middle group  The marginal group  Increase in stability  Decrease in employees leaving the company

Confucianism in Contemporary Korean Society: Strong Leadership  Strong indicative planning system operated under a strong military dictatorship of Park Chung-hee ( ) during the s.  Economy Development of the DPRK and the Republic of Korea (ROK) ( ) (Unit: $): Sources: China idigest  Centralization is consistent with traditional Confucian doctrines. (the national leader to the nation)

Confucianism in Contemporary Korean Society: Strong Leadership  Major characteristics of Park Chung-hee’s industrialization policy:  Proper planning  Government-driven capitalism.  Basis for a self-supporting economy  Export-oriented  Nationalization  The Miracle on the Han River ( 한강의 기적 )  Role model of economic development to other developing economies. (e.g. Singapore, China)

Confucianism in Contemporary Korean Society: Emphasis on Education  Chinese Tang Dynasty’s civil service examinations  a test on the Confucian classics  Officials were thought of as the highest social status.  The only way of being officials  Participating in civil service examinations  Korean Parents are willing to sacrifice wealth  children can receive the best education possible.  Private spending on education (% of GDP) Source : OECD 2011 Korea2.8 Japan1.6 The US2.2 Average (OECD)0.9

Confucianism in Contemporary Korean Society: Emphasis on Education  Percentage of education expenditure (% of GNI): Source: World Bank  The investments in education paid off as it produced a well-educated labor force  supply the strength of the manufacturing chaebols in the 1960s Korea Japan China The US

Confucianism in Contemporary Korean Society: Gender Inequality  Men are superior in comparison to women  Traditional agricultural society  Productivity of men > women  Traditional marriage system  Take husband’s last name  The Confucian ideal of womanhood:  Husband is specialized in external affairs, wife in internal.  Women should serve nation and family as a “good wife” and “wise mother” by managing the household, own wills are usually confined.

Confucianism in Contemporary Korean Society: Gender Inequality  Labour Force Participation Rate (% of female population ages 15+) (modeled ILO estimate)11: Source: World Bank  Confucian thought: Women’s primary responsibility for housework and childcare in Korean families  Imbalance Labour Force Participation between genders Korea Japan5049 China The US

Confucianism in Contemporary Korean Society: Gender Inequality  Gender Wage Gap (Full-time Employees): Source: OECD  Lower wage of female discourages women for regular employment  Loss of potential economic growth Korea Japan ChinaN/A The US World Average

Conclusion  To Improve or to continue?  Problems encountered  Gender inequality  Employment Issues  Macro or Micro?  Solving gender work issues  Improving on wealth distribution

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