Today, those who create jobs are viewed as the most fervent patriots. It is not too much to say that the future of a nation hinges on the nation’s capability to create jobs.
In a situation where South Korean companies’ investment in overseas markets had outstriped foreign companies’ investment in the Korean market a long time ago, it is important to delve deeper into what kind of investment is actually making a contribution to the S. Korean economy and to check whether a certain investment is compatible with the current level of national development and is capable of creating jobs.
For a start, let’s take a look at whether investment is properly being made in consideration of where the Korean economy should be headed. Manufacturing is what this nation excels in. The reason why Germany and South Korea have been riding out the recent global economic slowdown relatively better than other economies is because the two economies, many argue, are based on manufacturing. However, when it comes to hardware industries, China and Southeast Asian nations have been fast closing in on South Korea. Thus, South Korea has to conceive a more creative manufacturing industry in order to boost national competitiveness. In other words, rigorous efforts to funnel domestic and foreign investments to creativity-backed industries (e.g. manufacturing combined with design, brilliant ideas and cutting-edge knowledge) should be made to ratchet up the nation’s global competitiveness. The time has come to breathe creativity into the Korean economy.
The state-of-the-art medical equipment industry embodies the best aspects of the S. Korean government’s creative economy vision. Since the medical equipment industry is all about producing a wide range of products employing various technologies and parts, global giants like GE and Siemens have chosen South Korea, armed with excellent human talent, advanced technology and a strong manufacturing base, as their research and production bases in Asia.
Yet, since such global companies are engaged in capital-intensive, brain-intensive high-tech sectors, their presence in the nation probably spur on technology transfer to some degree, but does little to fuel job creation. Against this backdrop, there is one outstanding scheme deserving of national attention. Back in 2007, Guri city proposed a plan to build a Guri world design center, which, Guri city explained, would work as a new growth engine that accompanies job creation. The plan is about building an eco-friendly design city on a 540,000-pyeong area near the Han River with a view to luring in world-renowned architects, designers and internationally famous brands. Guri city’s plan is about building an Asian design hub near Seoul. This is expected to be a great model of the creative economy vision, championed by S. Korean President Park Geun-hye, and is about the convergence of design and industry and science.
I am confident that the amalgam of design, industry and science, suggested by Guri city, will serve as a great model of the creative economy vision. On August 5, 2013, the Creative Economy Design Forum 2013 was held at the National Assembly, attended by Saenuri Party Secretary General Hong Moon-jong, National Assemblyman Park Chang-Sik of the ruling Saenuri Party, former National Assemblyman Park Seon-sook, National Assemblyman Yun Ho-jung of the main opposition Democratic Party and Italian designer Massimo Caiazzo. At the Forum, Guri city’s plan to build a Guri world design center was put on the table, drawing positive responses from the attendees. Once this plan is carried out, the creation of 11,000 jobs, three million industrial visitors annually and annual economic benefits of approximately KRW 7 trillion are projected.
What South Korea, one of the world’s best hardware and manufacturing powerhouses, needs now is creativity-powered industries and services that can be born out of grafting knowledge and creativity onto manufacturing. As a matter of fact, the worldwide hospitality industry -which produces interior materials for upscale tourist hotels, housing and leisure facilities; differentiated furniture; and tools - has seen 70% of global design demands coming from Asia. The market is valued at a whopping USD 300 billion. Noteworthy is that few nations rival South Korea in terms of Asian taste, excellent human talent and a large pool of technical artisans. Asian business hubs like Hong Kong and Singapore are also eyeing this market, but the two are pretty much land-scarce. Shanghai has also set its sights on this market, but it has yet to be capable enough to head up the upmarket design industry. Therefore, South Korea, vigorously calling for the addition of creativity to its economy, is cut out for leading the global design market.
What’s more, Guri city will first attract investment before breaking ground on the Guri world design center project. Guri city has already signed a USD 2 billion MoU with a US major consortium and officially reported what it has received in down payment. However, to the chagrin of Guri city, this creative industrial project, expected to create numerous jobs, is on the verge of running aground on reefs. The biggest reef is the National Assembly. The National Assembly, embroiled in political strife between the ruling and opposition parties, has been dragging its feet on passing the amendment to the Foreign Investment Promotion Act.
There is another (albeit smaller) reef. It is the facile, regulatory response made by the Ministry of Land, Infrastructure and Transport (MOLIT) of South Korea. The Guri city design center project, which can determine the future directions for this nation over the next 100 years, has got bogged down with political squabbling between the ruling and opposition parties and the MOLIT’s regulation-centered administration. The outcome of this foot-dragging at the National Assembly will definitely ruin the possibility of creating lots of jobs for our youths. I would like to urge the National Assembly and the MOLIT to stop parroting the “creative economy and job creation” slogan in a halfhearted manner and to review the Guri city’s plan with a sense of urgency.
