Korea and Globalization

Politics, Economics and Culture

James B. Lewis, Amadu Sesay

• Publisher: Routledge
• Year: 2013
• Print ISBN:
  9780700715121
• eBook ISBN:
  9781136859786
• Topic: Social Sciences
• Subtopic: Ethnic Studies
• Index: Social Sciences

Korea faces two challenges in the twenty-first century: unification and globalization. Both entail problems of economic, political and cultural integration. In the past, Koreans successfully 'unified' in various forms, and 'globalized' in many ways. This book is a study of the theme of globalization, addressing various aspects of Korea's integration into the global community from a social scientific or humanistic perspective. This investigation begins with a focus on contemporary South and North Korea: the 'globalized' southern daily life, South Korean labour as a global player, the southern development state, and the cultural division that poses the greatest threat to reunification.
Moving outwards in concentric circles, chapters address Korea's connections with its region and Koreans' contributions to the wider world. Relations with Japan, Korea's most difficult bi-lateral relationship, are surveyed to identify both patterns and images. The thirteenth century Tripitaka Koreana is the most complete collection of Buddhist scripture in Chinese and its recent digitization points towards a renaissance of this world religion. South Korea's pursuit of a Nobel Prize in Literature is put in perspective when one considers Korean contribution to the pre-modern Sinitic literary world. South Korea may owe its existence to the United Nations, but since entering the UN in 1991, it has taken to heart the altruistic urge of global peacekeeping.

Chapter 1

Globalization and Recent Changes to Daily Life in the Republic of Korea

Yi Jeong Duk

1. Introduction

In this paper, I refer to globalization as a rapid increase in the movement of people, capital, information, technology, skills, symbols, images, knowledge, and commodities across national borders. Globalization also entails a reduction of the barriers to this global flow. In response to globalization, national boundaries are gradually weakening, and reproductions of the economy, society, and culture of individual nations or localities can now be understood only in a global context. This also means the eventual homogenization of worldwide consumption and culture. The development of communication technology including the Internet, the recent surge in transnational corporations, and the expansion of global cultural elements have also restructured time and space.

Present globalization began in fifteenth-century Europe. At the time, European nations began constructing empires which occupied most parts of the world. This brought fundamental changes to every corner of the world (Wallerstein 1974; Wolf 1982). Korea was also seriously affected by this process from the late nineteenth century onwards. From the mid-twentieth century, the number of transnational corporations mobilizing tremendous amounts of goods, capital, manpower, and resources across national boundaries has multiplied; these corporations exist beyond an individual state’s control. For example, Daewoo, the third largest conglomerate (chaebôl) in the Republic of Korea (henceforth referred to as Korea), has about 590 branches and factories all over the globe and mobilizes capital, manpower, and resources on a worldwide scale. Internationally, thousands of transnational corporations and several trillions of dollars wander across national boundaries. In 1998, global private financial assets amounted to more than 60 trillion dollars, and 1.6 trillion dollars of that was so-called ‘hot money’ or investments which could be moved across national borders within twenty-four hours (Han’guk Ilbo 2 July 1998). Globalized people, corporations, capital, and organizations are losing their bonds with local territories.

In Korea, serious globalization began in the late 1980s. Especially, the 1988 Seoul Olympics changed the Korean social mood, forcing people to try harder to understand other people, to open their borders wider, and to consider Korea as a part of the world. From 1993, former President Kim Young-sam launched an internationalization policy, touting segyehwa (globalization) as his primary policy concern from November of 1994. These policies were pursued to open Korea’s door gradually to foreign people and capital, to reform Korean governmental and corporate structures, to enhance Korean competitiveness in the world market, to advance and find a larger market abroad for Korean enterprises, and to educate Koreans in these changes. In January 1995, the Korean government organized Segyehwa Ch’ujin Wiwônhoe (The Committee to Advance Globalization). In its first meeting, then President Kim Young-sam defined the goals of Korea’s globalization policy: first, to become a leading nation in the world; second, to reform irrational social customs and consciousness; third, to unite all Koreans north and south; fourth, to advance Korea’s unique value system and traditional culture onto the world stage; finally, to participate in solving global problems. The main objectives of this policy were to increase Korea’s ability to overcome constant and borderless competition (Maeil Sinmun 26 January 1995, quoted from Kong 1995: 195).

With the establishment of the World Trade Organization (WTO) in 1995, Korea inevitably had to open its door wider to survive in a globalized market. From that time on, the Korean government has tried to reduce regulations controlling national border crossings in terms of people, commodities, capital, and images. The economic crisis and the government’s agreement with the International Monetary Fund (IMF) in December 1997 were also a result of Korea’s globalization. The agreement with the IMF forced the government to ease capital movements across Korean borders in a bid to attract more foreign investment.

Globalization is most visible in the Westernization of the Korean economy, society, and culture by the introduction and dissemination of technology, knowledge, social institutions, commodities, and images which originated in the West (e.g. Yi 1995a; 1995b). Especially in regard to culture, travel is no longer necessary to experience foreign culture, because foreign images and information are disseminated daily through television, the Internet, and other communication systems. In the world today, fashion, popular music, movies, videos, and ideas are exchanged in a flash across electronic systems that span the globe. This process changes not only everyday activities but also everyday feelings and thoughts; thus, local events, customs, meetings, and accidents have become worldwide news through the global communications network (Kang 1996: 92–93).

Globalization constitutes a complete change in the social framework of Korea. Korean people have experienced a fundamental change in their daily lives over the last century. Social relationships, consumption, leisure activities, value systems, and meaning systems have simultaneously changed. These changes reflect not only the globalization of Korea but also the industrialization of Korea. Nevertheless, we shall generally consider only those elements which originated from other countries as related to the globalization process. Certainly, the introduction of those elements is also seriously affected by Korean industrialization. In fact, Korean industrialization itself can be considered as a part of the impact of globalization.

2. The workplace

Pseudo-familialism and personal and private relationships have been integrated into a Western style of hierarchic bureaucracy adopted by contemporary Korean management (Pak 1997). Owners’ relatives and personal relationships are emphasized in the top circles of management. In the middle and lower echelons, through informal relationships, gatherings, and drinking sessions, workers have formed a pseudo-family which produces personal connections, protection, and followers. Nevertheless, recent moves towards globalization, which have thrust Korean enterprises into a world arena, have forced these enterprises to restructure their organization and activities to enhance their competitiveness.

Korean enterprises have begun to change their salary systems from the automatic annual increase pay system (yôngong, under which payment is determined by years worked) to a pay system rated according to ability and achievement (nûngnyôkkûp). Twenty-three of the thirty biggest conglomerates have introduced or will introduce a meritocratic pay structure in 1998 (Han’gyôre Sinmun 13 May 1998). This new pay system is changing the Korean work environment: employees share their ideas less with co-workers, and workers talk about their salaries less with each other. Subordinates have greater difficulties resisting a superior’s orders and expend more time attempting to read their superior’s mind, since evaluations are dependent on the superior’s assessment of the subordinates’ achievements. Employees try harder to enhance their personal worth by acquiring special knowledge and skills. They are more competitive, less cooperative, and more egotistical in the workplace.

Korean enterprises have also introduced a promotion system dependent on ability and achievement. Before the introduction of this system, employees entering a company at the same time were usually promoted at similar times and then promoted only one grade at a time. Since introducing the new system, however, any employee can now be promoted earlier than colleagues who have worked longer and can be promoted into a position two or three steps higher than those same colleagues. The new system disrupts the traditional Korean corporate structure where workers are accustomed to respecting experienced elders who routinely give orders to younger employees. The traditional role allocation based on age is often reversed by the new promotion system, a change which troubles many workers and increases tension among them, because older subordinates are often reluctant to take orders from younger superiors.

Korean enterprises are also reducing their organization and introducing more flexible work structures like team systems and subcontracting or outsourcing systems. Because of the development of information technology, many middle managers have become unnecessary. In order to overcome this problem of surplus middle managers, many enterprises have introduced flexible and horizontal team systems where one team exists only until its purpose is accomplished. After achieving its purpose, the team is dissolved and members are assigned to other teams. Thus, surplus, intermediate employees can be relocated into marketing, research, or special project teams instead of into management. These changes allow Korean enterprises to increase productivity and to control workers better (Kim, C. 1997: 99). Temporary hiring, or a contingent worker system (p’agyôn’kûllo chedo, a system of hiring workers from outside the company for a short period of time), has also been legalized. These processes have increased labor liquidity and job insecurity. Recent efforts by Korean enterprises are well summarized in a slogan for Samsung, Korea’s largest conglomerate: ‘Change everything except your wife.’

Because of world competition and differences in the cost of labor, many Korean factories have tried to relocate to China, Southeast Asia, Mexico, and the Caribbean Islands. Large enterprises have not only established factories in China, Southeast Asia, and Mexico, but also in the USA and Europe to speed up access to their markets. This trend became visible in the late 1980s when wages increased rapidly and Koreans began to avoid the 3-Ds: dirty, difficult, and dangerous work. Korea’s labor-intensive industry also began to lose its competitiveness from the late 1980s. Many enterprises which moved their production facilities abroad retained their marketing, research, and development sections in Korea. Others subcontracted Third World factories from the beginning. Because of evaporating competitiveness in laborintensive industries, sports shoe factories in Pusan and textile factories in Taegu, for example, moved to foreign countries or closed their factories in the late 1980s and 1990s.

Sôngnam City presents a typical case. In Sôngnam City, near Seoul, about 20 out of 239 enterprises have factories in the Third World, usually in China. Because of wage differences, it was difficult to compete with products from low-wage countries. Many factory workers, especially older ones, faced difficulties finding other jobs, because they had problems moving to other cities and acquiring new skills. An electronics and computer parts producer, with 2,000 workers at its peak, lost its competitiveness and went bankrupt in 1991. It became a subcontractor for a foreign company, decreasing the number of its workers to 900 in 1992. Regardless, it was finally closed in 1994, and all workers lost their jobs. Another company started operations by establishing a ski clothes factory in Sôngnam City and then established a branch factory in Bangladesh in 1981. As of 1997, it had nine factories in Bangladesh, employing about 10,000 workers. It also has factories in Jamaica, China, and the USA, which produce various sports clothes for Nike and others. The headquarters in Seoul only deals with financial, planning, and controlling operations, while local branches in Korea only focus on marketing. Because of its success in foreign countries, factories in Korea were closed and 220 workers in the Sôngnam City factory were laid off (Hwang 1997: 133–134).

Accordingly, the daily workplace activities of blue-collar workers and white-collar workers are greatly affected by the globalization process. Individual worker’s loyalty to their factory or to their company has decreased and fewer workers expect that they will work for the same company for their lifetime. Workers now try to do more visible work and achieve visible results in a shorter period, and they have become more aggressive in pursuing credit for results rather than sharing their achievement with co-workers. Some employees even steal ideas and plans from co-workers, resulting in more competition and suspicion among workers. More and more workers are not attending co-worker gatherings after work. In order to compete with foreign enterprises and foreigners, most big enterprises in Korea emphasize the importance of English, usually measured by TOEIC (Test of English for International Communication) test scores, for promotion. English has become a necessity for white-collar workers and even for blue-collar workers in the globalized work environment. Many white-collar workers attend private English institutes after work and listen to English cassette tapes on the way to and from work. Some attend English dormitory institutes where participants can study late, sleep, and only use English with co-residents. English radio and television programs are also increasing.

Some enterprises like Hyundai, Samsung, and Daewoo emphasize knowledge about specific foreign societies and cultures. Hyundai workers organize area study groups which focus on specific regions such as Europe, North America, China, Japan, Southeast Asia, Southwest Asia, and Eastern Europe. They discuss work and living experiences in specific areas, read books dealing with specific societies and cultures, and often invite area specialists to speak. Samsung dispatches new employees to various countries to study the area for one year. Employees can do whatever they want and all financial expenses are supported by Samsung. Large enterprises try hard to make workers into area specialists who can help them deal with specific areas. Since 1995, several graduate schools have also been established to train area specialists with government financial support.

Teaching programs for computers and information systems have also greatly increased. Executive officers who used to use secretaries or subordinates now must deal with those systems by themselves. If they cannot operate the systems, they cannot do their work, because many parts of their work are processed through computer networks. Thus, not only lower and middle level white-collar workers, but also topranking officers must be able to contact each other and their national and international partners using information technology. If a new information system is installed in a company, most workers and officers actively participate in instructional workshops. Internet search, direct exchange of e-mail and electronic forms, and electronic decision-making are now heavily emphasized. Since young workers are more familiar with computers, superiors often learn about information processing from their subordinates. Since workers often learn English and information systems after work, workers’ rest time has, in fact, decreased (Kim, C. 1997).

3. Consumption

The consumption of foreign goods was limited to a few people before the 1980s and was criticized as unpatriotic. Nevertheless, many people preferred quality imported goods such as Swiss watches, American and Japanese electronics, and French perfumes. These goods were only used in private, because of the government-led patriotic movements against the consumption of foreign goods. This mood greatly changed after the Seoul Olympics in 1988, when emphasis shifted from criticizing the consumption of foreign goods to rationalizing their consumption. Since the opening of borders is inescapable and domestic goods must compete with foreign goods in the domestic and world markets, many people began to believe that they should consume the best products to enhance the quality and competitiveness of domestic goods. This assumed that if consumers only use better products, then Korean producers cannot but enhance the quality of their products to survive.

A 1994 report surveying 1,500 individuals in the five largest cities showed that most respondents had recently purchased imported goods: clothing (60.9% of respondents), electronic products (47.6%), food (41.4%), and cosmetics and kitchen appliances (41.4%). Most of these goods were from America, Japan, or Italy, and most respondents said that if quality and price are similar, they would buy domestic products, but if they are dissimilar, then they would buy foreign products (Munhwa Ilbo 18 June 1994). Products from Europe, America, and Japan are considered prestigious objects for conspicuous consumption.

Not only prestigious goods but also various practical and cheap goods are imported into Korea. Especially after the establishment of diplomatic relations with China in 1991, cheap Chinese products began to dominate the labor-intensive commodity and agricultural markets. One investigation reported that 75% of housewives have purchased imported agricultural products, and 85% of them said that they found it difficult to differentiate between Korean agricultural products and Chinese agricultural products. Korean restaurants and food companies use imported food heavily, because Chinese agricultural products are a half to a quarter of the price of similar Korean products (Tong’a Ilbo 16 November 1994).

Following the gradual opening of Korean distribution markets to foreign capital in the early 1990s, Western-style discount stores such as membership warehouse stores, super discount stores, and hypermarkets were introduced into Korea beginning from 1994. Makro (The Netherlands), Carrefour (France), Walmart (America), Price Club (America...

Table of contents

• Cover
• Halftitle
• Title
• Copyright
• Contents
• Preface
• Introduction
• 1 Globalization and Recent Changes to Daily Life in the Republic of Korea
• 2 Labor, Capital, and the Globalization of the Korean Economy
• 3 From Insularity to segyehwa: The Political Economy of Globalization in Korea
• 4 Commonalities and Differences between the Cultures of North and South Korea and the Unification of the Peninsula
• 5 The Japan That Does Not Exist and The Ugly Korean: An Essay on the History of Korean-Japanese Relations and their Contemporary Images of Each Other
• 6 The Tripitaka Koreana: Its Computerization and Significance for the Cultural Sciences in a Modern Globalized World
• 7 The Re-globalization of Korean Literature
• 8 In the Global Arena: Korea, the United Nations, and Peace-keeping Operations
• Contributors
• Index