Influence of Confucianism in South Korea’s Economy Oscar Yiu 2012564709

Todd Lam 3035054426

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 5th century AD.

In Koryo, Wang Kon (877-943) 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 = 2nd 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 (1917-1979) during the 1960-70s.

Economy Development of the DPRK and the Republic of Korea (ROK) (1960-2010) (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

Korea 2.8

Japan 1.6

The US 2.2

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

1990 2000 2010 2013

Korea 2.9 3.1 4.5 4.7

Japan 3.9 3.1 3.2 3.3

China 1.6 1.8 1.8 1.8

The US 4.4 4.5 4.8 4.6

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

1990 2000 2010 2013

Korea 77 49 49 47

Japan 50 49 49 49

China 73 71 64 50

The US 56 59 58 56

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

2000 2007 2013

Korea 41.760 38.162 36.600

Japan 33.859 31.742 26.588

China N/A N/A N/A

The US 23.089 19.843 17.907

World Average

18.221 16.242 15.464

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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