By Cho Kyung-rae

The news is out. The 2018 Winter Olympics is to be hosted by Pyeongchang, the third largest county in Korea nestled within the mountainous highland surrounded by the Taebaek and Odae Mountains, facing the East Sea to the East and 80 miles away from Seoul.

This fulfills Korea’s ambitions to stage all four major international sports events, once again paying homage to the “Miracle on the Han River,” a phrase that is characteristic of Korea’s economic growth spurt that elevated the country into the league of developed nations.

A quantum leap into becoming a trillion dollar economic powerhouse from the ashes of the Korean War not so many decades ago.

Korea has now earned herself two distinct reputations as being a recognized international sports event host and a member of the G20 nations. These incredible feats are attributable to the Korean people, who have over generations worked their fingers to the bone to create an industrial country that we see today.

Also, the unity of the Korean people in working closely together to achieve national goals has been key to these successes. However, this accolade would in part be tainted if we were to overlook the dynamics of conglomerate involvement.

Over the short history of South Korea, the conglomerates have played a key role in Korea’s economic growth. They have worked closely with the government in implementing several five-year economic plans, the first that encompassed 1962-1967.

An export-oriented growth model was adopted and several strategic industries were nurtured with guidance and cooperation from the government. By the late 1980s, the conglomerates had reached the point where preferential government assistance was no longer needed.

Some historians may argue that access to easy credit and protected domestic markets led to poor investment decisions, unfair competition and inefficiencies.

This was most evident during the Asian Financial Crisis of 1997-1998 when several conglomerates went bankrupt under the weight of heavy debt. The most notable is the Daewoo Group, which buckled under 80 billion of debt. This was the largest corporate bankruptcy of the time.

But, the fact is that Korea would not be where it is today economically if it were not for the conglomerates.

Harnessing the nation’s will and energy into becoming a global sports powerhouse is another aspect of Korea’s growth that has been accompanied by the “Miracle on the Han River.”

This has been the direct corollary of the Korean government’s growth plan to invest and nurture the sports community. Conglomerate involvement as the mechanism for growth is an understatement as they were the primary undertakers sponsoring all major sports events in Korea. The highlight of this contribution relates directly to Korea’s mandate for all four major international events.

Chung Ju-Yung, founder of Hyundai Group, appointed chairman of 1988 Summer Olympics Bid Committee, successfully spearheaded the effort to host the Summer Olympics in Seoul.

This was perhaps the main global event that catapulted Korea into the international stage. The Hyundai Group was also instrumental in Korea’s selection as co-host of the 2002 FIFA World Cup with Japan.

The weight of bidding for the 2018 Winter Olympics and Paralympic Winter Games was rested on the shoulders of the Samsung Group, Doosan Group and Chairman of Hanjin Group. As we know by now, the bid was a huge success.

Side-stepping the mixed views of conglomerates as being a paradoxical presence, their role in enriching the national coffers, actively promoting international sports initiatives and being a component of national pride is something we can only acknowledge.

As preparations go underway to structure and set the grounds in Pyeongchang, perhaps it might be a propitious timing to send out a round of applause to the conglomerate leaders thanking them for their commitment to the national cause.