'Creative' and 'democratized' economy

By Lee Sun-ho

In today’s Korea, the catchphrases “creative economy” and “economic democratization” dominate mass media, public organizations, private institutions, policy think tanks and high-level decision makers.

Under the umbrella term “Geunhye-nomics” these labels have also influenced policy guidelines related to economics, education and socio-cultural affairs. However, these terms are difficult for the average citizen to define or explain, let along fully understand in terms of their long-term impact.

The creative economy is not easy to define, but when the proper conditions are present, it is not difficult to recognize. It refers to two factors: (1) the heightened importance of creating new jobs for creative workers and helping older industries rethink their models for future employment; and (2) the recognition of arts and cultural institutions as important economic drivers, not just sources of entertainment.

The core of this idea focuses on innovation in the science and technology (ST), information, communications and technology (ICT) divisions of the economy, with an emphasis on the individual’s skill set providing important value-added services, thus creating a paradigm shift in which the emphasis moves to the individual and away from the “team.”

Moreover, creative workers no longer need to travel where jobs are. Instead, they live where they want, and bring their jobs with them.

Despite heated political debates and controversies surrounding its meaning, economic democratization is clearly specified in the Korean Constitution. Basically it aims to realize a regulated, free-competition market economy, where there are protections for large businesses and family conglomerates (chaebol), small- and medium-sized businesses, and bona-fide prosumers from unfair competition and misconduct.

The ruling Saenuri Party’s initiative, combined in part with that of the main opposition Democratic Party’s assertion, is in line with efforts to revitalize its image while regaining public support for its corporate-friendly administration. The result is a blueprint to greater restrictions of the activities and business practices of the family conglomerate and for better public welfare programs.

In a market economy, creative people tend to be self-motivated individuals that make things happen. They can be anyone from a software developer to a pharmaceutical salesperson, to an architect, to an educator, to an engineer and every entrepreneur in between. Their creative activities need to be promoted by the government, but are allowed to flourish in the freedom of the private or civilian sectors.

However, government should establish a social safety net by creating the proper environment and conditions for approaching safeguards through regulations that create checks and balances between the public and private sectors.

By understanding and digesting the various issues related to these two issues for the two catchphrases, we can make both our short-term and long-term outlooks more positive and optimistic. Advances in the ST and ICT have presented us with the potential dangers of these proposed paradigm shifts and we have received plenty of warnings from the government.

However, if we allow this line of thinking to prevent innovation and forward thinking, we will be facing a bleak future that will affect us both financially and emotionally. Instead, if we allow these catchphrases to become tools of advancement, Geunhye-nomics can attain its declared pledge to tighter economic controls while not raising taxes too much.

As far as policy makers are concerned, pan-national, the business community and all Korean prosumers should be determined to combine the ideas of a creative economy and economic democratization. If this is done properly, it could pave a path to accommodate our nation’s long-term goals and sustain long-term growth. These terms, however, must be more than mere slogans and empty words.

Our nation has experienced far too many of these hollow slogans in the past, and can ill-afford to see our momentum stifled by catchphrases without real meaning behind them. There are realistic ways for the Park administration to encourage the creative economy while enforcing economic democratization that can last beyond her presidency.

This process should be not political but economic; not partisan but bipartisan; not emotional but rational; and not for class warfare but for national economic harmony. Furthermore, it should not be a local strategy, but a forward thinking, globally-minded approach that allows Korea to grow stronger and longer.

The writer is an outside director of Samyang Tongsang Co., Ltd. in Seoul. His e-mail address is kexim2@unitel.co.kr.