Korean women shine at Olympics and more

The Paris Olympics that just concluded was notable for several reasons. First, it was back to normalcy after the COVID-stricken Tokyo Olympics, which was held in front of empty stands. The vast crowds in Paris put the memory of the pandemic in the distant past. Secondly, Russia was absent from the competition amid its ongoing conflict with Ukraine. Ukrainian athletes, however, were present and picked up 12 medals — bizarre but also a reflection of modern-day warfare in which a country can be at war, yet life goes on in many other ways. Thirdly, the final medal tally had the U.S. and China on top of the standings, hinting at the tussle that flows beyond sports. We are reminded of the Cold War era between the U.S. and Russia and the Moscow Olympics when the U.S. boycotted. These examples demonstrate that sports achievements correlate highly with economic and political standings.

Once upon a time the Olympic Games were revered for their equality and global reach extending to all countries of varying economic conditions. But, like so many things, the commercial reality has caught on, with most Olympic athletes' incomes at least partially funded by their governments or the private sector. Some countries focus on winning as many medals as possible to symbolize their ascendency, as Russia and China have done. For those countries, the Olympics is highly politicized and part of the national propaganda. One strategy has been to focus on sports that are not well-funded commercially and gain relatively easier medal wins via heavy government support.

South Korea did exceptionally well in Paris, coming eighth in overall standings with 32 total medals. In particular, the Korean female Olympians achieved outstanding results, bringing home 17 individual medals versus 10 from the men. This success at the Olympics runs counter to the gender gap persistent in Korean society and is another reminder of the growing role of Korean women in an economy facing demographic armageddon.

For years, Korean women have enjoyed global dominance in golf, much to the fascination of traditional powers. I attribute the secret to success to a combination of government and corporate sponsorship, laser-focused talent screening from an early age and a rigorous and systematic training regime. The often ruthless competitive environment is not restricted to ladies' golf, as the same formula is apparent in university entrance exams, K-pop and Olympic sports to great effect. The common thread that runs through the formula is locally known as the "hagwon" system. A hagwon is a private academic institution where Korean kids are identified from an early age to commit to an intensely competitive regime. Whether it is for university entrance, professional certification or sports, the best hagwons manufacture high-achieving stars in almost any field.

In recent years, South Korea's cultural achievements in the arts, music and film have improved remarkably. The wildly successful K-pop industry model also uses the hagwon system, where kids from as young as elementary school are now sacrificing academic paths to go "all in" on pursuing their dream in the entertainment industry. Of course, we see similar paths in other countries in professional sports, but it is a fairly new concept for a country where emphasis on education has been paramount.

It is interesting that Korean girls are more likely to pursue the entertainment industry as a profession. To be sure, the global success of girl groups like Blackpink certainly is a reason, but there may be another reason. Korean female workers are subject to one of the highest wage gaps relative to men in the OECD. And yet, Korean women now achieve higher levels of education than men. The persistent wage disparity is likely due to traditional corporate culture and the handicap of women having to bear children at the expense of their careers. There is a disproportionately low number of professions available where Korean women can compete on equal terms with men. Korean women have shown that they have exceptional talent and drive to achieve global competitiveness.

Already, we are seeing an increasing number of Korean women in top executive positions in industries like the internet, entertainment, cosmetics and culture. Unfortunately, for those executives to achieve that level of seniority, it may come with the decision to have fewer children, if at all. Korean society places the unfair burden of raising children on women despite the rapidly rising portion of double-income families, which has reached almost 50 percent. The Korean economy is quickly approaching levels of developed countries in the West, but its social order remains mired in the 1980s.

The gap between economic development and societal progress is one of the key reasons for Korea's plummeting birthrate. Society continues to dictate that women bear the burden of child-rearing, education and even the care of aging grandparents. The Korean government recently allowed foreign domestic helpers to come to Korea to ease the burden of child care. While a step in the right direction, this measure does not address the root of the problem. Japan has spent the past three decades grappling with similar issues without much success. The outstanding achievements of Korean women in sports and increasingly other fields give hope for avoiding the fate that still hounds Japan today.

Peter S. Kim is managing director at KB Financial Group.