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  • Posts Tagged ‘President Park’

    South Korea’s Deregulation Decision: If You Love Creativity, Set the Economy Free [Asia-Pacific Global Research Group]

    March 22nd, 2014  by  Asia-Pacific Global Research Group - Jasper Kim

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    SEOUL, March 20 (as reported by Yonhap News) — President Park Geun-hye held a nationally televised meeting with regulators and businesses Thursday in a highly symbolic show of determination to undo non-essential regulations she has denounced as “cancer” that’s killing South Korea’s economy.
     
    Park has made deregulation the most important point in her drive to reinvigorate Asia’s fourth-largest economy under her three-year economic innovation plan. The plan calls for raising South Korea’s potential growth rate to around 4 percent and the per capita national income to more than US$30,000 by 2017.
     
    Deregulation is also important in realizing Park’s “creative economy” vision that calls for boosting the economy by turning creative ideas into real businesses through science and technology and information technology.
     
    Park has repeatedly stressed the importance of deregulation and how much she is committed to it, with the language and tone in her appeals growing increasingly stronger in a sign of frustration she feels about the lack of progress and the difficulty getting bureaucrats to remove regulations.
     
    During the meeting, the government reported that it will cut the total number of registered regulations on business activity to 80 percent of the current level by 2016. That translates into the removal of 2,200 regulations and a drop in the total from 15,269 to 13,069.
     
    The government also reported it will adopt Britain’s “regulation cap” system to keep steady the total cost of regulations borne by businesses and the public. The system calls for removing old regulations to make room for new ones. British Ambassador Scott Wightman has also been invited to speak at the meeting about the country’s “regulation cap” system that calls for keeping the total number of regulations steady by making it mandatory to remove old regulations in order to introduce new ones, officials said.
     
    It will first be tested by seven ministries, including the Ministry of Land, Infrastructure and Transport, starting July, before being expanded across the government starting in January next year.
     
    ASIA-PACIFIC GLOBAL RESEARCH GROUP’S IN-HOUSE VIEW:
     
    We absolutely believe in the principles of principled deregulation for the South Korean economy. This is especially the case in the 21st century, as Asia’s fourth largest economy tries to “free the minds” of its untapped youth and next-generation creative talent. Currently, the economy is overly top-heavy as reflected in an industrial infrastructure that is heavily producer and export-driven. Today, most of South Korea’s GDP is export-dependent. This is good when South Korean exports are in demand by overseas markets, but not so good when such demand falters for endogenous or exogenous factors.
     
    We commend President Park Geun-hye’s latest public efforts to deregulate. Hopefully, such governmental will not turn into another added and ironic regulatory layer in and of itself to get the mission accomplished.
     
    In addition to such government-led deregulatory efforts by the Park administration, why not try an alternative approach?
     
    Why not set out the principles of deregulation in the form of “negative” and “positive” rights?
     
    this would be an elegant, efficient, and effective step forward, without requiring overly burdensome legislative efforts.
     
    To illustrate, during the formation of the U.S. (the world’s oldest democracy), The Declaration of Independence calls for the British government to end the “long train of abuses and usurpations” of “certain unalienable Rights,” specifically “Life, Liberty and the pursuit of Happiness.” The authors and signers of the Declaration did not desire for government to provide “Life, Liberty and the pursuit of Happiness”, but rather they expected government to protect their pre-existing rights which were “endowed by their Creator.”
     
    The unalienable rights in the Declaration and many found among the first amendments to the Constitution are considered “negative rights.” A “negative right” restrains other persons or governments by limiting their actions toward or against the right holder. In other words, it enables the right holder to be left alone in certain areas. For example, the right to be secure in one’s home requires that others refrain from trespassing or entering without permission.
     
    On the other hand, many claims of rights emerging since America’s founding, such as rights to healthcare, housing, or standards of living, are considered “positive rights.” These positive rights essentially provide the right holder with a claim against another person or the state for some good, service, or treatment. Thus, a right to housing obligates someone – presumably the state – to provide the right holder with housing, typically via resources obtained from others.
     
    The words “negative” and “positive” reflect the nature of the right itself.
     
    Applying “negative” and “positive” rights, entities in the South Korean marketplace (including SMEs and start-ups) could be protected under both a “negative” right (i.e., freedom from overly burdensome regulatory processes; specifics could be listed instead) as well as certain “positive” rights (e.g., freedom to pursue life, liberty, and happiness through the pursuit of commercial activities; this is just a broad case in which specifics could instead be provided by the state).
     
    After all, everything else being equal, wouldn’t we want to “let a thousand start-ups and new enterprises bloom” in South Korea and elsewhere with less (rather than more) regulation?

     
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    South Korea’s “creative economy” – 6 strategies

    February 12th, 2014  by  Asia-Pacific Global Research Group - Jasper Kim

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    South Korean President Park Geun Hye’s agenda for the economy’s second miracle on the Han River is under the title of “the plan for Creative Economy-Measures to Create the Ecosystem for Creative Economy.”
     
    But what does “creative economy” mean exactly? Now that the Korean president has had time to adjust and initiate her policies, we begin to see what the policy mantra of “creative economy” means as a matter of policy:
     
    The post-Great Recession global economy has witnessed a shift in focus of value creation to the “innovative technology and creative idea (creative economy)” away from labor and capital, reflecting the 20th century industrial economic ecosystem–towards knowledge and information technology, reflecting a 21st century economic ecosystem and knowledge-based economy.
     
    The “creative economy” policy hopes to leverage the country’s cutting-edge technology, culture, and art. The policy’s focus has been placed on supporting and expanding small-to-medium businesses that can lead to job creation up the value chain. South Korea also mapped out the strategy (creative economy plan) for a unique and value-added creative economy that fully leverages its comparative advantage in its ICT capabilities towards creativity-driven growth, moving beyond the catch-up growth strategy based on imitation and application. The creative economy economic policy initiative presents the vision and objectives of the so-called creative economy. Putting together and integrating the tasks of several government ministries, related tasks have been identified jointly by such respective government ministries since late March 2013. The opinions of the various ministries were accepted and reflected in the administration’s creative economy plan.
     
    Creative Economy – Policy Summary:
    ◎ Presentation of 3 major goals, 6 strategies
    The creative economy plan envisions three goals to create an economic ecosystem for fostering a creative economy in a new era of hope and well-being of the general public:
    ▲ Creation of new jobs and market through creativity and innovation
    ▲ Strengthening the global leadership of the nation’s creative economy with other global economies
    ▲ Respecting creativity and promoting creativity within society
     
    The 6 strategies are as follows:
    ▲ Creating an economic ecosystem where creativity is fairly rewarded where business startups are easier (Strategy 1)
    ▲ Promoting venture capital firms and small-to-medium businesses playing a leading role in the creative economy and make inroads into global markets (strategy 2)
    ▲ Creating the growth engine for pioneering new industry and markets (strategy 3)
    ▲ Fostering the global creative human capital talent who have the vision and wherewithal to become a vital part of the creative economy (strategy 4)
    ▲ Expanding the nation’s science technology and ICT innovation capabilities, which lay the foundation for the creative economy (strategy 5)
    ▲ Initiating the creative economic culture that promotes the involvement of both government and people (strategy 6)

     
     
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