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[Bridge Column] The first condition for making the leap to an advanced economy2017-02-20Hit:715

The discussion of the creative economy, promoted as the New Economy, which has been circulating around us for four years now, is slowly fading away. In addition to the lack of any achievements, it has become political waste tainted by corruption. The government habitually added a modifier, Israeli or Irish to the term, but such an economic model does not exist anywhere in Europe or in Israel or Ireland. Therefore, the term “creative economy” is just created by the Korean government, and its identity can only be inferred by the government’s creative economy-related policies of the past four years. Combining the actions of the government, the creative economy means an economic experiment that attempts convergence. The evidence is that the government itself used the song 'Gangnam Style' as an example of the creative economy. The ‘creative’ experiment that merged the Korean wave music with YouTube technology has been introduced as contributing to the creation of national wealth. From a culture perspective, there has been a project trying to merge the Korean Wave culture, and it has been disguised as a culture fusion. The ‘creative economy promotion group’ has been set up impatiently with the need to deliver the creative economy-related results, and it has been revealed at the hearing that most creative economy-related results from the ‘creative economy promotion group’ are rooted in political scandal.

There have been numerous attempts in various directions, but now it has been revealed that the fictitious unsubstantial model was promoted overseas. There is a good reason for the recent boom in Israel as well as in Ireland. While Ireland has based its economy on nature and tourism, the recent remarkable surge in attracting overseas business investments has resulted in the country surpassing $60,000 in gross domestic product (GDP). Cutting-edge companies in various fields, such as Google, Apple, and other leading IT companies, as well as biotechnology companies have established headquarters near Dublin.

The driving force that attracted investment is taxation, the climate, and the stable political level. In particular, political credibility has played a major role for foreign companies from advanced countries to make the decision to move there. As no investors will invest in unstable equity stocks, no high-tech global company will invest in countries with unstable regimes. Attracting high-tech companies is meaningful. Any country that does so is highly likely to receive advanced technology from the large local labor force, which will eventually lead to technology advances in that country. The fact that the value added tax does not exceed 12%, the small daily temperature gap between the day and night that does not require temperature and humidity control equipment, and the relatively low population in the given land area has also contributed. Because high-end equipment consumes a lot of energy, energy saving is crucial.

However, these supplementary factors were not as important as the political level. Ireland is one of the few countries in the world that demonstrates a good example of the parliamentary democracy. They have high standards for political ethics. Ethical deviation and perjury are not acceptable to the people. It is different from South Korea where those who should have already been exiled are appearing at hearings as witnesses. Korea cannot become a developed country without attracting foreign investment from global companies like Israel or Ireland did. It is crucial that we make great efforts to reach such a level of politics at this juncture.


Contact : Lee, Sohyun ( sohyun.c.lee@kaist.ac.kr )