Economic Problems In Korea

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According to the recent study, "South Korea has achieved economic growth at an unprecedented speed. Observers named this economic growth the “Miracle of the Hangang River”, although most of the country’s industrial facilities were destroyed during the Korean War, and the country was devoid of capital and natural resources."(Culture and Service) Contrary to this unbelievable speed, there are a lot of problems of an economic structure that can be found easily and whether the Korean economy is really developed or not is questionable. Also, even though Korea is economically developed, it has many difficulties in its society and regard themselves as being miserable. There are statistics which show the rate of happiness among Koreans, which received…show more content…
Korean total tax revenues are only 26% of GDP, especially low on labor. And they cause social spending low(11%). Sweden's tax-benefit system decreases its poverty rate by 80%, contrary to 18% of Korea. (‘What Do You Do When You Reach the Top?’) According to these statistics, their tax rates are low and its benefit system has not been able to reduce poverty in Korea. One says, "Increasing tax rate also reallocates resources across sectors toward their highest-value economic use, resulting in increased efficiency and potentially raising the overall size of the economy." (Co-Director et al.) It indicates raising tax rate makes the economy invigorate and they need to use more taxes on welfare. Most countries in Europe have a large and different welfare system, such as subsidies on education, universal and free health treatment, social security, and services. (‘Learn Europe:: Models of the Welfare State in Europe’) Contrary to this, Korea lacks a social security system, such as the benefits of a person of national merits. In this elderly society, the old spend hard time with minimum support and nonchalance from the nation. In addition, people are gradually becoming prone not to have babies and this evokes a significant social problem. In this situation, however, a mere childcare support system cannot encourage child birth. In order to assure citizens a salubrious life, Korea should raise tax rates…show more content…
It became a growth model of other countries, economic powers now. The marvelous rate of development Korea has confidence becomes slower and slower. "South Korea seems not being able to continue either its achievement or its strength. During the past 40 years, Korea has shown its annual GDP growth decline from about 10% to 4-5%. Also, business investment has decreased from over 30% of its GDP in the 1990s to 17% in 2010, however, it was just 50% over the OECD average. It looks for Korea to decline further." (‘What Do You Do When You Reach the Top?’) They just showed a twinkling light lasted short minute, being falling toward ground now like a shooting star. Its major reason can be found on people. The main source of the development in Korea is human resources due to the fact that it lacks other resources. On the other hand, education problems like the teaching by rote inhibitive creativity and Korean tendency to regard technician as lowly prevent our economy from growing. Korea has the highest rate of rapidly aging population and is emerging as a country with low birth rate and many old men. (‘[58 Anniversary] 10 Weak Points of Korean Economy’) It is a serious matter to Korea only having human resources to improve economy. Thus, they should find out the resolution of this problem and seek other methods to develop
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