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UNESCO SCIENCE REPORT The government has decided to respond to [the] increasingly competitive [global] environment by raising its investment in research and development, strengthening the manufacturing sector and developing new creative industries. Deok Soon Yim and Jaewon Lee Songdo International Business District is a new smart city erected on 600 ha of reclaimed land on Incheon’s waterfront, 65 km from Seoul. It is connected to Incheon International Airport by a 12 km-long bridge and forms part of the Incheon Free Economic Zone. Photo © CJ Nattanai/Shutterstock.com 660
25 . Republic of Korea Deok Soon Yim and Jaewon Lee INTRODUCTION Time for a new development model The Republic of Korea 1 has become a benchmark for successful economic development. Between 1970 and 2013, GDP per capita grew from US$ 255 to US$ 25 976, driven by the strong manufacturing and industrial capabilities that turned it into one of Asia’s economic ‘tigers’. Among the many factors contributing to this success story is the country’s commitment to technological progress and to developing an educated, skilled labour force. Today, the Republic of Korea is the only nation to have transformed itself from a major recipient of foreign aid into a major donor. However, the government recognizes that this remarkable economic growth is no longer sustainable. Global competition with China and Japan is intense, exports are slipping and the global demand for green growth has altered the balance. In addition, a rapidly ageing population and declining birthrates threaten Korea’s long-term economic development (Table 25.1). Middle-income households are straining to make ends meet in the face of stagnating wages and there are signs of evident social distress; the Organisation for Economic Co-operation and Development (OECD) reports that the Korean divorce rate has doubled in recent years and that its suicide rate is the highest of any OECD member. The time has come for an alternative development model. The new priority: a creative economy Against this backdrop, the government has been trying to set a new path by developing more competitive technologies. Under the Lee Myung-bak administration (2008–2013), the government embarked on a major campaign for ‘low carbon technology and green growth,’ as we saw in the 1. The present chapter covers only the Republic of Korea, so references to the abbreviation of ‘Korea’ designate solely the Republic of Korea. Republic of Korea UNESCO Science Report 2010. Lee’s government targeted a 5% investment in research and development (R&D) as a percentage of GDP by 2012 and strengthened the ministry responsible for science and technology by transferring responsibility for the budget and co-ordination to the National Science and Technology Council (NSTC). The current Park Geun-hye administration is emphasizing the ‘creative economy,’ in an effort to revitalize the manufacturing sector through the emergence of new creative industries. TRENDS IN STI GOVERNANCE Science to converge with culture, culture to fuse with industry In her inaugural address in February 2013, President Park Geun-hye spoke of ‘a new era of hope and happiness.’ She identified five administrative goals for her government: a creative economy centred on jobs, tailored employment and welfare, creativity-oriented education and cultural enrichment, a safe and united society and strong security measures for sustainable peace on the Korean Peninsula. She offered a new vision for national development, defining it as ‘the convergence of science and technology (S&T) with industry, the fusion of culture with industry and the blossoming of creativity in the very border areas that were once permeated by barriers.’ This new vision seeks to transform the country’s economic model by deepening its reliance on science, technology and innovation (STI), which have served the country so well in the past. President Park’s vision builds on that of her predecessor, who had managed to raise gross domestic expenditure on R&D (GERD) to 4.15% of GDP by 2013, the second-highest level of commitment in the world after Israel (Figure 25.1). This meteoric rise was made possible thanks largely to the strong progression in industrial R&D. Chapter 25 Table 25.1. Socio-economic trends in the Republic of Korea, 2008–2013 2008 2009 2010 2011 2012 2013 Population (thousands) 48 948 49 182 49 410 49 779 50 004 50 219 Population growth rate (%) 0.62 0.62 0.60 0.57 0.55 0.53 GDP (current US$ millions) 1 002 216 901 934 1 094 499 1 202 463 1 222 807 1 304 553 GDP per capita (current US$) 20 474 18 338 22 151 24 155 24 453 25 976 GDP growth rate (%) 2.82 0.70 6.49 3.68 2.29 2.97 Life expectancy at birth (years) 79.8 80.3 80.6 81.0 81.4 – Inflation, consumer prices (%) 4.67 2.76 2.96 4.00 2.20 1.31 Unemployment rate (% labour force) 3.20 3.60 3.70 3.40 3.20 3.1 Source: World Bank’s World Development Indicators, accessed March 2015 661
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UNESCO SCIENCE REPORT Towards 2030
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Foreword Irina Bokova, Director-Gen
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