As Korea is trying to adjust to the emerging economic situation in the world, many new innovative ideas are being suggested by Korean intellectuals and leaders. One such idea is “korenter”, emphasizing complete Korean economic integration with regional and world economies, which is propagated by Dr. Yoo Jang-Hee, Korea’s top most leading strategic economic thinker. Quite opposite to what is currently happening in Europe where more countries are opting out of the European Union, Dr. Yoo Jang-Hee is advocating rather Korea should enter the world economy more strongly.
Currently Dr. Yoo Jang-Hee is an emeritus professor at Ewha Womans University in Seoul, South Korea. Following his undergraduate work in economics at Seoul National University, he earned his M.A in economics at UCLA, and received his Ph.D. from the Department of Economics at Texas A&M University., He also served the Korean government in various positions, including President of Korea Institute for International Economic Policy (KIEP), Vice Chairman of Presidential Council of Economic Advisors, Chairman of the National Commission for Corporate Partnership to name only a few.
Recently Biz Tech Report had the chance to sit with Dr. Yoo Jang-Hee in his office in downtown Seoul and explore his views on the current global economic situation and options left for Korea to cope with the fast-changing regional and international economic environment.
Here are the excerpts of the interview.
Q1: How do you see the prevailing current economic situation in the world?
Prof. Yoo: The current economic situation in the world is very capricious. A lot is happening within a short period of time. In this fluid situation countries are trying to protect their economic interests by imposing safeguards and increasing trade tariffs. But this is wrong. All trade disputes must go through the WTO even though it takes a longer time. It is a mechanism that the whole world created to avoid any unfair situations and to restrict the powerful counties from dominating the whole world trading system in a wrong way.
Q2: Is multilateralism dead? Or is there still some hope left?
Prof. Yoo: In the short run, the multilateralism is going to be on the verge of facing strong attack from the big powers. In the long run however, the whole world is not that patient to live with this anti-multilateralism or power-oriented order of the world trading system, because the whole world has already experienced a better way through which it was able to grow faster. Before WWII, protectionism and nationalism were on top; but because of recognition of the disorder of international trade, 23 major trading countries came together to establish the order of world trade and adopt the GATT in 1947. Since then in 70 years, in a long-term trend, the whole world has been moving toward free trade and multilateralism. So there is still hope left. In the short run, the multilateralism is under attack and may be at a crisis. But in the near future, the whole world is wise enough to come back to the free trade and multilateralism.