Reinventing K-entrepreneurship

I hope that the entrepreneurship demonstrated by the founders of Korean conglomerates 100 years ago will be reborn as a new entrepreneurship in harmony with the global era.

Oh Joon

The author is chair of Save the Children and a former Korean Ambassador to the United Nations. The seemingly never-ending heat is finally fading away. I spent my summer attending the “K-Entrepreneurship Jinju International Forum” in the South Gyeongsang city in July and at the 2023 Busan World Disability Conference in August, as the chairman of the organizing committees. At the two international conferences, many foreign participants asked, “When did Korea become an advanced country?”

Economic growth and advancement are different. These foreigners are asking from the same standpoint as I felt in various places in Korea when I returned from my seven-year overseas assignment. “Since when did the country become so developed all over?” I wondered. The changes cannot be seen in the industrial facilities or tourist attractions we want to show off, but in the facial expressions of ordinary citizens in highway rest areas and small cities. Foreigners now feel what I realized while traveling abroad: “Oh, this is why this country is called an advanced country.”

The fact that economic growth is not simply about advancement is reflected in the concept of “sustainable development,” as defined by the United Nations. Sustainable development encompasses economic, social and environmental dimensions. It means economic growth and social development must be pursued together.

Since 1990, the UN has used a social development index called the “Human Development Index,” which reflects health, education and welfare. In other words, economic growth without improvement in the quality of people’s lives is less meaningful. Korea attained economic development first, followed by social development.

The people, the government and companies all play a role in national development. When Korea was growing, the government’s industrial policies, such as the five-year economic development plan, played a key role. We know from experience that changes in public awareness and participation have become important in the stage of social development after democratization.

If so, what role did our companies play? In Korea, a free market economy, most economic activities of the government and the people are carried out through businesses, so no one would ignore the significance of enterprises. Whether a large company or a small company, it creates wealth through investment and provides jobs. Due to the nature of the Korean economy, which is highly dependent on trade with foreign countries, Korean companies’ expansion to overseas markets through exports carried a great significance. Even before the country became known internationally, corporate brands such as Samsung, LG and Hyundai were first known to foreigners.

The international forum held in Jinju was meaningful as it was the first international conference on “K-entrepreneurship.” As most founders of the early Korean conglomerates all spent their childhood in Jinju, there is a theory that the practical Confucian ideas of Nammyeong Cho Sik (1501-1572), which were conveyed in the region for hundreds of years, may have groomed their entrepreneurship.

Of course, it is not an easy matter to conclude. But I think starting a serious international discussion on Korean entrepreneurship is meaningful. In fact, it is not the first time that the rapid economic growth of East Asian countries was explained with the influence of Confucianism — and there has been a long debate for and against the idea. When you talk about entrepreneurship, challenging spirit and social role are often stressed. Challenging spirit is essential to pioneer a new path instead of the tried and tested way, as it is about taking risks. In Korea’s experience of development, it was especially important in the growth stage. I think a social role is the entrepreneurship required for more comprehensive economic and social development. If you make a lot of money by buying real estate in advance in a certain area, you are not evaluated as entrepreneurial even if there was a risk, as it involves no social role.

In Korea, which has joined the ranks of developed countries, the social role of companies is becoming more and more important. It is no coincidence that ESG concepts have become a key topic for companies small and large. Especially in the globalization era, active roles by the Korean government and companies are necessary to overcome global challenges such as climate change, inequality and human rights issues. I hope that the entrepreneurship demonstrated by the founders of Korean conglomerates 100 years ago will be reborn as a new entrepreneurship in harmony with the global era.

Translation by the Korea JoongAng Daily staff.