Economic Security of South Korea Essay

The economy of due southbound Korea is ranked at fifteenth place in the gentleman. In scathe of its relation with the United States, southeast Korea is the seventh largest exchange companion. sec Korea is come up known for its graduate(prenominal) level of growth in sparing field. Before 1960, southwestern Korea was just an some other poor third homo country and hardly known regionally as wellspring as externally. Its frugal booming has advance South Korea in the eyes of international cooperation in particular the Organisation for Cooperation and Development (OECD).Factors Affecting The Economic warrantorLife spanPrimary health business concern has improved trem blockously for past decades. Consequently, good reference of life has contributed to longer life span among the macrocosm of South Korea citizens. Therefore the median of age of operative commonwealth has shifted towards older generation.The aging population seems to be of major concern among the spa ring community because they cogency affect the scotch growth of the nation. In roam to produce rapid economic growth South Korea would require constant support from the young and changing generations.EducationThe economy needs continuous add up of skill labours to experience growth. stock-still though the judicature pr severally for the need of educated society, the financial parcelling is low compare to the needs of parents in educating their children. Hence, the parents end up paying postgraduate price for excess classes in school as well as high tuition cost in tertiery pedagogy for securing good career. The cost of education is so high that each family circumscribe the number of children in localise to provide excellent education for the child. Even then, the ambition is stiff and demands for the need of furthering studies to a higher degree. uniting and South RelationThe affinity between marriage and South Korea dwells an enigma in the instinct that their e conomic status is wide apart where the south enjoys the booming of industry while the north deteriorating. Without the human-centred aid, the people of northernmost Korea would continue to suffer from provender shortage. Having insure the hunger situation of people of coupling Korea, there is always a military misgiving towards South Korea. However, South Korea remains hopeful that its erratic neighbour would open its barrier to economic help thus playing the role of good neighbour.Even though trades union and South Korea still down the stairs conflict, the economic transactionhip between the two countries remain strong. Being a communist country, china is the largest employment partner for North Korea. However, South Korea has risen to be the due south largest partner in terms of economic sight with North Korea. These economic ties is constantly on a lower floor pressure due to the high possibility of incidences on a lower floor volatile North Korea foreign policy as well as influences from the communist bloc. For instance, in marching music 2010, North Korea had torpedoed South Korean warship resulted in 46 soldiers were killed. Despite all the evidence pointing towards her, North Korea deny the responsibility. However, South Korea suspended its trade relationship with North Korea. In another incidence, North Korea blast artillery shell onto Yeonpyeong Island killing two civilians and keen another 13. These incidences even though had not escalated to spacious blown war project serious economic guarantor for the South Korea.Globalisation Another compute which affects the economic security of a nation is globalisation. By virtue of globalisation, it increases the interconnectedness of nation and people of the cosmea as the communication and transportation becomes cheaper, faster and quick avail fitting. Globalisation reduces the artificial barrier of national border, wherefore allowing the flow of goods, capitals, services, people an d knowledge across the world faster than before. Rapid globalisation allows nation to trade with other nation thereby creating mutual economic interdependence.Economic interdependence is recognised as a positive instrument which promote security. South Korea take the strategies in using the economic interdependence in order to advance its security goals. Their strategy bottomland be clearly seen in the diplomatic relations towards neighbouring military terror i.e. China. The similar strategy is in addition adopted towards large powerful nations much(prenominal) as Soviet Union. South Koreas strategy towards his nimble neighbour North Korea was based partly on the economic interdependence. In the long run, the economic desegregation might serve as a limp and balance on the head of regimen policies towards each other. Hence the economic integration serve as to avoid any disruption for those links by the use of military threat. (Kahler and Kastner, 2004).Financial Crisis By the equivalent token, globalisation also foster a threat to the security of a nation via economic conflict. The economic crisis of 1990 which struck the markets in Asia shocked the nations and many financial institutions. The globalisation leads to economic openness which in piece causes sensitised economic security since it allows for foreign investors to fool ownership on domestic enterprises. The crisis had caused major discount on South Korea economy as well as a few other countries in South East Asia including Malaysia, Thailand and Indonesia. At the beginning of the crisis the assets had collapse down to the new record low, forcing economic panic in South Korea. In order to sustain economic stability, South Korea succumbed to the adjustment programs after burn downt lending was suddenly stopped. Fortunately, the economy of South Korea succumb to rapid recovery.In the world of globalisation, information engine room becomes the trend of the decade. Hence, South Korea i s able to enjoy economic growth because of the high demand in consumer expending for electronic gadgets. The growth will continue to blow up as long as South Korea able to stimulate consumer spending through innovation of technology. The freehanded question is how long can South Korea sustain new innovation to keep the demand shoot in and continue to expound economic expansion.On the other hand, globalisation reduces vulnerability through regeneration of suppliers and markets. Therefore, economic pressure as well as unilateral sanction becomes less effective because the multi trade relations would able to absorb the pressure. For example, even though China is a major trading partner for South Korea, it cannot act unilaterally on South Korea because of its relation with other super power much(prenominal) as the United States. By the same token, North Korea may pressure South Korea to some outcome but would apply cautious because of its relation with China and the United States .Transnational Organised Crimes Another factor that may affect the economic security of South Korea is the infamous transnational organised crime i.e the terrorist attack. The phratry 11, 2001 shocked the whole world when the World craftiness Center building in the United States of the States was brought down. The terror caused the world to rethink of the new mark brought about by the terrorist activities. Even though the disaster was halfway across the globe, South Korea was also moved(p) because the US was its major trading partner economically.Since the economy of South Korea is widely known for its growth, many brook overlooked the threat it creates among the people of South Korea. fit to the report, South Korea has one of the highest suicide rates in the world where it has doubled over the last decade. The prosperous economy has increase the standard of living consequently putting a lot of strain on household income. Moreover, the success story of economic overturn had masked the financial constraint among s sum and forte businesses as well as the people who were indebted. The reforms had causes high unemployment as well as unstable employment. In other words, the economy has created insecurity among certain host of population which ended up with suicide notes. pestiferous attackThe economy of a country is susceptible to any sporadic of epidemic or epidemic attack of viruses. The Severe Acute Respiratory Syndrome (SARS) is a type of Atypical Pneumonia which can kill. It was identified in 2003. Due to its ability to spread quitely within the traveling group, and later created killer pneumonia, the whole world population were discourage to travel. South Korea was not spared of the economic consequences of SARS. tourism industry was the most affected. Domestically, some public places such as school were closed and shopping mall suffer declined number of customers because of fear of SARS. Community restricted the movement for necessary requiremen t causing reduction in consumer expenditures and consumer services. However, the effect on economy was token(prenominal) compare to other South East Asia countries such as Hong Kong and China.The economic security fluctuates according to the demands of the international arena. When the prices of chips increase and the crude oil price reduces, South Korea draw in positive trade advantages and pocketed tremendous profit because it was the second major supplier of chips to the United States. On the other hand, any sign of price weakening of electronic markets or a hike in oil prices could severely punished the South Korea economy because its exporting is based on electronics.Summary Undenialbly, economic security is not a new dimension in international relations. It has always been part of the security visualise of the governing body of the nation. It is being exploited so as to avoid any security prison-breaking of of one government on another government as well as its policy. Each governement would consider economic interdependence with cautious and wariness because it can create both security as well as vulnerability.