A Cultural Analysis of South Korea's Economic Prospects

Abstract

This study analyses cultural effects on economic development in South Korea. It introduces the concept of transaction costs as an operational intermediary between culture and economic development. Using this approach, it is found that culture affects economic development through its impacts on transaction costs in the static case. In the dynamic case, culture affects the economy through its impacts on the creative capacity of citizens. To assess the role of culture in future economic development, recent changes in Korean culture are examined. These include rising individualism and declining sense of community and trust; weaker appreciation of cooperation, compromise, and acceptance of dissent, and rising inclination towards confrontation; and the failing rule of law and rising perception of injustice. These all raise transaction costs. In addition, the future orientation is fading, as suggested by decreasing savings and investment rates, and by decline in the fertility rate. In view of these recent changes, Korean culture will have a negative effect on the future economy, compared to its positive influence in earlier decades from the 1960s. Culture is therefore not ceteris paribus. Even if all else remains the same, the prospects of the Korean economy will be tainted by the influence of culture.cultural analysis, South Korea, economic development,

Analyzing Trends in Digital Transformation Korean Social Media Data: A Semantic Network Analysis

“…Our analysis identifies several features unique to the Korean context, which significantly influence the discourse on digital transformation on Korean social media platforms. For instance, Korea's collectivist cultural norms shape the adoption of technologies that emphasize communal benefits and organizational harmony [64]. Additionally, the country's leading position in digital transformation fosters a progressive environment for discussing advanced digital infrastructure [65].…”