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The new president-elect of South Korea, Park Geun Hye, is a political record setter in East Asia, becoming the first ever female president in a region with deep patriarchal traditions. With the landmark election over, the new leadership will be tasked with easing tension on the Korean Peninsula, seeking a regional balance and restarting the six-party talks on resolving the Korean Peninsula nuclear issue.
From victory to economy
South Korea’s 18th presidential election was held on December 19, 2012. Park, the ruling Saenuri Party candidate and daughter of late President Park Chung Hee, won the election after garnering more than half of all votes—a first since democratic elections began in the country in 1987. According to the South Korean Constitution, the president should be directly elected by voters for a term of five years.
“This was a close contest,” Shi Yongming, an associate research fellow on Korean Peninsula studies with the China Institute of International Studies, said to Beijing Review.“The winner must focus on the economy and regional security.”
Polls taken prior to the formal vote showed a close race between Park and her rival, Moon Jae In of the main opposition Democratic United Party. The two major candidates ran on similar platforms in terms of general administrative ideas, Shi pointed out. Park is a bit more conservative than Moon, winning a majority of voters aged 50 to 60, while the younger generation from 20 to 40 years old generally preferred Moon, Shi said.
Shi noted that being a candidate of the ruling party was an advantage for Park. Moreover, voters expected Park to resume the country’s economic development that took place under her father’s administration from 1963 to 1979.
According to a report by the Hyundai Research Institute, Park’s presidential election promises included an increase in social welfare spending, high-quality job creation and fair trade regulation on big corporations. The growth in social spending would require the government to find ways of financing such as higher taxes, which may cause disputes, the think tank said. South Korea is now the world’s 13th biggest economy, with a per-capita GDP of $24,000.
Analysts said one of Park’s most pressing tasks is to adopt effective socioeconomic policies to reduce social conflicts caused by the country’s economic structure largely ruled by business conglomerates known as chaebols.
South Korea’s economy is dominated by family-controlled corporate groups such as Samsung and Hyundai. The top 10 enterprises’combined turnover has exceeded 40 percent of South Korea’s total processing industry. For example, Samsung’s 2010 sales reached 22 percent of the country’s GDP, and its export volume was 20 percent of the country’s total exports. Giant enterprise empires and their branches have made it harder for small and mediumsized enterprises in the country to compete, said Zhan Xiaohong, a researcher on economic studies with the Chinese Academy of Social Sciences (CASS). Furthermore, scandals related to insider trading and bribery of government officials added to the anti-chaebol sentiment, Zhan added.
Zhan pointed to chaebols as a source of dissatisfaction in South Korea, which is one reason why both Park and Moon called for fairness and efforts to ease polarization in the country.
Zhan said Park pledged democratization of the economy, calling for a reduction in the power of chaebols. But she insisted on a coexistence of giant as well as small and medium-sized enterprises.
South Korea’s economy has been relatively better off amid the global financial crisis, as the East Asian economic footing remains solid. However, the country’s economic structure is still fragile, said Shi. Like the Japanese Government, the South Korean Government cultivates giant enterprises to boost the country’s economy. But unlike Japan, South Korea has not built a channel for chaebols to voice their demands lawfully. Consequently, chaebols directly intervene in the country’s policy planning, leading to further social conflicts.
The South Korean Government cannot break up giant enterprises because they have control over the country’s economic foundation. ” South Korea should establish a communication channel between the government and chaebols,” Shi said.
Moderate foreign policy
During incumbent President Lee Myung Bak’s administration, South Korea’s hard-line policy toward Pyongyang has increased tension on the peninsula. Chinese analysts said Park’s new administration will adopt an active and moderate diplomatic policy, which will create an opportunity for regional peace and security.
“Lee followed the Saenuri Party’s basic principle of maintaining a close relationship with the United States and keeping a distance from China. In contrast, Park will work to find a balance between China and the United States,” Shi said.
Piao Guanghai, another researcher on South Korean studies with the CASS, said Park’s election victory was an influential event to South Korea and Northeast Asia at large.
Park speaks fluent Mandarin and has visited China many times, building rich political experience. It is likely that the China-South Korea relationship will further develop, said Piao. Piao said Park understands China’s growing influence in the world, especially in the economic field. China now is South Korea’s top trade partner. Bilateral trade totaled $233 billion from January to November 2012, up 3.7 percent year on year, according to China’s Ministry of Commerce. China’s exports to South Korea and imports from South Korea amounted to$80.5 billion and $152.5 billion respectively.
Park will seek a breakthrough in SeoulPyongyang relations, which demands courage and wisdom, said Piao.
Late South Korean President Kim Dae Jung carried out a famous “sunshine policy” toward North Korea during his presidency from 1997 to 2002, greatly easing tension on the peninsula. When he took over in 2008, Lee, however, insisted on a tough policy toward Pyongyang, straining relations between the two sides. Chinese critics said Park will take a moderate approach.
Piao said South Korea needs to promote dialogue between the two sides by ameliorating the Seoul-Pyongyang relationship, while boosting economic cooperation between them. This will benefit both sides, push forward the economic cooperation of Northeast Asia and improve peace and stability in the region, he stressed.
Park took a hard-line stance against North Korea’s satellite launch prior to the election. Shi suggested that Park should backpedal on the issue before taking office.
“Now is a good historic opportunity for Park to play a special role on the peninsula, because currently there’s very limited space for either China or the United States to play an effective role,” said Shi. “Park should deal with the SeoulPyongyang relationship from a new starting point.”
Shi said that although Pyongyang’s recent satellite launch sparked tension in the region, North Korea is unlikely to make similar moves regarding the sensitive nuclear topic in the short term that might worsen relations between the two sides.
“If Park and South Korea seize this precious opportunity and ease its relationship with North Korea, it’s expected that Pyongyang could return to the six-party talks. But if this opportunity slips away, it will be very difficult to change the current situation on the peninsula,” said Shi.
From victory to economy
South Korea’s 18th presidential election was held on December 19, 2012. Park, the ruling Saenuri Party candidate and daughter of late President Park Chung Hee, won the election after garnering more than half of all votes—a first since democratic elections began in the country in 1987. According to the South Korean Constitution, the president should be directly elected by voters for a term of five years.
“This was a close contest,” Shi Yongming, an associate research fellow on Korean Peninsula studies with the China Institute of International Studies, said to Beijing Review.“The winner must focus on the economy and regional security.”
Polls taken prior to the formal vote showed a close race between Park and her rival, Moon Jae In of the main opposition Democratic United Party. The two major candidates ran on similar platforms in terms of general administrative ideas, Shi pointed out. Park is a bit more conservative than Moon, winning a majority of voters aged 50 to 60, while the younger generation from 20 to 40 years old generally preferred Moon, Shi said.
Shi noted that being a candidate of the ruling party was an advantage for Park. Moreover, voters expected Park to resume the country’s economic development that took place under her father’s administration from 1963 to 1979.
According to a report by the Hyundai Research Institute, Park’s presidential election promises included an increase in social welfare spending, high-quality job creation and fair trade regulation on big corporations. The growth in social spending would require the government to find ways of financing such as higher taxes, which may cause disputes, the think tank said. South Korea is now the world’s 13th biggest economy, with a per-capita GDP of $24,000.
Analysts said one of Park’s most pressing tasks is to adopt effective socioeconomic policies to reduce social conflicts caused by the country’s economic structure largely ruled by business conglomerates known as chaebols.
South Korea’s economy is dominated by family-controlled corporate groups such as Samsung and Hyundai. The top 10 enterprises’combined turnover has exceeded 40 percent of South Korea’s total processing industry. For example, Samsung’s 2010 sales reached 22 percent of the country’s GDP, and its export volume was 20 percent of the country’s total exports. Giant enterprise empires and their branches have made it harder for small and mediumsized enterprises in the country to compete, said Zhan Xiaohong, a researcher on economic studies with the Chinese Academy of Social Sciences (CASS). Furthermore, scandals related to insider trading and bribery of government officials added to the anti-chaebol sentiment, Zhan added.
Zhan pointed to chaebols as a source of dissatisfaction in South Korea, which is one reason why both Park and Moon called for fairness and efforts to ease polarization in the country.
Zhan said Park pledged democratization of the economy, calling for a reduction in the power of chaebols. But she insisted on a coexistence of giant as well as small and medium-sized enterprises.
South Korea’s economy has been relatively better off amid the global financial crisis, as the East Asian economic footing remains solid. However, the country’s economic structure is still fragile, said Shi. Like the Japanese Government, the South Korean Government cultivates giant enterprises to boost the country’s economy. But unlike Japan, South Korea has not built a channel for chaebols to voice their demands lawfully. Consequently, chaebols directly intervene in the country’s policy planning, leading to further social conflicts.
The South Korean Government cannot break up giant enterprises because they have control over the country’s economic foundation. ” South Korea should establish a communication channel between the government and chaebols,” Shi said.
Moderate foreign policy
During incumbent President Lee Myung Bak’s administration, South Korea’s hard-line policy toward Pyongyang has increased tension on the peninsula. Chinese analysts said Park’s new administration will adopt an active and moderate diplomatic policy, which will create an opportunity for regional peace and security.
“Lee followed the Saenuri Party’s basic principle of maintaining a close relationship with the United States and keeping a distance from China. In contrast, Park will work to find a balance between China and the United States,” Shi said.
Piao Guanghai, another researcher on South Korean studies with the CASS, said Park’s election victory was an influential event to South Korea and Northeast Asia at large.
Park speaks fluent Mandarin and has visited China many times, building rich political experience. It is likely that the China-South Korea relationship will further develop, said Piao. Piao said Park understands China’s growing influence in the world, especially in the economic field. China now is South Korea’s top trade partner. Bilateral trade totaled $233 billion from January to November 2012, up 3.7 percent year on year, according to China’s Ministry of Commerce. China’s exports to South Korea and imports from South Korea amounted to$80.5 billion and $152.5 billion respectively.
Park will seek a breakthrough in SeoulPyongyang relations, which demands courage and wisdom, said Piao.
Late South Korean President Kim Dae Jung carried out a famous “sunshine policy” toward North Korea during his presidency from 1997 to 2002, greatly easing tension on the peninsula. When he took over in 2008, Lee, however, insisted on a tough policy toward Pyongyang, straining relations between the two sides. Chinese critics said Park will take a moderate approach.
Piao said South Korea needs to promote dialogue between the two sides by ameliorating the Seoul-Pyongyang relationship, while boosting economic cooperation between them. This will benefit both sides, push forward the economic cooperation of Northeast Asia and improve peace and stability in the region, he stressed.
Park took a hard-line stance against North Korea’s satellite launch prior to the election. Shi suggested that Park should backpedal on the issue before taking office.
“Now is a good historic opportunity for Park to play a special role on the peninsula, because currently there’s very limited space for either China or the United States to play an effective role,” said Shi. “Park should deal with the SeoulPyongyang relationship from a new starting point.”
Shi said that although Pyongyang’s recent satellite launch sparked tension in the region, North Korea is unlikely to make similar moves regarding the sensitive nuclear topic in the short term that might worsen relations between the two sides.
“If Park and South Korea seize this precious opportunity and ease its relationship with North Korea, it’s expected that Pyongyang could return to the six-party talks. But if this opportunity slips away, it will be very difficult to change the current situation on the peninsula,” said Shi.