South Korea and the US: Collaboration Opportunities
Introduction
The purpose of this analysis is to check the compatibility of the South Korean economy and that of the United States in terms of doing business. It involves searching for opportunities for mutually beneficial collaboration with the US. The analysis is done by researching South Korea from political, economic, legal, and cultural perspectives. The economy of the US is also briefly discussed to show its economic status. Thee global collaboration opportunities suitable for the two nations are discussed, along with various recommendations. The paper demonstrates how South Korea and the USA can invest together, considering their respective economies. Therefore, South Korea and the United States can establish a significant global collaboration based on their strong economies.
General Country Research
South Korea is an East Asian country located in the southern half of the Korean Peninsula. Led by President Yoon Suk Yeol, the nation is known for sub-tropical islands, green and hilly countryside, and high-tech cities such as Seoul (United States Department of State [USDS], 2022b). South Korea was a perfect choice because of its outstanding economy in the global industry, its high level of technology, and its general development. According to World Bank (2022), the nation had a $1.799 trillion gross domestic product as of 2021 and 5th in easy to do business country in the world. South Korea is ranked 4th largest economy in Asia and 10th globally (World Bank, 2022). Furthermore, the nation has registered increased economic growth and development despite the health crisis in recent years.
The four systems commonly used to research a country include traditional, command, market, and mixed economic systems. A traditional economic system is based on work, goods, and services that follow an established trend (Eichengreen et al., 2020). The command economic system entails the ruling government, which as an authority, controls a critical portion of the economic structure (Eichengreen et al., 2020). A market economic system is based on a free market structure with minimal government interference. A mixed economic system comprises command and market systems (Eichengreen et al., 2020). For this reason, the system is known as dual, where the market system is under strict government control.
South Korea operates under a mixed economic system that entails freedom of private business, centralized economic planning, and government regulation. The country has adopted a democratic political system and currently has two main parties, the liberal democratic party and the conservative people party (Cheng & Kim, 2019). South Korean culture is influenced by Confucian religious principles, which demand harmony, authority, and respect (Lee, 2019). The constitution of the republic of Korea highlights civil law as its major legal system (Lee, 2019). The continental or civil law system solves all South Korean legal problems based on the nation’s constitution.
South Korea has multiple advantages and disadvantages to its role as a global player. One of the benefits is that the nation has a diversified industrial base that allows industrial growth (USDS, 2022a). It is a leader in high-end electronics, has a diversified direct foreign investment in Asia, and high public and private research and development spending. South Korea also has one of the top education systems globally and is assessed by high-educated labor forces (Eichengreen et al., 2020). However, the nation has challenges, such as high competition from China in the form of shipbuilding, manufacturing, and production of home appliances and automobiles (Eichengreen et al., 2020). South Korea faces geo-political conflicts with North Korea, has an aging population, and is a net commodity importer.
Country Current Economy Research
South Korea’s prominent resources are from the agriculture sector. According to World Bank (2022), agriculture contributes 50% of the national gross domestic product. The country has vital reserves, including iron ore, gold, silver, zinc, lead, tungsten, and anthracite coal (World Bank, 2022). The largest South Korean industries include automobiles, electronics, shipbuilding, steel, chemicals, and telecommunications (USDS, 2022a). In other words, the nation is prominent in agriculture, manufacturing, and mining.
South Korea has a great record of foreign direct investments, especially from the US, China, Netherlands, and United Kingdom. According to World Bank (2022), the country’s foreign direct investment increased to $29.51 billion in 2021. The main investments are manufacturing, telecommunication, real estate, trade, finance, and insurance. According to the United States Department of State (2022b), 27% of South Korea’s exports are to China. Between 2021 and 2022, South Korean exports increased by $1.65 billion to $57.5billlion (World Bank, 2022). Other partners of the nation’s export trade include the US, with 15%, 9.8% to Vietnam, Hong Kong with 6.2%, and 51% to Japan (World Bank, 2022). Imports also hiked from $51.6 billion to $61.4 billion in the same period (World Bank, 2022). The nation exported electrical machinery and equipment, nuclear reactors, mineral products, boilers, and chemicals (USDS, 2022b). They imported mineral fuels, oils, other products, vehicles, nuclear reactors, machinery and mechanical parts, and boilers.
South Korea generally has a positive and high global economic status. As of April 2022, the country’s economy was ranked 10th in the world, with an inflation rate of 5.67% (World Bank, 2022). The agriculture industry has recently contributed 50% of the gross domestic product, meaning it is a positive investment (USDS, 2022a). Other industrial sectors, including automotive, electronics, tourism, and mining and construction, contributed 32% of the nation’s economy (USDS, 2022b). Foreign direct investments, a good education system, and high public and private research and development spending contribute to economic growth. However, South Korea faces manufacturing competition from China. According to Eichengreen et al. (2020), South Korea is highly vulnerable to external influences from China because that is its biggest trade partner. With an increased aging population that is not economically productive, the nation faces the threat of reduced labor forces and economic productivity in the future (Eichengreen et al., 2020). South Korea has many unemployed youths, which could contribute to increased social unrest and reduced economic growth.
Current US Economy Overview
The US economy has significantly grown in 2022 compared to the two past years. According to the Bureau of Economic Analysis (2022), the gross domestic product has increased at the annual rate of 2.9% in the third quarter compared to a decrease of 0.6% in the second quarter. One of the prominent factors the US is facing is the issue of government expenditures and deficits. According to Miyamoto et al. (2018), a common disturbing trend is that the US government is increasingly spending on the GDP. The US government could cause the nation’s inability to build plants and equipment and consume goods for future growth. Another factor is the challenge of binge consumption among American citizens. One of the reasons why personal savings have been reduced in the US is consumption binge (Miyamoto et al., 2018). The market forces have failed to increase the prices of commodities, thus allowing increased consumption and less saving.
Global Collaboration Opportunities
In 2019, the US and South Korea collaborated to respond to and mitigate the ongoing COVID-19 pandemic. When the pandemic invaded the two nations, the governments sought to empower the health department (USDS, 2022a). They developed a robust travel screening measured to preserve linkages. In addition, South Korea donated critical medical equipment such as 750 000 COVID-19 tests and 2.5 million protective masks to the US (USDS, 2022a). The health experts and policymakers of the two nations continuously share best practices for overcoming COVID-19. Furthermore, South Korea 2019 committed its maritime assets in the Strait of Hormuz and shared information with an international platform, maritime security construct (USDS, 2022a). In other words, so long as the health crisis is ongoing, the US and South Korea are bound by the collaborative agreement.
South Korea and the US can mutually benefit from a health research and development collaboration. So far, the two nations have witnessed a successful collaboration to control COVID-19 (USDS, 2022a). They have registered efficient acquisition and sharing of information. Therefore, they can agree to establish a health research and development committee. The experts in the committee would engage in health research and development to improve the quality of health for both nations. The team’s purpose would be to research existing and future diseases and conditions and develop measures to mitigate and prevent them.
The two nations can benefit from improved quality of health and care delivery. Since the established team would study existing and potential diseases and conditions, they would increase knowledge about preventing and treating various diseases and conditions. The team would prepare the two nations with health information for future pandemics like COVID-19. The US and South Korean healthcare providers would significantly benefit by adopting the practice of sharing information across the nations. Generally, the healthcare experts would acquire and improve knowledge about holistic care delivery based on the two distinct nations’ cultures. Furthermore, the two countries would grow towards becoming global health leaders by bridging the gap of missing health knowledge between them.
South Korea and the US can work together to address the ethical challenge of integrity in research and development. Researchers must conduct their studies honestly during the process and final reporting. The two nations can work towards ensuring that the process of health research and development in the US and South Korea is improved. The created team can work towards educating new researchers and study developers on the importance of maintaining integrity in research. The team can prepare free manuals for both countries’ new researchers as a guide to integral research practices. Such measures could help existing and upcoming researchers to maintain ethical practices in their studies.
The health sector of the United States can significantly benefit from such a collaboration. Specifically, organizations such as CDC can benefit from increase health improvement information. Health databases such as National Institute of Health could also benefit from the research information. In general, the industry could benefit from improved healthcare development and delivery. Although the healthcare quality in the US is good, the collaborative team can help it improve. The public health sector can benefit by receiving new practices to improve care delivery.
Conclusion
South Korea and the United States have strong economies and can collaborate in health research and development. Agriculture and manufacturing sectors are major supporters of the South Korean economy. South Korea and the US already have effective health-related collaboration. The two nations can collaborate on research and development of healthcare. The countries would benefit from such collaboration through improved healthcare. The US public health sector can benefit from improved quality of care and delivery.
References
Bureau of Economic Analysis (2022). Gross domestic product (second estimate) and corporate profits (preliminary), third quarter 2022. Web.
Cheng, T. J., & Kim, E. M. (2019). The politics of democratization. Routledge.
Eichengreen, B., Perkins, D. H., & Shin, K. (2020). From miracle to maturity: The growth of the Korean economy. Brill.
Lee, H. (2019). Contemporary Korean cinema: Identity, culture and politics. Manchester University Press.
Miyamoto, W., Nguyen, T. L., & Sergeyev, D. (2018). Government spending multipliers under the zero-lower bound. American Economic Journal: Macroeconomics, 10(3), 247-77. Web.
United States Department of State. (2022a). US relations with the Republic of Korea. Web.
United States Department of State. (2022b). South Korea. Web.
World Bank. (2022). South Korea Development. Web.