The trilemma of an advanced country

Jaung Hoon
The author is a professor of political science at Chung-Ang University and a columnist for the JoongAng Ilbo.

The epic soaring of Nuri, Korea’s homegrown space rocket, has helped clear layers of clouds over the country amid depressing news. The rank as the world’s seventh country to place several satellites into orbit with self-developed technology has lifted our dignity against a nuclear-armed neighbor across the border.

The feat of Nuri — formally known as the Korea Space Launch Vehicle (KSLV)-II — raises a complex equation involving the national capabilities, external reputation and internal risks. The trilemma also unfolded during the recent Group of Seven summit in Hiroshima, Japan. U.S. President Joe Biden greeted President Yoon Suk Yeol, invited to the summit as a guest. Biden beamed a smile to Yoon for the U.S.’s need to leverage Korea’s chip production capability in particular. European leaders turning friendly towards their Korean counterpart after running short of military supplies to Ukraine also reflect the country’s ascension as a defense powerhouse.

G7 leaders wish to befriend Korea, but that doesn’t mean they see Korea as an equal partner. Korea is being asked to shoulder the risks, but it does not have a strong say in the exclusive league.

I like to comment on the hidden risks from Korea’s elevated capability and stature abroad. Back in 1993, shortly after it finally established a democratic system, the country aspired to join the advanced club. Three years after setting the goal, the government under Kim Young-sam achieved the dream of joining the Organization for Economic Cooperation and Development (OECD).

But the rapid liberalization without appropriate financial oversight system ended up inviting a national default crisis in 1997 and a bailout and supervision by the International Monetary Fund. We have had the disgraceful experience of falling disastrously after a hasty pursuit of an international rank without thorough readiness.

Korea now aims for a G8-like rank based on confidence from greater capabilities. But whether they are enough to make us fly that high is doubtful. Despite external strength, we are still lacking the spirit of freedom, and are inwardly self-indulgent. Let’s look back at our follies of 30 years ago to study our potential to bid for the next membership of the G8.

President Yoon Suk Yeol congratulates scientists and engineers at the Naro Space Center in Goheung County, South Jeolla for the successful launch of the domestically developed space rocket Nuri on May 25 through a video call from the presidential office in Yongsan.

President Kim Young-sam as the first civilian head of state in 1993 set the goal of joining the OECD to leave a historical achievement. It was natural for goal-seeking Korea to aspire to leapfrog to a developed rank amid the globalization wave after the proud achievement of democratization. It may sound foreign to today’s young Koreans whose morning routine includes checking on the stock prices of U.S. companies like Tesla and Apple on their smartphones. But Korea only opened up its capital and foreign exchange market in exchange for the joining of the OECD three decades ago.

As portrayed in the 2018 movie “Default,” Korea fell to the temptation of easy short-term external debt shortly after liberalizing the capital market. Local companies and financial institutions flocked to the cheap — yet high-risk — short-term foreign debt. There was no supervisory function to regulate their behavior. The head of monetary policy at the Bank of Korea, played by Kim Hye-soo in the film, struggles to sound alarms about the thinning foreign exchange reserve, but neither the government or the legislature had any thought — or capacity — to pass a financial reform act. The country saved itself from a national default only with an international bailout of $50 billion.

G8 countries have the power and authority to decide on numerous decisions related to global order or disorder. They are the main players on the global stage to discuss major issues like assistance to Ukraine and postwar projects, security dangers related to Taiwan, and U.S.-China technology war with high risks and liabilities. Can we find our appropriate role in the exclusive and intense league of the G8? Global powers beckon Korea because of its supremacy in semiconductor, battery and defense manufacturing capacity. But do we really pose as a fearful yet respectful partner to them?

Democratic powers could be skeptical of our two main weaknesses. First is the hollow spirit of freedom. We chant the importance of the value of freedom and alliance. But are we really a society that would die for freedom? During the three years under the Covid-19 pandemic, we placed higher priority in public health over freedom. What choice will Korea make if it faces harsher challenges than the Covid-19, such as a war? Second is the inner-oriented and self-indulgent political power. Korea can be an upright society which is open and sympathetic towards a solidarity based on the value of freedom, but its political forces are purely inner-oriented. They have no understanding of the global movement or ability to join the trend. Politicians just boringly recite their selective interests over inter-Korean relationship, peace and ethnicity.

It is natural to aim higher based on the escalation of capabilities. But superficial capabilities alone cannot win a global rank. Building our minds and attitudes may be a harder task than strengthening our physics. The test of the trilemma over capabilities, stature and risks to become eligible as a global-rank country has only begun.

Translation by the Korea JoongAng Daily staff.