Influence of Confucianism
in South Korea’s Economy
Oscar Yiu 2012564709
Todd Lam 3035054426
Content
1. Origin and Traditional Concepts of Korea’s Confucianism
2. Argument and Stance
3. Confucianism and Chaebol(s)
4. Confucianism and Governing
5. Pros and Cons
6. Conclusion
The origin of Korea’s Confucianism
 Confucius’ philosophy in ancient China
 Sociocultural principal of family life
 Political force of personal conduct
 Introduced in the 5th century AD.
 In Koryo, Wang Kon (877-943) persisted Confucianism  emulate Tang
China
 Political ruling ideology of a centralized state since Yi dynasty (1392 – 1910).
 East Asian cultural sphere (동아문화권): Korea, China, Japan, Taiwan, and
Vietnam share a Confucian philosophical worldview
Traditional Confucianism
 Authoritarianism
 The emperor or national leader to lead the nation
 Hierarchy
 Patriarchy the rule of men over women.
 Seniority  the father of the family to rule the family vs Filial Duty of sons
 Rank based social structure
The Four Occupation:
 Scholars, Officials
 Farmers
 Artisans
 Merchants
 Goal: Social harmony
Point of Interest:
 Whether implanting Confucianism into the roots of
Korea’s economy was a good or bad idea
 Whether continuing to embed Confucianism into
future decision making would lead to a prosperous or
unbeneficial future
Looking at Korea through Confucianism
 Social vs. Independent (SvI)
 To work hard to benefit
 Oneself vs. Society
 Improvement of oneself
 Great human capital
 Back to SvI
 High school graduates  Colleges = 2nd Highest % in the world
 Can do!
 Countless work hours
 1975 and 1983 were 50.5 and 54.3
Confucianism’s Relationship Structure
Father and Son relationship
Master and Servant
Husband and Wife relationship
Increased value of Mutual Friendship
Confucianism and Government
“The Will of Heaven”
“The Universe”
“The Power of the State”
Relationships
Confucianism and Chaebol(s)
 A Chaebol company consists of
 The core group
 The middle group
 The marginal group
 Increase in stability
 Decrease in employees leaving the company
Confucianism in Contemporary Korean
Society: Strong Leadership
 Strong indicative planning system operated under a strong military
dictatorship of Park Chung-hee (1917-1979) during the 1960-70s.
 Economy Development of the DPRK and the Republic of Korea (ROK) (1960-2010)
(Unit: $):
Sources: China idigest
 Centralization is consistent with traditional Confucian doctrines. (the
national leader to the nation)
Confucianism in Contemporary Korean
Society: Strong Leadership
 Major characteristics of Park Chung-hee’s industrialization policy:
 Proper planning
 Government-driven capitalism.
 Basis for a self-supporting economy
 Export-oriented
 Nationalization
 The Miracle on the Han River (한강의 기적)
 Role model of economic development to other developing economies.
(e.g. Singapore, China)
Confucianism in Contemporary Korean
Society: Emphasis on Education
 Chinese Tang Dynasty’s civil service examinations  a test on the
Confucian classics
 Officials were thought of as the highest social status.
 The only way of being officials  Participating in civil service examinations
 Korean Parents are willing to sacrifice wealth  children can receive the
best education possible.
 Private spending on education (% of GDP)
2011
Korea
2.8
Japan
1.6
The US
2.2
Average (OECD) 0.9
Source : OECD
Confucianism in Contemporary Korean
Society: Emphasis on Education
 Percentage of education expenditure (% of GNI):
1990
2000
2010
2013
Korea
2.9
3.1
4.5
4.7
Japan
3.9
3.1
3.2
3.3
China
1.6
1.8
1.8
1.8
The US
4.4
4.5
4.8
4.6
Source: World Bank
 The investments in education paid off as it produced a well-educated
labor force  supply the strength of the manufacturing chaebols in the
1960s
Confucianism in Contemporary Korean
Society: Gender Inequality
 Men are superior in comparison to women
 Traditional agricultural society  Productivity of men > women
 Traditional marriage system  Take husband’s last name
 The Confucian ideal of womanhood:
 Husband is specialized in external affairs, wife in internal.
 Women should serve nation and family as a “good wife” and “wise mother” by
managing the household, own wills are usually confined.
Confucianism in Contemporary Korean
Society: Gender Inequality
 Labour Force Participation Rate (% of female population ages 15+)
(modeled ILO estimate)11:
1990
2000
2010
2013
Korea
77
49
49
47
Japan
50
49
49
49
China
73
71
64
50
The US
56
59
58
56
Source: World Bank
 Confucian thought: Women’s primary responsibility for housework and
childcare in Korean families  Imbalance Labour Force Participation
between genders
Confucianism in Contemporary Korean
Society: Gender Inequality
 Gender Wage Gap (Full-time Employees):
2000
2007
2013
Korea
41.760
38.162
36.600
Japan
33.859
31.742
26.588
China
N/A
N/A
N/A
The US
23.089
19.843
17.907
World
Average
18.221
16.242
15.464
Source: OECD
 Lower wage of female discourages women for regular employment  Loss
of potential economic growth
Conclusion
 To Improve or to continue?
Problems encountered
Gender inequality
Employment Issues
 Macro or Micro?
 Solving gender work issues
Improving on wealth distribution
References
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
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
Gender wage gap - OECD. (n.d.). Retrieved November 2, 2015. http://www.oecd.org/gender/data/genderwagegap.htm

Private spending on education. (n.d.). Retrieved November 2, 2015. https://data.oecd.org/eduresource/private-spendingon-education.htm
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Labor force participation rate, total (% of total population ages 15 ) (modeled ILO estimate). (n.d.). Retrieved November 2,
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
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