South Korea and North Korea’s domestic market and manufacturing industry

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Nowadays, the 52-hour workweek system has been legislated in Korea. However, 10 years ago, when I made a full-fledged job tour in the manufacturing sector, it was awkward to say that Korea had a per capita income of $30,000. At that time, I used to look around the National Assembly building and the stock market in Yeouid, Seoul, for various reasons. In the meantime, I was wondering if there would be a future for Korea by treating the real economy (including manufacturing, small business, transportation, etc.).

 

The point is that, however deftly you may pool, structure and derive your financial products. it is in the end the same subprime mortgage borrower in Florida, the same small company in Nagoya and the same guy who borrowed money to buy his car in Nantes who have to pay back the loans that underlie all does new financial products. And by creating all sorts of financial products that link different bits of the system, you actually increase the intensity with which the failure by these people to repay their loans affects the system.

 

- [Economics The User’s Guide] by Ha-Joon Chang -

 

This is the opinion of Professor Jang Ha-joon of Cambridge University that the Financial economy, which has become too bloated and complex compared to real economy, is causing confusion in the recession. Tat’s true. In the language of the common people, it is an economy in which a number of non-producers nibble on the produce produced by a small number of producers. Considering the fact that Korea’s exports are doing well to prop up its economy despite the corona crisis, it proves that a strong real economy is the foundation of a strong nation.

 

 On the other hand, North Korea, which is geographically and politically isolated, is expected to make some breakthroughs if it uses the domestic market, which is neither big nor small, as the basis for economic development. And this will create political stability and position.

 

There was little manufacturing in Canada and seemingly little prospect that any would arise Agricultural expansion was proceeding westward into the prairies, much as it was in the United States, but as in the United States it was not pulling manufacturing and urbanization west with it.

 

- omission -

 

What happened instead, of course, was a deliberate policy of delinking from the U.S. economy. In 1878 Canada introduced the so-called National Policy, which had to main elements a tariff wall that in effect forced the Canadian agricultural sector to turn to domestic producers rather than established U.S. suppliers, and a national railway that in effect subsidized East-West traffic in opposition to the natural North-South direction.

 

- omission -

 

But what that means is that Canadian import substitution could do something that similar policies elsewhere cannot by protecting the domestic market,, they could also enlarge it. Because Canadian farmers were forced to buy Canadian, there were more Canadians than there would otherwise have been and hence a larger Canadian market.

- omission -

 

Was this policy a success? Presumably that depends on one’s objectives. What seems clear is that the policy did more than create a hothouse industrial sector that would die off as soon as it was exposed to the winds of international competition. Canada now is strong enough industrially to accept free trade with the United States without fearing that it will be peripheralized.

 

- [Geography and Trade] by Paul Krugman -

 

Of course, the two Koreas should view economic issues as economic issues and not interpret them as ideological issues using short-term and individual desires. Both Koreas should recognize this.