Despite the tough times and pandemic spreading across the world, South Korea seems to have it well under control. From the beginning, it shows excellent skills in avoiding the catastrophic scale of the plague, both socially and economically. The short characterization of Koreans may be that in difficult circumstances, they can make miracles. They have shown their spirit and determination many times in their long history. After the Korean War, they quickly rebuilt their country and made it one of the world's most powerful economies. They are currently in 10th place in terms of GDP and built a strong, competitive, and resilient economy. After the 1997 crisis, Korea once again proved its endurance. People were donating money to help their bankrupt country and put in on top once again. South Korea is a country with only 100 thousand square kilometers (107th place globally) and almost 52 million citizens.
To survive and become successful, they had to be smarter and work harder than the others. Many experts call the progress that South Korea made an “economic miracle.” The country created its own strong and worldwide known brands by establishing so-called Chaebol’s, industrial conglomerates with a diversified portfolio of affiliates. Samsung, LG, and Hyundai have become the symbols of country success. From the beginning, the country tried to imitate Japan in automotive or electronic businesses. Japan built its modern economy by copying others, and South Korea used precisely the same path. First, it becomes a fast follower, and later when it achieved a high level of manufacturing expertise, it started to become an innovator. Now this country is setting the standards in many global market segments.
The leading example of this process is Samsung, which evolved to become the biggest smartphone producer globally. Just recently, it overtook Huawei and regained the crown. It is hard to believe it started as a fish trading company, and in the late 1960’s it began manufacturing electronics. Now, Samsung is in 19th place of the Fortune Global 500 list, with revenues reaching almost 200 billion USD, and would like to keep the first place in the smartphone market by releasing the new Samsung Galaxy S21 two months earlier than initially planned.
Samsung is not the only significant example of South Korean success. Another company that took the world by storm is Hyundai/Kia Motors group. Their joint sales are around 140 billion USD, and the group is among the top 5 biggest automotive producers in the World. Hyundai started by constructing the ships in Ulsan, a city in the south of Korea, and now it is the world's biggest shipbuilding company with 26 billion USD of revenues in 2019. It is now known under the brand Hyundai Heavey Industries.
Hyundai Motors is now willing to grow in the electrified vehicles market as the automotive market is changing. Together with Kia, they sold 350 thousand such cars, ranked fourth in the world last year, only behind Toyota, Honda, and Nissan. They were also fourth with sales of 150 thousand units in the fully electric vehicles market, after Tesla, BYD, and BMW. Hyundai also develops hydrogen technology, being ready for the next big revolution in the automotive world.
Other significant Korean brands are LG, SK Holdings, or POSCO. South Korea is a leading World’s exporter, delivering cars, electronics and petrochemicals.
Considering all the above, it is not surprising that South Korea is also a leading world’s aviation hub. Seoul’s Incheon International Airport (ICN) is one of the cleanest and highest-rated airports in the World. It has five stars in the prestigious Skytrax ranking and won many awards, like Best Transit Airport of 2020 and Best Airport Terminal in 2020. Like every other international transit hub, it has been hit hard by Covid-19. But due to excellent work in limiting the spread of the virus, South Korea would like to implement a travel bubbles concept first introduced by Singapore. Travel bubbles are the special travel corridors between the countries that are successfully suppressing the disease. The first step was to restart high-frequency flights to China, and now ICN is working on doing the same with Japan and others. Currently, all the international flights from Seoul are operated from Incheon. Such an organization is improving the effectiveness of the quarantine. ICN handled more than 71 million passengers in 2019, being the 14th busiest airport in the world. Despite the peak of the pandemic, Incheon keeps an impressive flight network. The airport is continually improving its carbon footprint by taking care of sustainability and gaining the accolade at the ‘2020 Korea Sustainability Competition’.
Not only Incheon Airport, but the whole of Korea is now about to take care of its environment. Just recently, Korean president Moon Jae-in, declared that South Korea would become carbon natural by 2050. It is a huge step forward for this very fossil fuel-dependent economy. The move was Korea’s answer to the same targets set by the European Union and Japan and a 10-year later deadline set by China. The new plan is to invest in green infrastructure, clean energy, and electric vehicles. South Korea is currently the 7th biggest emitter of CO2. Coal generates 40% of its electricity while renewables less than 6%. Air Quality is another big problem that should be reduced, thanks to the government's New Green Deal.
The greenhouse effect could be very devastating for South Korea and its economy in the forthcoming future. Incheon, the southern coastal city of Busan and a tropical Island Jeju, is particularly vulnerable to increasingly frequent massive storms and rising sea levels. According to the research, in 2030, more than 3 million Koreans will be exposed to nationwide flooding. Incheon Airport is also at risk, and the new 3,5 billion USD second terminal could be devastated by the rising water levels. South Korea and the World can no longer ignore the problem o CO2 emission. I am pleased to see more and more countries are putting the fight against global warming on the top of their priorities, even despite the raging pandemic.
One of the other investments planned by the authorities is expanding “smart cities” projects. The most famous one in South Korea is Songdo, the city built on reclaimed land about one hour drive from Seoul. It was designed from scratch as a green alternative for the polluted cities across the globe. Despite many problems with underpopulation and construction delays, thanks to tremendous government support and a new green deal, it may finally encourage more new residents to settle there. They may benefit from its pedestrian and bicycle-friendly organization and modern technologies, improving well-being and helping to save our planet.
Songdo inhabitants can use Incheon Airport, which is nearby. South Korea currently has two large international airlines: Korean Air, a flag carrier of this country, and Asian Airlines. Both of them have problems related to the Covid-19 pandemic and downturn in aviation. However, Korean Air (KE) seems to be doing much better. It is the biggest airline in South Korea. During the pandemic, it concentrated on cargo flights, considering that the South Korean economy is exporting many goods that require air transport. The most notable ones are semiconductors, auto parts, or e-commerce supplies. Shortly it plans to use its planes to transport the Covid-19 vaccine. Korean Air has converted many passenger airplanes in its fleet to carry more cargo. Its fleet consists of 169 jets, 57 of which are currently parked and not used. The backbone of the Korean Air fleet are 54 Boeing 777's, including 12 777F’s a freighter version of this plane.
Asiana Airlines, the second biggest airline in Korea, has many more problems at the moment. Due to the problematic financial situation, Hyundai Development Company and Mirae Asset Daewoo were going to take it over. The owner of the airline Kumho Industrial wanted to sell it for 2,1 billion USD, but the deal didn't work out. The airline urgently needed cash for further operation, and that is why two big banks, Korea Development Bank and Export-Import Bank of Korea, became its most significant shareholders. They may sell its long-haul business to Korean Air owned by Hanjin Group, and Asiana will become the country's biggest low-cost carrier, focused on short-haul and domestic flights. It is not confirmed yet, and I am inquisitive if this iconic carrier will disappear from large international airports worldwide. At the same time, Korean Air will become the only long-haul carrier in South Korea. I would be very sorry to hear it, but the economic reality is inexorable. Another scenario is a full-scale merger between these two airlines. The next couple of weeks should clarify it. Currently, the Asiana fleet consists of 82 planes, and 62 are in service during the pandemic. The mighty A380–800 are parked, and we don’t know if they will fly again in Asiana livery.
Seoul’s second airport Gimpo International Airport is focused on domestic flights, making exceptions only for some flights to China, Taiwan, and Japan. In 2019 it handled 25 million passengers being a more convenient option for the people traveling regionally. It is located very close to South Korea’s capital. The distance is only 15 km, making it hard for Gimpo to expand as this enormous city surrounds it.
Seoul has a population of almost 10 million people, and nearly half of South Korean inhabitants live close. It is an overly ambitious city, competing with the best like New York or Paris. Used to be known for its unappealing architecture, caused by ultrafast growth, but now this is changing. Bold architectural projects recently completed making it a capital of the design, entertainment, and popular culture.
United Stated solitary dominated the global popular culture in the second half of the 20th century. In the 1990s and 2000s, Japan started to influence the region by console games or manga. Hong Kong was famous for its kung-fu and action movies. India, on the other hand, exported its Bollywood musicals. The shift has become very visible, and Asia has been not only consuming pop culture but also creating it.
South Korea has now emerged as a winner in the popular culture market in Asia. It is incredibly strong in movies, tv dramas, and pop music. The so-called “Korean wave” is not only vital in Asia but also globally. K-pop Boysband BTS is probably the most popular globally; the movie Parasite won 4 Oscars, and the zombie show Kingdom is famous on Netflix. Some say that South Korea is “punching above its weight,” but Koreans couldn't care less. They have built the big entertainment industry and have something to show to the world, which is excellent news for us, enriching the choice. South Korea is too small to guarantee the returns in such a competitive market, so the Korean creators always aim to win international markets straight from the start. The competition only in Asia is fierce as both Japan and China are very active in that field.
South Korea is a unique country that proves that you can be successful despite initially not having the best cards in your hands. Thanks to its commitment and hard work, it became one of the most technologically advanced and economically developed countries in the world. We should watch it closely and consider its opinion as its power is still rising.
