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Please note that the syllabus may change before or during the class. The most current syllabus is located in AEFIS and in Canvas.

Course Information:

The Korean Economy: Sustaining Convergence to the Highest-Income Countries

SA.552. 117 01 ( 4.0 Credits )

Fall 2023 [SA Fall 23]

Description

The course will analyze Korea’s transformation from one of the poorest countries in the world in the 1950s to the 10th largest economy today. However, Korea faces serious challenges to continue its convergence to the highest-income countries. The course will focus on the challenges posed by Korea’s rapid population aging and the associated fiscal pressures, its polarized economy (large companies versus small and medium-sized enterprises, manufacturing versus services, regular workers versus non-regular workers and men versus women), its dependence on energy-intensive industries and coal, and North Korea.

Department: SA Asia
College: Nitze School of Advanced International Studies

Course Introduction:

The course analyzes Korea’s transformation from one of the poorest countries in the world in the 1950s to the 10th-largest economy today and identifies the factors that made possible the “Miracle on the Han River.” The high-growth era ended with the 1997 Asian financial crisis, which revealed flaws in Korea’s economic model that pose challenges to the country’s continued convergence to the highest-income countries. Such obstacles include Korea’s polarized economy (large companies versus small and medium-sized enterprises, manufacturing versus services, regular workers versus non-regular workers and men versus women), rapid population aging and the associated fiscal pressures, and Korea’s dependence on energy-intensive industries and coal, which makes the goal of achieving carbon neutrality in 2050 a difficult challenge. Korea will be compared to other advanced economies, notably the United States, the European Union and Japan. The course will also discuss the challenges and opportunities of an economic rapprochement with North Korea.

Instructor Information:

Instructor

Randall Jones

rjone186@jhu.edu

Additional Instructor Information and Office Hours:

Office Hours: Wednesday, 10:00 – 12:00 (room to announced later) or by appointment (most non-office hours meetings will be conducted via Zoom). I can also be reached by text at 571 665-8216 and at my personal email (randalljonesfr@gmail.com).

Course Schedule:

Fall 2023 [Fall 2023]

Term Start Date: Tuesday, 1-Aug-2023 Term End Date: Friday, 16-Feb-2024

Add to Calendar

Location and Schedule:
Schedule Detail:	[08-28-2023 to 12-04-2023, W 02:30 PM - 05:00 PM; Washington DC, 555 Penn 634]
CRN:	SA.552.117.01.SA Fall 23

Course Learning Objectives

Course Learning Objectives (CLOs):

• Identify and explain the factors behind the Korean economic miracle and determine to what extent they apply to other countries.
• Propose policies to address Korea’s challenges.
• Compare and contrast Korea with other advanced economies and with developing countries.
• Analyze the obstacles to an economic rapprochement between North and South Korea and formulate strategies to overcome them.
Evaluate the role of these factors in Korea’s 1997 crisis and to what extent Korea’s growth model creates headwinds to a continued expansion of its economy.

Required Text and Other Materials

Books:

Each class will refer to a number of readings. All of the readings will be available on the “eReserves” link on the Canvas course site, though the library or on the internet. Required readings (those in bold) average 80 pages per class. In addition, several other relevant readings are suggested for each class. Readings include chapters in Eichengreen, Barry, Wonhyuk Lim, Yung Chul Park, and Dwight H. Perkins (2015), The Korean Economy: From a Miraculous Past to a Sustainable Future and Jaejoon Woo (2022), Confronting South Korea’s Next Crisis. The other readings come from a range of sources, including the Organization for Economic Cooperation and Development (OECD), the Korea Economic Institute and my own publications.

Course Policies

Course Policies:

1) Comments on the readings: Students are asked to submit a short comment (around 200 words) on one of the readings for each class, beginning with Week 2. Please post the comment in the appropriate section of the Canvas course page by Tuesday evening before the class that will discuss that reading. Please read the other comments posted. To promote an interesting class discussion, please be prepared to explain your comment and ask questions about other students’ comments.
2) Weekly submission of key takeaways: Post a few sentences that summarize your most important takeaway from the previous class meeting on the Canvas course page.
3) Participate regularly in class: Be sure to read the assigned materials before class and come prepared to discuss them. Class participation will be evaluated based on quality as well as quantity. Thoughtful questions and perceptive observations contribute equally to a good discussion.

Evaluation and Grading

Grading Breakdown:

Final grades will be determined by a term paper of 3,500 to 4,500 words in length (50%), a (take-home) midterm exam (30%) and class participation (including the comments on the readings and key takeaways) (20%).

Grading Scale:

A = 93.4% - 100.0%, A- = 90.0% - 93.3%, B+ = 86.7% - 89.9%, B = 83.4% - 86.6%, B- = 80.1% - 83.3%, etc.

Description of Major Assignments

Description of Major Assignments:

In addition to the mid-term and the weekly assignments (comments on the readings and takeaways from the previous class), the major assignment is a term paper of 3,500 to 4,500 words in length.

Early in the semester, each student should choose a topic for a term paper, focusing on a particular policy, institution or industry in Korea in a comparative context. Each student will have a short meeting with the professor to discuss their topic, and further meetings are encouraged during the remainder of the semester. Each student should demonstrate a good understanding of key analytical concepts and frameworks related to the chosen topic and analyze Korea’s experience from a comparative and historical perspective. The paper should be emailed to the professor by Thursday, December 7th.

Course Schedule

Course Schedule Outline:

Class	Date	Topic of discussion
1	Aug 30	Overview of Korea's economic development A. The drivers of development during Korea's rapid growth period (1961-97) B. Adjusting to economic maturity (1997 to present)
2	Sept 6	Key challenges facing Korea A. Demographics: coping with the the lowest fertility rate and the fastest population aging in the world B. A polarized economy (services versus manufacturing, large firms versus small, etc.)
3	Sept 13	The challenge of reunifying the Korean peninsula A. The North Korean economy B. North-South economic relations
4	Sept 20	Sustaining the labor force in the face of a shrinking population A. The role of women B. The role of young people and the elderly
5	Sept 27	The business sector A. Small and medium-sized enterprises (SMEs) and the role of the service sector B. The large business groups (chaebols) and corporate governance
6	Oct 4	Boosting productivity A. Korea’s innovation framework and promoting digitalization B. Education and regulatory reform
	Oct 11	No class: mid-term exam (take-home)
7	Oct 18	Deepening Korea’s integration in the world economy A. Trade and foreign direct investment (FDI) B. Agriculture: a stumbling block to comprehensive trade agreements
8	Oct 25	Korea’s financial system A. Coping with crisis (the 1997 Asian crisis and the 2008-09 Global Financial Crisis) B. Ensuring that the financial sector promotes growth and stability
9	Nov 1	Ensuring Korea’s fiscal sustainability in the face of rapid population aging A. Improving the fiscal framework and the tax system B. Strengthening social insurance: Health and long-term care and pensions
	Nov 8	No class
10	Nov 15	Promoting inclusive growth through labor market reforms and social spending A. Labor market reforms B. Social spending
	Nov 22	No class: Thanksgiving holiday
11	Nov 29	Addressing climate change and promoting green growth A. Reaching net zero emissions by 2050 B. Promoting green growth in Korea
12	Dec 6	Conclusion A. Is Korea following Japan's economic path? B. An economic strategy to sustain Korea’s convergence to the highest-income countries
	Dec 7	Term paper due -- (please email to professor)

Reading List

Reading List:

Class	Date	Readings (required readings are in bold)
1	Aug 30	*Jones, Randall. (2022), “The Republic of Korea: Economy,” The Far East and Australasia Yearbook 2022,* Routledge, London. Eichengreen, B., W. Lim, Y. Park, and D. Perkins (2015), The Korean Economy: From a Miraculous Past to a Sustainable Future, Harvard East Asian Monographs 375, Chapter 1*. Pacheco Pardo, Ramon (2022), South Korea from the Forgotten War to K-Pop: Shrimp to Whale, Hurst Publishers, Prologue. KBS (2011), The Republic of Korea, 60 Years of a Miracle* (video), https://www.youtube.com/watch?v=jmE6i4SCMLE. National Museum of Korean Contemporary History (2015), Export-led Industrialization of South Korea (video), (652) Export-led Industrialization of South Korea(50min) - YouTube.
2	Sep 6	*Woo, Jaejoon (2022), Confronting South Korea’s Next Crisis,* Chapter 1. OECD (2019), Rejuvenating Korea: Policies for a Changing Society, OECD Publishing, Paris, Chapters 2 and 5. Eichengreen, B., W. Lim, Y. Park, and D. Perkins (2015), The Korean Economy: From a Miraculous Past to a Sustainable Future, Harvard East Asian Monographs 375, Chapter 9**.
3	Sep 13	Jones, Randall (2021), “A Unified Korean Peninsula Economy: Benefits for both Sides of the 38th Parallel” in The Future of the Korean Peninsula: Korea 2032 and Beyond, edited by M. Richey, J. Panda and D. Tizzard. *Eichengreen, B., W. Lim, Y. Park, and D. Perkins (2015), The Korean Economy: From a Miraculous Past to a Sustainable Future,* Harvard East Asian Monographs 375, Chapter 8. *Woo, Jaejoon (2022), Confronting South Korea’s Next Crisis,* Chapter 13.** Lankov, Andrei (2023), “Restitching the Triangle? North Korean Relations With China and Russia After Ukraine,” Korea Policy, Volume 1, Korea Economic Institute, KEI_KoreaPolicy_2023_Andrei-Lankov.pdf (keia.org). Revere, Evans (2021), “North Korea’s Economic Crisis: Last Chance for Denuclearization?”, Brookings Institution, fp_20210226_revere_krins.pdf (brookings.edu).
4	Sep 20	*OECD (2019), Rejuvenating Korea: Policies for a Changing Society, OECD Publishing, Paris,* Chapter 3. *Jones, Randall and Jinwoan Beom (2022), “Policies to Increase Youth Employment in Korea”, OECD Economics Department Working Paper No. 1740,* fe10936d-en.pdf (oecd-ilibrary.org). *OECD (2018), Working Better with Age: Korea, Ageing and Employment Policies, OECD Publishing, Paris, Executive Summary and Assessment & Recommendations. Eichengreen, B., W. Lim, Y. Park, and D. Perkins (2015), The Korean Economy: From a Miraculous Past to a Sustainable Future*, Harvard East Asian Monographs 375, Chapter 6.
5	Sep 27	*Jones, Randall and Jae Wan Lee (2018), “Enhancing Dynamism in SMEs and Entrepreneurship in Korea”, OECD Economics Department Working Paper* No. 1510, ced4b0e9-en.pdf (oecd-ilibrary.org). Eichengreen, B., W. Lim, Y. Park, and D. Perkins (2015), The Korean Economy: From a Miraculous Past to a Sustainable Future, Harvard East Asian Monographs 375, Chapter 5.** Jones, Randall (2018), “Reforming the Large Business Groups to Promote Productivity and Inclusion in Korea,” OECD Economics Department Working Paper No. 1509, 9e9052b5-en.pdf (oecd-ilibrary.org). Albert, Eleanor (2018, “Why Are South Korea’s Chaebol Important,” Council on Foreign Relations, Why Are South Korea’s Chaebol Important? (cfr.org). *Jones, Randall (2009), “Boosting Productivity in Korea’s Service Sector”, OECD Economics Department Working Paper* No. 673, 226625875038.pdf (oecd-ilibrary.org).**
6	Oct 4	*Jones, Randall and Jae Wan Lee (2016), “Raising Korea’s Productivity through Innovation and Structural Reform”, OECD Economics Department Working Paper* No. 1324*, Raising Korea's productivity through innovation and structural reform \| OECD Economics Department Working Papers \| OECD iLibrary (oecd-ilibrary.org). Pak, Mathilde (2021), “Promoting the Diffusion of Technology to Boost Productivity and Well-being in Korea,” OECD Economics Department Working Paper* No. 1653, Promoting the diffusion of technology to boost productivity and well-being in Korea \| OECD Economics Department Working Papers \| OECD iLibrary (oecd-ilibrary.org). *OECD (2019), Rejuvenating Korea: Policies for a Changing Society, OECD Publishing, Paris, Chapter 4. Jones, Randall (2013), “Education Reform in Korea,” OECD Economics Department Working* Paper No. 1067, 5k43nxs1t9vh-en.pdf (oecd-ilibrary.org)*. OECD (2017), Regulatory Policy in Korea: Towards Better Regulation*, OECD Reviews of Regulatory Reform, Executive Summary and Assessment and Recommendations.
	Oct 11	No class: mid-term exam (take-home): please email me your exam by midnight on Friday, 13 October.
7	Oct 18	*Eichengreen, B., W. Lim, Y. Park, and D. Perkins (2015), The Korean Economy: From a Miraculous Past to a Sustainable Future,* Harvard East Asian Monographs 375, Chapter 7. Bark, T. (2022), “Korea's Recent Trade Performance in Response to External Developments,” *Korea’s Economy,* Vol. 32, Korea Economic Institute, Washington D.C, Korea's Recent Trade Performance in Response to External Development - Korea Economic Institute of America (keia.org). *OECD (2018), Innovation, Agricultural Productivity and Sustainability in Korea, OECD Food and Agricultural Reviews, Executive Summary and Assessment & Recommendations.* OECD (2022), Agricultural Policy Monitoring and Evaluation 2022: Reforming Agricultural Policies for Climate Change Mitigation, Korea chapter, pages 424-440.
8	Oct 25	Park, Yung Chul, Joon-Kyung Kim and Hail Park (2021), *Financial Liberalization and Economic Development in Korea, 1980–2020,* Harvard East Asian Monographs, Introduction & Overview Chapter and Chapter 17. *Eichengreen, B., W. Lim, Y. Park, and D. Perkins (2015), The Korean Economy: From a Miraculous Past to a Sustainable Future,* Harvard East Asian Monographs 375, Chapter 4. Jones, Randall, Masahiko Tsutsumi and Thomas Cargill (2010), “The Korean Financial System: Overcoming the Global Financial Crisis and Addressing Remaining Problems”, OECD Economics Department Working Paper No. 796, The Korean Financial System : Overcoming the Global Financial Crisis and Addressing Remaining Problems \| OECD Economics Department Working Papers \| OECD iLibrary (oecd-ilibrary.org). International Monetary Fund (2020), Republic of Korea: Financial System Stability Assessment, Executive Summary and Background Sections, Republic of Korea: Financial System Stability Assessment and Press Release for the Republic of Korea (imf.org).
9	Nov 1	*Hwang, Hyunjeong, Axel Purwin and Jon Pareliussen (2022), “Strengthening the Social Safety Net in Korea,” OECD Economics Department Working Paper* No. 1733, Strengthening the social safety net in Korea \| OECD Economics Department Working Papers \| OECD iLibrary (oecd-ilibrary.org). Jones, Randall (2009), “Reforming the Tax System in Korea to Promote Economic Growth and Cope with Rapid Population Ageing,” OECD Economics Department Working Paper No. 671, Reforming the Tax System in Korea to Promote Economic Growth and Cope with Rapid Population Ageing \| OECD Economics Department Working Papers \| OECD iLibrary. Woo, Jaejoon (2022), Confronting South Korea’s Next Crisis, Chapter 10.** Jones, Randall (2010), “Health-care Reform in Korea”, OECD Economics Department Working Paper No. 797, Health-Care Reform in Korea \| OECD Economics Department Working Papers \| OECD iLibrary (oecd-ilibrary.org). Jones, Randall and Satoshi Urasawa (2014), “Reducing the High Rate of Poverty among the Elderly in Korea,” OECD Economics Department Working Paper No. 1163, 5jxx054fv20v-en.pdf (oecd-ilibrary.org).
	Nov 8	*Jones, Randall and Kohei Fukawa (2016), “Labour Market Reforms in Korea to Promote Inclusive Growth,” OECD Economics Department Working Paper* No. 1325, 5jlr3cvdf35k-en.pdf (oecd-ilibrary.org). Jones, Randall and Satoshi Urasawa (2014), “Reducing Income Inequality and Poverty and Promoting Social Mobility in Korea,” OECD Economics Department Working Paper No. 1153*, Reducing Income Inequality and Poverty and Promoting Social Mobility in Korea \| OECD Economics Department Working Papers \| OECD iLibrary (oecd-ilibrary.org). OECD (2013), “Strengthening Social Cohesion in Korea”,* Executive Summary and A Toolkit for Growth and Social Cohesion in Korea, OECD Publishing, Paris.
10	Nov 15	No class
	Nov 22	No class (Thanksgiving holiday)
11	Nov 29	*Jones, R. and B. Yoo (2012), “Achieving the 'Low Carbon, Green Growth' Vision in Korea”, OECD Economics Department Working Paper* No. 964, Achieving the “Low Carbon, Green Growth” Vision in Korea \| OECD Economics Department Working Papers \| OECD iLibrary (oecd-ilibrary.org). Chung, Suh-Yong and Goueun Lee (2022), “South Korea’s Climate Change Policy: Achievements and Tasks Ahead,” Korea’s Economy, Vol. 32, Korea Economic Institute, Washington D.C., South Korea’s Climate Change Policy: Achievements And Tasks Ahead - Korea Economic Institute of America (keia.org). Young, Soogil. (2022), “Challenges for Korea in Planning for Net Zero Emissions by 2050,” Korea’s Economy, Vol. 32, Korea Economic Institute, Washington D.C., Challenges for Korea in Planning for Net Zero Emissions by 2050 - Korea Economic Institute of America (keia.org)**.
12	Dec 6	· *“Key Challenges Facing Japan,”, Chapter 2 in Randall Jones (2022), The Japanese Economy: Strategies to Cope with a Shrinking and Ageing Population,* London: Routledge Press.**

Policies

Academic Policies:

Student and Academic Handbook

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Plagiarism

Plagiarism is presenting or using someone else’s ideas, words, or work as your own without giving appropriate credit to that person. Whether intentional or unintentional, plagiarism is a violation of the SAIS Honor code, to which all students are bound in all academic pursuits. Violations of the Honor Code can result in significant sanction, including grade reduction, course failure, and in severe cases, academic dismissal.

Johns Hopkins offers a self-paced online course that will help students learn key skills for avoiding plagiarism. It contains a series of brief pretests, interactive modules, and a final post-test to check your knowledge. We encourage you to enroll at the following link: Avoiding Plagiarism Online Course
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Read the complete policy at Guidelines for Recording Class Meetings.

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SA.552.117 section 01 Syllabus