In just six decades, Korea has risen from the devastation of war to become a global leader in industry, technology and culture. Today, the nation faces a new set of challenges: the fastest population decline in the OECD, widening income inequality, and youth unemployment, all of which threaten social cohesion.
Yet, Korea’s 7.32 million-strong diaspora offers a powerful resource. Their creativity, professional networks and global influence can help drive innovation, strengthen soft power and ensure that Korea’s next transformation is sustainable, inclusive and globally connected.
In 1960, Korea’s GDP per capita was only about $158. By 2024, it had surged to between $33,000 and $36,000. This extraordinary transformation is not merely an economic story — it is a human story of perseverance, vision and collective effort.
Modern Korean soft power — from K-pop to K-defense — is built upon a national determination to create a better future. The Korean diaspora has been integral to this success, spreading Korean culture, innovation and enterprise across continents. Their expertise, networks and creativity have deepened Korea’s global footprint and must be systematically integrated into the nation’s next transformation phase.
The “Cathy Hyun Syndrome” has emerged as a symbol of Korea’s cultural and technological energy. Named after a popular figure, it reflects the nation’s unique blend of creativity, digital sophistication and cultural resonance. From fashion and design to AI-driven content and future mobility, this phenomenon highlights Korea’s capacity to merge innovation with empathy, a soft power reshaping perceptions globally.
In 1970, Korea’s industrial base could barely produce a personal rifle. By 2025, it is expected to export K9 self-propelled howitzers, K2 tanks, TA-50 jet fighters, missile systems and naval vessels. Korean defense exports have reached record highs, positioning Seoul as a trusted partner for NATO members, Indo-Pacific allies, and emerging economies alike. What once symbolized dependency has become a hallmark of reliability and precision.
Under the Make American Shipbuilding Great Again initiative — a strategic partnership with the United States — Korea’s shipbuilding sector is poised to help address the US Navy’s capability gap. Alongside Korea’s active participation in APEC and expanding cooperation on advanced defense and nuclear technologies, Korea’s role in reshaping economic, technological and security agendas across the Indo-Pacific region is deepening, reinforcing its recognition as a strategic hub bridging East and West.
Korea’s transformation has been driven by four key factors: a long-term national strategy, from Five-Year Economic Development Plans to Science and Technology Master Plans; investment in human capital, where education became the nation’s most effective industrial policy; a shared ethos of sacrifice and innovation, in which industrial leaders and workers embraced national growth as a collective mission; and political resilience and civic maturity, demonstrated when civil society twice impeached sitting presidents through democratic means, an act grounded in accountability and common sense.
Past success, therefore, lies not only in industrial planning or human capital but also in political resilience. Achieving bipartisan consensus for the national good will be essential as Korea redefines its industrial and technological priorities for a sustainable future.
Yet, formulas of the past are no longer sufficient. Korea’s working population is projected to shrink by nearly half by 2070, the fastest population decline among OECD nations. Meanwhile, income inequality is rising and youth unemployment remains high, threatening social cohesion and opportunities for the next generation. Combined with China’s industrial assertiveness, Europe’s protectionism and US geopolitical unpredictability, these forces demand a self-reliant and forward-looking strategy.
Korea must now embark on a new transformation, one defined by sustainability, purpose and inclusion. This requires accelerating automation, AI and digital manufacturing while reforming labor, education and welfare systems to sustain lifelong productivity and address inequality. Policies that create meaningful opportunities for young people and reduce wealth disparities are crucial to maintaining social stability and promoting innovation. The Korean diaspora should be actively engaged as a strategic partner, leveraging their global expertise, networks and cultural influence.
Equally important is reimagining the social contract. Economic resilience cannot come at the cost of fairness or opportunity. A society that discourages risk-taking or penalizes failure will not cultivate the next generation of innovators it needs. Balancing welfare with competitiveness and equity with efficiency is the central policy challenge of this era.
Korea’s strength lies in its ability to adapt. The next Korean Miracle will come not from replicating the past but from reinterpreting it with courage, creativity and collective purpose. By harnessing its people in Korea as well as the 7.32 million-strong diaspora, and cutting-edge innovation, Korea can build a society that is inclusive, resilient and globally influential, using platforms like APEC to lead, innovate and shape the 21st-century global agenda.
Man Ki Kim
Man Ki Kim is a professor at the KAIST Graduate School of Future Strategy, specializing in global public procurement, defense procurement and innovation, and global strategic trends. He is also Senior Advisor at Yulchon Law Firm, advising Korean industry on global business strategy, and is a frequent contributor to national and international publications. The views expressed here are the writer’s own. — Ed.
khnews@heraldcorp.com
