Taiwan should not follow the economic development model and direction of South Korea, though it should learn from the South Korea experience the benefits of increased government efficiency, Taiwan Institute for Economic Research vice president Kung Ming-hsin (龔明鑫) said yesterday.
South Korea has concentrated its resources on a few enterprises. However, the achievements of these enterprises do not contribute to South Korea’s overall economic growth, nor do they reflect the nation’s competitiveness, Kung said at a symposium.
The model, although successful in creating the “Samsung empire,” does not benefit small-to--medium sized enterprises, and the benefits are not distributed to the middle and lower classes, Kung said in his presentation on the comparison of economic and development policies in Taiwan and South Korea.
The South Korean government’s policy of pursuing national wealth, while remaining indifferent to public welfare, does not fit Taiwan, he said.
The role that the South Korean government plays in the economy is to “concentrate” and “distribute” resources, while the Taiwanese government focuses more on “integration” and “guidance,” Kung said.
However, Taiwan should try to emulate the South Korean government’s efficiency and determination, as well as its positive attitude toward boosting the competitiveness of South Korean industrial supply chains by developing new techniques and increasing their foothold in emerging markets, he said.
In the future, Taiwan should shift its focus to encouraging innovation in local industries and strengthening human resources, while dealing with competition and cooperation issues between Taiwan and China under a global framework, he added.