So says today’s UK Times.
Per the article:
Viewed from Seoul, the decision by the FTSE index makers to place Korea on the 24-strong list of developed nations is unquestionably marvellous. Like a knighthood, an Olympic medal and a golden parachute all wrapped into one fabulously overdue package, the designation confers bragging rights (over China), confirmation of superiority (over most of South-East Asia) and, potentially, buckets of lucre (via any global funds that exclusively invest in developed markets).
However…
But, at the same time, plenty of billions would also flood out. All that adventurous emerging market risk capital that thought of Korea as a young, dynamic and hungry economy will start to think of it as a mature, boring one…. Korea finds itself arriving late at a party where the guests are either drunk, getting there, or passed out on the floor. America’s credit crisis, Britain’s property miseries and Japan’s recession do rather take the joy out of promotion to the developed club.
Yes, Koreans are very fond of titles and prestige, but the grass isn’t always greener on the other side.
{ 20 comments… read them below or add one }
Korea is not a developed nation by any stretch of the imagination. Being “developed” means having 150+ year old banking institutions that can vanish into thin air over-night.
Well, does 107-year-old banking institution vanishing into thin air count? Then Korea must be pretty developed.
Korean Wikipedia’s description of Cho Hung Bank, established in 1897 and folded in 2004, link here.
Everybody, say it with me…
KOREA IS NOT IN SOUTHEAST ASIA!!!
That picture of passed out drunks in the party .. that was damn funny.
South Korean investment changes Cambodia
By Raphael Minder
Published: September 22 2008 17:34
A young Cambodian couple smile for David Kim, the South Korean photographer, as he takes their wedding pictures.
Last November Mr Kim moved with his wife to Phnom Penh, the Cambodian capital, using the proceeds from the sale of his photo shop in Seoul to open Luk Studio. The business has made “a really good start” as more and more Cambodians turn to professionals to capture their union, he says.
Although his business is still in its infancy, Mr Kim has already hired three people to help manage bookings and photo shoots.
“I had my company in Korea for three years, but demand wasn’t growing any more and there was simply too much competition,” says the 32-year-old. “I can already say that I am the number one here because nobody was really offering this [service] professionally.”
Last year South Korean investments there grew fivefold, making Cambodia the second-biggest recipient of Korean investment after China, … several large-scale Korean projects are in the pipeline, in sectors including construction and finance.
Observers find it hard to explain exactly why Koreans have zoomed in on a country that is not particularly close to them, either geographically or culturally…
One suggestion is that the historic disconnect between the countries has helped. Decades of war have fuelled a profound distrust in Cambodia of its neighbours.
(Or maybe it’s just the cheap hookers)
I do not think Korea needs to worry about risk capitalists thinking it a “mature,” boring country since investing in Korea is still quite risky. Just ask Lone Star.
Where is that from Linkd?
Some of Raphael’s work is good, although that is not a flattering extract.
It’s from Financial Times.
Nothing will change. When Korea needs a handout, it’ll still be “help a poor developing country.” When Korea tries to tell others what to do, it’ll be “see, we’re developed, so listen to us.”
Sorry, but what’s unflattering about it? Koreans are getting involved not only in Cambodia, but in the markets of their former enemies, China and Vietnam. Also, recent Mongolian market development owes significantly to the inventive efforts of Korean financiers, who provide lower-cost capital to developers than do the local sources in UB.
Sorry. Here’s that link.
http://www.ft.com/cms/s/0/c246b518-88c1-11dd-a179-0000779fd18c.html
#3, I think the reference to SE Asia was from a continent-wide perspective. It is not really suggesting that Korea is in that region.
Sorry gbnhj, I meant unflattering for the writer, not for the subject (Korean o/s investors).
I’ve been wondering for nearly ten years when Korea would finally be recognized as a ‘developed country’.
#3,
Singapore is in South East Asia, right?
http://en.wikipedia.org/wiki/Developed_country#Definition
#11, I wasn’t 100% sure if he was making that mistake or not, but regardless, it’s something I have heard a lot and that needs to be corrected.
Linkd,
Why get Cambodian hookers when perfectly fine (and just as cheap) Vietnamese hookers are readily available?
There’s plenty of development opportunity about 50 miles north…
#3,
Mmmm, dude…Singapore is a developed country and in South East Asia.
@16, what’s your point? Maybe you should read my comment again.
I’m sorry, but Korea’s al fresco café culture isn’t as advanced as Italy’s. It needs protecting.
I propose the creation of unique title just for Korea, one where Korea can keep its ‘Advanced’ badge of honor but still tap institutions such as the Asian Development Bank for grants and low-interest loans. Forever. Koreans are just too hard workingest for these funds to be diverted elsewhere.
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