Each week is a flurry of occasions on the worldwide stage.
The US-Ukraine assembly in Washington was not simply extraordinary; it was similar to a tectonic shift — a pillar of European regional safety has fully switched its stance. The U.S., which Europeans have seen as a safety guarantor for all of Europe since 1945, is now not taking part in that function. What I am grateful to Ukraine President Volodymyr Zelenskyy for is that he uncovered U.S. President Donald Trump for what he’s, displaying precisely the place he stands in relation to Russia and Putin’s ambitions towards Ukraine. The query now could be: does NATO with out the U.S. equal Asia with out the U.S. as nicely? I really feel that we received’t have to attend for too lengthy to seek out out the reply. So, we should prepare.
The primary spherical of tariff photographs occurred only a day in the past. Some international locations retaliated and even raised their stakes. Now, the ball is in Trump’s court docket once more. It doesn’t actually matter whether or not he continues to escalate or not — the ache of these tariffs is already being felt in plummeting inventory costs. Quickly, we are going to see it mirrored in rising costs of products in all places.
Talking of tariffs, our personal desk must be revisited. For instance, in case you attempt to import the most recent Blackwell video card from overseas, you’ll pay almost half the value in tariffs. The identical applies to any high-end laptop motherboards. Why video playing cards and motherboards? Apparently, these are important for constructing an AI laptop system. We’re truly putting bets on that for our future. We do not produce any of those domestically, and we’re paying further to import them. It means companies, and people alike, at the moment are being punished for his or her want to enterprise into new fields. In different phrases, we’re taxing our personal progress!
The tax system, generally, wants fine-tuning. The inheritance tax is already being addressed, and I don’t see it as only a ethical subject; it’s more and more a matter of financial administration. The final subject of The Economist dubbed it as „inheritocracy.“ One of many loopholes within the Korean tax code contributed to the rise of coffeehouses and bakeries within the quaint countryside, as these multi-story buildings are exempt from inheritance tax. Many individuals selected this scheme as a approach to switch their wealth to their youngsters.
Our home affairs are yet one more supply of complications for all of us. If the tariff warfare weren’t sufficient, we’re poorly suited as a rustic, institutionally. The continuing political gridlock prevents the state of affairs from being resolved. The fallout from the martial regulation fiasco has additionally proven that we should make our essential governance techniques bulletproof. And I imply that actually. We have been extraordinarily fortunate that election knowledge remained untouched and that key techniques on the Nationwide Meeting had backup circuits to maintain the lights on.
However, if we take a look at the state of affairs from a distance, the financial system is not as unhealthy, despite the fact that our democratic establishments are struggling. That made me consider the highest three examples of different international locations that have been in related conditions with out efficient management on the helm.
Belgium is a record-breaker, going nearly two years with out an efficient authorities. Much like Korea, its political polarization prevented the formation of a Cupboard. The caretaker authorities, an idea from public administration, needed to handle each day operations. Plus, delegated powers from the central authorities allowed regional administrations to maintain the nation afloat. The Netherlands is my second instance. After the 2021 election, political disagreement prevented the events from forming a brand new cupboard, however the nation functioned for nearly a yr, albeit with out making any vital or critical choices resulting from restricted powers. Spain confronted the issue of an influence vacuum not as soon as, however twice in its latest historical past. In comparison with others, its sturdy central paperwork, together with its autonomous areas, supported the nation’s governance. What can we study from this?
Korea’s extremely centralized presidential system that locations method an excessive amount of energy into the manager department undoubtedly wants a redesign. Although, I need to say, we should give the thought cautious thought, as a result of technically we’re nonetheless at warfare and we definitely don’t need to jeopardize our fight readiness. I need to additionally point out that Korea isn’t in Europe, and our neighbors are removed from pleasant, so our institutional redesign should align with our regional standing.
Administratively talking, our areas want extra autonomy and financial rebalancing, as some have been omitted of main industrialization tasks and are nonetheless lagging behind the remainder of the nation. The transfer of the long run presidential workplace to Sejong is already being mentioned, which is definitely signal. We’d like extra debates on tips on how to transfer ahead and get issues executed, and cease losing time and power on political fetishism within the streets of Seoul.
The world is being quickly reconfigured. Geopolitical alliances are altering, together with ours. We didn’t do badly till now, 2025. In accordance with IMF knowledge, Korea achieved a 29 % development, from $1.5 trillion to $2 trillion in adjusted GDP, in comparison with 2015. However this quantity is dwarfed by China’s 74 % from $11.2 to 19.5 trillion in the identical interval. My fear isn’t solely China and a slew of different international locations. We’re additionally falling behind the world’s common of 35 % of adjusted GDP development for a decade. If we keep on the course, Korea may lose its relevance. We obtained to maneuver and transfer quick.
Eugene Lee (mreulee@gmail.com) is a lecturing professor on the Graduate Faculty of Governance at Sungkyunkwan College in Seoul. Specializing in worldwide relations and governance, his analysis and instructing give attention to nationwide and regional safety, worldwide improvement, authorities insurance policies and Northeast and Central Asia.
