Focus and innovation in South Korea achieves goals

During a recent visit to South Korea, a glance out of my hotel window in Yeouido at the scenery outside reminded me of the phrase – Miracle on the Han River. This reference has become less prolific in recent years, but at the turn of the century, it was often used when describing South Korea’s remarkable economic emergence from the ashes and complete devastation of war in the 1950s, to its status as a leading global economy within five decades.

Indeed, it is this very success that brought me to South Korea. The country’s pension, insurance, and other financial institutions have flourished as a result of such economic prosperity - and are therefore in demand of relevant global investment solutions for their growing portfolios.

However, the use of the word “miracle” doesn’t quite sit right with me. 

I find that South Korean business is characterised by a strong sense of innovation and entrepreneurialism. I am not alone in my view - various research bodies have placed South Korea atop global innovation league tables based on a broad range of criteria, from the number of patents received to the number of science and technology graduates. This feels quite natural, given the country is particularly recognised for its electronic and automotive giants - the likes of Samsung, LG, and Hyundai - for whom innovation is lifeblood.

This culturally-engrained entrepreneurial spirit, combined with a tireless work ethic and an almost patriotic sense of duty to succeed, suggests to me that South Korea made its own luck.

The challenge for members of the investment community such as myself is to bring that same entrepreneurialism to the solutions we provide to our Korean clients, for the capital we are entrusted to manage.

In particular, for those institutions confronted with the issue of a rapidly ageing population with profound implications for portfolios, investment managers will need to innovate to assist clients in achieving their long-term goals.

In the end, like the South Korea of 70 years ago, it seems entirely prudent to take charge of one’s destiny, and to seek help where it’s needed, rather than wait for a miracle.

Important note

The views and opinions expressed within this article are those of the author and do not necessarily represent or reflect the views, opinions or official policies of any entity with which the author is associated.