South Korea, rather than Singapore, is the better role model for Hong Kong’s flagging economy

Much has been written about how Hong Kong should look up to Singapore for its economic achievements. What have largely escaped our attention are South Korea’s rapid developments in the last decade or so.

Firstly, South Korea’s pouring of resources into research and development (R&D) underpins its success in technology and innovation. For the last six years, South Korea has topped the list of the world’s economies in the Bloomberg Innovation Index.

The government has played a pivotal role in providing fiscal support. In 2018, it set aside 19.7 trillion won (US$16.2 billion) on R&D projects and provided generous tax incentives, such as a 25 per cent implied tax subsidies rate for large firms. Corporations also contributed handsomely to research, with total investment across the public and private sectors amounting to 78.8 trillion won. All these yielded the world’s highest ratio of R&D spending to gross domestic product.

Some internationally reputed examples of booming industries include telecommunications and cosmetics. Their formula for success lies in the reluctance to be complacent about the present and the farsighted craving for originality.

Secondly, Korean pop culture has captured the hearts and minds of people around the world. The irresistible Korean family and romantic fantasy drama series and the arresting performances of K-pop music groups have sparked global interest in the Land of the Morning Calm.

The rise of the South Korean soft power has also driven a dramatic increase in the number of Korean learners at home and abroad. According to the Modern Language Association, between 2013 and 2016, there was a 13.7 per cent growth of students learning Korean in US universities despite the difficulty of learning the language and the general fall of language class enrolments. It is worth noting that the rise in popularity is not mainly triggered by economic factors but cultural reasons.

As Hong Kong is beset with economic woes, as suggested by the Hong Kong government, financial officials should be innovative and make wise use of our public money to stimulate economic growth. South Korea, which was, like Hong Kong, once dubbed one of the four Asian Tigers, should be a role model for us.

Even though we lack natural resources, the government should take the lead in investing in R&D and gradually expand private participation. Resources should also be provided to restore Cantonese music and films and Hong Kong football to their former glory. These long-term investments are far more worthwhile than the handing out of sweeteners, which prove not very sweet after all.

John Ng, Lai Chi Kok