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Rising Salary (Now)
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Lowest birthrate of the world
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Raising cost of living
- Industrialization causing population to migrate to the city, increasing the house price
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Right now, the democratic government is unable to control the over heated housing market
- Government benefit from raising house market from selling lands
- Government is unable to increase property tax due to backlash from house-owning middle class
- the democratic government is unable to make systematic change toward housing market
- The conservative politics and culture due to feudalistic tradition
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Strong gender and class conflict
- The conservative culture and societal structure from feudalistic tradition
- Educational over competition
- Increasing level of industrialization
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Plentful skilled workers and engineers
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National fanatic and fierce competition about education
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Traditional East Asian Focus on Education
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Education is seen as the only way out of poverty in Asian Tradition
- lack of economy development during the entirety of ancient Korean history. One could raise up only through passing the exam to become a official
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East asian Imperial Examination System's Tradition
- Historically being a occupied or puppeted by other East Asian regions
- Contributing to the economic feudalism
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White-collar jobs are very limited, causing competitions
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Unbalanced industry, only good at manufacturing industry
- Feudalistic, conservative tradition prevents the service and innovation industries from developing
- Culturally conservative and structurally Feudalistic Chaebol is outcompeting smaller enterprises, killing all the tech start-ups, while preventing innovation within itself
- Chaebol controls the entirety of the supply chain, squeezing medium to small business to death, reducing the overall white-collar jobs in the market
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Skilled worker are treated well
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A high demand of skilled workers from industrialization
- Country transfer from a labor intensive to capital and knowledge intensive industry
- Industrialization
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Low skilled worker are poorly treated
- Labor intensive industry makes profit from exploitation of the labor force
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Expanding universities to produce skilled workers
- Strong demand for higher level education
- Government budget to fund universities
- Infrastructure to support universities
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Post-war babyboom providing enough work force
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Stable society ensures babies survival
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Foreign aid from the US and Japan
- Cold War strategic alignment
- Historical Sadaejuui Tradition
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Military dictatorship defending the nation and crack down any dissatisfaction
- Strong coup d'etat tradition inherit from Japanese Imperial Army during occupation
- Cold War between the South and the North
- Historical shame from foreign occupation results in a strong military
- Korean Nationalism
- Infrastructure for sustaining the huge populatin
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Advanced robotization industry
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South Korea developed an advanced heavy technology Intensive Industry after mid 80s such as pharmaceutical and semiconductor, which are capital, research and patent intensive, with a very high attached value, and high entry point from any new comer
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South Korea built a Capital Intensive, Heavy Industry, such as refinery, ship building, iron foundry and car manufacturing
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South Korean initially built a labor Intensive Industry
- Cheap labor cost
- Postwar Babyboom
- Unprotected workers
- Military Dictatorship favors businesses
- Chaebol has monopoly over the manufacturing job market
- The conservative politics and culture due to feudalistic tradition, focus on obedience and bring honor to the family and the state. Individual value is deemed trivial.
- Chaebol are subsidized to build the entire supply chain to support the heavy industry
- The accumulate of the primitive capital from labor intensive industry is used to subsidize and invest Chaebol
- Push from the military government
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South Korea has the highest GDP-to-research ratio in the World during 80
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Military dictatorship forcing Chaebol to invest in high tech
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The South Korean Government foreseeing the Incoming population deficits, need to develop high tech to end the economic reliance on human labor
- Initial post-war baby boom are getting old, becoming pensioner
- Rapidly decreasing brithrate starting from 80s, meaning the pension contributor is rapidly shirnking
- The military dictatorship need to win legitimacy through providing economic prosperity
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Importing Technology from Japan and US
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Cold War strategic alignment
- Historical Sadaejuui Tradition
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South Korea Chaebol-lead industry are very compatible with Japanese Industry
- Chaebol was model after Japanese Chaebol during Occupation
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Japan and US's outsourcing to South Korea
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Mid 60s South Korea developed a labor intensive export orientated economy
- The human laboring is cheap
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Demand from domestic market
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Chaebol owns manufacturing, semiconductors and robotics industries all together, which integrated easily. This produce a high demand for robotics from major manufacturing industry
- Military Dictatorship cultivated this integration and domination of the entire production line
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Already matured domestic car industry at 80s
- A Heavy, Capital Intensive Industry is built
- Chaebol controlling the entire supply chain, boosting efficiency and decrease the production cost
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Competitive cars
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Low cost
- Highly efficiency production line
- Low Labor Cost
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Fuel efficienct
- 1977 oil crisis
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Open Foreign market
- Good Relationship with Foreign nations
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Strong domestic demand
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Korean Patriotism, people are publicly shamed for using foreign products
- Colonial history
- Feudalistic background makes people more obedient
- Military Dictatorship implemented strict import substitution policy to disadvantage foreign cars
- What are the root causes of South Korean's most automated car manufacturing industry in the World?
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Legend
- Mindset
- Education
- Government
- Population
- Chaebol
- Industrialization
- Social Structure
- Foreign Relationship
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Why South Korean's Car Manufacturing is so automated?
- Rapidly decaying birth rate
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Abundant amount of engineers and researchers
- Education Over-competition
- Lack of alternative career
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Rapid industrialization
- based on bloody exploitation of labor
- enough to make birthrate low and blue-collar jobs unattractive
- Advanced Robotics Industry
- Competitive Car Industry
- Good foreign relationship
- Military dictatorship
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Normal People's life sucks
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Gap: won't do any social reform because of the conservatism, which can only be get rid of through systematic social reform
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Lever: Recognize that simply 'against' conservatism, doing a little reform to scartch the surface will not only not solve the problem, but making exaggerating it by diverting people's attention from the elephant in the room. We need revolutionaries, not reformers.
- Possible Intervention: French Revolution, or a Great Proletarian Cultural Revolution major social reform, completely and utterly destroy the remnant of the old, replace it with modern values of Liberté, Égalité and Fraternité
- Chaebol is perfect for heavy, capital intensive and technological intensive industry
- From colonial history