By Matija Šerić
South Korea’s astonishing rise from post-war devastation to global prosperity is one of the most remarkable stories of the modern era. Yet, through its films, dramas, and music, the country has also revealed a different side of that story—one marked by inequality, pressure, and social disillusionment. Beneath the glitter of K-pop and the glamour of Seoul lies a quieter narrative: one of struggle, exhaustion, and the search for meaning in a hyper-competitive society.
Blockbusters such as Parasite and Squid Game have captivated global audiences precisely because they expose the cracks beneath the nation’s glossy surface. They depict a painful truth: success in South Korea is dazzling, but not equally accessible to all.
The Other Face of Korea
Since the mid-2010s, research has shown a troubling trend—an increasing number of young South Koreans dream of leaving their homeland. Many liken today’s society to the rigid hierarchies of the Joseon dynasty, arguing that the country has returned to a kind of neo-feudalism—this time divided not by birth, but by wealth and opportunity.
From this sense of disillusionment emerged the term “sampo generation”—literally, “the generation that has given up three things”: love, marriage, and children. These young people have not abandoned such dreams out of apathy, but because they simply cannot afford them in a country where the cost of living and social expectations keep soaring.
The label has since evolved into “N-po generation”—those who have given up not just family life but also stable employment, home ownership, and long-term security. Beneath Seoul’s shining skyline lies a generation burdened by impossible standards, struggling to find peace in a society that prizes achievement above all else.
Demographic challenges
The Fertility Crisis
South Korea is now confronting one of its most serious challenges: a demographic collapse that threatens the very foundation of its society. With the lowest fertility rate in the world and a rapidly aging population, the nation faces a quiet but potentially devastating crisis.
Only 230,000 babies were born in 2023—the lowest figure since records began—compared with nearly a million births annually in the 1970s. The optimism that once powered South Korea’s “economic miracle” has dimmed. Surveys show that since 1990, fewer citizens believe they have control over their lives, reflecting rising anxiety and helplessness among the youth.
Experts warn that without bold reforms, population decline could slow innovation, undermine economic growth, and threaten the sustainability of pension and welfare systems. The question remains: will the government maintain the status quo until frustration boils over, or will it take visionary action before it’s too late?
The answer will shape the nation’s destiny. For South Korea’s future depends not only on its GDP figures, but on whether it can restore faith in a shared future—a future where young people once again wish to live, create, and raise families with a sense of purpose and hope.
Economic Headwinds
After decades of rapid expansion, with GDP growth rates averaging 6 to 9 percent annually, South Korea has entered a new era of slower, more mature growth. Since 2012, the economy has stabilized at around 2 to 3 percent per year—a normal rate for advanced economies, yet one that exposes deeper structural weaknesses.
The country remains heavily dependent on semiconductors, dominated by industrial giants like Samsung, and its fortunes are tied closely to the Chinese market and to raw materials from Japan—two key partners with whom Seoul maintains tense relations.
Adding to these challenges are demographic decline and a shrinking workforce—factors that could limit innovation and productivity in the coming decades.
Still, moments of stagnation can also spark renewal. A new economic spirit is taking root in districts such as Seongsu-dong, dubbed “the Brooklyn of Seoul,” and in Pangyo Valley, South Korea’s answer to Silicon Valley. These creative hubs of start-ups and entrepreneurs are redefining what success means, proving that the country’s future lies not only in factories and exports, but in ideas, innovation, and cultural dynamism.
Seongsu and Pangyo symbolize a new, confident Korea—one that challenges conformity and dares to build a future powered by creativity and vision.
Suicide problem
Innovation as the New Growth Engine
An innovation-driven economy could become South Korea’s next great growth engine—one capable of revitalizing both its markets and its social fabric. Companies such as Naver, often dubbed “the Korean Google,” illustrate this potential. When Naver entered the nation’s top ten corporations in 2020, it marked a symbolic shift toward a more knowledge-based economy.
However, this transformation requires structural change. The government must move away from policies that favor large conglomerates (chaebols) through subsidies and tax privileges while suffocating smaller firms and start-ups.
Corporate practices that prioritize short-term profits over fair partnerships with small suppliers continue to stifle innovation. Instead, South Korea needs a more balanced ecosystem—one that rewards collaboration and long-term growth.
Encouragingly, new initiatives promoting fair trade and equitable supply chains are emerging, both within Korea and across Asia. Yet much more must be done, especially by large corporations that must learn that cooperation, not domination, leads to lasting success.
A Bright Future Ahead
If South Korea succeeds in unleashing the creative energy of its young entrepreneurs and dismantling the barriers that hinder innovation, it could become one of the world’s most dynamic start-up hubs. Despite current difficulties, the nation continues to balance its dual identity—as both a global cultural powerhouse and a leading technological innovator.
South Korea stands as a model for others—including Croatia—proving that resilience, education, and creativity can overcome even the most daunting challenges.
If no major shocks intervene, the future may indeed belong to South Korea—to the great satisfaction of its people.
References:
http://www.korea.net/AboutKorea/Economy/The-Miracle-on-The-Hangang
https://oecdecoscope.blog/2022/09/19/korea-stunning-success-and-work-in-progress/
https://www.managementstudyguide.com/south-korea-success-story.htm
https://engelsbergideas.com/essays/the-roots-of-south-koreas-crisis/
