Ambassors discuss U.S.-Korea relations

The business and political climate of the U.S.-Korea relationship highlighted a discussion yesterday featuring U.S. Ambassador to Korea James Laney and Korean Ambassador to the U.S. Kun Woo Park Hosted by the Center for East Asian Studies, the Lauder Institute of Management and International Studies and the Wharton Korea Club, the event drew more than 100 students to Steinberg-Dietrich Hall. Outlining South Korea's economic and political development over the last four decades, Laney described Korea's progress as "the most astonishing success story of the 20th century." After 36 years of rule by Japan and a three-year civil war against North Korea, South Korea has had to build its first democratic government and a free market economy from almost nothing. Today, South Korea is the U.S.'s fifth-largest exporter with the world's 11th highest gross national product. Laney added that Korea has seen an 8 percent annual growth rate for the past 30 years. But inflation has begun to skyrocket recently and two of the country's major steel companies have gone bankrupt. "We are now trying to determine whether this economic slump is due to a fluctuation in the cycle, a transitional phenomenon or a problem in the economic structure itself," Park said. "In any case, we predict about 5.5 percent growth next year, and hopefully, the economy will gain its momentum again." And Laney -- referring to the imprisonment of two former presidents for such crimes as corruption and mishandling a political demonstration -- noted that such struggles are "growing pains." "When the government has that much power over the economy as the Korean government has had in the past, it's bound to become corrupted," he added. Eventually, according to Laney, Korea's financial market will become liberalized with increased foreign investment and further improvement in research and development. Noting that the country is learning to become completely democratic, Park called Korea the best "student of democracy." He added that although moments of chaos -- such as military coups and civilian riots -- have occurred in the past, his government recognizes the values of democracy, especially compared with the neighboring North Korean communist regime. Laney and Park also discussed North Korea's role in the U.S.-Korea relations. Since the fall of the Soviet Union, North Korea -- whose GNP is 25 times smaller than South Korea's -- has lost almost all of its external economic support. Although North Korea's GNP has declined consistently, its military strength ranks fourth in the world. And when a country as desperate for foreign aid as North Korea holds such destructive power, Park said that the tension between North and South Korea could lead to catastrophe. Wharton Korea Club Communications Director James No, a first-year Wharton graduate student, expressed hope that the conference would help clarify some of the issues the American press has "clouded," such as Korea's economic recession, its political corruption and the danger of North Korean invasion. "Since there is no Korean Studies program at Penn, opportunities to heighten our awareness of Korea -- like meeting with the ambassadors -- are very rare," No said. "We feel that this kind of conference is a stepping stone to helping create a Korean Studies major either in the College or Wharton."