I like Korea. If I didn't, there is no way I would get involved as I have; what would be the point? Certainly Korea has its critics, both from inside and outside the country, but then what country doesn't. And just like every other country, emirate, state or region in which I have lived and worked in the last 40 years or so, Korea has its hopes and its dreams. The skill required towards achieving those dreams, though, is to indulge in an ongoing reality check to see whether and by how you much closer you are getting.
In September last year, South Korea was upgraded to "Developed Market" status by the FTSE Group - one year later than had been anticipated, but it happened. It is a status that many widely believe to have a significant impact on asset allocations by Fund Managers and a move that was, naturally, welcomed in Korea. Dream achieved.
During the last eighteen months it has been my privilege to sit as a Special Adviser on the Presidential Council for National Competitiveness. A Council that meets monthly and has undertaken to review many of the country's rules, regulations and laws with the aim of creating, inter alia, a more friendly business environment both for domestic and foreign participants. The meetings are chaired by a senior member of the Blue House, but are always attended by the President who remains throughout the length of every meeting. Much progress has been made over the period so far, but it takes time for this information to reach the world outside and in some cases legislation has been difficult to push through when dealing with a traditional culture where change is often viewed with some suspicion.
One of the more prominent dreams, for Seoul in particular a number of other cities and regions in general and the country as a whole, is the creation of a financial hub in Korea. After all, look around the region - Tokyo, Shanghai, Hong Kong, Singapore and a number of other aspiring centres and you can see the attraction of wanting to join in. Developed markets are generally service centres, rather than centres of heavy engineering and manufacture. But if you ask around the region and then further afield for their diagnosis of Korea's ability to become a financial hub, the view is that it is a long way down the list. That is a reality.
And while we are at it, let's just think of another financial hub reality - the reality of the huge Japanese economy on the one side (slow moving though it may be), and the ever growing and powerful economy of China on the other - and guess who is in the middle?
Korea certainly needs to do something, but why does it give negative perceptions to the global financial community? Because the financial scene in Korea remains less inviting to the very people who should be encouraged to enter the market. Existing rules and regulations remain ambiguous and complex despite ongoing attempts to make them clearer. But more needs to be done to unravel these regulations and to open up the financial services market wider to more participants.
Such concerns raise the noise levels around "obstructive ambiguity" and lead to charges of protectionism - of course not just in the case of Korea but around the world. And let's be clear, there are plenty of Governments whose actions suggest they say one thing and do another; think "Buy (Country)", think of the European Government that provided money for auto makers on condition they stayed in that country, and some months later very publicly spoke out on the subject of never returning to protectionism.
I can say this; I have heard President Lee say himself publicly, and maybe more importantly privately, that he has no time for protectionism. I certainly hope that his administration pays close heed to his words - especially as Korea is about to lead the G20 in 2010. The last thing Korea will need is to be confronted with any examples of protectionism as they move into this leadership role. That could put a halt to the hopes of a greater involvement from the outside world.
I was invited to advise, and I do so freely. Happily I am in a position where I can suggest certain courses of action - even if they may not be universally popular, but I do so with the best of intentions because I would like to see Korea succeed. Better that we have a collection of strong players in Asia than just one or two.
But never underestimate the Korean single-mindedness of purpose. They have proved time and again in their young democracy (which many forget is only 22 years old), that they can get things done once they put their minds to it. The world is a big place, and they need to be a two-way part of it if the dreams and hopes they nurture are to become reality.
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