When laws and institutions falter, the economy and our hopes falter with them

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When laws and institutions falter, the economy and our hopes falter with them

Published: 10 Dec. 2025, 00:01

Audio report: written by reporters, read by AI

Chung Un-chan

The author, a former president of Seoul National University, is the chairman of the Korea Institute for Shared Growth.

The year draws to a close, yet Korea’s national mood remains muted. Unlike the changing colors of the four seasons, today’s self-portrait of the country is washed in gray. Time marches toward a new year, but diplomacy, security, the economy and people’s livelihoods all seem to be running in reverse. National security faces mounting challenges amid global volatility. Democratic institutions are retreating, and economic policy drifts without direction.

Korean society remains divided between left and right, progressive and conservative, yet few seem certain what purpose these conflicts serve. Politics, which should resolve problems through dialogue and compromise, instead fuels division and resentment. It is difficult to deny that responsibility lies with the president and the ruling party.

Kang Hoon-sik, chief of staff to the president, speaks during a meeting marking six months of President Lee Jae Myung’s administration at the presidential office in Yongsan, Seoul, on Dec. 7. [YONHAP]

Politics is the demanding art of setting national goals through compromise and persuasion. Leaders must prioritize and focus on shared values. Over the long term, Korea must break out of its low-growth trap and narrow the income gap to build the foundations of sustainable development. In the short term, the urgency is clear: stabilizing soaring household and government debt and addressing the rapid depreciation of the won. Most national challenges stem from the economy, and resolving issues tied to people’s livelihoods is the government’s most basic and important duty.

Yet the reality is sobering. Rather than preparing for foreseeable crises or securing the future of younger generations, the government appears more concerned with preserving and expanding its power. While failing to invest boldly in youth and their aspirations, it operates public finances with little restraint. The standoff over the “Yellow Envelope Bill” shows how the government, which should mediate conflict, allows confrontation to intensify. Power comes with responsibility, and the ruling bloc bears the greatest share for today’s political and economic dysfunction.

The heavy-handed and selective use of special counsel investigations is also concerning. Battles over proposals such as a “tribunal for insurrection cases” have deepened social division and raised constitutional questions. Some actions suggest that political leaders, facing rising pressure, may be shifting blame onto public servants. Controversies over “KakaoTalk monitoring” and the seizure of civil servants’ mobile phones have emerged as new threats to basic rights in the digital age.

Through the 1990s, Korea’s economy grew under a corporate-state model in which the government, banks and companies moved in near lock step — a system often described as “Korea, Inc.” There were problems, including bureaucratic overreach, but no one can deny the dedication of public officials who held the structure together. Excessive investigations today risk further discouraging young talent from entering public service, a trend already visible since the government complex relocated to Sejong. Encouraging colleagues to monitor one another or report misconduct in a climate of deep distrust will only push society further into dysfunction. Such practices must end immediately.

Laws and institutions are the safeguards of democracy and the backbone of economic progress. Shaking the systems that sustain national security and industrial competitiveness without broad consensus — and treating the judicial order as another arena for political combat — is no trivial matter. Institutions are easy to change, but once public trust is damaged, it takes decades to restore. Korea achieved its “Miracle on the Han River” through what Nobel laureate Daron Acemoglu later described as “inclusive institutions.” Rather than weakening proven systems, national leadership should focus on operating them with stability and precision.

When democratic institutions falter, the nation and its economy falter in tandem. Concentrated power invites corruption. We should remember Friedrich Hayek’s warning: “If we do not control power, we cannot prevent its abuse.” The gravest danger comes when the law becomes a tool of political authority. The temptation to turn the judiciary into an arm of electoral power must be resisted, for that path leads inevitably toward authoritarian rule and national misfortune.

Rep. Na Kyung-won of the People Power Party protests after National Assembly Speaker Woo Won-shik cuts off her microphone for straying from the agenda during an unlimited debate on a revision to the Fair Franchise Transactions Act at a plenary session on Dec. 9. The People Power Party launched a filibuster that day to oppose the Democratic Party’s judicial reform initiatives. [YONHAP]

Because politicians operate under constant legal scrutiny, they are held to higher standards of responsibility and ethics. The political process must be transparent and cautious, and power must be exercised with restraint. Truth cannot be hidden, and political authority is never permanent. Redefining laws to escape difficulty is not a solution. As shown by Bill Clinton, who completed his presidency by focusing on economic recovery and public welfare despite significant political turmoil, leadership is measured not by confrontation but by results.

Laws and institutions form the skeleton of the state, and trust is the root of the economy. Sustainable growth depends on a predictable system of economic management. When the nation’s skeleton and roots collapse, growth — and hope — collapse with them. What Korea needs now is not more agitation or political strife, but disciplined power that respects laws and institutions, and responsible politics that looks toward the future.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.