Since there's alot of Samsung bashing I feel a need to put it somewhat into perspective:
Let's remember that there are an infinite number of firms that WISH they were Samsung. Hell, they wish they were Daewoo, even after their breakup. Let's give props where props are due: Samsung, Hyundai, and other Korean companies that are globally competitive put in their dues and have definitely gone where no one has gone before. You might say they had the benefit of government, of U.S. aid and protection, and so forth and so on but there are plenty of other examples inside and outside of Korea that didn't achieve the same level of success despite even more favorable circumstances.
And as for Korea as a whole, it's important to remember the process by which Korea has gone from rags to riches. The amount of planning, labor, sacrifice, and endless battles and compromises required to achieve what we see today is really quite unique. Actually, from an objective perspective it's fascinating. In Korea you can see most of the significant experiences that countries around the world experienced separately or only in parts during the 20th century: colonization, decolonization, WWII, Cold War, civil war (still ongoing), transition from a closed inward economy to one that was mainly export oriented, and again back inward, decades of military dictatorship, military occupation by a superpower (which some argue has never ended), mass political protest, peaceful democratic transition, transition from manufacturing to an information based and service economy, global economic crisis (the one in 1997), and of course elevation to an OECD country. And most of this pretty much within 50 years. There are countless countries around the world that only wish they had the same dilemmas that Korea is going through.
None of this is to paint a rosy picture on a development model that obviously has some huge problems. I'd be the first to point them out. But I still think it's important to remember this backdrop because it explains a lot of what you see in Korean society, what you see with Korean firms, etc. that to the unfamiliar eye seems downright strange, if not crazy. For instance, if you are curious why older generations who are still alive today are particularly anti-American, it's partly because when American soldiers were here during and immediately after the war, some of them who were downright cruel, took what they wanted, and weren't too nice to Koreans (we all know that the term "gook" was invented not in Vietnam, but in Korea). As a frame of reference to keep in mind, it'll be interesting to see how friendly Iraqis are 30 or 40 years from now. I guarantee there will be a lot of Iraqis who simply won't care when we Americans tell them, "Hey, you should be thankful to us, because we freed you from Saddam." If the modus operandi of Samsung and many other Korean firms is to benchmark available technologies then refining it, it's because they developed on the basis of very rapid "catch-up growth," as did all "late" developers (including Japan, who actually were much "earlier" than Korea). "Catch-up growth" is shorthand for not reinventing the wheel, which means yes they pour capital into creating products already made in more developed countries, make refinements wherever possible, and reproduce. Japan did the same thing, even though they already had a huge nascent industrial base from their imperial days (jaebul in fact were modeled after the Japanese zaibatsu). The first Toyotas and Hondas were pretty much exactly like Hyundai Excels. Considering this historical development trajectory, it's pretty amazing that Hyundai has come out with a car that can challenge BMWs, that Samsung today is dominating semiconductors and is threatening to be the global leader in various other technology fronts like LCD displays, and that despite the Hwang Woo Suk fiasco, that Koreans are conducting cutting-edge research in biotech, nanotech, robotics, AI, and various other technical engineering fields. And actually, it was not facebook or myspace but Koreans who were the first to really make online SNS work, and to have a country so completely wired for broadband and wifi is also quite amazing. Almost weird.
My belief is actually that this rather freakish, quite unique development path has had huge social costs and the chickens are coming home to roost. If foreigners, even casual tourists, understand this historical backdrop, I think it goes a long way towards understanding Korea and Koreans, and if we're a bit more hopeful, potential solutions become more accessible.
Deep inhale
