Unlike well-known mercantile countries such as the U.K., the U.S. or the Netherlands, Korea did not become interested in business or trade until recently. Living in a Confucian society that emphasized morality and courtesy, the Korean people regarded business transactions and monetary bargains as indecent activities and despised them. It was only natural, therefore, that there were few stores on the Korean Peninsula until the late 20th century. Pre-modern Korea only had traveling street markets, which were held every five or seven days.

Jack London, who came to Korea in 1904 to cover the Russo-Japanese War as a reporter, complained that he could not find stores on the Korean Peninsula when he traveled through the country on his way to China. The famous American novelist was appalled at being unable to find any commercial activity taking place openly in Korea during his sojourn. “My God, I couldn’t buy basic necessities in Korea because there were virtually no shops in this country,” he wrote. “As soon as I entered China, however, I could find numerous stores. It felt like a paradise to me.”

Until the early 20th century, Korean social hierarchy counted businessmen among its lowest ranks, while putting scholars in the upper class, followed by farmers and technicians in the middle class. As a result, businessmen’s codes such as keeping promises, being punctual or honoring contracts were not necessarily regarded as important in Korean society. Even honesty, which is a prerequisite in business, was not much of an important virtue in Korea.

That tradition persists in Korean society. For example, our politicians do not seem to attach stigma to lying, and, consequently, false campaign promises are rampant. When they are summoned to the prosecutors’ office, our politicians almost always vehemently deny the allegations and openly announce to the reporters, “It’s not true. I never did it.” Soon, however, we witness the allegations turning out to be true. Even our lawmakers and prosecutors, who are supposed to be honest by profession, do not seem to hesitate to lie when they are accused of something. Indeed, no politicians or law enforcement officers seem to have admitted the charges brought against them thus far; they never say, “I’m sorry. What I did was inappropriate,” or “Guilty as charged.”

Due to this lack of business mindedness, we also tend not to honor contracts and thus dismiss them easily. When our government signs a treaty with another country, for example, we immediately demand that the treaty be renegotiated, simply because we do not like it. Demonstrations after the signing of an FTA treaty are a good example. To the foreign eye, it may seem inscrutable and outrageous. How could you renegotiate something after signing the documents? Once signed, a treaty is legally effective and should be honored. We often complain that the government did not ask for our permission before signing the treaty. When we elected our president, however, we authorized him or her to sign such treaties on our behalf. How can the president work if he or she has to secure the people’s permission for everything? If we insist on renegotiations, we will lose the international community’s trust and confidence.

The same thing holds true for domestic affairs as well. When the two leaders of the ruling and opposition party in the National Assembly agreed on the details of the special Sewol ferry bill some time ago, other lawmakers and bereaved families immediately nullified it and demanded a renegotiation. But we should have respected the two leaders’ agreement. If not, why do we need to elect a leader? If we do not honor contracts, deals or treaties, our society will eventually crumble and fall apart.

The reform of the public servants’ pension system once again reminds us of the importance of keeping promises and honoring contracts. Presently, the government is trying to overhaul the new pension system so it can reduce the pensions of even those who have already retired. Granted that the reform is necessary, it still would be a serious violation of a government’s promise and contract. If the government does not keep its promise and breaks the contract, it will lose trust and credibility. Then the government will have to bear the consequences; from now on, few able men will be willing to work for the government and retired public servants will regret their decision to dedicate their whole lives for a country that does not appreciate their services.

According to the revised pension system, public servants will legally retire at 60, but they will not receive their pension until the age of 65. If so, how can retired government officials survive for five years without their pension? A lawyer told me this would amount to the deprivation of the right to survive. Perhaps Korean society will force them to steal or take bribes before retirement in preparation for the five years when they will not receive pension payments.

Over the past few decades, South Korea has become a leading business hub. We should now learn the codes of business and honor promises, contracts and treaties. 

By Kim Seong-kon

Kim Seong-kon is a professor emeritus of English at Seoul National University and president of the Literature Translation Institute of Korea. ― Ed.