Introduction
In the 60s of the XX century, South Korea was not only far behind in development from the North, but also in many ways inferior to the former colonial territories in Africa (Istiak, 2022). However, in less than two decades, the Republic of Korea eliminated its backlog (Yang, 2020). Today, Korea is at the forefront of technological innovation, outpacing most countries in terms of the development and implementation of digital solutions and maintaining economic growth rates at the level of 3-6% per year (Cheng et al., 2018). This is a high indicator for a developed post-industrial economy.
The rapid development of the economy of the Republic of Korea in the 90s, which was called the Miracle on the Hangan River, turned the country from an agrarian, war-torn country into a steadily growing, high-tech economy (Nasir et al., 2021). According to various estimates, South Korea is among the top five countries in terms of innovative development (Lee et al., 2019). Due to the efforts of the state, a steadily growing, rapidly responding to global changes economic model has been created in the country for 60 years (Chen et al., 2018). South Korea has an actively developing economy, which has received a chance for a rapid recovery after World War II and the end of the Korean War. The Republic of Korea is an economically developed State with a high level of per capita income (Lai et al., 2018). Successful government reforms and a well-thought-out modern macroeconomic policy contribute to the constant growth of GDP and improvement of the quality of life of the residents of the state.
Literature Review
In the conditions of a market economy and constantly increasing competition, the activity of any tourist enterprise is impossible without risks. The authors note that the development of tourism technologies is the leading trend in the dynamics of the Asian economy, due to the social restructuring of modern society (Chen et al., 2018). The activity of tourism industry enterprises is characterized by a high degree of risk, as it is determined by some macroeconomic factors. Among them, the authors highlight the non-preservation of services over time, the variability of quality, a significant time period of capital turnover, strong dependence on geopolitical relations, vulnerability to the exchange rate of foreign currencies and the complexity of international interactions (Chen et al., 2018). In practice, the development of tourism in Taiwan shows that insufficient attention to the scale of existing and newly emerging entrepreneurial macroeconomic risks in this area leads to serious negative consequences, which, among other things, contribute to the strengthening of crisis phenomena in the economy of the state.
Within the framework of the papers, the authors consider not only the environmental consequences of tourism, but also the macroeconomic factors that led to a reduction in the number of tourists. The theoretical definition of the tourist market is understood as a system of economic, legal, and social relations connecting a large number of manufacturers of tourist products and services and real and potential buyers. The paper considers the concept and features of the functioning of the tourist market in Singapore, which allows us to compare it with the South Korean one. Special attention is paid to the issues of tourism infrastructure, as well as the classification of tourist infrastructure (Khoi et al., 2021). The multiplicative effect in tourism caused by macroeconomic factors is considered. Further, the authors discuss the issues of countries’ competitiveness in the tourism sector, conducting a comparative analysis of the degree of impact of macroeconomics on Singapore in comparison with other countries.
Scientists come to the conclusion that the mechanisms of the tourist market cannot fully solve the main problems of tourism macroeconomics. The modern state is involved in the process of tourism management and solving the problems of the tourism market economy in order to prevent the undesirable development of tourism and possible negative impact on other sectors of the Singapore economy (Khoi et al., 2021). The involvement of the state in the tourism economy is achieved through the formation of a tourism policy, the purpose of which is to correct weaknesses and undesirable influences of the mechanisms of the tourist market.
Moreover, the articles analyze the macroeconomic indicators for the period and assesses the impact of casino travel on the state of the real tourism sector of the economy, and on the economy of South Korea as a whole. The results of the research can be useful in the long-term planning of the economic development of the national economy. It was revealed that in the macro-competitive environment of casino tourism, there are measures that allow you to quickly increase the real money supply without inflationary growth. To do this, South Korea ensures the corresponding growth of services, while including reliable credit mechanisms (Suh and Kim, 2018). At the same time, the search for the optimal structure of the money supply in the casino, displacing monetary surrogates from circulation and ensuring the growth of bank deposits, reducing the dollarization of the economy, occurs in the context of changes in macroeconomic policies.
The authors of the articles claim that geopolitical processes initiated by states occupying a favorable geographical and economic position in the Asian region or the world as a whole have a significant impact on the stock market in South Korea (Adebayo et al., 2022). It is noted that recently the participants of the stock market of the Republic of Korea have been paying special attention to geopolitical risks. This type of risk is the most difficult to manage for the country. In particular, the aggravation of geopolitical financial risks is associated with the introduction of sanctions regimes. In modern conditions, they are associated with EU and US sanction policies over the conflict between Russia and Ukraine (Adebayo et al., 2022). Currently, the global financial world is shifting towards financial fragmentation, which complicates relations between individual countries. The dependence of the South Korean economy on global processes of the world economy, high risks and threats, and its vulnerability to them create an opportunity for strong fluctuations in the background market in South Korea.
The next topic discussed in the literature is the category of banking efficiency in Emerging Asia, including in South Korea, refers to structured, developing and fluctuating systems. They are influenced by a huge number of factors, including poorly predicted ones. The relevance of articles for this study is due to the authors’ assessment of the degree of influence of macroeconomic factors on the profitability of banking activities (Arham et al., 2020). They define it as high, since the stable and sustainable development of the banking system of South Korea is based on the banks’ own resources, and most of these resources form the bank’s income (Arham et al., 2020). From the point of view of the authors of the articles, increasing the stability of the banking system is one of the key directions of the country’s monetary policy (Arham et al., 2020). In modern conditions characterized by high volatility of macroeconomics, the strengthening of the negative impact of external factors, the issues of ensuring the financial stability of the banking system should always be prioritized.
Among the many macroeconomic indicators, inflation is considered one of the most important factors that affects the REIT returns. Scientists study inflation in Singapore, comparing it with the indicators of other countries, including South Korea, which is expressed in an increase in the overall level of prices for goods and services in the economy. This in turn led to a drop in the purchasing power and value of the Singapore dollar. This study, which examines the relationship between international inflation and Singapore REIT returns, is based on the Fischer hypothesis (Arora et al., 2019). According to Fischer’s hypothesis, the profitability of real assets should positively correlate with the rate of expected inflation. Consequently, there is a positive relationship between inflation and stock returns, where nominal REIT returns should rise with inflation. Thus, it gives Singapore investors the opportunity to protect their investments from inflation. However, the authors believe that REIT returns cannot be used as a hedging tool in South Korea (Arora et al., 2019). This is due to the fact that a positive regression coefficient implies a higher expected REIT returns with a higher level of inflation.
According to the authors, political processes are not limited to one interaction between voters and their elected representatives (Cheng et al., 2018). The real activity of the Government at all levels is carried out by a multitude of subordinate bodies: departments, agencies and institutions. Therefore, one of the areas of research of the theory of public choice is the economics of bureaucracy. This article focuses on the growth of institutions in Korea and Taiwan caused by macroeconomic factors. The macroeconomics of the bureaucracy of both countries is a system of organizations that meets at least two criteria (Cheng et al., 2018). Firstly, it does not produce economic goods that have a value assessment. Secondly, it extracts part of its income from sources unrelated to the sale of the results of its activities (Cheng et al., 2018). In bureaucratic models, special importance is attached to the limited control of voters over the process of making economic decisions, as well as to the study of the goals of those who implement state policy. Thus, the bureaucracy, which is an integral part of both Korea and Taiwan, is also affected by macroeconomic factors.
Scholars examine the factor of macroeconomic uncertainty, i.e., a situation in which it is unknown how events will develop in the international arena. For example, the degree of price fluctuations or the amount of expected income act as uncertainty (Istiak, 2022). The risk is associated with an element of unknown that somehow affects the behavior of economic agents and the results of economic activity. The problem of risk is of particular importance in such areas of Singapore’s business activity as investing, insurance, and credit (Istiak, 2022). The macroeconomic situation, which cannot be assessed, complicates the choice of options and the behavior of business participants not only in Singapore, but also in other countries, including South Korea. In the articles, the behavior of the stock market is explained by macroeconomic and fundamental variables. Among them, scientists distinguish such factors as indices of leading stock exchanges in developed countries, aggregated earnings per share of companies included in the index, GDP, oil prices, etc. The authors managed to establish that the relationship between many financial indicators in Asian countries does not remain constant, but changes over time.
There are structural shifts in South Korea, acting as evidence that the market switches between several modes of operation from time to time (Keswani and Wadwha, 2018). This also means that when predicting cycles and selecting conditioning variables in financial modeling, more recent data should be used. Scientists have concluded that standard static models are inadequate for a reliable description of the dynamics of the South Korean market under the influence of macroeconomic factors. This is due to the fact that the model with structural shifts works well in the case of one-dimensional dependence. However, it is difficult to use it to model the multiple regression that occurs as a result of the impact of the Covid-19 pandemic.
According to the authors, there are three factors at the heart of any economic development: labor resources, created means of production and natural resources (Lai et al., 2018). Recently, under the influence of macroeconomics in Taiwan, the natural factor has become increasingly limited. This is due to the fact that the modern type of ecological and economic development of the state economy can be defined as a technogenic type of economic development. It is characterized by the rapid depletion of non-reproducible natural resources and overexploitation of reproducible ones at a rate exceeding the possibilities of their recovery (Lai et al., 2018). This type of economic development is characterized by significant externalities, or external macroeconomic effects. In nature management, they can be characterized as negative ecological and economic consequences of economic activity, which, unlike South Korea, are not taken into account in Taiwan.
Scholars share the results of studies to identify the stability of the demand for money in South Korea, depending on the macroeconomic situation. At the same time, the authors rely on a cointegration regression approach (Lee et al., 2019). Using stocks with stationary increments as a benchmark, and finding some linear combination of spreads that will be stationary, they get a cointegrated time series. It was revealed that the stock price in South Korea, considered as a time series, can change very significantly depending on macroeconomic factors.
Some articles are devoted to one of the unresolved issues concerning the inability to foresee the financial crisis and take measures to prevent it. The authors have alarmist sentiments, as they perceive economic shocks as a failure of macroeconomic models of the cycle and, accordingly, economic theory. Makin examines the crisis in South Korea from the point of view of the predictive potential of modern cycle theories and the possibility of using their analytical tools to form a post-crisis model of global economic development (Makin, 2019). Creating models of macroeconomic dynamics for the country’s economy, the actual macroeconomic dynamics of South Korea in Makin is determined by several types of shocks, and the events of recent years confirm these doubts (Makin, 2019). However, he comes to the conclusion that there is not and cannot be one model of a market economy capable of taking into account all the diversity of conditions of the countries of the world. The problem is not only and not even so much in the peculiarities of the domestic economic system, as in the fundamental complexity of the imposition of a developed macroeconomic theory on reality.
The authors of the papers argue that the peculiarity of any Asian market is the social component, which is influenced by macroeconomic factors. The financial market cannot exist separately from the processes of globalization: their relations are diverse. Macroeconomic actors in Asian stock markets can be both a lender and a borrower. They establish general rules for the functioning of the financial market and carry out day-to-day control over it, conduct official monetary policy and other economic measures through the market (Nasir et al., 2021). The state usually encourages and develops financial markets, since the sustainable functioning of the national economy largely depends on their condition. At the same time, the interference of macroeconomic factors in the affairs of the financial market worsens the economic situation in Vietnam and Asian countries in general.
State regulation of the construction industry in Singapore and Hong Kong is one of the management functions implemented at the macro level. This paper is devoted to the analysis of processes, trends and problems observed in the framework of state regulation of construction. They are preceded by a clear definition of the criteria by which macroeconomic aspects are identified. Scientists argue that the tools to ensure the balance of macro-aspect construction activities should be sought at the level of macroeconomic regulation, which reflects the territorial and corporate characteristics of construction. The attention of the authors is drawn to the fact that macroeconomic systems, including construction activities, in Singapore and Honk Kong, unlike South Korea, are characterized by indirect management methods (Pan et al., 2020). In relation to construction activity as a macroeconomic subsystem, the regulatory function is carried out by educational institutions, including international ones. However, at the same time, the leading role of the state in the person of the relevant institutions, which are the guarantor of public interests, is obvious.
The authors of the articles emphasizes that the key difference between bitcoin and the Taiwanese dollar is that it does not have a centralized authority that will issue money. That is, neither banks nor government agencies can influence the transactions made by the participants of the system. All organizational activity takes place collectively by network participants, no one participant has control over it (Yang, 2020). However, bitcoin still has some of the properties of traditional fiat money. It is particularly strongly influenced by macroeconomic policies in connection with its free movement between states.
Analysis & Discussion
As the global financial crisis related to the aftermath of the Covid-19 pandemic spreads around the world, there are more and more signs of an economic downturn in South Korea (Chen et al., 2018). The South Korean economy is facing a growing threat of recession due to a decline in consumer demand and export volumes in the context of the global economic crisis. Despite some easing of inflationary pressures, many economic indicators, including industrial production, domestic demand and exports, continue to deteriorate (Khoi et al., 2021). The Government of the Republic of Korea has unveiled a comprehensive plan to overcome the global financial crisis.
The plan includes a number of measures aimed at minimizing the negative consequences of the unfavorable situation in the global banking system, stock and currency markets. Among them are guarantees to domestic banks on foreign loans, support for the liquidity of the national currency and the US dollar (Cheng et al., 2018). The plan also includes measures to stabilize the stock market, support small and medium-sized businesses, as well as participation in international anti-crisis actions.
Due to the plan, the growth of foreign exchange reserves continues, which was the result of an increase in investment profits, as well as a decline in the dollar against other currencies. As a result, South Korea ranked 6th in the world in terms of foreign exchange reserves, behind Taiwan, but ahead of Singapore (Suh and Kim, 2018). The active efforts made by the Government of the Republic of Korea to overcome the crisis of dollar liquidity are successful and reduce the impact of macro-economic policy on the country’s economy.
Conclusion
The experience of the Republic of Korea may be very much in demand from the point of view of using the resources of large national companies, as well as creating the necessary infrastructure and management structure. In order for the macroeconomic development of South Korea to become stable, active and progressive, the government and the population of the country had to go through the breaking of the traditional system. In South Korea, it is easy to do business, open new jobs and implement various financial projects. As a result, the state’s economy is now among the twenty most promising economies in the world, and South Korea has turned into a highly developed Asian country that is attractive to investors from all over the world. Considering the macroeconomic indicators, it is clear that the growth of the Korean economy has resumed and positive dynamics is obvious, despite the conditions of instability of foreign markets.
Reference List
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