By Bloomberg Editorial
Now that a court has ousted her from office, former South Korean President Park Geun-hye’s troubles are only beginning: She could face indictment on charges of bribery and abuse of power. Koreans, however, need to move beyond this lurid scandal.
Months of uncertainty over Park’s fate have paralyzed her nation at a critical moment. Koreans have been riveted by accusations that she conspired with a mysterious confidante to extract millions of dollars in bribes from Samsung Group and other major conglomerates, and prosecutors have levied charges against dozens of people in relation to the case, including Samsung heir Jay Y. Lee.
Meanwhile, China has launched a campaign to squeeze South Korean businesses in retaliation for the government’s decision to deploy a powerful US-built missile defense system on its territory. Even as the new US administration has reaffirmed its commitment to South Korea’s defense, it has criticized the bilateral free-trade agreement between them. And the risk of conflict with North Korea has grown as Kim Jong Un’s regime races toward its goal of deploying a nuclear-tipped intercontinental ballistic missile capable of reaching the US mainland.
Longstanding economic challenges are also becoming more difficult. At a time of slowing trade and rising protectionism, South Korea remains dangerously reliant on exports, which account for nearly half of GDP. Household debt has soared to more than $1 trillion, and there are fears of a housing bubble.
Park’s downfall has at least spurred efforts to dismantle the cozy ties between government and big business in South Korea. Lee’s arrest alone won’t ensure change. But the legislature has begun to debate serious reforms to reduce the conglomerates’ stranglehold on the Korean economy. These should be passed quickly, along with measures to support small and medium-sized businesses, which have traditionally struggled for access to capital and talent.
Finally, South Korea would benefit from a serious, open debate about its policy toward North Korea. There’s nothing inherently wrong with contemplating a different approach, given that sanctions alone haven’t induced a change in Kim’s behavior; indeed, negotiations between the US and his regime are probably inevitable. But talks will be more likely to work if the next South Korean government coordinates policy, strengthens defenses and shares intelligence closely with the US and Japan, so that both China and North Korea realize the allies cannot be played off against one another.
New elections must be held within 60 days. While reforms to check South Korea’s expansive presidential powers are necessary, the campaign shouldn’t become a referendum on Park, whose alleged misdeeds should be addressed in the courts. Instead, Koreans need a real debate about not only their economy but also their place in the region and the world.
