Speech At the Korea Night Reception
by  H.E. Dr. Han Seung-soo
Prime Minister of the Republic of Korea
Schatzalp Hotel, Davos
29 January 2009

Chairman Cho,
Excellencies,
Distinguished Guests, 
Ladies and Gentlemen

Thank you, Mr. Chairman, for the very warm introduction. It is a real pleasure to address and welcome all of you on this very special occasion―Korea Night at Davos.

We are gathered here today at a remarkable turning point in world history. This year's theme for the World Economic Forum is aptly entitled "Shaping the Post-Crisis World" although it's a misnomer since the world continues to be in the midst of cascading crises.

The global financial crisis and on-going security challenges in Iraq and Afghanistan, the Middle East, and other regions attests to an era that is perhaps without historical parallel. I am referring to a phenomenon that can be best described as an international system in a state of constant crises.
Our generation is not, quite obviously, unique in confronting various crises but the combined magnitude is without historical reference. The on-going global economic crisis is shaped by a force of unprecedented global networks, or globalization. This implies that no issue is intrinsically domestic or national any more. Every single issue which we confront today is constantly affected by changes that are occurring well beyond our nominal controls and national boundaries.

In non-economic areas, the proliferation of Weapons of Mass Destruction (WMD), the spreading of catastrophic terrorist networks, the cascading specter of failed states, and worsening energy security are issues that cannot be addressed by national means and strategies alone. They go beyond the scope of any one nation on earth.

How we are going to overcome a world in the throes of unprecedented crises is something which can't be decided here at Davos or any other global forum.

But as I pondered over this very question, I came to realize that our ability to change―fundamentally and across the board―lies at the heart of our collective solution.

In this respect, the second G20 summit on financial markets and world economy to be held in London on April 2nd is very crucial and as a member of the G20 troika, Korea will do its best to produce tangible and credible results.

If we perceive the current global crisis as a unique opportunity for omni-directional reforms, and unparalleled partnerships between the developed and emerging economies as well as between public and private sectors, I am sure that we will be able to overcome colluding crises.

Seen from such a perspective, I feel that I can share some highlights from the Korean experience. All of you are familiar with Korea's "Horatio Alger, Jr." story from rags to riches in one generation. Our leading companies are no longer intrinsically Korean. They all serve global customers and are open to foreign investors.

What is less well known, however, is the fact that very few countries on the planet have been and continue to be tested by constant crises and very exemplarily, Korea has been quite successful in wrestling with them.

60 years ago, Korea was just liberated from brutal colonial rule only to find itself in a fratricidal war instigated by North Korea. With virtually no natural resources, no foreign investments, no technologies, and a non-existent export economy, Korea turned around to emerge as a near 1 trillion dollar economic power and the 13th largest economy and 11th largest trading nation in the world.

From endemic poverty, omnipresent security threats and challenges to national partition, and to the fact that it was surrounded by the world's strongest powers, I cannot think of a less hospitable environment in which to succeed.

Looking back, I am sure that many of my fellow Koreans as well as our foreign friends will agree that four key factors contributed to Korea's postwar trajectory:

- An unprecedented thirst for knowledge and education at all sectors of society;
- A "Can Do Spirit" where failure was not an option and when solutions were created if none existed;
-That "Smart Power" can only really be fully realized on the basis of accumulating "Hard Power" attributes;
-An abidingly globalized foreign outlook in combination with a comprehensive security partnership with the United States and other key allies;
And at the heart Korea's evolution over the past four decades was the realization that without constantly changing, adapting, transforming and modernizing our system, we simply could not catch up with the advanced economies―much less cope with other outstanding challenges.

Now faced with the challenge of climate change on which the future of humanity so critically depends, we decided to commit to a fundamentally different economic and growth paradigm that has been encapsulated in our new national vision of "Low Carbon, Green Growth" which was proclaimed by President Lee Myung-bak on the occasion of the 60th anniversary of the founding of the Republic of Korea on August 15th 2008.

Based on this national vision, Korea embarked on the 'Green New Deal' policy early in January with public spending of 50 trillion won, roughly 40 billion US dollars. The Project is an amalgam of long-term 'green growth' and short-term 'new deal.' The project will help us create a low-carbon society and at the same time, help us revive the economy by creating 900,000 new jobs over the next four years.

Ladies and Gentlemen,

Very few economies are going to come out smelling like roses any time soon but I remain convinced that new opportunities are being created in sectors and areas which we didn't know even existed at this very moment.

Tremendous sacrifices are inevitable but in the end, I am hopeful that we can collectively overcome our common and unfolding crises. This is perhaps one of the key lessons of Korea's own historical journey over the past several decades and the main reasons why I remain optimistic about "Shaping the Post-Crisis World."

This is also why Korea will steadfastly remain as an attractive market and investment destination to our foreign friends for many years to come.

Thank you.