1. Analyzing the Essence of the Problem and Its Causes
In Mencius, Mencius told King Hui of Liang, “Why do you first speak of profit? There is only benevolence (仁) and righteousness (義).” (Mencius, King Hui of Liang, Part 1). This warns that policies prioritizing profit may be effective in the short term but can lead to an unstable society in the long run.
The difficulties in the Korean stock market can be explained by the following reasons:
- Profit-driven short-term economic policies: The focus has been on maintaining existing industries rather than innovating industrial structures, delaying economic restructuring.
- Lack of trust: Investors have lost confidence in the market due to inconsistent policies and issues related to corporate governance.
In contrast, the U.S. stock market has been investing in new technologies and industries, focusing on creating long-term value. This reflects the attitude of 格物致知 (Géwù zhìzhī, “To investigate things and attain knowledge”) mentioned in The Great Learning. The U.S. pursues sustainability based on technological innovation and trust.
2. Solutions According to the Four Books and Five Classics
(1) Restore Spiritual and Moral Foundations
In The Analects, it is taught, “One must establish the root, then the Way (道) will be realized” (Analects, Xue Er Chapter). This means that rather than focusing solely on short-term profits, building a foundation of trust and ethical management is essential in the economy and market.
Policy Proposals:
- Strengthen corporate transparency and introduce ESG (Environmental, Social, and Governance) management to restore investor confidence.
- Companies and the government must jointly fulfill their moral responsibilities to establish long-term stability.
(2) Maintain a Long-Term Perspective
In The Doctrine of the Mean, it is said, “If one wishes for peace in the world, they must first put their household in order, and to do so, they must first cultivate themselves” (修身齊家治國平天下). This implies that individuals, organizations, and nations must first address internal issues before achieving external growth in harmony.
Policy Proposals:
- The Korean market must establish a foundation for long-term growth by diversifying industries and promoting technological innovation.
- Expand investments in education and research & development while pioneering new markets such as green energy and the digital economy.
(3) Share Joy with the People
In The Book of Documents, it is stated, “One finds true joy when they share it with the people” (與民同樂). This means that policy decisions should prioritize the well-being of the people.
Policy Proposals:
- Improve financial systems to protect small investors and SMEs, ensuring a safe investment environment.
- Strengthen policies to reduce economic inequality and boost domestic consumption so that all citizens can benefit from economic growth.
3. Conclusion
The teachings of the Four Books and Five Classics provide insightful wisdom in addressing economic and market challenges. Korea must restore trust and ethics, establish a long-term and sustainable growth foundation, and build a society that shares prosperity with its people. This approach prioritizes long-term stability and harmony over short-term profit, bringing positive impacts not only to the economy but also to society as a whole.
