[Opinion] The Ukraine Crisis and Economic Security Should Be Reflected in Government Organizational Restructuring

Kim Tae-gi, Executive Committee Chair of the Job Solidarity (former Professor of Economics at Dankook University)

Throughout human history, wars have changed the fate of nations and the international order. The decisive turning point that led South Korea and North Korea to take different paths was the Korean War. North Korea, backed by the Soviet Union and China, launched an invasion with overwhelmingly superior military power but failed, becoming a poor and isolated state.

Russia's invasion of Ukraine is unfolding in a similar pattern. Russia is the world's second-largest military power, but a month after the invasion, Ukrainian forces have been making counteroffensive gains in various areas. On the other hand, Russia, as an authoritarian state waging a war without moral legitimacy, is experiencing a severe imbalance between its soft power and hard power.

Russia's invasion and Ukraine's resistance are subjects of study. The nature of this war is new, and it has significant implications for changes in the Northeast Asian order. Because Russia is an authoritarian regime, the information necessary for the decision to invade was either inadequate or distorted. Moreover, after the invasion, Russia's military deployments and movements were detected by U.S. intelligence networks and provided to Ukraine. The information was supplied not only by the U.S. government but also by private companies such as Tesla, which owns commercial satellites, and civic groups with internet technology. Meanwhile, the morale of Russian soldiers deteriorated to the point where they struggled to engage in combat due to a lack of supplies. By focusing on strengthening military power and relying on natural resource production for the civilian economy, Russia's capacity to produce supplies was far weaker than expected.

In fact, before this war, there was a strong voice within Ukraine advocating for peace by accommodating Russia. Due to the rise of pro-Russian forces, reforms to strengthen national defense and economic power were sluggish, and the people were divided. However, when faced with the existential crisis of the nation and democracy, Ukrainian citizens united and resisted fiercely beyond anyone's expectations. This led the U.S. and European countries to shift toward actively supporting Ukraine, enabling successful counterattacks against Russia. Germany, which had enjoyed peace by free-riding, began rearming and providing weapons, and Poland, despite its previously poor relations with Ukraine, took the lead in helping Ukraine out of a shared plight.

After the Ukraine crisis, the international order is changing with an emphasis on strengthening economic security and expanding U.S. influence. Economic security depends not only on economic power but also on the unity of people who share democratic values. Europe has already moved swiftly to strengthen military and economic cooperation with the U.S. It is reducing its reliance on Russian natural gas, diversifying import sources, abandoning nuclear phase-out policies, and enhancing the development of alternative energies such as wind power. China has also shifted toward distancing itself from Russia. Although Russia requested support, the risk of an economic crisis has increased due to excessive public debt and U.S. containment. In contrast, South Korea lacks reflection on changes in the international order and economic security. During the presidential election period, there was even a candidate who claimed that Russia's invasion was provoked by Ukraine.

President-elect Yoon Suk-yeol seems to recognize the significance of the Ukraine crisis. He appears to be reorganizing the government to restore the damaged South Korea-U.S. alliance and transfer trade functions to the Ministry of Foreign Affairs. However, this alone is insufficient. Economic security needs to be embedded throughout policy, and each ministry's economic security capabilities must be assessed. Like the U.S., the relationship between industry and defense should be closely integrated. Furthermore, by establishing the rule of law, the core foundation of democracy that has been damaged, public trust in society and government should be enhanced, and cooperation among political parties, academia, industry, research, and labor-management relations must be strengthened.

Kim Tae-gi, Executive Director of the Job Solidarity (Former Professor of Economics, Dankook University)

This content was produced with the assistance of AI translation services.