Korea cannot dismiss the despair of French youth
France's economic strain and anger among the youth at its entrenched system should serve as a clear warning for Korea to diversify growth, create jobs and make housing more affordable.
Despair and anger among French youth have spilled onto the streets. On Saturday, some 550,000 people joined protests at 110 locations nationwide, with arson and looting reported in some areas.
The unrest reflects a crisis long in the making. France's national debt is approaching 119 percent of GDP, while roughly one-third of its education budget goes toward pensions for retired public employees. Political resistance has stalled reforms, and deteriorating educational conditions, including teacher shortages, have fueled public frustration. Higher taxes offer little relief, with the tax burden already reaching 44 percent of GDP. France's problems have become a chronic illness whose causes are known but whose treatment remains elusive.
The underlying problem is weakening economic growth. France's growth forecast for this year remains below 1 percent. Successive governments postponed structural reforms while expanding public spending. Even luxury goods sales, once supported by Chinese demand, have weakened. The situation recalls southern Europe's fiscal crisis in 2010, when generous welfare spending outpaced industrial competitiveness. Germany, Europe's economic powerhouse, is also closing automobile factories amid growing competition from Chinese electric vehicles. Western Europe's longstanding reliance on Chinese markets, inexpensive Russian energy and American security guarantees is increasingly proving unsustainable.
Can Korea confidently claim to be different? The International Monetary Fund recently raised its growth forecast for Korea this year to 3.3 percent. Exports are setting records, and per capita national income is approaching $40,000. Yet this prosperity rests disproportionately on semiconductors. Behind impressive economic indicators, young Koreans struggle even to enter the work force. Youth employment declined for 47 consecutive months through September. Soaring housing prices have made homeownership increasingly unattainable, while monthly rents and lump-sum lease deposits impose growing burdens.
France's predicament should serve as a warning. Korea's government is pursuing expansionary fiscal policies, relying on semiconductor-related tax revenues and even drawing on funds intended to prepare for future challenges. Meanwhile, warnings about a possible AI bubble are multiplying. If the semiconductor boom falters, economic growth and government revenues could weaken simultaneously.
The lesson is not that governments should abandon public spending, but that spending must strengthen long-term economic resilience. Korea needs investment that improves industrial competitiveness, diversifies its growth engines and creates meaningful employment opportunities for younger generations. Fiscal resources should support innovation and sustainable growth rather than merely postpone difficult structural decisions.
France shows what happens when economic weaknesses deepen while politics blocks reform. Korea can still act before similar pressures take hold. Its achievements will mean little without jobs, affordable housing and opportunity for young people.
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