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South Korea has relied on its export-oriented development model to become an economic powerhouse, but has now reached the limits of this model. Indeed, Korea’s phenomenal growth has incubated the seeds of its own destruction. Learning from the Korean developmental experience, China has adopted key elements of the Korean development model and has become a potent competitor in electronics and the heavy industries. Meanwhile, the organizational and institutional legacies of late industrialization have constrained Korean efforts to move into technology entrepreneurship and the service sector. These strategic challenges are compounded by a demographic bomb, as social development has led to collapsing birthrates in Korea, much like other developed countries in Europe and Asia. Within the next few years, the Korean workforce will start diminishing in size and aging rapidly, straining the country’s resources and curtailing its growth. In this seminar, Joon Nak Choi, 2015-16 Koret Fellow at Stanford's Shorenstein Asia-Pacific Reserach Center, will discuss innovations in business strategy, educational policy and social structure that are directly relevant to these problems, and that would alleviate or perhaps even reverse Korea’s economic malaise.

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A Stanford graduate and sociologist by training, Choi is an assistant professor of management at the School of Business and Management, Hong Kong University of Science and Technology. His research and teaching areas include economic development, social networks, organizational theory, and global and transnational sociology, within the Korean context. He coauthored Global Talent: Skilled Labor as Social Capital in Korea (Stanford University Press, 2015).

This public event is made possible through the generous support of the Koret Foundation.

Shorenstein APARC
Encina Hall
Stanford University
Stanford, CA 94305-6055

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Joon Nak Choi is the 2015-2016 Koret Fellow in the Korea Program at Stanford University's Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). A sociologist by training, Choi is an assistant professor at Hong Kong University of Science and Technology. His research and teaching areas include economic development, social networks, organizational theory, and global and transnational sociology, within the Korean context.

Choi, a Stanford graduate, has worked jointly with professor Gi-Wook Shin to analyze the transnational bridges linking Asia and the United States. The research project explores how economic development links to foreign skilled workers and diaspora communities.

Most recently, Choi coauthored Global Talent: Skilled Labor as Social Capital in Korea with Shin, who is also the director of the Korea Program. From 2010-11, Choi developed the manuscript while he was a William Perry postdoctoral fellow at Shorenstein APARC.

During his fellowship, Choi will study the challenges of diversity in South Korea and teach a class for Stanford students. Choi’s research will buttress efforts to understand the shifting social and economic patterns in Korea, a now democratic nation seeking to join the ranks of the world’s most advanced countries.
 
Supported by the Koret Foundation, the Koret Fellowship brings leading professionals to Stanford to conduct research on contemporary Korean affairs with the broad aim of strengthening ties between the United States and Korea. The fellowship has expanded its focus to include social, cultural and educational issues in Korea, and aims to identify young promising scholars working on these areas.

 

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<i>2015-16 Koret Fellow, Shorenstein APARC, Stanford University</i>
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A recent review published in International Migration Review (IMR) lauded “Global Talent: Skilled Labor as Social Capital in Korea,” by Stanford professor Gi-Wook Shin and Joon Nak Choi. IMR reviewer Keumjae Park said the book makes an important contribution to the literature on foreign skilled workers and the problems that countries like South Korea face with demographic and economic change.

Park said the book “offers provocative policy questions” about how South Korea can encourage the development of social and cultural ties in its highly skilled labor markets, which in turn, support local and transnational markets through spread of information, innovation and trust.

Park also highlights the book’s approachability, saying it “offers theoretical lessons for general research” while it “invites attention of policy makers and business strategists.”

“Global Talent” is a part of Korea’s Global Talent, an ongoing research project at the Shorenstein Asia-Pacific Research Center. The project analyzes the potential benefits of transnational bridges between South Korea and the United States, and aims to provide insights that could be applied to other Asian countries.

Read the full review below and on the IMR website.

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A variety of media outlets have recently highlighted Stanford research efforts focused on the value of global talent and diversity policy in South Korea led by Professor Gi-Wook Shin, director of the Walter H. Shorenstein Asia-Pacific Research Center (APARC).

On Arirang, Shin discussed why South Korea should seek to recruit and retain foreign skilled workers in a moderated conversation with Rennie Moon, an assistant professor at Yonsei University. Together, the scholars work on a research project that examines diversity programs and policies of universities and companies in South Korea.

Shin and Moon wrote an editorial for Conversation UK that recognizes Korea’s failure to embrace diversity and says the country’s ethnic nationalism is largely to blame. They call upon Korean universities and the government to work closely together to tackle diversity issues. A similar message was relayed in a Q&A conducted by Shorenstein APARC and on a podcast episode recorded for "Korea and the World." Shin and Moon also wrote an editorial for the East Asia Forum that broadens the analysis to include the challenges of attracting foreign talent across Northeast Asia. 

Shin also told Maeil Shinmun that South Korea needs concrete and strategic policies to compete globally in its recruitment of foreign skilled workers. One of his policy suggestions is to offer a 2-year visa period for foreign college graduates to encourage them to work and stay in South Korea.

Dong-a Ilbo also covered an event where Shin presented findings from his co-authored publication, Global Talent: Skilled Labor as Social Capital. He said South Korea must embrace the value of social capital and diasporas as seen in the United States example, or else the country risks losing global competitiveness. Shin leads a research project on this topic with Joon Nak Choi, 2015-16 Koret Fellow at Shorenstein APARC and an assistant professor at Hong Kong University of Science and Technology. An earlier Nikkei Asian Review editorial highlights some of their studies.

Related links will be added to this news item as they arrive.

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The 8th Annual Koret Workshop

South Korea has become an economic powerhouse, but faces multiple challenges. The conference will focus on four areas that South Korea needs to turn its attention to: 1) the higher education and development; 2) entrepreneurship and innovation; 3) global competitiveness; and 4) demographic changes and immigration policy.

During the conference, a keynote speech is open to the public. Please click here for more information about the public keynote.

The Koret Workshop is made possible through the generous support of the Koret Foundation.

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Two key challenges facing Northeast Asia are how to tame the power of nationalism and create shared memories of history, Stanford professor Gi-Wook Shin wrote in The Diplomat

Shin, director of the Shorenstein Asia-Pacific Research Center (APARC), urged action on the 70th anniversary of the end of World War II. Northeast Asians should use the commemoration as an “opportune occasion to reflect on their unfortunate past to learn lessons,” only then can the region become more peaceful and prosperous.

Shin and Daniel Sneider, Shorenstein APARC’s associate director for research, lead the Divided Memories and Reconciliation research project which examines memories of the wartime experience in Northeast Asia and what steps can be taken to reconcile disputes over history.

One of their latest outcomes is the book Confronting Memories of World War II: European and Asian Legacies (April 2015), edited with University of Washington professor Daniel Chirot, that studies how wartime narratives are interpreted, memorialized and used in Europe and Asia.

The full article in The Diplomat can be accessed by clicking here.

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Thirty U.S. secondary school teachers, representing 11 states and multiple subject areas, came to Stanford for a three-day professional development conference that seeks to help teachers better incorporate Korean studies in the classroom.

Korea is arguably one of the most stable democracies in the world and its economic model often praised. Yet Korea-focused curriculum in the United States rarely covers much outside of the Korean War context, leaving a potential gap in students’ understanding of the Pacific nation. The Hana–Stanford Conference on Korea seeks to change that reality.

In its fourth year, the conference offers a venue for specialists on Korea to share knowledge with secondary school educators and creates an opportunity for educators to form a cross-cultural professional network toward the vision of enhancing their curriculum with Korean studies. 

For three days, scholars from Stanford and peer institutions taught the U.S. teachers about Korean history, economy, culture and the nation's regional and global relations. Speakers included economist Yong Lee and career diplomat David Straub, both scholars at the Walter H. Shorenstein Asia-Pacific Research Center (APARC), as well as Middlebury professor Rachael Miyung Joo, also a Stanford alum. Teachers and students from Hana Academy Seoul, a private high school in Korea, also shared perspectives with the American teachers. The full agenda is viewable here.

Supported by the Hana Financial Group, the conference is organized by Shorenstein APARC and the Stanford Program on International and Cross-Cultural Education (SPICE), a program that makes globally focused Stanford research accessible to K–12 grade levels.

SPICE’s Jonas Edman and Rylan Sekiguchi followed the lectures with curriculum demonstrations. Each teacher left the conference with a set of comprehensive lesson plans and strategies for putting the curriculum into practice.

Shorenstein APARC caught up with a few of the teachers (pictured below from right to left): Anne Schaefer from San Jose Middle School (Novato, CA), Orah Bilmes from Alvarez High School (Providence, RI), and Jeffrey Scharfen and Graham Rutherford from Cardinal Newman High School (Santa Rosa, CA). An abridged version of the conversation is below.

What has surprised you about Korea?

Anne: The process it took for Korea to have such strong economic growth—so quickly—and to understand all of the components that led to that growth really surprised me. Moving from an autocratic regime through many stages to where it is today, and the interesting role that education played in its development. Education really became a motivating factor for everybody. I found that a very unique, complex phenomenon.

Jeffrey: Hearing from scholars from both Korea and the United States about the Korean experience has given me a better sense of history. For instance, the Korean-American experience in Los Angeles during the 1992 Rodney King riots. I remember being there during those riots. For me, they were defining moments, but on the other hand, I never truly had a sense of the powerful impact it had on the Korean community.

What Korean cultural themes can U.S. students most relate to? Do your students consume Korean culture?

Orah: I teach many students from the Dominican Republic. One of the presentations gave me ideas for putting together activities for students to compare baseball in the Dominican Republic with baseball in Korea. When comparing cultures, starting with something that’s accessible allows students to develop the vocabulary needed to jump into higher-level discussions.

Jeffrey: My students are very connected to Korean pop themes. My own awareness actually comes from my own children and a student that I’ve taught who was adopted from Korea. For that student, Korean pop culture gave her a sense of identity and her interests emanated, so there was a multiplying factor and her friends became interested too.

Kimchi…you learned how to make the dish and sampled it, too. How’d it go?

Graham: I enjoyed watching and seeing how kimchi is made. It’s more than a name, it has this place in society. I’ve had kimchi before but it was neat to see and hear about its background. The variety of styles was surprising. And it was really good with rice.

Jeffrey: I love kimchi. I think I was first introduced to kimchi in 1973 and I’ve been eating it regularly since then. It’s one of those culinary pleasures that breaks down barriers and gives you an entrée into other relationships. In a way, it’s a kind of diplomacy.

Anne: The culture of kimchi as a family thing – having one’s own set of tastes and different ingredients depending on family history was fun to learn about. The conference made apparent that culinary history is important and creates an understanding of a culture.

What’s one lesson from the conference you’d share with other teachers?

Orah: I teach many immigrant and refugee students. For some, they left behind very poor countries. The information on Korea’s economic policies and history has my head spinning to have students try to “apply” the Korean economic approach to their home countries, analyze its strengths and weaknesses, and decide if one country’s approach can also work for another.

Anne: One of the tangential themes was that, despite all the talk of globalization, culture continues to exist in Korea and other countries. The Internet connects everyone, but I go to “this place” and it’s still “this place.” Culture—and the fact that we can still retain it even in today’s globalized world—is truly beautiful.

Graham: I try to get my students to not just look back at the problems they are studying but to also put themselves back into the time period—to realize that the decisions made then have to be understood in that moment in time. North Korea can be examined through that lens. And while it’s easy to look back and see the problems, it’s also worth encouraging students to look ahead and consider how the Korean divide could be solved.

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Japan has been actively pursuing internationalization of its higher education, and recruiting foreign students has been a major part of this endeavor. In 1983, Japan announced its plan to recruit 100,000 foreign students by the year 2000, and in 2008 instituted a plan to recruit 300,000 foreign students by 2020. Subsequent government-led projects such as the Global 30 (2009-2014) and the Top Global University (2014-2023) projects have also stipulated international student recruitment as a major requirement.

As a result, the number of foreign students in Japanese universities has increased significantly from 10,428 in 1983 to 139,185 in 2014. Likewise, foreign faculty numbers have grown from just 418 (0.8% of total faculty) in 1994 to 6,034 (6.8%) in 2014. Although the figures are still relatively low compared with those in Europe and North America, they bring a potentially powerful force for social change to a country marked by high ethnic homogeneity.

In particular, the influx of foreign students and faculty to Japanese universities creates more culturally diverse campuses, often cited as a desirable result of and a key motive for pursuing internationalization. In the U.S. and Europe, such changes have led to significant discursive and programmatic efforts to create a culture of respect for diversity and inclusion. For example, Europe has, despite its critics, consistently articulated the value of "interculturality," diversity, and respect for cultural differences as a broader discourse for European higher education.

However, this is not the case with Japan and most other Asian nations. One major reason is that Japanese universities primarily attract foreign students as a means to particular ends, such as enhancing university prestige, creating "education hubs," filling the gap in the declining college student population and improving international higher education rankings. As a result, Japanese campuses have become much more diverse than in the past. However, appreciation of the intrinsic educational value of a culturally diverse student and faculty body has not been embraced.

Our study shows a noticeable disjuncture between structural, educational and interpersonal levels of diversity. That is, Japanese universities have accepted more and more students of varying racial and ethnic backgrounds (structural diversity), but the curriculum still offers limited opportunities for students to think more deeply about assumptions concerning race, ethnicity and other individual/group differences (educational diversity).

In particular, our interviews with more than 50 students at top Japanese institutions, including the University of Tokyo, Waseda University and Kyushu University, reveal low levels of cross-cultural interaction between Japanese and foreign students (interpersonal diversity). Foreign students often report that Japanese students are very friendly and polite to them but nonetheless find it very difficult to become friends with them. One male undergraduate student from Nepal we interviewed said, "Japanese students are very nice. If I need help finding a building on campus, for example, I can just stop any Japanese student and they will be very polite and try to help me." Another student from Sri Lanka agreed, saying, "Everybody is very polite. I mean, sometimes they are overwhelmingly polite."
 

However, despite the politeness of the Japanese, many of the respondents indicated that making friends with Japanese students is difficult, with some pointing this out to be "the hardest part about being in Japan." One foreign student seemed puzzled: "Making real friends is hard. But I don't know why." One South Korean student we interviewed provided a clue: "People here are very individualistic and very independent, I think. In my laboratory, I will be the one who will approach my lab mates, especially the Japanese. They are very helpful but I have to be the one who starts the conversation."

The Japanese government and universities have worked closely to attract foreign students but due to the lack of interpersonal interaction between Japanese and foreign students, Japan is missing out on crucial opportunities in its higher education internationalization efforts.

First, international students gain many opportunities to interact with each other and learn intercultural skills for global citizenship while Japanese students much less so. As one foreign student said, "It's a very diverse environment because we all come from different countries. We can communicate different ways of thinking and share different ideas." Yet, most Japanese students are hesitant to interact with foreign students, missing the chance to learn intercultural skills. As the number of young Japanese going abroad to study has been on the decline in recent years (82,945 in 2004 to 60,138 in 2012), the contribution of foreign students to global education in Japanese colleges will be all the more important.

Second, diversity is instrumental in promoting innovation, and Japan should take advantage of the diversity that foreign students bring to its society. Much research demonstrates the positive effects of diversity on various academic and social outcomes (ability to form out-group friendship networks, increased cultural awareness, acquiring global citizenship skills, improving the campus climate, innovation, etc.). Facilitating diversity and recognizing their long-term effects for innovation and development should be a major goal of higher education in Japan.

Finally, foreign students can be valuable social capital for Japan, especially playing the role of transnational bridges between Japan and their home countries. Many come to Japan to learn about Japanese society and economy, with plans to become a bridge between Japan and their home countries after graduation. However, due to the lack of interpersonal interaction with Japanese students, foreign students often end up interacting primarily among themselves. Thus, they are also likely to bridge among themselves, rather than with Japanese, and that is a loss, given that Japan has invested so much in attracting foreign students.

Japan wants to make its top universities "super global," but they should first realize that this requires more than simply recruiting foreigners. What is most urgent is producing "global citizens" with inter-cultural skills and that can be achieved through the creation of a campus environment and culture that appreciates and respects diversity. It should also better appreciate the value of foreign students as transnational bridges with Japan.

To achieve such goals, Japanese universities need to establish institutional frameworks or programs to promote interaction between Japanese and foreign students. For example, they should offer more courses that both Japanese and foreign students can take together. Rather than just focusing on teaching Japanese languages and cultures to foreign students, Japanese students should be encouraged to take more courses in English and also those on other cultures and societies, ideally together with foreign students. These courses can instill values of cultural diversity in higher education in Japan. Japanese universities also need to ensure that structural segregation, either between programs, courses, dormitories and campuses, isn't an obstacle for promoting greater interaction between foreign and local students.

Our focus group interviews with Japanese students show that foreign and Japanese students misunderstand each other to a great extent. Foreign students are disappointed that not many Japanese are willing to approach them, but Japanese students are afraid to inconvenience their foreign visitors with their "poor" English. Foreign students are tired from guessing what their Japanese counterparts really feel and think, or their honne, but Japanese students think it is impolite to be too frank and direct even with other Japanese, let alone towards foreign students. To reduce these and other misgivings and gaps in cultural understanding, Japanese universities need to put in place more cross-cultural programs and opportunities for both sides to come into natural contact.

In short, internationalization efforts by Japanese universities should not stop at recruiting foreigners to their campuses. Rather, fostering a tolerant, inclusive university culture where foreigners are considered full, valued members should be considered an important step toward making Japanese universities truly international.

Stanford professor Gi-Wook Shin and Yonsei University professor Rennie J. Moon lead the research project, Diversity and Tolerance in Korea and Asia. This Nikkei Asian Review article was originally carried on July 16 and reposted with permission.

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This week the World Education Forum convenes in Incheon, South Korea. Drawing leaders from UNESCO member states and heads of international organizations and NGOs, the 4-day gathering will examine global education priorities and discuss a framework for action and implementation of shared goals and targets.

The Forum, which last met in Dakar in 2000, will explore five major themes: equity, inclusion, quality education and lifelong learning, and also set out an agenda on global citizenship education—how to cultivate in youth the attitudes, values and skills needed in today’s world.

As the Forum approaches, the Walter H. Shorenstein Asia-Pacific Research Center asked Stanford professor Gi-Wook Shin to offer his perspectives on global education and his vision for South Korea. He is Korean and an expert on South Korea’s higher-education system, politics and society. He also advises some universities in Asia such as the Center for Asia-Pacific Future Studies at Kyushu University in Japan.

Shin leads two multi-year research projects—one focused on diversity and tolerance in Asia, and another on global social capital, delving into the linkages between innovation, economic globalization and diaspora communities. He recently published key findings in Global Talent with coauthor Joon Nak Choi, a Stanford graduate now professor at Hong Kong University of Science and Technology.

Education has played an important role in the social and economic development of South Korea. Can you explain?

Over the past fifty years, South Korea has gone from being one of the least developed countries to one of the most developed—an “economic miracle,” as it is often referred. The country rose from periods of wartime, poverty and social unrest to become a stable high-income developed country, all in an incredibly short time span. Education has played a substantial role in South Korea’s emergence. Nearly 70 percent of Koreans between the ages of 25 and 34 years of age hold an equivalent of a bachelors degree. This is the highest ranking in all Organization for Economic Co-operation and Development (OECD) countries. Investment in its own people, as well as areas of technology and the sciences, catapulted South Korea toward such success. Its education system is lauded globally. President Obama has referred to its system on multiple occasions, saying the respect and level of support given to teachers there helps to empower student learning. Teaching is a very highly respected profession in South Korea.

In pursuit of the “creative economy,” South Korea has sought to capitalize on the knowledge value of its population. How does diversity fit into this context?

South Korea, like many advanced nations, is driving toward a “creative economy,” a policy objective that President Park Geun-hye set out in Feb. 2013. It’s a strategy to move South Korea away from its manufacturing past toward a future of a service-oriented economy. The latter requires greater creative thinking, and human and social capital are necessary ingredients in that process. Many people look to Silicon Valley as a model of success, a place that continues to harness ideas and investment in those ideas. As I say, there is one known “secret” that has contributed to Silicon Valley’s success, and that’s cultural diversity. In fact Japanese Prime Minister Shinzo Abe visited Stanford recently on his state visit to the United States in a bid to underscore his commitment to building a creative economy in Japan. He convened with leaders of major technology firms like Apple and Twitter, and one of the main messages shared with Abe was the scale to which immigrants contributed to the workforce here. So, South Korea, like many Asian nations, would benefit from recognizing the connection between diversity and the economy, and take it one step further and actively encourage a society who accepts foreigners—this, of course, comes with inherent hurdles in any ethnically homogeneous country like South Korea.

How can a society cultivate globally responsible citizens?

Shifting a society to truly respect and value diversity can be an especially difficult task for countries steeped in nationalism and traditional values. In the case of South Korea, policies supporting values of diversity are just starting to appear, but full social integration of minorities remains a distant future. If the government acts to support diversity over the long-term, though, hopefully change is in the closer future. The challenge is for South Korea to strike the right balance between embracing the nation’s historical legacy, while also recognizing what it means to be a “global citizen” in today’s world. I’ve been working with Rennie Moon, a professor at Yonsei University, on this research question. Teachers play a definitive role in the development of students. Providing curriculum that is balanced is an important factor. This means teaching materials—from textbooks to videos—must provide a neutral stance, or even better, show information in a comparative perspective. Teachers themselves must also commit to being facilitators. Encouraging pride in one’s own country, while also showing respect and value toward others’ is a key message that teachers can help reinforce.

Why do foreign students in Korea matter? And, what role can Korean students have when abroad?

Foreign students in Korea represent a positive-sum game. For one, foreign students diversify Korea, and also help fill the national labor shortfall. In my study with Choi, we found that three groups of students prove to be more beneficial to Korean society. “Focused instrumentalists,” students who are pursuing advanced degrees in technical subjects, “focused Koreaphiles,” students who view Korea as special but focus mainly on their studies, and “youthful Koreaphiles,” students who view Korea as special but focus mainly on exploring their social environments. Instrumentalists grow an affinity to Korea by likely working for a firm in Korea upon graduation. Someone who is a Koreaphile will show affinity for Korea because of an admiration for pop culture and other aspects of Korean society—K-pop, hallyu, Korean dramas and so forth.

Increasingly, Korean students are choosing to study abroad. Just over 123,000 Korean students pursued an undergraduate degree abroad in year 2011; 29% of whom studied in the United States. We see chogi yuhak, a trend of Koreans sending their children overseas to avoid the secondary education system, which is often cited for its rigor and stressful entrance exams. Yet, even if Korean students do not return home, they still have an opportunity to contribute back to South Korea. They form a global network and serve as “transnational bridges” between South Korea and their host countries. As a result, information, innovation and other opportunities bounce between and among people on both sides. This same lesson could be applied to any country really.

What policy implications will transnational bridges have in South Korea?

The affects on policy are largely two-fold. First, South Korean universities, companies and the government must seek to promote values of diversity. The Korean government has taken steps to recognize the strategic value of recruiting foreigners. But, the push isn’t big enough yet. For example, we hosted former Seoul National University President Yeon-Cheon Oh as a visiting fellow this year. He voiced that while Korean universities are orienting some of their policies toward ‘internationalization,’ they still aren’t totally committed to the idea. Better support systems should be developed for foreign students, and tenure should be more accessible to foreign faculty members. Second, for Koreans overseas, diaspora networks could be strengthened. About 10 percent of all ethnic Koreans live outside the Korean Peninsula. Creating codified social and cultural forums for diasporans will help instill a sense of the homeland, so that they want to stay engaged.

Are aspects of South Korea’s model translatable in neighboring countries in Asia and elsewhere?

The Korean model is relevant in other developed, nonimmigrant societies. Different from settler societies like the United States or Canada, for instance, who have heterogeneous populations. Germany and Japan provide the closest comparison study; both their national identities are based on shared ethnicity. Japan has in many ways successfully leveraged its diaspora. Ethnic Japanese who left have been recruited back, and foreign unskilled workers, particularly from Asia, infuse the labor market. A large number of foreign students study in Japan. Germany also sees an substantial amount of foreign students each year. Japan now allows students to stay up to one year to search for a job after graduation, and in Germany, the same for six months. But both countries have trouble retaining graduates. Applying the case of South Korea, seeking benefits from transnational bridges could also benefit both societies. Assimilation of diasporans—like ethnic Koreans in Japan and Turkish people in Germany—should be a long-term goal.

Gi-Wook Shin wrote in Nikkei Asian Review about aspects of Silicon Valley that Asian countries should consider adopting to emulate its success, and how foreign skilled workers can provide social capital. He also contributed a post to Stanford University Press blog about steps South Korea could take to counter the "brain drain" phenomenon. Later, Shin and Rennie Moon wrote a piece for The Conversation, expanding upon the challenges that foreign faculty and students face in South Korea and other Asian nations.

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This paper examines how education policy generates residential sorting and changes residential land price inequality within a city. In 1974, Seoul shifted away from an exam based high school admission system, created high school districts and randomly allocated students to schools within each district. Furthermore, the city government relocated South Korea’s then most prestigious high school from the city center to the city periphery in order to reduce central city congestion. I examine how residential land prices change across school districts using a first differenced boundary discontinuity design. By focusing on the immediate years before and after the creation of school districts and using general functional forms in distance, I find that residential land prices increase by about 13% points more on average and by about 26% points across boundaries in the better school district. Furthermore, there is evidence of dynamic sorting whereby the increase in neighborhood income attracts other high schools to relocate in the following years.

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