Chae Hopes to Affect Change for Koreans Through Assembly Position

Suchan Chae carries with him the experience of an economist and an underlying desire to help his countrymen in his new role as a member of South Korea’s legislature.

The Rice associate professor of economics was elected in April to a four-year term in the Korean National Assembly. Chae ran in the Jeonju Deokjin district as a member of the Uri Party, which gained control of the assembly by capturing 152 of its 299 seats. “Given my experience, I thought I could really have some impact and role in shaping the future of Korea,” he says. “This kind of opportunity does not come every day.”

But the opportunity did not just fall into his lap.

Chae, who has taught microeconomics, regulatory economics, and game theory to undergraduate and graduate students at Rice, has focused much of his research on the Korean economy and North Korean development. He has written numerous journal articles and spoken at conferences on the topic of North Korean development, and he also has written on that subject and on economic issues in columns, letters, and articles that have appeared in newspapers worldwide.

In addition, he has worked extensively with Korea’s top policymakers for several years. In 1997–98, Chae traveled to Korea to advise former South Korean president Kim Dae Jung and other top decisionmakers about the Asian economic crisis. In 2001, Kim invited Chae and Rice president Malcolm Gillis, who also provided counsel during the crisis, back to Korea to express his appreciation and hear their views on the economic outlook.

In 2003, Chae took a six-month leave from Rice to help the Korean government make the transition under its new president, Roh Moo Hyun. He was one of a three-member Korean delegation representing then president-elect Roh at the World Economic Forum in Davos, Switzerland, in January 2003, and he was a member of the Advisory Committee on Peaceful Unification of Korea from October 2001 to June 2003.

“Suchan is an outstanding expert on Korean economy and on North Korea,” says economics professor Joon Park. “Since the beginning of the financial crisis, Suchan has been advising, informally but actively, the Korean government on various economic issues. From this experience, he has obtained good working knowledge of the Korean economy and become well connected to the key players in Korean political circles.”

Chae’s enthusiasm in learning about North Korea’s economy makes him “one of the best qualified experts on North Korea,” adds Park. “He will be making superb contributions to the Korean National Assembly with his invaluable knowledge and experiences on Korean economy and North Korea, which are the two most important problems the nation faces now.”

The Uri Party has placed an emphasis on economic issues as well as on judicial and press reform. It supports rapprochement with North Korea and greater independence from the United States. The party was formed only a year and a half ago when it split from the Millennium Democratic Party, the then-ruling party that supported the impeachment of Roh for alleged illegal campaigning, incompetence, and economic mismanagement. Roh was reinstated in May and joined the Uri Party.

Chae describes Korea, which has the fourth-largest economy in Asia, as a country with a promising future that turned itself into a global economic powerhouse in recent decades after a period of poverty. He says that during Korea’s transition from an industrial-based economy to one that is knowledge-based, the country needs solid institutional reforms and groundwork to maintain its technology industry. Its leaders also need to prepare for demographic changes as the population continues to age, while still maintaining its low birth rate of 1.1 percent. Legal and institutional changes to the current welfare and health systems also may be necessary.

While running for office, Chae learned about the concerns of South Koreans as they discussed issues such as traffic, the environment, development, and salaries. “It was a good opportunity to get to know them,” he says. “It was a very moving experience. I hope I can do something for them.”

Chae, who earned his bachelor’s and master’s degree from South Korean universities and his PhD from the University of Pennsylvania, says he also wants to bridge the gap between the younger and older generations, whose backgrounds and upbringings vary widely. For instance, the older generation tends to take less for granted because they grew up during poor economic conditions and experienced the 1950–53 Korean War. They also played a role in restructuring and advancing the country to its current powerful industrial and trade status. However, the current generation grew up during a period of prosperity of Korea, giving them a different perspective than their more cautious and conservative elders.

Chae’s expertise on the economy and other issues certainly give him the potential to be an outstanding legislator. But Chae possesses the other ingredient necessary to reach that potential: The will to improve the future for Korea and its people.

—Ellen Chang