Duc, sequere, aut de via decede!

Construction site restaurants, corruption and the recession

October 6th, 2011 . by Errol


Joongang Ilbo is touting the “low prices and tasty food” (forgive the Konglish) of construction site restaurants.

What does this have to do with corruption?

“Chang Soo-man, one of President Lee Myung-bak’s close associates, former Defense Acquisition Program Administration (DAPA) commissioner was imprisoned for four years for his involvement in improprieties connected with a construction site restaurant.”

Copyright ⓒ NEWSIS.COM, 2011-08-08

What does this have to do with the recession? The ROK rebounded quickly from previous recessions, as the desire to maintain chaemyeon meant ajeossi kept splashing cash on meals and entertainment. Restaurant and entertainment facilities owners then recycled the monies back into the wider economy.

Construction site restaurants, however, are often granted a monopoly licence. The narrowing of ownership means the wider economy receives less beneficial effects. For example, instead of a waitress spending the money on college tuition, the construction site franchise owner spends the money on overseas trips and fancy, foreign handbags.

Not good from a mercantilist economic policy philosophy, nor from a capitalist economic policy philosophy.

Le Samsung Ilbo, October 07,2011

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