Article 119 of the Constitution

Article 119 of the Constitution stipulates freedom and creativity, economic justice and economic democratization of individuals and enterprises, and accepts democratic values such as human dignity, freedom and equality, and justice as the basic order of the Korean economy. The basis of the Korean economy is the market economy and the values of Article 119 of the Constitution can be implemented in a ‘fair competition market’. ‘Fair Competition’ is a basic principle that penetrates through Article 119 and is a fundamental means in solving economic issues. It is not common around the world that the constitution provides comprehensive directions for the economy. Not only the country but also the individuals must respect Article 119 of the Constitution and must try toimplement this article in the actual economy.

The difficulties that the Korean economy faces are the results of violations of Article 119 of the Constitution by the state and enterprises.  Article 119 Paragraph 1 stipulates ‘respect for the freedom and creativity of individuals and enterprises’, but it is questionable whether or not freedom and creativity are respected in our economy. In 2015, Korea’s GDP ranking was 11th in the world but the index of economic freedom was 27th and the global creative index was 31st. Also,  Global Entrepreneurs Index was 27th. In particular, the degree of corruption that eats away freedom and creativity in Korea was ranked 44th out of 185 countries, and conditions of fair competition was 120th out of 140 countries. Article 119 Paragraph 2 stipulates ‘to maintain a balanced growth and stability of the national economy as well as proper distribution of income, to prevent domination of the market and abuse of economic power, and to democratize the national economy through harmony among the economic agents’. However, there are serious problems in reality such as concentration of economic power and the abuse of superior position of large corporations, imbalance between large and small to medium enterprises, manufacturing and service industry, imbalance of export and domestic demand, difference in income and wealth between classes, and theconflicts among the economic subjects. We clearly are in violation of Article 119 Paragraph 2 as well.

‘Fair Competition’ is the solution to the problems! Article 119 of the Constitution suggests the State to form and provide to its people ‘a market good for economic affairs’ through a system and regulations. The government has an obligation to provide infrastructure of creativity, innovation and economic justice to the economic subjects.  The problems of dirt spoon (born into a poor family) and golden spoon (born into a wealthy family)  are widespread throughout the society, including individuals and enterprises. Individual’s freedom and community justice  must complement each other. It is necessary to break away from the dependent economy of     large enterprises, and various economic subjects should be harmonized. This study proposes and discusses structural innovations for the economic affairs of individuals and enterprises.