Europe's Fall, America's Counterattack, Korea is Losing its Golden Time. Hanmiilbo Graphic

Europe is currently at the center of chaos. Britain is paying the price for the collapse of its manufacturing industry, France is facing public discontent on the streets due to the conflict between excessive welfare and climate policies, and Germany's manufacturing base is shaking from the aftermath of its nuclear phase-out.

Regardless of left or right ideology, policy failures by leadership groups have led to national decline. The United States has taken this decline as a cautionary tale and responded with a reshoring strategy and the MAGA theory.

In contrast, South Korea is letting the golden time for industry and diplomacy slip away by immersing itself in talk of internal strife and power struggles.

Europe's Chaos: What is the Problem?

Britain has lost its national competitiveness by losing its manufacturing base. The manufacturing sector's share of GDP, which was around 30% in the 1970s, plummeted to 12% in the 2010s and is now even lower. EconomicsHelp pointed out, "The relative decline of British manufacturing has been ongoing since the 1960s" (February 22, 2025). This indicates a structural decline, not just cyclical fluctuations.

This trend is ongoing. According to a survey by S&P Global, the UK manufacturing sector recorded the largest drop in jobs and export orders among surveyed countries in May 2025. While the financial industry remains in the void left by the collapse of manufacturing, it has exacerbated regional disparities and social discontent.

In France, the conflict between expanded welfare and climate policies has thrown society into chaos. The "Yellow Vest Movement" that erupted in 2018 was not just a protest against fuel taxes. The Brookings Institution analyzed, "While fuel taxes were the catalyst, the fundamental causes were the tax burden, inequality, and the political design failure of climate policies" (February 2019 report). It was an event that showed what happens when expanded welfare and climate goals become unbalanced.

Germany's manufacturing strength is still alive, but its nuclear phase-out policy is eroding its industrial base. In an April 2025 report, the International Energy Agency (IEA) pointed out, "Germany is experiencing structural problems such as delays in power grid infrastructure, rising costs, and permitting bottlenecks during the renewable energy transition." The Association of German Chambers of Commerce and Industry (DIHK) projected the same year that "the cost of the energy transition could reach 5.4 trillion euros by 2049" (Reuters, March 2025). Global companies like BASF have already announced production cuts and reduced investments, and the steel industry is delaying its green transition.

Ultimately, Europe's chaos is not an issue of left or right, conservative or progressive. When policy misjudgments accumulate for any faction, it leads to social resistance and the collapse of industrial competitiveness.

Lessons from Europe's Decline for the United States

The United States has taken Europe's decline as a cautionary tale. Seeing Britain lose its manufacturing, Germany struggling with energy costs, and France trapped by distribution policies, it made the decision, "We will not walk the same path."

That strategy is reshoring. In a June 2025 report, the Office of the Inspector General of the U.S. Department of Commerce reviewed the implementation of subsidies and R&D incentives under the CHIPS & Science Act and confirmed that the construction of semiconductor manufacturing facilities and workforce development programs are actually underway. In a April 2025 announcement, CSIS analyzed that "private investment has exceeded $540 billion since the CHIPS Act." This is evidence that it is not just a verbal strategy, but that companies are actually proceeding with factory construction and facility investments.

In addition, the Inflation Reduction Act (IRA) has led to a surge in investments in electric vehicles, batteries, and clean energy sectors. America's choice is clear: not to lose manufacturing like Britain, not to be dependent on external energy like Germany, and not to be buried by welfare and climate policies like France.

This is precisely where it aligns with the core theory of MAGA (Make America Great Again). MAGA is not just a political slogan but a strategy to restore the foundation of industry and security to make America great again. Restoring the manufacturing base, energy independence, redefining alliances, and rejecting globalism are its pillars. In essence, MAGA's reality is a national survival strategy for America, learned from Europe's failures.

What Choice Should South Korea Make?

South Korea currently possesses strong competitiveness in both high-tech industries and basic material industries. According to the Ministry of Trade, Industry and Energy, exports in July 2025 reached $60.8 billion, the highest on record for July, with semiconductor exports hitting an all-time high of $14.71 billion (+31.6%) (announced August 1, 2025). In August, semiconductor exports continued to set new records for two consecutive months, reaching $15.1 billion (announced September 1, 2025). The World Semiconductor Trade Statistics (WSTS) projected that the global semiconductor market would grow by 11.2% in 2025, with memory sectors, where Korea has strengths such as HBM and DDR5, driving the growth (June 2025 forecast).

Batteries are similar. SNE Research reported that the global market share of the three Korean companies from January to May 2025 was 17.4% (announced July 2, 2025). This means that even within the duopoly of China, they maintain a significant presence in the non-Chinese market.

The shipbuilding industry is also a representative area of competitiveness linked to basic material industries. According to Clarkson data, in March 2025, Korea secured 820,000 CGT out of 1.5 million CGT of global ship orders, ranking first (reported April 5, 2025). In the first half of the same year, Korea's three major shipbuilding companies won over 11 trillion won in container ship orders. This demonstrates a living competitiveness integrated with the domestic basic material value chain, including steel, welding materials, and equipment.

However, the problem is how long this competitiveness can be sustained. If energy costs soar, regulations hinder industrial development, and alliance strategies are misinterpreted, South Korea could repeat Europe's mistakes.

In particular, the view that alliances and self-reliance are conflicting rather than complementary, and the delusion of mistaking China as a strategic leverage point, are dangerous. It is by no means foolish for Japan and Europe to join hands with the United States. It was a choice for survival.

The Golden Time South Korea is Missing

It is clear that South Korea must learn from Europe's failures. Above all, the urgent task is to stop internal power struggles.

While national energy is being depleted by talk of internal strife and political-judicial battles, the golden time for industry and diplomacy is relentlessly slipping away. The political sphere must take responsibility for the "nation's survival," not just the "regime's survival."

Furthermore, the perception of alliances and self-reliance as conflicting concepts must be abandoned. The fact that the United States, Japan, and Europe joined forces to avoid China's trap was not subservience, but a realistic choice. South Korea must also strengthen its self-reliance based on alliances; by relying on China, it will paradoxically lose its own autonomy.

It is also crucial to guarantee the foundation of key industries through laws and systems. Semiconductors, batteries, and shipbuilding are industries directly linked to South Korea's survival. Just as Europe declined by losing its industrial base due to the misjudgments of its leaders, the consequences for South Korea would be predictable if its manufacturing competitiveness is undermined under the guise of laws and regulations.

Most importantly, policy failures must always be met with political accountability. As history has proven, incompetent regimes can only embark on a new beginning through replacement. Regime change is not merely a political rotation but the last safeguard to correct flawed policies. If South Korean society forgets this lesson, it will not take long to repeat Europe's fall.

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