Yeah--the funny thing (among many) is that the "one blood" stuff is just B.S. they were invaded (and colonized by Japan from 1910-1945) so many times over history, that it's impossible.
Their mercurial economic success after The Korean War (1953) was due to American investment in many cheap- labor factories, not any genius on their part. Now that investment has gone to China and the economy is flatter than a pancake.
The worst things are that: they believe anything they are told by the gov't, tradition, and media; they have practically no penchant for quality; they have zero sense of national or community cohesiveness/ loyalty (only family counts); they are the only people who still practice confucianism at home and in the OFFICE (the oldest--not the most competant gets promoted, no teamwork, etc.); their government is crooked as a dog's hind leg; and their whole education system is a joke (for example, practically 100% of the wealthy send their kids out abroad for a real education). All of these things seriously stymie their competitiveness in a modern world. I doubt they have a bright future.