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The Political Economy of Institutional Reform in Korea

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  • Chung Lee

Abstract

In the aftermath of the economic crisis of 1997–98 South Korea has undertaken a number of major institutional reforms. What are these reforms? Why were they undertaken? What is the outcome of the reforms? In answering these questions this paper examines the influence that the ideas of political leaders on political economy had in setting forth the reform agenda and the role that various interest groups have played in implementing the reform. It argues that there was a shift in the developmental paradigm in the early 1980s, that the new paradigm guided reforms in Korea during the 1980s and 1990s but with initial conditions and interest politics influencing the implementation and actual outcome of reform, and that the post-crisis reform was a culmination of the reform process that began in the early 1980s.

Suggested Citation

  • Chung Lee, 2005. "The Political Economy of Institutional Reform in Korea," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 10(3), pages 257-277.
    • Handle: RePEc:taf:rjapxx:v:10:y:2005:i:3:p:257-277
    DOI: 10.1080/13547860500163639
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    References listed on IDEAS

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    1. Chung H Lee & Keun Lee & Kangkoo Lee, 2000. "Chaebol, Financial Liberalization, and Economic Crisis: Transformation of Quasi-Internal Organization in Korea," Working Papers 200004, University of Hawaii at Manoa, Department of Economics.
    2. Joon-Kyung Kim & Chung H. Lee, 2002. "Insolvency in the Corporate Sector and Financial Crisis in Korea," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 7(2), pages 267-281.
    3. Yifu Lin, Justin & Nugent, Jeffrey B., 1995. "Institutions and economic development," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 38, pages 2301-2370, Elsevier.
    4. Chai, Sun-Ki, 1998. "Endogenous Ideology Formation and Economic Policy in Former Colonies," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 263-290, January.
    5. Lee, Chung H., 1992. "The government, financial system, and large private enterprises in the economic development of South Korea," World Development, Elsevier, vol. 20(2), pages 187-197, February.
    6. Gérard Roland, 2004. "Institutions and Economic Performance - Fast-moving and Slow-moving Institutions," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(2), pages 16-21, October.
    7. John Williamson, 1994. "The Political Economy of Policy Reform," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 68, January.
    8. repec:ces:ifodic:v:2:y:2004:i:2:p:14567799 is not listed on IDEAS
    9. Keun Lee, 2002. "Corporate Governance and Restructuring in Korea: Before and After the Crisis," Palgrave Macmillan Books, in: Usha C. V. Haley & Frank-Jürgen Richter (ed.), Asian Post-crisis Management, chapter 13, pages 252-280, Palgrave Macmillan.
    10. Kang-Kook Lee & James Crotty, 2001. "Economic Performance in Post-Crisis Korea: A Critical Perspective on Neo-Liberal Restructuring," Working Papers wp23, Political Economy Research Institute, University of Massachusetts at Amherst.
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    3. Dombi, Akos & Grigoriadis, Theocharis & Zhu, Junbing, 2020. "Antiquity and capitalism: The finance-growth perspective," Discussion Papers 2020/9, Free University Berlin, School of Business & Economics.

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