A New Paradigm For Korea's Economic Development: From Government Control To Market Economy (studies In The Korean Economy)

A New Paradigm for Korea’s Economic Development From Government Control to Market Economy Sung-Hee Jwa A New Paradigm for Korea’s Economic Development Korea's Economic Development, Sung-Hee Jwa Studies in the Korean Economy General Editors: Malcolm Falkus and Kwan S. Kim The South Korean economy is one of the economic wonders of the late twentieth century. War-torn and poverty-stricken in the 1950s, with a per capita income below that of Haiti, Thailand or India, the country then emerged as an economic giant by the 1980s. Rapid industrialization, phenomenal growth rates and rapid social transformation characterized a process that has made Korean products and firms, such as Hyundai and Samsung, familiar throughout the world. The study of Korea’s transformation is fascinating in itself, but there are also many general aspects of the process which make Korea of particular significance in understanding Asian economic development. How was South Korea able to achieve its rapid, equitable growth? What parts were played by the state, the banks, the giant corporations, imported technology, foreign investment and trade, and by the unique balance between competition and control? Korea felt the full force of the Asian economic crisis in 1997, and was one of three countries forced to call for IMF assistance. Korea’s response to the crisis (reverberations from which will remain for a long time) is of considerable significance not only for Korea but for the future handling of global financial disturbances. The present series of books aims to explore Korea’s development and its unique economic governance structure. The appearance of such a series is timely, for not only does it give the opportunity to review Korea’s growth in perspective after several decades of unparalleled advance, but it also provides an opportunity to bring to a western readership the increasing contributions of Korean scholars to the understanding of their country’s transformation. Titles include: Sung-Hee Jwa A NEW PARADIGM FOR KOREA’S ECONOMIC DEVELOPMENT From Government Control to Market Economy Studies in the Korean Economy Series Standing Order ISBN 0–333–71501–2 (outside North America only) You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and the ISBN quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England Korea's Economic Development, Sung-Hee Jwa A New Paradigm for Korea’s Economic Development From Government Control to Market Economy Sung-Hee Jwa President Korea Economic Research Institute Seoul Korea's Economic Development, Sung-Hee Jwa © Sung-Hee Jwa 2001 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1P 0LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be