Chapter 4: Paradigm shift in Korean economic policy in the wake of the 1997 financial crisis
4. Paradigm shift in Korean economic policy in the wake of the 1997 ﬁnancial crisis O. Yul Kwon INTRODUCTION The objective of this chapter is to examine critically a shift in the paradigm of South Korean economic policy in the wake of the 1997 ﬁnancial crisis. After a successful performance over the last three decades, the South Korean economy (hereafter South Korea will be referred to as Korea) fell into ﬁnancial crisis in 1997, and was rescued by the IMF. No one would repudiate the fact that the government has played the pivotal role not only as regards the prodigious growth of the Korean economy over the last three decades, but also in the recent developments of the ﬁnancial crisis and the ensuing restructuring process. Its economic policy has extensively permeated and aﬀected all the factors related to recent economic developments, rendering it of overriding importance. A few burning questions have therefore arisen, including the following. Why did Korean economic policy work well over the three decades of the economic success period? Why should the economic policy that had worked well in the past have suddenly failed, thereby resulting in the ﬁnancial crisis? How would the Korean policy paradigm change in the wake of the ﬁnancial crisis? It appears that these questions have not been dealt with systematically and comprehensively. Therefore the speciﬁc purposes of this chapter are (a) to examine the policy paradigm during the economic success period, (b) to relate the failure of economic policy to...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.