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Social Trust and Economic Development

The Case of South Korea

O. Yul Kwon

In just one generation, South Korea has transformed from a recipient of foreign aid to a member of the G20. In this informative book, South Korea is used as a case by which to explore and illustrate specific issues arising from the complex relationships between the nation’s economic development and society.
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Index

O. Yul Kwon

Act for the Protection of Public Interest Whistleblowers (2011) 233
Act of Anti-Corruption (2001) 233
ageing population, in Korea
approach to improve the well-being of 154
below the poverty line 1534
consequences of 3245
impact on Korean labour market 2934
income bipolarization due to 151
income support programs for 152
poverty rate for 151
causes of 1514
problem of 956, 1514
senior welfare programs 153
social expenditures 154
social safety nets 152
Anti-Corruption and Civil Rights Commission (ACRC) 104, 192, 225, 226, 233, 234, 238, 272, 284, 318
anti-corruption institutions 233, 284
anti-corruption laws 226, 233, 283
Aristotle 1, 19
Asian tiger economies 11, 12021
economic coordination and cooperation among 138
economic development of 127
foreign direct investment (FDI) 125
institutional performance 133
social trust on
average values of 135, 136
effects of 1247
impacts of 137
importance of 139
indicators for 1312, 137
levels of 135
measurements of 12737
types of 128
see also East Asian countries
bank credit lines 60
Bank of International Settlement (BIS) 65
Bank of Korea 3, 50, 58
bankruptcy 273, 322
Basic Livelihood Security Programme (BLSP) 152
Basic Pension System (BPS)
beneficiaries of 153
benefit for a single senior 153
eligibility criteria for 152
blue-collar workers 91, 109, 329
business ethics 2734, 282, 2834
business sector
chaebols and SMEs 2526
evolution of 2526
social trust in see business, social trust in
business, social trust in 132
average values of the indicators of 261, 262
causes of distrust in business 27071
causes of low social trust in
economic power concentration in chaebols 2637
high business corruption 27076
low compliance with principles of corporate governance 2679
unfair chaebol‒SMEs relationship 26970
concepts and determinants of social trust in 2578
effects on economy and society 2589
extent as measured by
international organizations 2613
KIPA 260
how to raise social trust in
economic power concentration in chaebols 2768
low business ethics and high business corruption 2834
low compliance with the principles of corporate governance 27880
unfair chaebol‒SMEs relationship 28083
influence on economy and society 251
measurement of social trust in 25960
value dimension of 257
capitalist democracy 889
capital markets 57, 67, 144, 277
ceteris paribus 122
chaebols 3, 13, 27, 5660, 79, 105, 108, 113, 145, 171, 179, 183, 185, 236, 238, 244, 2526, 328
bad debt problems 67
business structure of 65
as cause of low trust in business in Korea 2637
concentration of economic power in 254, 256, 2768
consolidated financial statements 65
corporate governance of 68
corruption committed by owners of 271
cross-shareholdings 68
debt‒equity ratio of 2556
demand for funds from 57
diversification of 69, 264
economic power concentration in 2637
economic and social impacts of 2667
extent and characteristics of 2635
expansion and diversification of 255
financial structure of 256
government economic policy toward 61, 65
intra-corporate investment of 253
intra-group transactions of 286
managerial control of 68
owners of 161
power of 276
reforms of 689
relation with SMEs 61, 262, 26970, 28083
reliance on China and East Asian economies 266
share of total sales in manufacturing sector 253
social monitoring and disciplining of 265
society’s perceptions of 267
trickle-down effect of 266
voting rights 68
wage gap between workers for chaebols and SMEs 150
chaebol‒SMEs relationships 13, 61, 150, 26970, 276, 28083, 284
character education, analysis of 181, 1945, 1979, 240
Character Education Development Law 197
chemyeon (loss of face) 107, 228, 23031, 240, 242, 307
cheonmin 889, 91, 180
childcare services 147
Chun, Doo-hwan 52
civic consciousness 31, 123
Cold War 55, 63, 88, 108, 183, 184
collective bargaining 311, 331
College Scholastic Ability Test (CSAT) 100, 161, 164, 195
competitive market system 266, 269
competitiveness, of labour market 56, 271, 322
concomitant variations, method of 12, 100, 121, 137, 139
conflict management system 1067, 111
effectiveness of 111
conflict of interests 109
Confucian-influenced culture, in Korea 60
contemporary information society
characteristics of 94104
demographic configuration of
ageing population 956
changes in 946
multicultural Korea 945
family system, changes in 967
gender inequality 1012
Korean society transition to 923
low law-abiding spirit and high social irregularities 1024
new social classes by education 98101
Control of Corruption Indicators (CCI) 104, 134, 193
corporate ethics 132, 262, 267, 274, 284
corporate governance 13, 65, 73, 256, 2579, 265, 275, 283
Anglo-American corporate model of 268
causes of poor 2689
of chaebols 68
code of best practices for 268
Committee on Corporate Governance 268
corporate governance quality (CGQ) indexes 268
GovernanceMetrics International (GMI) 268
indicators of 256
of Korean enterprises 2678
OECD principles of 68
principles of 2679, 27880, 320
status of 2678
corporate social responsibility 257, 259
corruption 84
Anti-Corruption and Civil Rights Commission (ACRC) 104
anti-corruption laws 233
approach to eradicate 24041
bribing 133, 191, 226
business corruption 13, 27076
committed by
owners of chaebols 271
union executives 331
corruption perception index 104, 133, 224
effects on trust in government 2235
embezzlement of public funds 191
extent of 2257
illicit activities 192
Improper Solicitation and Graft Act (2016) 237
indicators for the rule of law and levels of 1034
interpersonal trust and 1913
levels of 193
main drivers of 22740
inappropriate regulations 2368
inequality 23840
Korean culture 22834
lack of personal ethics 2345
lax punishment 2356
media coverage of corruption scandals 275
‘misuse’ of public power 191, 225
negative effects of 192
perception levels of 192
public sector in Korea 226
prevention of 5
rules and regulations to combat 237
social effect of 224
survey-based measurements of 192
Corruption Perception Index (CPI) 104, 133, 193, 215, 239
criminal justice system 190
cross-shareholdings 61, 68, 253, 2556, 264, 277
among subsidiaries 65
cross-subsidiary loan guarantees 56, 65
share ownership 56
cybersecurity, of online networks and services 93
debt capital 27, 56, 255, 285
decision-making system 111
participation of stakeholders in 20910
Demilitarized Zone (DMZ) 88
demographic changes, in Korea 1011, 64, 96, 2934
digital ICTs, development of 92
dirigiste economic policy paradigm 51
disposable income bipolarization of 163
distribution of 144
Gini coefficients for 144, 162, 188, 219
poverty rate based on 163
distrust
in business 27071
social culture of 20
division of labour 367, 125, 138
‘domestic demand’ hypothesis 157
domestic industries, protection of 55
dysfunctional society 4, 29, 85, 105, 112, 119
early childhood education and care
(ECEC) programs 99, 163, 325
Earned Income Tax Credit system 154
ease of doing business 67
East Asian countries
Confucian culture of 122
economic success of 122
economic bipolarization, in Korea 12
causes of rising
ageing population 1514
ineffectiveness and deficiency in the redistribution system 1556
wage inequality 14851
wealth inequality 1545
equitable income distribution 1424
income bipolarization after 1997 financial crisis 1445
recent developments in 1428
shrinking middle-income class 1457
of wealth 1478
economic development
during Chun Doo-hwan military regime (1980–88) 52
export-led 55
high-speed export-led industrial growth 63
IMF reform package for 645
under Kim Young-Sam government (1993–98) 52
Korean model of 5055
during Park military regime (1961–79) 52
post-war 53
restructuring of individual sectors 65
during Roh Tae Woo regime (1988–93) 52
social issues and 51
social trust, effects of 12, 8, 359, 50, 119
strategy of 155
economic dirigisme, in Korea
dirigiste economic policy paradigm 51
financial crisis of 1997 and 515
Jang’s study of 53
as major cause of 1997 financial crisis 558
planned economy 513
reasons for success of 535
social problems regarding 5862
government–business relations 5961
‘growth first then equity’ strategy 589
state intervention in labour relations 62
economic equality 34, 86, 208
economic freedom
determinants of 67
Index of Economic Freedom (IEF) 67
of private sector 72
economic growth of Korea
effects of income inequality on 15760
potentials for 74
economic inequalities 6, 85, 111, 187
economic innovation, three-year plan for 4
economic liberalization 52, 72
indicators of 67
economic management 51
Economic Planning Board (Korea) 54, 119
economic policies of Korea
under Chun Doo-hwan military regime (1980–88) 52
Economic Planning Board 54
under Kim Young-Sam government (1993–98) 52
under Park military regime (1961–79) 52
under Roh Tae Woo regime (1988–93) 52
shifts in
changes in the policy environments 634
policy paradigm shifts and economic reforms 646
economic reforms, in Korea
assessment of chaebols 689
financial sector 69
labour market 70
liberalization and globalization 667
public sector reform 7071
changes in the policy environments 634
IMF package for 645
policy paradigm shifts and 646
Economic, Social and Labour Council (ESLC) 310, 322
economic structural reform, process of 71
economic well-being 25, 142, 146, 160, 329
economies of scale 54, 76, 254, 255
education system, in Korea
bipolarization of 164
character education 1979
childhood education 164
citizens’ confidence in 220
College Scholastic Ability Test (CSAT) 100, 161, 164, 195
cultural importance of 180
as determinants of social classes 98
education opportunities 99
expenditures for private education 181
hagwon participation rate 100
new social classes by 98101
private crammer schooling 195, 200
private tutorial institutions (hagwons) 100
public education 99, 147
school education 181, 306
students’ rote learning 1967
university education 98, 100, 306
vocational education 306
efficiency–equity trade-offs 42
e-government 223
campaign to promote 222
development index 243
use of 20910, 222
electoral democracy 63
emerging economies 11, 37, 145
employee’s loyalty, toward companies 320
employers’ rights, to claim damage compensation 321
employment
elasticity of 296
female employment 302
generation of 53
Gini coefficients for wages by type of 300301
inducement coefficient 76
job creation policy 3224
lifetime 155
rate of 2958
self-employment rate 179
uncertainty of 155
youth unemployment 3047
‘endogenous fiscal policy’ hypothesis 157
Enron Corporation 273
equitable income distribution 6, 72, 219, 328
over rapid growth period 1424
ethical management 257, 2735, 2834, 286
ethnic nationalism 94, 182
fairness, principle of 162
fair treatment, of employees and clients 257
family-based group society 110, 180
family system, changes in 967, 101, 113, 196
Federation of Korean Industries (FKI) 274, 311
Federation of Korean Trade Unions (FKTU) 311
financial bailouts, of lending institutions 27
financial crisis of 1997 2, 27, 5051, 63, 93, 1423
IMF rescue package 64
Korean dirigisme and 515
Korea’s economic policy paradigm and 63
major causes of 558
rising income bipolarization after 1445
financial institutions, accountability of 54, 578, 60, 645, 689, 264, 306
financial sector, reforms in 36, 567, 645, 69
Financial Supervisory Commission 65
forced labour 89
foreign direct investment (FDI) 37, 52, 75, 80, 125, 145, 149, 251, 258, 271
foreign exchange transactions 64
foreign investors 645, 67
French Revolution 104
Gallup World Poll (GWP) 32, 84, 129
gapjil 107, 110, 185, 267, 320
GDP of Korea 50
gender equality 327
gender gap
global gender gap index 101
in Korea 326
gender inequality 1012
in legal institutions 101
gender labour inequality 3267
generalized trust 213, 25, 32, 130
Gini coefficients 59, 142, 159, 1867, 238
for disposable income 144, 158, 162, 188, 219
of household total assets 148
for market income 147, 158, 163, 219
of urban households 1434
for wage inequality 148
for wages by employment types 300301
for wealth 147
global gender gap index 101
globalization 6, 9, 11, 15, 367, 43, 52, 56, 634, 667, 72, 767, 7980, 93, 120, 1247, 145, 149, 196, 198, 200, 258, 280, 291, 296, 309, 316
levels of social trust under 138
people’s attitudes toward 134
global value chains 266, 323
good governance 224
good public governance (GPG) 208, 217
GovernanceMetrics International
(GMI) 268
government–business relationship 56
social problems associated with 5961
government, social trust in 205
concepts of social trust in 2067
current state of social trust in 21116
government effectiveness 213
political stability and absence of violence/terrorism 21213
regulatory quality 21416
voice and accountability 212
determinants of social trust in 20810, 244
accountability 209
competence 208
effectiveness 209
efficiency 209
participation of stakeholders 20910
transparency 209
values (ethics) 208
effects on economy and society 2078
e-government, use of 20910
how to raise social trust in 2414
competence of public sector 2414
indicators for social trust in 213
Korea and OECD average on 206
main drivers of low social trust in
high corruption 22341
low competence in the public sector 21623
measurements of social trust in 21011
perceptions of social trust in 214
group (collectivist) societies 21
‘growth first then equity’ strategy 589, 155
hagwons 100, 1656, 18081, 188, 197
‘Hallyu’ (Korean wave) 95
Han River miracle 95
health bipolarization 12, 170
inequality effects on 1669
health care system 166, 219
citizens’ satisfaction with 220
Heritage Foundation (HF) 67
Hofstede, G. 26, 182
Hofstede’s individualism index 231
holding company system 278
human capital 21, 39, 291
development of 157, 158
human resource
development of 14, 36, 282
management of 3, 66, 91, 180, 221, 270, 331
Hyundai Research Institute (HRI) 104, 227
ideological conflicts, in Korea 90, 1079, 1834, 194, 199
Improper Solicitation and Graft Act (2016) 233, 237, 283
income bipolarization 12, 151, 163, 170
after 1997 financial crisis 1445
income disparities 40, 59
income distribution scheme 589, 66, 73, 78, 155, 188
equitable income distribution 1434
principle of a fair society 162
social justice in 128
of urban households 143
income inequality 12, 28, 78, 101, 108, 142, 155
corruption due to 239
due to unfair
competition 1612
opportunities 161
effects on
economic growth 15760
education bipolarization 1636
health bipolarization 1669
social justice 16063
social trust 16970
‘growth first then equity’ strategy 589
income support programs, for elderly in Korea 1523
target efficiency of 1534
Index of Economic Freedom (IEF) 67
Korea’s ranking on 67
Index of Globalization 67
industrial relations, in Korea 70, 3089
current industrial relations 31011
industrial society, hierarchical social classes of 92
industry-based bargaining 311
inequality trap 17071, 239
information and communication technologies (ICTs) 92
information technology 11, 15, 127
inheritance taxes 1545, 161, 265, 275
institutional trust 20, 123
concept of 2830
determinants of 3032
in government see government, social trust in
measurements of 33
method to raise 412
relationship with interpersonal trust 31
institutions, concept of 7
intergenerational conflict 109, 1834, 305
International Institute for Management Development (IMD) 33, 67, 68, 125, 134
indicators of corruption measured by 216
indicators related to effectiveness of public sector 70
International Monetary Fund (IMF) rescue package for Korean economy 64, 144, 256
interpersonal trust 123
approach to enhance 1939
character education 1979
Korean educational culture 1947
based on personality characteristics 24
components of 32
concept of 223, 178
corruption and 239
current state of 1779
determinants of
individual-oriented theory 235
society-based theory 258, 40
ethnic composition of society 28
from experiences of interacting with others 245
formal institutions 267
forms of 1778
generalized 199
geography 28
high corruption 1913
historical period of conflict and tumult 25
inequality in income 1859
Korean culture and 1920, 1812
levels of 178
living standards, equality, and fairness in society 256
measurements of 323
method to raise 3940
moral hazard 278
morality-based 17981
moral value 24
national culture 26
observance of the rule of law 18991
social conflict and 1825
types of 22
interracial harmony, in Korea 95
interracial marriages 945
intra-group transactions 286
Japanese colonial period (1910‒45) 88, 89, 94, 1823
jeong 22831, 233, 2378, 240, 254
job creation policy, of Korea 5, 72, 75, 242, 3223, 326
‘jobless growth’ phenomenon 296, 323, 328
job opportunities 91, 99, 101, 160, 297, 3067, 317
job-related skills, in education 306
Jobs, Steve 196
joint ventures 37
judicial independence 191
jungin 889, 91, 180
Kim, Dae-jung 64, 155, 243
Kim, H.K. 145, 188
Kim, H.M. 100
Kim, Young-Sam 52
knowledge-based economy (KBE) 2, 11, 77, 93, 1245, 196, 281, 316, 335
KOF Swiss Economic Institute 67
Korea Asset Management Corporation 65
Korea Chamber of Commerce and
Industry (KCCI) 311
Korea discount 265
Korea Fair Trade Commission (KFTC) 253, 266, 269, 2778, 280
Korea Foreign Trade Association
(KFTA) 311
Korea Independent Commission
against Corruption (KICAC) 233
Korea Institute of Public
Administration (KIPA) 104, 1923, 211, 225, 226, 251, 272, 318
extent of trust in business in Korea measured by 260
Korean Confederation of Trade
Unions (KCTU) 311, 319
Korean culture, corruption in
chemyeon 23031
collectivism 231
culture underlying whistleblowing 2324
jeong 22830
political culture 2312
Korean educational culture 1947
Korean Educational Development Institute (KEDI) 197
Korean Employers Federation (KEF) 311
Korean Federation of Small and Medium Business (KFSB) 311
Korean society 113
brief review of 878
cheonmin 88
Chosun (Yi) Dynasty 88, 89
classes of 88
division between North and South Korea 90
family-based group society 110
Hermit Kingdom 88
hierarchical class system 89, 106
history of 878
industrial society 9091
Japanese colonial period (1910‒45) 88, 89, 182
jungin 88
Koryo Kingdom 88
marriages to foreigners 95
political conflicts 90
registered foreigners living in Korea 95
sangmin 88
social conflicts 10412
as traditional society 8890
transition to contemporary information society 923
US occupation of 88
USSR occupation of 88
yangban 889
see also contemporary information society
Korean Stock Price Index (KOSPI) 154
price-to-earnings ratio of 265
Korean War (1950–53) 25, 8890, 143, 184, 252
labour costs, in Korea 14, 58, 291, 309, 326
labour disputes 14, 523, 62, 292, 30812, 319, 321, 323, 3323
labour–employer relations 70
labour force, decline in 2945
labour-intensive industries 52, 143
labour management 3, 1314, 58, 62, 291, 30711, 31920
Labour Management Council (LMC) 310
methods of 308
labour‒management relations 1314, 308, 310, 320
method to improve 3323
labour market, in Korea
ageing and declining population 2934, 3245
approach to improve performance of ageing and declining population growth 3245
competitiveness 322
employment 3224
gender labour inequality 3267
labour market duality 3256
low youth employment and high NEETs 32731
wage bipolarization 324
compensation 299
competitiveness of 322
democratization of 62, 2912
dualism in 62, 317
government intervention in 53, 62
ineffective and inequitable 31718
inefficiency of 70
insecurity in 317
institutions related to 30910
jobless growth of 296
job vacancy rate 297
limited job opportunities 306
major indicators of 295
comparison of 297, 303
recent developments in 293307
declining labour force 2945
demographic changes 2934
high youth unemployment and NEETs 3047
low employment rate 2958
segmented labour market 298304
reforms in 10, 70, 299
regular and non-regular workers 298302, 3256, 331
segmentation of 298304
by firm size 304
by gender 3023
regular and non-regular workers 298302
social trust in see labour, social trust in
unemployment benefits 298
unfair practices in 41
labour protection laws 53
labour regulations, in Korea 31415
labour relations 53, 70, 73, 108, 126, 251, 2578, 2913, 31213, 317
current industrial relations 31011
hostile 31922
institutions related to 30910
labour‒management relations 3323
Labour Relations Commission (LRC) 309
labour standards 3078
principles of 308
ranking of Korea in 315
social trust in 128
state intervention in 62, 79
Trade Union and Labour Relations Adjustment Act (TULRAA) 3079
labour rights, in Korea 291, 30910
labour, social trust in 13, 128, 133
causes of low social trust in hostile labour relations 31922
ineffective and inequitable labour market 31718
militant labour unions 31819
concepts and determinants of social trust in 312
value dimension of 312
effects on economy and society 31213
extent as measured by international organizations 31417
Korean institutions 31314
how to raise social trust in labour‒management relations 3323
labour market performance 32231
trust in labour unions 3312
indicators of social trust in 315
labour standards, in Korea 3078
Labour Standards Act (1953) 308, 309
Labour Standards Act (1997) 324
labour unions 3, 13, 291
how to improve trust in 3312
militant 31819
social trust in 128, 318
Lee, J.H. 271
Lee, Kuan Yew 29
Lee, Myung-bak 155
LG Group 278
liberal-democratic political system 60
liberalization, of the capital market 667
life satisfaction, in Korea 4, 345, 84, 86, 112, 166, 195, 200
life-time employment, practices of 53, 242
limited trust 213, 34, 40
low-skilled jobs, in Korea 9, 149
low-skilled workers 306
demand for 149
macroeconomic stabilization 64
market-based economy 63, 64
market income inequality 149
Gini coefficients for 147, 158, 163, 219
market liberalization 64, 67
middle-income class
economic well-being 146
profile of 146
shrinking of 1457
actual size and perceived size 1467
reasons for the differences 1456
sizes of 146
Mill, J.S. 12, 100, 137
method of concomitant variations 139
Minimum Wage Act (1986) 324
minimum wage laws 53, 325
Ministry of Employment and Labour
(MOEL) 309
Moon, Jae-in 5
vision of a ‘people’s country, a just Korea’ 72
moral hazard 278
of banks 57
morality
codifications of 30
education in 40, 42
morality-based trust 24, 39
moral values
decline of 194
interpersonal trust as 24, 181
national absolute poverty rate 90
national economy, of Korea 11, 15, 42, 51, 53, 55, 63, 73, 7980, 94, 257, 280
concentration of economic power within 6970
consequences of a stagnant 3, 119
effectiveness of state intervention in 55
evolution of 3
IMF bailout package 78
since 1997 financial crisis 6
National Pension Scheme (NPS) 1524, 279
national welfare programs 324
New Public Management (NPM) 217
New Village Drive 110
non-regular workers, concept of 62, 66
Not in Education, Employment or Training (NEET) 3047, 317, 32731
OECD Better Life Index 4
oligopoly 266
open-government index 222, 243
opportunity hypothesis 157
Original Equipment Manufacturer (OEM) 120
Park, Chung Hee 59, 90
Park, Geun-hye 45, 52, 712, 155, 227, 310
Park, S.J. 322
per capita GDP (PPP) 1379
personal ethics, as cause of corruption
law abidance 235
low honesty 2345
pluralistic democratic system 63
pluralistic network society 92
police administration, effectiveness of 192
political conflict 90, 1078, 111, 184
political democratization, in Korea 9, 14, 62, 108, 235, 291, 308
population growth, decline in 96
poverty
among Korean elderly 1514
based on disposable income 163
households below the poverty line 1534
national absolute poverty rate 90
prevailing in society 162
Presidential Advisory Council for Anti-Corruption 233
Presidential Commission for National Cohesion (PCNC) 105
principal–agent problem 27
private property rights, protection of 27, 36
privatization, issue of 64
process tracing 12, 121, 137, 139
productivity-enhancing innovation 78, 126
Programme for International Student Assessment (PISA) 166, 195
property protection laws, quality of 123
public consciousness 10910, 11214
public education system 147, 166
public governance
competence in 217
dimensions of 129, 212
effectiveness of 214
ethics (values) of 217
quality of 128
social trust in see government, social trust in
public insurance programs 11112
public sector
approach to raise competence of effectiveness 243
efficiency 2413
transparency 2434
competence of 21623
corruption perception levels of 226
effectiveness of 21821
key indicators of 244
efficiency of 21718
expenditures on civil servant salaries 218
New Public Management (NPM) 217
reforms in 7071, 217
transparency, participation, and openness of 2213
Purchasing Power Parity (PPP) 12021, 127
‘pure blood’ nationalism 95
quality of life 147, 188, 197
Rawlsian ethics 12, 161, 188
rent-seeking interest groups 26
Rodrik, D. 107, 11011
Roh, Moo-hyun 64, 75, 155
Roh, Tae Woo 52
rule of law 29, 356, 39, 42, 63, 129, 134, 192, 194, 209, 212, 243, 257, 276
compliance with 112, 205, 2089, 213, 214, 21718, 22021, 236, 244, 259, 269, 271, 292, 313
for development of trusting attitudes and behaviour 27
economic policies and 124
implementation of 31, 334
indicators for 103, 190, 191
Korea’s index of 235
maintenance of 114
observance of 84, 18991, 199
people’s observances of 177
for society’s compliance with rules 103
rural-urban migration 91
Samsung Economic Research Institute (SERI) 212
sangmin 889, 91, 180
senior welfare programs 153
Seoul National University (SNU) 105
service-oriented economy 267
Sewol ferry tragedy (2014) 5, 104, 227
sex slaves, for Japanese soldiers 89
shareholders’ value, protection of 257
small and medium-sized enterprises (SMEs) 10, 61, 150
bankruptcies of 282
business efficiency of 262
government support policies for 270, 282
labour productivity of 150
operating profit rate of 252
productivity of 252
profitability of 252
ratio of profitability of 150
relationship with chaebols 262, 26970, 28083
wages at 252
social and economic well-being 142, 160
social capital 34, 39, 85
components of 212
defined 21
levels of 21
versus social trust 212
social cohesion
dimensions for 85
measurements of 86
social cohesion index 87
social conflicts 4, 79
adverse effect on economy 105
causes of 10710, 112
compact growth and 109
conflict management system 1067
current state of 1057
and distrust 41
due to conflict of interests 109
intergenerational conflict 109
in Korean society 10412, 1825
measurement of 85
quantitative measurements of 106
remedy for 11012
social conflict index 106
socioeconomic effects of 1057
social development programs 73, 219
social discrimination 105, 107
social empowerment 867
social evolution 10, 85
social expenditure to GDP ratio 66, 156
social inclusion 34, 85, 87, 208
social inequalities 6, 9, 11, 160
social injustice 12, 79, 107, 183, 185, 298, 317
public perception of 41, 133
social insurance programs 1556, 171
enrolment rates by type of contract 302
social irregularities 84, 103, 11213
prevention of 5
socialism, collapse of 7, 104, 184
social justice 8, 12, 27, 41, 123, 130, 133, 142, 157, 229
in income distribution 128, 160
income inequality, effects of 16063
social mobility 34, 85, 879, 92, 99, 101, 10913, 144, 157, 160, 1656, 170, 1878, 220, 300
social morality, codification of 179
social networks 86, 109, 207
benefits of 21
social network services (SNS) 92
social polarization 40
social progress, in Korea 105
current status of 857
effects of social trust on 335
quantitative measurements of 856
social quality, definition of 86
social safety nets 78, 111, 152, 155, 301, 3256, 333
social security system 66, 108, 11011, 184, 195
social stigma, attached to jobs 109, 307
social stratification 40, 912, 98101, 108, 113, 169, 18082, 187, 229, 329
social support programs 34, 85
social trust 4, 160
in business see business, social trust in
components of 1920
concept of 1920
cross-country differences in 20
effects on
economic development 12, 8, 359, 50, 119
four tiger economies 12437
social progress 335
enhancement of 77
in government see government, social trust in
indicators of 11
inequality effects on 16970
in Korean society 15, 20
in labour market see labour, social trust in
literature review of 1224
measurements of 19
institutional trust 33
interpersonal trust 323
method to raise institutional trust 412
interpersonal trust 3940
through both components 423
versus social capital 212
social discrimination and ill feelings 107
task of raising 30
social welfare expenditures 59, 325
social welfare programs 6, 589, 78, 155
Confucian 155
government expenditures for 156
public expenditure on 59
social expenditure to GDP ratio 66
social well-being 2, 72, 177, 219
socioeconomic bipolarization, in Korea 12, 110, 139, 142, 166, 170
Soviet Union
occupation of Korea 88
socialism implemented in 1045
standard of living 1612
subprime loans, in US 27
suicide rate
among the elderly 97
in Korea 196
Suisse, Credit 147
sustainable economic and social development
achievement of 72
approach to boost the sluggish economy 738
economic policy for 159
new policy framework 712
trade-based unionization 324, 331
trade liberalization 52
Trade Union and Labour Relations Adjustment Act (TULRAA, 1987) 30810
trade unions 30, 41, 292, 307, 30913, 317, 326, 333
industry-based 331
Transparency International (TI) 33, 104, 125, 133, 193
indicators of corruption measured by 216
Tripartite Commission 65
Tripartite Council 322
trust
in family members 22
in strangers 22
trustworthiness of institutions 30
UN Global E-Government Survey 222
United Nations Department of Economic and Social Affairs (UNDESA) 222
e-government development index 243
United Nations Development Programme (UNDP) 2
university education 989, 1634, 306, 32930, 334
UN World Happiness Reports 4
urbanization in Korea 91
USSR see Soviet Union
venture capital funds 127
venture enterprises 127
vocational education 306, 323, 329
Vocational Education and Training (VET) 3289
voluntary associations 21, 85
wage bipolarization 298, 324, 328
wage compensation 321
wage inequality 12, 75, 14851, 301, 317
causes for rise in 14951
Gini coefficient for 148
wage rates 14, 58, 75, 98, 102, 162, 253, 270, 304, 309
Washington consensus 634
wealth bipolarization of 1478
Gini coefficient for 147
wealth inequality, in Korea 147
due to inheritance tax 154
rise of 1545
whistleblowing, culture underlying 228, 2324, 2745, 280
World Bank Group (WBG) 33, 125, 190, 239
indicators of corruption measured by 216
World Bank 1, 67
Worldwide Governance Indicators 70
World Economic Forum (WEF) 33, 68, 125
global gender gap index 101
pillars of Global Competitiveness 69
World Inequality Database (WID) 145
World Trade Organization (WTO)
Korea’s commitment to 64
World Values Survey (WVS) 13, 19, 120, 125, 129, 177, 215
social indicators measured by 135
World War II 89, 107
Worldwide Governance Indicators (WGIs) 128, 21213
xenophobia 94, 134
yangban (noble) class 889, 91, 180, 183, 229
Yi Dynasty (1392‒1910) 88, 89, 94, 180, 1823
youth unemployment 3047, 317, 32731