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South Korean Economy at the Crossroads: Structure Issues under External Pressure – An Essay from a Law and Development Perspective

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  • Lee Yong-Shik

    (The Law and Development Institute, Atlanta, GA, USA)

Abstract

South Korea is one of the most successful economic development cases in history. This country, stricken with crushing poverty and torn by a disastrous war two generations ago, rose from the ashes of the war and underwent unprecedented economic development for over three decades. By the mid-1990s, South Korea had built an advanced economy with world-class industries and also achieved a liberal democracy based on the rule of law. Since its 1997 financial crisis, however, Korea’s economic growth has been continually slowing down with widening income gaps among its populations. The Korean economy has also faced increasing external pressure, which has recently been dramatized by Japan’s export restraint measures on some of the key materials used to produce semiconductors, one of the most important export products for the Korean economy. This note discusses structural issues in the Korean economy, such as its over-dependency on a small number of conglomerates (“chaebols”) and the weakness of its SMEs, which cause the Korean economy to slow down and render the economy vulnerable to external pressure. This note examines these issues from a legal and institutional perspective and offers proposals to remedy some of the problems in the Korean economy.

Suggested Citation

  • Lee Yong-Shik, 2019. "South Korean Economy at the Crossroads: Structure Issues under External Pressure – An Essay from a Law and Development Perspective," The Law and Development Review, De Gruyter, vol. 12(3), pages 865-885, October.
    • Handle: RePEc:bpj:lawdev:v:12:y:2019:i:3:p:865-885:n:10
    DOI: 10.1515/ldr-2019-0063
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    References listed on IDEAS

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    1. Lee,Yong-Shik, 2016. "Reclaiming Development in the World Trading System," Cambridge Books, Cambridge University Press, number 9781107098930, August.
    2. Haider A. Khan, 2004. "Global Markets and Financial Crises in Asia," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-00079-7, June.
    3. Lee Yong-Shik, 2018. "Law and Development: Lessons from South Korea," The Law and Development Review, De Gruyter, vol. 11(2), pages 433-465, December.
    4. Oliver Kim & Mark Walker, 1984. "The free rider problem: Experimental evidence," Public Choice, Springer, vol. 43(1), pages 3-24, January.
    5. Randall S. Jones & Jae Wan Lee, 2018. "Enhancing dynamism in SMEs and entrepreneurship in Korea," OECD Economics Department Working Papers 1510, OECD Publishing.
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