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The miracle to crisis and the mirage of the postcrisis reform in Korea: Assessment after ten years

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  • Lee, Keun
  • Lee, Chung H.

Abstract

Ten years have passed since Korea underwent a severe financial crisis in 1997-98. The crisis prompted the Korean government to undertake a number of reforms in finance, corporate governance, and labor market. This paper analyzes the dynamics of the reform process and assesses the outcomes of the reforms, which aimed at introducing the Anglo-Saxon economic model. It argues that the reform outcomes were conditioned on the interplay of local-specific conditions and interest politics and that the reforms were intent more on establishing a market-oriented economy than promoting the long-term growth potential and the competitiveness of the economy.

Suggested Citation

  • Lee, Keun & Lee, Chung H., 2008. "The miracle to crisis and the mirage of the postcrisis reform in Korea: Assessment after ten years," Journal of Asian Economics, Elsevier, vol. 19(5-6), pages 425-437.
    • Handle: RePEc:eee:asieco:v:19:y:2008:i:5-6:p:425-437
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    References listed on IDEAS

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    1. Lee, Keun & Kim, Byung-Yeon, 2009. "Both Institutions and Policies Matter but Differently for Different Income Groups of Countries: Determinants of Long-Run Economic Growth Revisited," World Development, Elsevier, vol. 37(3), pages 533-549, March.
    2. Greif, Avner, 1994. "Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 912-950, October.
    3. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    4. Keun Lee, 2006. "The Washington Consensus and East Asian Sequencing: Understanding Reform in East and South Asia," Palgrave Macmillan Books, in: José María Fanelli & Gary McMahon (ed.), Understanding Market Reforms, chapter 3, pages 99-140, Palgrave Macmillan.
    5. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, September.
    6. 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.
    7. Kineung Choo & Keun Lee & Keunkwan Ryu & Jungmo Yoon, 2009. "Changing Performance of Business Groups over Two Decades: Technological Capabilities and Investment Inefficiency in Korean Chaebols," Economic Development and Cultural Change, University of Chicago Press, vol. 57(2), pages 359-386, January.
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    Cited by:

    1. Jeon, Bang Nam, 2012. "From the 1997-98 Asian financial crisis to the 2008-09 global economic crisis: lessons from Korea’s experience," MPRA Paper 36469, University Library of Munich, Germany.
    2. Keun Lee, 2009. "How Can Korea be a Role Model for Catch-up Development?: A 'Capability-based View'," WIDER Working Paper Series RP2009-34, World Institute for Development Economic Research (UNU-WIDER).
    3. Yunhee Kim & Almas Heshmati, 2010. "Analysis of Korean IT startups’ initial public offering and their post-IPO performance," Journal of Productivity Analysis, Springer, vol. 34(2), pages 133-149, October.
    4. Ding, Cherng G. & Wu, Chiu-Hui & Chang, Pao-Long, 2013. "The influence of government intervention on the trajectory of bank performance during the global financial crisis: A comparative study among Asian economies," Journal of Financial Stability, Elsevier, vol. 9(4), pages 556-564.
    5. Wu, Chiu-Hui & Ding, Cherng G. & Jane, Ten-Der & Lin, Hang-Rung & Wu, Cheng-Ying, 2015. "Lessons from the global financial crisis for the semiconductor industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 47-53.

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