Two Faces of Government-Business Relations During South Korea's Developmental Period
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South Korea's economic development has been characterized as a miracle due to its unprecedented speed and success. However, it has also been noted that a high level of distributive equity and poverty reduction were achieved in parallel with rapid growth. This paper argues that the first-order development goals of the state throughout the 1960s and 1970s were pursued in such a manner so as to be maximally inclusive of citizens in the developmental project. It is further argued that the country's industrial conglomerates played a dual function as engines of economic growth and instruments through which citizen wellbeing was enhanced. This paper reviews the mechanisms by which the Korean government influenced business, and discusses Korea's multifunctional industrialization and labor policies. Finally, the deinstitutionalization of the business sector's multifunctional role is detailed, and future challenges for Korea's modern welfare state are suggested.
Abstract
South Korea's economic development has been characterized as a miracle due to its unprecedented speed and success. However, it has also been noted that a high level of distributive equity and poverty reduction were achieved in parallel with rapid growth. This paper argues that the first-order development goals of the state throughout the 1960s and 1970s were pursued in such a manner so as to be maximally inclusive of citizens in the developmental project. It is further argued that the country's industrial conglomerates played a dual function as engines of economic growth and instruments through which citizen wellbeing was enhanced. This paper reviews the mechanisms by which the Korean government influenced business, and discusses Korea's multifunctional industrialization and labor policies. Finally, the deinstitutionalization of the business sector's multifunctional role is detailed, and future challenges for Korea's modern welfare state are suggested.
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