초록 close

This paper surveys Korea's economic development from 1952 to 2002. From 1952 to 1962, the overall economy stagnated but massive foreign aid led to import substitution in consumer goods industries. Korea experienced a spurt during 1963-1979 period under a developmental state that pursued outward-looking development. Korea managed to create more dynamic sectors that could compete internationally, but the cost was also very high. Korea was in the process of transition from developmental state since the early 1980's up to the breakout of crisis in 1997. There was a liberalization drive, but no building of a workable system across firms, unions, financial institutions and the government. Korea also failed to properly sequence capital market opening. In the post-crisis period, significant reform has been carried out, but many problems remain unsolved. Some new development strategies have also envisioned, but there are lingering questions about their effectiveness.