This study analyzes the situations that Korea faced after periods of rapid economic growth, and how to seek long-term development plans.
Through the six installments of Economic Development Plans that have come and gone since the first one was introduced in 1962, Korea has recorded an average economic growth of 8% and a 30% increase in exports, growth which is unprecedented among developing countries. During this period, the Korean economy has moved from an agricultural society to an emerging industrial state and the industrial structure has shifted from light industry in the 1960s to heavy chemicals industry in the 1970s. However, this growth was intentionally led by strong authority and social order, and it naturally led to the distortion of resources, incomes and wealth distribution, as well as to an imbalanced development among regions.
The time has come for the great transition that will get us out of the authoritarian system and into democracy. In the short-term, the problems we face are: low investment rates due to the reduction of economic growth rates; instability of market prices due to realty speculation; slowing of economic development due to labor-management disputes; and the advancement of globalization. For this situation to improve, it is necessary to create an environment where companies can make brave and reliable investments; to prepare investment induction plans; to make national efforts for market price stabilization; to promote cooperation and partnership between labor and management; and to abridge international understanding through the globalization of information.
In the long-term, there are problems of rising conflicts and complaints in society, government regulations and a lack of technology. In order to solve these problems, it is necessary for the government to establish a principle for the management and operation of the economy, to reform structural and institutional problems and to regain the nations’ trust. Furthermore, it is necessary to promote the use of technology through realistic limitations placed on the big business-oriented economic concentration, to introduce open competition systems through appropriate government restrictions, to increase the number of international technology partnerships with advanced countries and to develop technology by expanding science education.
한국경제, 그 과제와 대응(The tasks and reponses of the Korean economy)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||경제기획원; 한국개발연구원 국제정책대학원|