The purpose of this research is to analyze Korea’s economic status, create a long-term structural change scenario, and draw conclusion on the basic direction of the 1990s industrial policy.
The export growth rate, which increased up to 23.5% in late 1980s, had decreased to 3.2% in 1989, and 2.1% in 1990. There are several reasons that directly slowed down the export growth and one of them is the increase in wages. This phenomenon was primary caused by high growth of domestic demands, so it will be more effective to suggest a policy alternative that will slow down the demands rather than decreasing wages. Also, the high expense of the Korean won was caused by export surpluses, which can be solved by expanding the trade deficit.
In the late 1980s, Korea was faced with restructuring its economy. In comparison to the past, which focused on changing industry structure, it now includes restructuring overall social economy. Due to the changing domestic and international environment, overall reconstruction was inevitable.
Harmony between economic growth, social balance, and market openness will determine the long-term growth of Korea’s economy. The policy implemented by the government that aims at growth and authoritative attitude towards export policy has led to a downturn in the economy. Korea’s economy should be harmonized with economic growth, social development, and internationalization through adjustment between industries. Policy reform should involve reestablishing the relationship between the government, industry, and people. The government must reset its own limits and promote competition. Based on the market principle, industry structure and liberalization of banking should be regulated. In terms of improving labor relations, fulfilling employees’ needs is unavoidable.
|Series Title; No||연구보고서 / 92-05|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Macroeconomics|
|Holding||KDI; KDI School|