The purpose of this paper is to evaluate Korea's macroeconomic prospects and major policy issues for the next decade. After reviewing the intial conditions, the report examines growth strategies, and prospects for growth. Then it discusses external borrowing options and the role of monetary and fiscal policy in the next decade. From the review of Korea's macroeconomic prospects for the next decade the report concludes that although the external environment will not be as favorable as in the 1983-86 period, still the Korean economy will be resilient enough to achieve a 6-7 percent annual growth rate for the next decade. Areas where new policy actions will be required are in the management of monetary policy and the provision of social welfare. Although there is an indication of some increase in the protectionist threat against Korea's exports, the report maintains that the pressures for higher consumption and investment and the less favorable external environment will result in smaller trade surpluses in the years ahead.