Since 1980, Korea witnessed an annual average economic growth of 7.9% for 17 years. The financial crisis of the late 1997, however, reduced the growth rate to a record low - 5.8% in 1998. This led to a rapid increase in unemployment rate from 3.2% annual average rate prior to the crisis to 6.8% in 1998. Unemployment schemes that have been implemented in Korea so far have the characteristics of active labor market policy and strong social solidarity. The basic directions of unemployment schemes include: First, economic restructuring in the fields of finance, business, public and labor; Second, the improvement in education and training system; Third, the expansion of the coverage of social safety net; Fourth, increased effectiveness of unemployment schemes. This study aims to examine the basic framework of unemployment schemes and ev aluate their major achievements in order to provide policy recommendations for the future. (The rest omitted)
This paper is a revised version of a paper that was presented at the international conference 'Globalization, Political Economy of Tripartism, and Restructuring of Welfare Regimes: Views from Political Science' , organized by Korean Political Science Association and the Korean Tripartite Commission in Seoul, Korea, on December 7th, 2001.