This paper examines the “old” growth and economic development model of Korea and then constructs a “new” model which will give the Korean economy a new dynamism that will enable it to return to tis earlier strong and sustained growth path. This paper first examines the “old” economic development model of Korea. That is, we construct a systemic framework which can explain the major factors behind Korea’s success over the period from the early 1960s to the late 1980s. Then, we suggest a coherent explanation of why the financial crisis of 1997 occurred. We argue that the original development model has now run its course, but in the process has produced remarkable social and economic outcomes. The Korean economy is now matured and faces a different global trade and financial environment. Finally we construct a new development model of Korea. (The rest omitted)
This paper is a chapter to be included in Charlers Harvie, Hyun-Hoon Lee and Junggun Oh eds., The Korean Economy: Post-Crisis Policies, Issues Prospects, Edward Elga, Cheltenham, UK, forthcoming.