As Aristotle observed 2400 years ago, human beings are by nature social creatures. Social trust is the underlying foundation of relationships among individuals, groups, and other components of a society. Knack and Zak (2003) claim that 'trust is essential to myriad aspects of civil society'. People exercise a certain extent of trust when dealing with others, and on this basis expect certain types of responses. Without trust in others' actions, people may have to consider too many contingencies and uncertainties to take action, destroying the foundation of community and society. Without social trust, a country's economy cannot perform well, because transaction costs-costs in undertaking economic transactions by economic entitieswould be too high. Hence, social trust is a key determinant of social and economic development as well as of human well-being. Social trust has been a serious social and economic issue in Korea in the recent past. It has been found to be remarkably low in Korea relative to living standards in Korea and to levels of social trust in other countries. On 'interpersonal trust', a constituent element of social trust measured by the World Values Survey (WVS), Korea ranked 31st with a score of 31.7 over the period 1981-2008 (Algan and Cahuc 2013). This indicates only 31.7 percent of Koreans responded 'most people can be trusted'. The Korean score compares to Norway's score of 68.1, which ranked highest over the same period. Even more serious is that social trust has declined over the past four decades. Korea's score of 36.0 by Wave 1 (1981-84) of the WVS declined to 26.5 by Wave 6 (2010-14), which is the latest WVS survey. 1 Taking into account that different numbers of countries were surveyed over the six waves, Korea ranked in the 38th percentile on average over the six waves. According to the Wave 6 Survey, Asian neighbours including Japan, China, Hong Kong, Taiwan, and Singapore scored higher levels of interpersonal trust than Korea, let alone northern European countries. Prospects for interpersonal trust in Korea are not bright. A 2014 survey of middle and high school students found that only 12.4 percent said they feel most people can be trusted (The DongA Ilbo 2014). As discussed O. Yul Kwon-9781784719609