Whither the Developmental State in South Korea? Balancing Welfare and Neoliberalism

The Development of Social Enterprises in a Developmental State

“…[7]. The economic growth of the country during this period was impressive: From 1962 to 1992, GDP per capita increased 72 times and the The Development of Social Enterprises in a Developmental State Shang Liang unemployment rate steadily declined from 8.1% to 2.5% [8].…”

“…The following part will argue that despite the emergence of neoliberal and welfare policies since 1990s, the Korean government has retained the country's fundamental basis as a development state over past decades. The Korean government has taken a leading role in economic development since 1960s as the private sector was not adequately developed at that time [8]. During these three decades, the Korean developmental state was largely led by military leaders who orchestrated economic development through oppressive and coercive control.…”

“…South Korea has been described as a "developmental state" as its remarkable economic achievements were largely the result of government initiatives and strong intervention since the early 1960s [7], [8]. The term "developmental state" is used to describe the phenomenon of state-led economic planning in East Asia in the late 20th century and emphasize the state's political power and capacity to control over the economy.…”

“…The Kim Dae Jung government initiated a significant restructuring of the economy with very strong government intervention, as is evident in its support for the information and communications technology industry as a new post-recovery engine of economic growth. [8].…”

“…As a result, a neoliberal regulatory system was introduced under IMF prescriptions. [8], [10]. Moreover, the Kim government introduced welfare measures to assist the disadvantaged, especially the newly unemployed workers from the crisis.…”