By Yeon-Ho Lee
This ebook examines how the South Korean kingdom is ready to execute nationwide rules which are against the pursuits of social components, regardless of the growth of social energy. the connection among the govt. and large company offers an illuminating instance of this. the writer demonstrates how Confucian values, the function of the kinfolk and an organization hierarchical culture have avoided South Korea from constructing a contemporary kingdom at the Western version.
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Extra resources for The State, Society and Big Business in South Korea (Routledge Advances in Asia-Pacific Business, 6)
Example text
Under the Park regime, the economic policy was fundamentally altered (Im Chong-ch’ôl 1976:495). First, while the Rhee regime pursued the free market system, the Park government reinforced ‘the economic power’ for itself so that it could strongly lead the planned economic policy. Second, the government created new state-owned enterprises (henceforth SOEs) and consolidated existing ones with a view to strengthening its economic control over the industrial sector. Twenty-four SOEs had been set up since 1962, and they ranged from manufacturing to financial institutions.
The general trade companies of the chaebôl are no more than trading companies and, therefore, their integrating power is much weaker than ‘that of the zaibatsu. In addition, the self-financing capacity of the chaebôl is greatly limited by government regulations: for example, the ‘Bank Act’ forbids institutional investors such as big business to own more than 8 percent of the shares of major city banks (Bank Act 1994: article 17). THE ORIGINS OF THE CHAEBÔL: 1948–60 The origin of some of the chaebôl can be traced back to the late Yi dynasty era and the Japanese colonial occupation period.
I further examine the results of policy implementation by assessing the degree to which the critical issues of the chaebôl were improved. I conclude that constitutional and formalinstitutional changes exerted virtually no influence on the degree of the South Korean state’s autonomy. Not only under the Chun regime which maintained highly authoritarian rule but also under the Roh regime established with a more democratic constitution, the Korean state kept a high degree of autonomy in restricting economic concentration via big business.