Download PDF by Sung-Hee Jwa: A New Paradigm for Korea’s Economic Development: From

By Sung-Hee Jwa

ISBN-10: 0333715012

ISBN-13: 9780333715017

ISBN-10: 1349413887

ISBN-13: 9781349413881

ISBN-10: 1403920206

ISBN-13: 9781403920201

The reader will locate the following analyses of quite a lot of previous and present coverage reviews and reform efforts in Korea. The coverage classes drawn are designed to assist Korea's transformation from the government-led improvement version to a contemporary market-orientated economic climate. the most guideline of this publication is that Korea's financial destiny relies totally upon the profitable integration of market-orientated structures and as such, coverage techniques are duly provided.

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On the other hand, the Korean government intervened directly in the microeconomic resource allocation through discriminatory policies – such as favoring certain sectors and groups of economic agents. The government controlled the financial resource allocation by regulating interest rates and the lending activities of financial institutions. In the earlier stage of development – until the late 1970s – the large business groups and heavy and chemical industry sector were favored, but since the 1980s, small and medium-sized firms have been relatively favored.

The government gave those large corporations preferential entry into the targeted industries. 8 Source: Lee (1998). 00 Notes: ‘General’ rates are applicable to firms that are not qualified to get special tax treatment and ‘special’ rates are for qualified firms. Source: Kwack (1984). Korea over the Past Thirty Years 27 the government offered financial and tax inducements to the chosen firms. Thus, the large corporations had every incentive to diversify their operations according to the government’s industrial targeting policy.

He who tries to take hold of the world by force will not succeed. The world is a mysterious thing; it cannot be controlled.

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A New Paradigm for Korea’s Economic Development: From Government Control to Market Economy by Sung-Hee Jwa

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