ABSTRACT
During the first three decades of economic development in Korea, the statebusiness alliance which was created in the early 1960s facilitated and promoted rapid economic growth and industrialization. The Korean developmental state intervened in all areas of economic activity, channelling financial resources to specific projects, industries or enterprises, promoting the expansion of exports and controlling foreign participation in the domestic economy through imports, IFDI or portfolio investment. However, the gradual process of economic liberalization and deregulation that had begun in the 1980s, largely in response to pressure from major trading partners, accelerated in the early 1990s as the Kim Young-sam government implemented a programme of neoliberal reforms in order to meet the challenges posed by the increasing integration of the global economy.
