chapter  1
25 Pages

Introduction

ByJoon Nak Choi

While export-oriented industrialization has transformed the Korean economy so profoundly that it has become known as the “Miracle on the Han,” this industrial model has become fragile as the national champions known as the chaebol are facing increasingly tough challenges from rising Chinese firms. Foreseeing this challenge, Korean policy-makers sought new engines of economic growth in business services and entrepreneurship. Yet, these attempts have either failed or remain underdeveloped. Furthermore, these problems will soon be exacerbated by a demographic crisis, as the labor pool will not only shrink but also become older and presumably less productive. After defining these problems, the chapter outlines the strategic, policy, and social innovations needed to solve them, summarizing the contributed chapters that will examine these innovations in greater detail.