ABSTRACT
Why is it that the Korean economy is so interesting to observe, investigate, and analyse? One of the first images of Korea frequently encountered by foreigners might be those images that they see frequently in newspapers or on TV; involving workers and university students wearing face masks violently demonstrating on the street, throwing Molotov cocktails, or, just as likely, of images depicting riot police even more violently subjugating the demonstrators. However, another common image of Korea, which makes it particularly interesting, reflects the widespread perception that it is one of the few countries that have achieved dramatic economic growth; and more recently, has been hit severely by economic crisis. Korea belonged at the forefront of a group of countries labelled ‘miraculous’ by Lucas (1993), at least until 1997. From being one of the poorest countries in 1961, it had grown by 2001 to be the thirteenth largest economy in terms of gross domestic product (GDP) in the world, notwithstanding the setbacks experienced as part of its recent economic crisis. It is hard to investigate the successes and failures of this remarkable economy in a single chapter. Consequently, in this chapter, we will briefly summarize the triumphs and difficulties that this country experienced on the path to growth.
