ABSTRACT
This chapter provides the institutional change–the development of the tax system in Korea. It examines tax reforms and their consequences in Korea during the modernization period, and to evaluate Korean tax policy options for the future. The chapter focuses to differentiate and compare international variations in tax policy changes in Korea and other industrial countries, particularly Japan, with offering some generalizations about the sources of international differences in the development of tax systems that will be instructive for Korea as well as other developing countries. It analyzes the general characteristics of tax changes and the types of institutional reforms undertaken since the early 1960s with reference to the specific problems pertaining to each period. Improved administration is an important aspect of tax reform. The accountability for the tax money spent should be publicly and clearly reported to secure the understanding and cooperation of taxpayers.
