The Korean government's role on developing the economy was more pronounced during the earlier years of the republic. This was particularly during the period of Park Chung Hee's rule. During this time, the government instituted reforms that bore the hallmarks of state capitalism and free market economy. The result can be considered successful as this pushed the Korean economy to modernization and progress. However, in the succeeding years, the national governments that ruled the country after Park introduced measures that made the economy freer from state intervention. The policies of liberalization were carried onwards to these current times by the incumbent administration of President Lee Myung-bak.
However, the Korean economy was not immune to crisis. In the late 90's, the country suffered an economic turmoil, which led to the closure of several of its key industries. Many economists view it as a result of the vestiges of the protectionist policies initiated by the Park administration in the 60's the 70's. However, there were opposing views also by other economic experts. ...Show more