Social injustice and economic dynamism in contemporary Korea

Abstract

This article examines the processes of labor market restructuring and welfare reform in South Korea since the 1997/98 crisis, arguing that the Korean state-capital complex has succeeded in effecting a substantial redistribution of income from labor to capital. This redistribution of income has played a critical role in enhancing Korea's international competitiveness and in facilitating a return to sustained growth. The principal mechanisms through which this redistribution has been achieved are the intensified exploitation of weaker sections of the proletariat and the reduction of the traditionally more protected organized sections of the workforce in major firms. At the same time, the state has strengthened welfare safety nets and sought to place concerns about structural competitiveness at the heart of the welfare regime through the promotion of vocational training. What has been most striking about the process of welfare reform, however, has been the capacity of the state to limit the growth of welfare expenditures/provision whilst simultaneously creating massive new labor market insecurities. As a result of the success of the Korean state in restructuring labor markets in order to effect a redistribution of income from weaker sections of the proletariat to capital and limiting the growth of social spending we have witnessed a marked increase in inequality since 1997. Korea's apparent success in transforming itself into a competitive, dynamic neoliberal economy must, therefore, be understood as being symbiotically linked to the intensification of inequality.     

Financial liberalization in South Korea

This article analyzes the process of financial liberalization in South Korea from the perspective of financial globalization through an international political economic approach. Korean financial liberalization has been highly influenced by the outside pressure of the United States, the OECD and the IMF, as well as by the big business conglomerates (chaebols), as a powerful domestic interest group. In a broad perspective, South Korea's entrance into the OECD, the Financial Services Agreement under the WTO and the Structural Adjustment Program of the IMF after the 1997 financial crisis were important moments for Korea's financial reforms. There are two viewpoints on the causes of the Korean financial crisis. From a domestic viewpoint, South Korea had a weak financial market system and its financial liberalization process was too premature to create a stable financial market when Korea met the financial crisis. In a globalization perspective, financial globalization intrinsically encourages uncontrollable short-term financial capital flows across borders, thus financial crisis is inevitable regardless of a strong or weak domestic financial system. This article compares these two viewpoints in the case of South Korea.     

Migration and the reconfiguration of Malaysia

This article examines the social impact of the 1997 financial crisis in South Korea. Although the crisis was short-lived, it has created major ripples all across the country, profoundly affecting the Koreans' lifestyle and family life as well as their values and worldview. In spite of the magnitude of the financial crisis and its social impact, scant scholarly attention has been paid to the issue, although the causes and economic impact of the crisis have been amply discussed. In view of this, the article examines major social changes brought upon by the financial crisis. The article probes, for example, how employment patterns have been deeply affected, whereby a majority of workers are now irregular workers or are underemployed. The article also demonstrates how the people's perception of work has changed and how the income gap between the rich and the poor has widened. Also discussed are, among others, the continuing discrimination against women in the workplace, rising divorce rate, increase in immigration and value conflicts over the relevance of Confucianism in contemporary Korea. In addition, the article examines the agency of the Korean people in reacting to or coping with the changing circumstances.     

Security,Nationalism and Popular Culture: Screening South Korea’s Uneasy Identity in the Early 2000s

By examining the cultural representations of the South Korean notion of the Self/Other in relation to its major traditional enemy — North Korea — this article aims to capture a picture of South Korea’s discursive economy of the North, and to problematise the South Korean identities implicated in that economy in the early 2000s. To achieve these aims, this article focuses on representations of a successful popular South Korean film which was released in 2000, just a few months after the first inter-Korean summit: Joint Security Area JSA. By analytically reading JSA, it is revealed that, in South Korea, the traditional discursive practices based on the Cold War thinking have been eroded. For the South, the North is part of the Self (Korean-ness; love for the North as the same nation) and, at the same time, is an Other (South Korean-ness; contempt for the North as an inferior state). Related to this, South Korea appears to be the uneasy Self without a firm Other in between Korean-ness and South Korean-ness.     

Tunisia’s youth: awakened identity and challenges post-Arab Spring

This paper examines Tunisian youths’ sense of identity and how it is influenced by the economic malaise that the country has experienced since the revolution; this is despite the relative success of the Arab Spring at inciting the country’s political transition to democracy. Although young people appreciate new-found freedoms of expression and association in post-Arab Spring Tunisia, the economy, acquiescent to the neoliberal model and weighed down with corruption and political marginalization, has deprived many of a dignified existence. The research reported in this paper surveys over 100 youth chosen from northern, coastal, central and southern parts of Tunisia. It examines how Tunisian youth view the Arab Spring in the context of unstable socio-economic and political environments. To most surveyed youths, the Arab Spring is a failure in socio-economic terms, but it is also an occasion to reassert their Tunisian identity.     

Chaebol and the Turn to Services: The Rise of a Korean Service Economy and the Dynamics of Self-Employment and Wage Work

ABSTRACT

This article examines the growing insecurity for the Korean self-employed who were once responsible for a large proportion of domestic service operations. Since the 1980s, changing regional and domestic economic circumstances, the restructuring of regional and chaebol manufacturing operations and liberalisation of the domestic service economy had led to enterprise diversification into the distributive sectors and the systematisation of the domestic service economy. Conducting a historical analysis of service sector development and decomposing the Korean Economically Active Population survey (1989–2011), this article charts the process of Korea’s distributive sector development and its effect on the self-employed. It argues that chaebol systematisation of Korea’s service sector consolidated the domestic economy after 1997 and exerted pressure on the country’s self-employed. Large businesses formalised the service sector, displaced the self-employed, and instead generated mostly non-regular wage work, proletarianising a significant segment of the service workforce.     

“Voices of ordinary citizens”: ban damunhwa and its neoliberal affect of anti-immigration in South Korea

This article looks at the rapid emergence of ban damunhwa (“anti-multiculture”) or the sentiment of anti-immigration in South Korea. Ban damunhwa discourse centers on a variety of issues such as the state's multicultural policy, crimes by foreigners, and problems of the so-called illegal sojourners, and has been most active and visible on the Internet, especially since the mid-2000s. This article focuses on the way ban damunhwa defines the state's multicultural policy as what gives special preferences to migrants, which, in turn, is said to destroy the livelihoods of South Korean citizens. Represented as the “voices of ordinary citizens,” ban damunhwa narratives appeal to a neoliberal idea of fairness and equity, under which migrants emerge as demonic free-riders. Ban damunhwa discourse not only serves as a symptom of a neoliberal ethic but also mirrors the dilemma of the people who struggle within a system of precarity and yet reproduce its main ideologies.     

Democratization, dispersed interest groups, and economic reform in South Korea: Understanding the decline of the “Chaebol Republic”

The 1997 financial crisis exposed serious weaknesses in South Korea's economy, with its heavy reliance on large conglomerates (chaebol). During the late authoritarian period, the chaebol arose through state guidance and subsidies, becoming the central players in South Korea's export-led growth boom. The early democratic period saw limited efforts toward economic liberalization. But these measures reduced state oversight while actually expanding the privileged access to credit enjoyed by the chaebol. The resulting investment distortions and financial weaknesses were the most important root causes of the 1997 crisis. The 1997 presidential election brought the outsider Kim Dae-jung to power. Kim launched an unprecedented assault on the credit privileges and corporate governance structures of the chaebol. However, the reforms have been compromised by measures to prevent a large transitional recession. It is argued that the overall pattern of ambitious but compromised reform is explained by two main considerations. First, Kim did not want to alienate “dispersed interest groups” (the urban service sector and agriculture). These want to conserve the favorable elements of South Korea's economic model while purging the dross. And at the same time, Kim wanted to focus transitional restructuring costs on the most hostile “concentrated interest group” constituencies (the chaebol and government sectors) of the opposition Grand National Party. I thank Uk Heo and Sunwoong Kim for their helpful suggestions and insights.     

论独岛领有权问题

本文借鉴了韩国学界与日本学界关于独岛领有权问题的主流观点,参考了与独岛相关的文献资料,结合国际法中领土主权的取得方式论述了该岛的领有权问题。笔者通过研究发现,虽然“韩国从新罗王朝时期就开始拥有独岛主权”的韩国学界主流观点存在疑问,但根据近代以来的相关史料及领土取得方式来看,独岛主权属于韩国的主张更具有说服力。站在第三者的立场上,我们应该尊重韩国政府实际控制着独岛的客观事实。     

The viability and vulnerability of Korean economic governance

This study addresses the question of how Korean economic governance has been shaped over time. Primarily, it analyzes the four inter-related dimensions of economic governance: organizational vitality, size dispersion, managerial hierarchy, and market integrity. Although economic governance is quite viable in that the young members dominate the population of organization in numbers, the analysis of size dispersion illustrates the pattern of dominance of large-scale production units across a wide range of industries. Korean economic governance is distinctively characterized by large-scale business groups whose managerial hierarchies are highly concentrated and vertically integrated. Finally, the governance of the national economy also shows aggressive strategies of vertical integration and horizontal predation without the establishment of extensive networks of subcontracting relationships. The current economic crisis raises the question of whether Korean economic governance is viable enough to survive through or vulnerable enough to be replaced by an alternative form under the pressures of financial liberalization and domestic restructuring. An analysis of economic governance will illuminate the unique nature of Korean capitalism and further assist us in understanding the historical roots of the current economic turmoil.     

South Korea’s Economic Course: from State Dirigisme to Liberal Monetarism

The paper aims to investigate the transformation of South Korean economy from strict state regulation to liberalization and to fill in the gap in the historical analysis of the transition from import-substitution to export-oriented economy of South Korea. The study relies on the methods of comparative-historical, historical-typological, and historical-genetic analysis to consider the evolution of South Korean economic system, the change in economic development model, and the transition to a new economic strategy. The study also implies the use of interdisciplinary methods to systematize the empirical material, applying political-geographic, economic, and complex approaches. The paper gives periodization of South Korean economic development and investigates the reasons of country’s successful modernization and transition to export-oriented economy. Large corporations began to emerge in South Korea in the mid-1960s due to the active support from the state. They established the production of steel, marine vessels, automobiles, and electronic devices. The well thought-out government program brought notable success by the late 1990s, and South Korea gained the developed industrial base and powerful export potential. The afflux of foreign investments and the competitiveness of Korean products were mostly provided by low wages, traditional diligence, and Confucian education. Since the Korean strategy of economic development happened to be successful, there is a need for examining the experience of modernization as it can be useful for developing countries.     

The political economy of capital flows and capital controls in Malaysia

This paper explains the neo-liberal reform measures – foreign direct investment (FDI) policies, financialisation and labour market reform – of the Korean economy following the 1998 economic crisis. It investigates how they have influenced a process identified as the bipolarisation of Korea. Although the increase in FDI inflows has contributed to the economy by overcoming balance of payments difficulties, it has led to increased income inequality. As a result of labour market reforms that targeted labour market flexibility, the number of non-regular/non-standard and part-time workers has increased significantly over the past decade. Labour market reform and financialisation aggravated the bipolarisation.     

Beneath the Eagle's Wings? The Political Economy of Northeast Asian Burden-Sharing in Comparative Perspective

Abstract

This paper examines Japanese and South Korean host-nation support (HNS) policies toward American forces deployed in those two countries from a comparative perspective. It finds that both countries provide substantial support for US forces, contrary to the expectations of collective action theory and the assumptions of many international relations theorists about free-riding. Northeast Asian HNS support tends to be both quantitatively substantial and to involve an unusually elaborate range of common support programs, thus constituting a distinctive Northeast Asian model of “burden-sharing.” The specific programs supporting US forces in these two countries were generally designed by local politicians and bureaucrats, with only minimal input from the US, albeit under American pressure. They were implemented in discontinuous fashion, at critical junctures, as during the Gulf War and the first Korean nuclear crisis. These results thus provide useful elaboration of “reactive state” and “critical juncture” interpretations of how East Asian policymaking relates to domestic and international politics.     

Strategic Alliances: State-Business Relations in Mexico Under Neo-Liberalism and Crisis

Abstract – This paper examines how neoliberal policies implemented under Carlos Salinas Gortari (1988–1994) changed the nature of state-private sector relations in Mexico. The paper attempts to show how Mexico's entry into the North American Free Trade Agreement (NAFTA) solidified a strategic alliance between the state and business. The drastic peso devaluation of December 1994 and the ensuing economic crisis however, threatened to shatter the very foundation of the new alliance with the private sector. This paper thus, explores how the Ernesto Zedillo regime (1994–2000) addressed the expectations of the capital class and strengthened its transparent ties with the private sector. The paper argues that given the nature of the more transparent strategic alliance formed under the Salinas administration, big business continues to be brought into the policy making process, and that in fact, Zedillo continues to intervene on the side of business.     

Neo-liberalism in post-crisis South Korea: Social conditions and outcomes

South Korea's post-war development pattern has been considered to be a developmental state model, where the basic institutional framework was the “state-banks-chaebol nexus.” Since the financial crisis of 1997, however, the country has been swiftly transformed from the developmental state model and has acquired more neo-liberal characteristics. This has been made possible through intense reforms implemented by the post-crisis South Korean government under the IMF's guidance and encouraged by domestic political, ideational, and social conditions. Among those, significant conditions for this swift transformation include chaebols' legitimacy problems, neo-liberal consensus among the domestic elite, democracy hijacked by neo-liberalism, and the role of some NGOs. As social outcomes of the transformation, we find the enlarged presence of transnational capital, increased labour flexibility, inequality and poverty, and an increasing cultural gap in the country. Huge social costs of such neo-liberal transformation necessitate an alternative path of political economy.     

DJnomics and the transformation of the developmental state

Since the Asian financial crisis, the Korean state under Kim Dae Jung has witnessed significant challenges from foreign capital as well as from organized labor. Regime transition has influenced the social and political relations between the state and big business (chaebol). The traditional developmental state has gradually eroded as the power and capacity of the state was increasingly affected by economic globalization. The Korean economy has been transformed from a traditional developmental state model characterized by a hierarchical and authoritative relationship between the government and conglomerates into the market-oriented economic model.     

International capital,Singapore's state companies,and security

Since the Asian economic crisis in 1997-98, the Singapore government has embraced neoliberal globalization to a degree not matched elsewhere in East or Southeast Asia. Yet the consolidation and expansion of Singapore's state companies are also integral to this strategy. These companies are increasingly the objects of critical attention from elements of international capital that are seeking to make inroads into various sectors of the Singapore economy. This includes pressures to reform governance systems from which state companies derive competitive advantages. This article examines the nature and political strength of these challenges, the responses to them by the Singapore government, and the implications of this for the future of the authoritarian regime. The article also analyzes the changing geopolitical context within which such disputes are being played out. Security concerns by the U.S. government in particular, it is argued, are mediating conflict over state companies and presenting new opportunities for the authoritarian regime to consolidate.     

The Terminal Crisis of the “Participatory Government” and the Election of Lee Myung Bak

This paper examines the election of Lee Myung Bak through the terminal crisis of the Roh Moo Hyun government that preceded it. I start with an analysis of the election of Lee Myung Bak and the electoral strategies of the liberal-progressive bloc in the December 2007 election and then move on to detail how these strategies shed light on tensions within Korean progressive politics since the transition to democracy in 1987. These tensions inform what I shall call the “terminal crisis” of Roh's “participatory government.” I argue that this crisis involves a problem of articulation within progressive politics between a politics of reunification and one grounded in egalitarian economic reform, including the lack of an alternative to the different forms of neo-liberalism embraced by both the Roh government and the conservative government of Lee Myung Bak. My hope is that thorough examination of these tensions that have informed the liberal-progressive bloc during the long decade since 1987 can spur reflection on the role of social movements in Korean democratisation and the dilemmas they face in crafting strategies for political and economic reform.     

North Korea's juche ideology: indigenous communism or traditional thought?

ABSTRACT

This article examines the content of North Korea's juche ideology by analyzing official texts in comparison with Confucian classics and new religious movements in South Korea. The comparison revealed a series of similarities that vividly demonstrate that juche ideas have absorbed core elements of Korean and East Asian philosophical traditions.     

Hedley Bull and International Society: Contemporary Reflections on the Korean Peninsula

The year 2010 witnessed an escalation of tensions on the Korean peninsula through two military crises. The rise in tensions can be explained by neorealism as a shifting distribution of power in the region and a small state preserving its national security. The paper argues that neorealism is not sufficient to explain the patterns and routines of crisis escalation and crisis resumption on the Korean peninsula and the North East Asian region. By focusing on the causes of conflicts neorealism fails to identify the consequences of these inter-state tensions for the evolution of an anarchical society of states in the North East Asian region. The paper provides an alternative interpretation of recent inter-Korean crisis escalation and crisis resolution in the East Asian region through the work of Hedley Bull.