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.