Economic crises and augmenting financial bureaucratic power in South Korea

• Published in: Pacific review Vol. 31; no. 3; pp. 352 - 372
• Main Authors: Lee, Yeonho, Kim, Hak-Ryul
• Format: Journal Article
• Language: English
• Published: Oxford Taylor & Francis Ltd 04.05.2018
• Subjects: Autonomy; Bureaucracy; Central banks; Central government; Civil society; Economic crisis; International finance; Politics; Power; Presidents; Public finance; Public opinion; Supervision; South Korea
• ISSN: 0951-2748; 1470-1332
• DOI: 10.1080/09512748.2017.1391863

Despite negative public opinion, the role of the Korean government has expanded, while overcoming two rounds of global financial crises. The phenomenon of the re-swelling state is mainly attributed to the strengthening of the central bureaucracy, in particular the financial bureaucracy, rather than the whole central government or the state. The argument of the strengthening of the 'state' or the 'government' after economic crises might be subject to the error of generalization. Through the two rounds of economic crises, the financial bureaucracy succeeded in acquiring the authority of market supervision and industrial support. In consequence, the bureaucracy's institutional supremacy within the government grew less challenged. The central bureaucracy was no longer the loyal servant to the President. It has reinforced its institutional strength and autonomy vis-a-vis the President, the National Assembly, the Central Bank and civil society, under the pretext of building up the rational and autonomous market and democratic politics.