South Korea's Meandering Path to Globalisation in the Late Twentieth Century

• Published in: Asian studies review Vol. 34; no. 3; pp. 309 - 327
• Main Authors: Lee, You-il, Kim, Wan-soon
• Format: Journal Article
• Language: English
• Published: Nathan Routledge 01.09.2010; Taylor & Francis Ltd
• Subjects: Asia: Economic conditions; Asian studies; Capitalism; Economic Crises; Foreign investment; GDP; Globalisation; Globalization; Gross Domestic Product; Growth models; inward foreign direct investment; Korea's segyehwa (globalisation); Korea's segyehwa[globalisation] drive; Korean capitalism; Markets; Multinational companies; Multinational corporations; Nationalism; Neoliberalism; Policy Making; Political Economy; Pragmatism; Regulation; South Korea; Twentieth Century; South Korea
• ISSN: 1035-7823; 1467-8403
• DOI: 10.1080/10357823.2010.507864

Globalisation, or segyehwa 1 in Korean, has recently been the central theme in discussions of South Korean political economy, particularly in strategic policy-making discourses since the outbreak of the Asian financial crisis, which was triggered by the collapse of the Thai baht in 1997. The serious nature of the South Korean currency meltdown in 1997 resulted at first glance in a striking transition in the South Korean political economy from state-driven market and industrial policies, and a strong nationalist policy towards foreign capital (inflow of foreign direct investment), to a neo-liberal policy of globalisation. This article critically examines the paradoxical nature of Korea's globalisation efforts under three political regimes (February 1993-February 2008), as a response to new economic conditions embedded in the nature of developmental capitalism. The paper argues that South Korea's globalisation effort over the period has been highly pragmatic and selective in policy and regulations but has resisted embracing the principles of market-driven globalisation. South Korea's globalisation drive or segyehwa therefore appears only a temporary phenomenon rather than a carefully structured strategic policy.