30 years after OECD: Time to move beyond Korea’s developmental state
This year marks the 30th anniversary of Korea’s accession to the OECD. The OECD has assessed that Korea has achieved substantial quantitative growth, with per capita GDP approaching the OECD average, an improvement in addressing inequality and an overall rise in the quality of life, as reflected in longer life expectancy. The Korean economy achieved compressed growth through the developmental state model. In the 1960s, the government protected and nurtured infant industries. In the 1970s, it shifted toward export-heavy and chemical industries, creating an industrial structure centered on family-run conglomerates. Samsung, which began in the fertilizer industry, expanded into electronics. LG built the foundation for its electronics business with the help of the government’s radio distribution movement and import restrictions. Hyundai moved into the automobile and shipbuilding industries, based on national infrastructure construction, while Hanjin, after accumulating logistics experience during the Vietnam War, acquired Korean Air. From the 1980s onward, the government focused on fost
