South Korea, Chaebols
The South Korean development pattern entailed a tremendous economic success story as its
expansion has been one of the fastest in the world between 1961 and 1990. The GNP grew of 7.1
percent every year1. Plus, in spite of the 1998 financial crisis and negative growth rates, the country
recovered quickly and is part of the four Asian tigers along with Taiwan, Singapor and Hong Kong.
This impressive economic take off occurred in the 1960s, right after the military coup of
Park Chung Hee, who overthrew Syngman Rhee's regime. After 1961, Park launched an array of
reforms that deeply modified the core structure of the Korean market organization, that went from
an agrarian- to an industrial-based economy. This one-of-a-kind model was based on the close
relationship between a strong State and the Chaebols, it is to say big family owned enterprises comparable to the Japanese zaibatsus. It promoted a developmental state, supposed to be totally
independant and committed to the elimination of cronyism.
Nevertheless, even though this pattern evolved and is still considered today as extremely
efficient, it failed to adress the corruption issue as the Asian financial crisis eventually revealed it.
Ramping corruption never ceased and became part of the society's mechanisms. It could be either
functional or irrevelent, but it was always there.
In this regard, we can argue that corruption might be compatible with development to some
extent. Yet, did corruption impede or fuel the South Korean rise? What influence did it have,
through the Chaebols, on democracy?
To figure out better the Korean situation, it seems necessary to hark back to its history after
the war that split the peninsula. Then, I will analyze the main pattern of developement implemented
in South Korea and try to explain how it shaped (or not) cronyism. Last, I will discuss the today's
situation, influenced by a strong will of the population to struggle against corruption.
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