Uneasy bedfellows : South Korea’s state-chaebol relations

Many studies on Korean economic development exist, but few scholarly works specifically address the relationship between the state and big business groups called the chaebol. The state-chaebol relationship is an important aspect of Korean economic development, but conventional analyses fail to capture the subtleties of the dynamic and tend to moralize rather than elucidate. This study argues that predominantly negative perceptions of close government-business relations tend to obscure the significant positive effects of close co-ordination and collaboration between the state and private capital. It is not the closeness per se that matters as much as the nature and dynamic of the relationship. Moreover, a more careful look at the state-chaebol nexus reveals a relationship in flux, in contrast to the rather static image provided in the media. Assuming that close government-business collaboration poses serious challenges to the economy, effective prescriptions must then be based on accurate diagnoses. Failing to understand the complexities of the state-business nexus prevents one from accurately diagnosing the roots of the current economic problems currently facing Korea. This thesis examines the political factors that influenced state-chaebol relations in South Korea. The causes and the importance of those factors are analyzed in terms of particular economic strategies adopted by the government, aspects of domestic politics, the economic and political influence of the chaebol and the international environment.Arts, Faculty ofPolitical Science, Department ofGraduat