KOREA'S FDI-LED ECONOMIC LIBERALISM: A CRITICAL VIEW

This article argues that Korea's prevailing strong belief in self-sufficiency and the legacy of the state-led and overly regulated external policies which dominated prior to the 1997 financial crisis had become an obstacle to Korea's seeming pursuit of economic liberalism based on inward foreign direct investment (FDI). Although the momentum of globalization ignited during the 1997 financial crisis has enabled Korea to undertake a speedier market opening and draconian structural reforms, there has been no fundamental turnaround yet in the mindset of the Korean government, bureaucrats, corporate sector, or the people in general—the ultimate measure of globalization. This article critically evaluates the impacts of the legacy of the state-led economic development (economic nationalism/mercantilism) model on Korea's newly adopted FDI-led globalization strategy.