THE SOUTH KOREAN ECONOMY | By Sunil Kim and Jonson Porteux

This book offers a comprehensive analysis of South Korea’s remarkable transformation from a postcolonial state to a thriving liberal democracy. The authors, Sunil Kim and Jonson Porteux,  trace the origins of South Korea’s economic policies back to the era of Japanese colonial rule and the nation’s subsequent postcolonial state-building endeavours. The book encompasses a broad spectrum of topics, including historical legacies, the dynamics of state-business relations, the suppression of labour, the cultivation of human capital, demographic shifts, and the repercussions of neoliberal reforms and globalization.

One of the book’s most notable strengths is its holistic approach to explaining the factors behind South Korea’s economic success. The authors transcend conventional economic metrics by integrating political, economic, and social dimensions, offering a nuanced and well-rounded understanding of South Korea’s development trajectory. They underscore the intricate interplay of various societal and governmental elements and their collective influence on economic outcomes. This holistic approach provides a robust framework for analyzing the complexities of economic development, making the book an invaluable resource for scholars and policy makers aiming to grasp the multifaceted nature of national growth and transformation.

The authors set themselves apart by emphasizing the crucial role of human factors in South Korea’s economic development, moving beyond traditional economic analyses. They explore how political decisions, social policies, and economic strategies collectively shape development outcomes. By examining labour relations, demographic shifts, and socioeconomic policies, the book highlights the crucial role of human capital and social dimensions in driving economic growth. This nuanced approach offers a deeper, more comprehensive understanding of South Korea’s economic miracle. It reveals how various facets of society and governance intertwine to influence economic outcomes, providing a holistic view of the country’s remarkable development journey that transcends traditional economic metrics.

Building on this human-centric perspective, the book introduces an innovative open economy politics (OEP) framework, which significantly enhances the traditional developmental state model. This innovative approach integrates political economy, interests, and institutions into the analysis of South Korea’s development. By incorporating often-overlooked social and human dimensions—such as social policies, labour relations, and human capital development—the OEP framework offers a more comprehensive understanding of economic growth. This holistic approach addresses gaps in conventional models, providing a richer analysis of the developmental state. It offers practical insights for policy makers aiming for sustainable and inclusive development. The versatility of the OEP framework also suggests its potential applicability to diverse regional contexts, making it a valuable tool for scholars and policy makers studying economic development beyond South Korea.

Further enhancing its theoretical contributions, the book excels in introducing innovative concepts such as “commanding dependency,” “bargaining dependency,” “politicized coordination,” and “cooperative politicking” to describe evolving state-business and state-labour relations. These terms offer fresh perspectives on the complex state-market interactions shaping South Korea’s economic trajectory. By employing these novel concepts, the authors demonstrate deep engagement with the subject matter and push the boundaries of existing knowledge, potentially enriching theoretical discussions on state-market interactions in late-industrializing countries. The authors’ creative conceptualization reflects their commitment to advancing our understanding of South Korea’s economic development beyond conventional frameworks.

Despite these strengths, the book’s broad scope occasionally leads to a more superficial treatment of certain topics. While the book’s holistic approach is commendable for providing a comprehensive understanding of South Korea’s transformation, it can be a double-edged sword. At times, this wide-ranging perspective may lead to a lack of depth when analyzing specific issues, potentially leaving some readers yearning for a more detailed exploration of particular aspects of South Korea’s development story.

One notable limitation is the insufficient exploration of the historical evolution of the internal dynamics of the Korean developmental state. While the authors provide a useful interactive analysis between the state and various actors, they do not fully delve into the transformation of the state’s internal dynamics. The book falls short in articulating how and why the interventionist state transformed into one that embraces neoliberalism, leaving readers without a comprehensive understanding of the factors, processes, and motivations behind this crucial shift. A more thorough examination of the interplay between the state, market forces, and global economic trends that prompted the state’s adoption of neoliberal policies would have greatly enhanced the book’s analysis.

Another area where the book could have provided more depth is its assessment of the impact of global market forces on the Korean economy. As the influence of global market forces continues to grow, the book does not adequately address the reformulation of existing interests among different actors and institutions in response to these external pressures. This omission may lead to a one-sided narrative that underestimates the importance of market forces and private entrepreneurship in shaping South Korea’s economic landscape.

To further strengthen its analysis, the book could have benefitted from placing South Korea’s development in a broader comparative context, particularly within East Asia. This approach would highlight unique aspects of South Korea’s evolution while identifying common patterns in postcolonial development. It would contribute more substantially to discussions on economic growth and political change in postcolonial societies. For example, comparing South Korea’s model to Japan’s could provide insights into potential future trajectories. It could explore whether South Korea might follow Japan’s path of economic stagnation or forge a unique one that avoids similar pitfalls. This comparative perspective would offer valuable insights while maintaining the book’s focus on South Korea’s specific journey.

Overall, this book serves as an excellent introduction to South Korea’s economic success for college students and scholars interested in comparative economic development. The authors’ innovative approach and nuanced analysis of political, economic, and social factors offer valuable insights into South Korea’s growth dynamics, with implications for other postcolonial contexts. Despite some limitations, it remains an essential resource for understanding South Korea’s economic miracle and its contemporary challenges, making it valuable for both academic study and policy considerations.                          

Myung-koo Kang

Baruch College, New York