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The Market's Revolt in the Dilemma between Weak Market Capabilities and Weak State Capacities: The Korean Case of Corporate Restructuring
Author(s) -
Rhee JongChan
Publication year - 2005
Publication title -
pacific focus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.172
H-Index - 12
eISSN - 1976-5118
pISSN - 1225-4657
DOI - 10.1111/j.1976-5118.2005.tb00293.x
Subject(s) - restructuring , liberalization , dilemma , market economy , economics , democratization , state (computer science) , economic interventionism , economic system , politics , business , democracy , political science , finance , philosophy , epistemology , algorithm , computer science , law
In the process of overcoming the economic crisis, Korea's liberal market reform had not meant the retreat of the state from the market by intervening in industrial and financial restructuring of liquidation, workouts, mergers, and business swaps. Despite this state intervention, the developmental state had shown the limits of state capacities in implementing the state‐led corporate restructuring in the wake of political democratization and economic liberalization. Therefore, this study will solve the puzzles of why the so‐called ‘strong’ state fell into the dilemma between weak market capabilities and weak state capacities, and particularly of how the government could overcome the dilemma in the process of Korean conglomerates' (Jaebols) restructuring in the economic crisis. That is, it will explain the myth of market‐led restructuring, the limits of state‐led corporate restructuring, and the emergence of market power in institutional arrangements both of weak market capabilities and of weak state capacities during the transitional period of democratic consolidation and market liberalization.