Paradox of Kim Dae-Jung Regime's Chaebol Policies :Based on Neil Fligstein's ‘Political-Cultural Approach’

• In Event: 571 - Section on Economic Sociology Roundtables (one-hour)
  In Refereed Roundtable: Table 07. Institutions and Fields in the Business World

Abstract

Right after the 97' currency crisis, the Korean development model was criticised by many of journalists and scholars. They considered excessive expansion of Chaebols and state-led developmental model as the cause of crisis. Therefore, Kim Dae Jung government, which came to power right after the crisis, tried to reform the Chaebol in order to construct the market oriented economic system. However, the Chaebol policies were similar to the way of developmental state. Why this paradox occurred? In order to answer this questions, this study will analyze the Chaebol policies of Kim's government, based on the Nill Fligstein's 'a political-cultural approach'. The political-cultural approach theoretically explained 'existed institutions' which are poorly considered in other theories. According to this theory, even after the crisis, the relationship of the state-capitals and economic institutions which have been formed for the initial industrialization period work for the actors as 'a cultural template' in making the new economic policies. So, I argue that 'coalition of capitals-strong state' model, existing relationship of the state-capitals and economic institutions, has been applied to the Chaebol and bureaucrats as a framework of cultural conception in forming the chaebol policies. While criticizing the capitalist-strong state coalition model, Kim's government planed the Chaebol policies based on 'capitlaist' model which seek the market oriented economic system. So, the government seemed to contend with the Chaebol who pursue the existing model. But, the Chaebol policies has been implemented in similar way of existing mode, because government used existing institutions as a cultural template.

Author

• Gilyeon Yoo, Yensei-ro Yensei university