Interpreting the Korean Crisis: Financial Liberalization, Industrial Policy and Corporate Governance

As the interpretation of its economic 'miracle' has been, so the interpretation of the recent crisis in Korea remains highly controversial.1 Although there are many important issues which have been raised by the Korean crisis, such as exchange rate policy, labour market policy, and the architecture of the international financial system (Chang, 1998a), three issues have been especially controversial in the debate: financial liberalization, industrial policy and corporate governance.