Hostname: page-component-cd9895bd7-p9bg8 Total loading time: 0 Render date: 2024-12-25T20:04:13.997Z Has data issue: false hasContentIssue false
  • English
  • Français

Overlapping Political Conflicts and Legislative Gridlock: Reforming Financial Supervisory Governance in South Korea

Published online by Cambridge University Press:  08 November 2016

INHYE HEO
INHYE HEO*
Affiliation:
Dong-eui University, South [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Literature discussing the factors in government and parliament that cause of gridlock is limited in examining cases that occur in contexts where the democratic principle of ‘inclusion’ expands. This paper analyzes the legislative gridlock revealed in the process of the South Korean government's efforts to pass the Bill of Financial Consumer Protection, beginning in July 2012, from the perspective of overlapping political conflicts among multi-scalar actors. Research shows that the government's desire to reform financial supervisory governance created two cleavages among the multi-scalar actors because of their long-held political interest in the Bill. The conflict intensified as the cleavages overlapped and were presented as one big issue in the history of Korea's financial supervision, which directly facilitated the gridlock. This paper identifies academic implications to advance the study of gridlock and its policy implications, including the need to develop an inter-scalar mediator, which has negative effects on the quality of democracy.

Type
Research Article
Information
Japanese Journal of Political Science , Volume 17 , Issue 4 , December 2016 , pp. 568 - 588
Copyright
Copyright © Cambridge University Press 2016 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Becker, F.W. (1993), ‘The Politics of Closing State Mental Hospitals’, Community Mental Health Journal, 29 (2): 103–14.CrossRefGoogle ScholarPubMed
Bevir, M. (2010), Democratic Governance, Princeton, NJ: Princeton University Press.Google Scholar
Binder, A. (1999), ‘The Dynamics of Legislative Gridlock, 1947–96’, American Political Science Review, 93 (3): 519–33.CrossRefGoogle Scholar
Cameron, C., Howell, W., and Alder, S. (1997), ‘Toward Understanding of the Institutional Performances of Congress in the Post-War Era’, paper presented at the annual meeting of the Midwest Political Science Association.Google Scholar
Chiou, F.Y. and Rothenberg, S. (2008), ‘Comparing Legislators and Legislatures’, Political Analysis, 16: 197–212.CrossRefGoogle Scholar
Coleman, J. (1999), ‘Unified Government, Divided Government, and Party Responsiveness’, American Political Science Review, 93 (4): 821–35.Google Scholar
Digital Times (14 April 2014), FCPS should be an independent agency. http://www.dt.co.kr/contents.html?article_no=2014041402019957793001 Google Scholar
DongA Daily (2013), ‘Conflicts between FSC and FSS’, 10 July, http://news.donga.com/3/all/20130709/56373262/1.Google Scholar
Dror, J. (1971), Design for Policy Sciences. New York: American Elsevier Publishing Company.Google Scholar
Easton, D. (1985), ‘Political Science in the United States’, International Political Science Review, 6 (1): 133–52.CrossRefGoogle Scholar
Edwards, C. III and Barrett, A. (2000), ‘Presidential Agenda Setting in Congress’, in Bond, Jon and Fleischer, Richard (eds.), Polarized Politics, Washington, DC: CQPress.Google Scholar
Etoday (2014), ‘Disagreements on the ways to establish FCPS’, 11 April, http://www.etoday.co.kr/news/section/newsview.php?idxno=899546 Google Scholar
Fernandez-Albertos, José and Lapuente, Victor (2010), ‘Doomed to Disagree? Party-Voter Discipline and Policy Gridlock under Divided Government’, Party Politics, 17 (6): 801–22.Google Scholar
Financial Reform Committee (1997), The Second Report of Financial Reform Committee. Retrieved from Korea Economic Daily, 3 June 1997 (in Korean) http://www.hankyung.com/news/app/newsview.php?aid=1997060302461&intype=1 Google Scholar
Financial Supervisory Service (2009), ‘A 10-Year History of the FSS’, Financial Supervisory Service, Seoul.Google Scholar
Financial Services Commission (2014), ‘Regulatory Amendments Relating to Financial Institutions, Inspection and Sanctions’, press release, 27 August.Google Scholar
Fiorina, P. (1996), Divided Government, 2nd edn, Bonton: Allyn & Bacon.Google Scholar
Fleisher, R. and Bond, R. (2000), ‘Partisanship and the President's Quest for Votes on the Floor of Congress’, in Bond, Jon and Fleischer, Richard (eds.), Polarized Politics, Washington, DC: CQ Press.Google Scholar
Forrester, J. (1999), ‘The deliberative practitioner’, Massachusetts Institute of Technology.Google Scholar
Ganghof, S. (2003), ‘Promises and Pitfalls of Veto Players Analysis’, Swiss Political Science Review, 9 (2): 1–25.CrossRefGoogle Scholar
Gutmann, A. and Thompson, D. (2004), Why Deliberative Democracy? Princeton, NJ: Princeton University Press.Google Scholar
Hankyung news (2014), ‘The FCPS should be independent from the FSC’, 10 April, http://www.hankyung.com/news/app/newsview.php?aid=2014041084661.Google Scholar
Hoeffler, S., Ariely, D., and West, P. (2006), ‘Path dependent preferences’, Organizational Behavior and Human Decision Processes, 101: 215–29.CrossRefGoogle Scholar
Heo, I. (2011), ‘Building a Democratic Governance in Financial Supervisory System of Korea’, Korean Policy Studies Review, 20 (4): 135–62.Google Scholar
Heo, I. (2013a), ‘The Political Economy of Policy Gridlock in South Korea’, Politics and Policy, 41 (4): 509–35.Google Scholar
Heo, I. (2013b), ‘Changing Aspects of Government-Society Relations in South Korea’, Contemporary Politics, 19 (4): 459–73.Google Scholar
Heo, I. (2013c), ‘The Political Economy of Reforming Financial Supervision in South Korea’, Journal of Asian and African Studies, 49 (6): 690–704.CrossRefGoogle Scholar
Jones, R. (2001), ‘Party Polarization and Legislative Gridlock’, Political Research Quarterly, 54 (1): 125–41.Google Scholar
Ka, S. and An, S. (2012), ‘Problems of the Party-Government Policy Coordination System after the Democratization and Institutional Alternatives’, Korean Politics Studies, 21 (2): 87–114.Google Scholar
Kernell, S. (1977), ‘Presidential Popularity and Negative Voting’, American Political Science Review, 71 (1): 44–66.CrossRefGoogle Scholar
Kim, B. and Im, H. (2000), ‘Myth and Reality of Crony Capitalism in East Asia’, Sasang [Ideology], 45: 7–74.Google Scholar
Kim, D. (1995), ‘A Comprehensive Study on Financial Supervision’, Journal of Money and Finance, 9 (S): 179–214.Google Scholar
Kim, H. (2007), ‘What Have We Learned from the Financial Regulatory and Supervisory Experiences for the Last Ten Years since the 1997 Financial Crisis?’, Finance Studies, 21: 55–123.Google Scholar
Kim, H. (2010), ‘A Study on the Korean Social Conflict and Political Development’, Journal of Parliamentary Research, 5 (2): 129–58.Google Scholar
Kim, H. (2011), ‘Korea's Financial Supervisory System’, Finance Studies, 15: 141–226.Google Scholar
Kim, H. B. (2005), Bureaucracy and Financial Supervision of Korea. Journal of Korean Economic Analysis 11 (3): 195–251. (in Korean)Google Scholar
Kookmin Daily (2014), ‘Financial system of the Park government’, 16 September, http://news.kmib.co.kr/article/view.asp?arcid=0922787224&code=11151300&cp=nv.Google Scholar
KS Economic Research Institute (2007), ‘A Plan for the Development of the Financial Supervisory System of Korea’, internal document.Google Scholar
Lee, B. R., Kim, S. Y., and Jeon, Y. P. (2008), The Study of Social Conflict Structure in Korea. Korean Public Management Review 22 (4): 49–72 Google Scholar
Lee, Y., Heo, I., and Kim, H. (2014), ‘The Role of the State as an Inter-Scalar Mediator in Globalizing Liquid Crystal Display Industry Development in South Korea’, Review of International Political Economy, 21 (2): 109–29.CrossRefGoogle Scholar
Lim, H. (2010), ‘The Transformation of the Developmental State and Economic Reform in Korea’, Journal of Contemporary Asia, 40 (2): 188–210.Google Scholar
Linz, J. (1990), ‘The Perils of Presidentialism’, Journal of Democracy, 1 (1): 51–69.Google Scholar
Mathews, A. (1998), ‘Fashioning a New Korean Model out of the Crisis’, Cambridge Journal of Economics, 22 (6): 747.Google Scholar
Mayhew, D. R. (1991), Divided party control: does it make a difference? Political Science & Politics 24 (4): 637–40.Google Scholar
Michels, A. (2011), ‘Innovations in Democratic Governance: How Does Citizen Participation Contribute to a Better Democracy?’, International Review of Administrative Science, 77 (2): 275–93.Google Scholar
Min, J. (2009), ‘The Cooperative System between Government Administration and Political Parties in the Republic of Korea’, Journal of Parliamentary Research, 4 (1): 33–59.Google Scholar
Ministry of Finance and Economy (MOFE) (2003), A History of Ministry of Finance and Economy, Seoul: Ministry of Finance and Economy.Google Scholar
Moneytoday (2012), ‘FSS's Disagreement about the Twin-Peaks Model’, 7 November, http://news.mt.co.kr/mtview.php?no=2012110719410392600.Google Scholar
Morlino, L. (2009), Qualities of Democracy: How to Analyze Them? Firenze, Italy: InstitutoItaliano di Scienze Umane.Google Scholar
MK News (2014), ‘The Drift of Financial Supervision’, 1 September, http://news.mk.co.kr/newsRead.php?year=2014&no=1155417.Google Scholar
National Assembly Research Service (2012), ‘Current Status of Financial Consumer Protection’, www.pbs21.or.kr/bbs/down.php?code=decision&number.Google Scholar
Neshkova, M. I. (2014), ‘Salience and Complexity in Supranational Policymaking’, Governance, 27 (1): 9–36.Google Scholar
Newdaily (2014), ‘Legislative Gridlock for 800 Days’, 10 September, http://biz.newdaily.co.kr/news/article.html?no=10047271.Google Scholar
Newsway (2014), ‘Will They Make Consensus on the Bill?’, 14 April. http://news.ewsway.co.kr/view.php?tp=1&ud=2014041408481946309&md=20140414085755_AO.Google Scholar
Newspim (10 July 2014), ‘Conflicts on the Establishment of FCPS’, http://www.newspim.com/view.jsp?newsId=20140710000105.Google Scholar
O'Donnell, G. (1999), ‘Counterpoints: Selected Essays on Authoritarianism and Democratization’, Notre Dame: University of Notre Dame Press.Google Scholar
Oh, S. (2009), ‘Preliminary Remarks on the Judicialization of Politics in Korea’, Memory and Future Vision, 20: 282–315.Google Scholar
Polinews (15 July 2013), ‘Survey of Social Trend Institute’, http://www.polinews.co.kr/news/article.html?no=181150 Google Scholar
Quirk, J. and Nesmith, B. (1995), ‘Divided Government and Policy Making’, in Nelson, Michael (ed.), The Presidency and the Political System, Washington, DC: CQ Press.Google Scholar
Seoul Finance (2005), ‘Financial Institutions Opposed to the Launch of Asset Management Supervision Department in Financial Supervisory Commission’, 9 January.Google Scholar
Sobilife (2013), ‘FSC's Temporary Expedient’, 23 July, http://www.sobilife.com/news/articleView.html?idxno=3230).Google Scholar
Stone, A. (1988), Policy Paradox and Political Reason, Glenview: Scott Foresman & Co.Google Scholar
Stubbs, R. (2009), ‘What Ever Happened to the East Asian Developmental State?’, The Pacific Review, 22 (1): 1–22.Google Scholar
Tsebelis, G. (1999), ‘Veto Players and Law Production in Parliamentary Democracies’, The American Political Science Review, 93 (3): 591–608.Google Scholar
Tsebelis, G. (2002), Veto Players: How Political Institutions Work. Princeton, New Jersey: Princeton University Press.Google Scholar
Woo-Cumings, M. (1999), The Developmental State, New York: Cornell University Press.Google Scholar
Yoon, S. H. (2014), Strengthening Consumer Protection. Journal of Financial Consumers 4 (1): 1–35 Google Scholar
Yoon, S. H., Ko, D. W., Bini, K. B., Yang, C. Y., Won, S. Y. and Jun, S. I. (2013), Reforming Korean Financial Supervisory System: Supervisory Independence and Twin Peaks. Review of Financial Economics 27 (3): 71–126 (in Korean)Google Scholar
Young, M. (2000), Democracy and Inclusion, Oxford: Oxford University Press.Google Scholar