Welfare Reforms in Post-Crisis Korea: Dilemmas and Choices

Abstract

This paper explicates the welfare reforms executed in Korea after the abrupt financial meltdown in November 1997, and asks whether the same line of reforms will continue further into the twenty-first century Korea. The DJ government's post-crisis policy choice was to persue an expansion and consolidation of the social welfare system based upon the principle of solidarity. Consequently, the size of social welfare expenditure grew fast between 1996 and 1999. Korean experience of post-crisis years demonstrates the case in which the global integration of economy brought about the fast expansion of social welfare programs. The ultimate question is will this growth continue in the sea of neo-liberal challenges, with the new government's ‘Participatory Welfare’ whose complete design is not made public yet.