This study explains that Korea suffered high level of state capture, which contributed to the economy’s rapid decline during the Asian financial crisis. State institutions had opaque relations with big business groups that prevent more efficient all...
This study explains that Korea suffered high level of state capture, which contributed to the economy’s rapid decline during the Asian financial crisis. State institutions had opaque relations with big business groups that prevent more efficient allocation of resources and weakened mechanisms for the accountability to the people. Korea’s governance conditions were good relatively, but recently released CPI and BPI scores explain the sustained seriousness of business practice in bribery paying and persistent collusion between political elites and business sector. Korea is working harder than ever before to prevent corruption. Not only are important systems, such as anti-corruption policy institutions network in place, but also preparations are under way to apply the most comprehensive policy measures including IT infrastructure, strengthened laws and codes, and active civil society participation. It is very encouraging that systems and foundations have been established to this extent in such a short period of time, and people expect to see many positive effects.