'A New Wine in A New Bottle?' : The Social and Political Realignment under Restructuring in South Korea

Abstract

This paper investigates the social and political concomitants of structural adjustment in South Korea. After three years of restructuring in the financial, corporate, employment, and public sectors under the IMF"s oversight, South Korea has undergone a profound societal transformation. It will be argued that the neo-liberal, market-oriented reform policies of Kim Dae Jung regime are aimed at improving national competitiveness by strengthening transnational linkages. Specifically, this paper will address ⅰ) the basic policy lines of structural adjustment programs in terms of achievements and failures, ⅱ) the resulting social and political realignment with regard to power distribution and class alliance, and ⅲ) the lessons from Mexican restructuring where the bright and dark sides have coexisted. This paper concludes that restructuring is a necessity for South Korea, but its current structural adjustment is conservative and cosmetic. In order to survive the violent 21st century, South Korea needs to undergo more fundamental restructuring based on a new alternative paradigm of development.