Tax reform to combat land speculation in Korea

Abstract

Korean economy experienced the rapid changes in various aspect during the 1980s. Particularly the late 1980s may be considered to be one of the most important turning points in Korea's modernization history. In spite of general economic success in the 1980's, the Korean people resented against the military dictatorial regime and their resentment bursted out as violent protest in early 1987. On June 29th of that year, the ruling party declared publicly a direct election of the next President and promised a drastic "democratization" by removing various controls. This so-called "June 29 Declaration," however, resulted in various social disruption and difficulties. Extremely extensive labor unrest hit the economy from the second half of 1987 and so on. Fortunately the Korean economy was doing well during 1986-89, with duble digit growth rates (except 1989), unprecedented trade surpluses, and reasonable price stability.