Persistence or Change? Evolution of the Korean developmental state

This paper explores how the South Korean developmental state has changed. The dominant view proposes a “demise” thesis. Neoliberals, as well as old-style developmentalists, argue that Korea has dismantled its developmental state and transformed it into a neoliberal free-market system. Contrary to the demise thesis, this paper holds that Korea continues its state-led capitalism. However, unlike institutionalists based on path dependency, this paper holds that the continuity of state-led capitalism in Korea is due not to institutional resistance to change, nor taken-for-granted repetition of institutional legacies, but to key actors’ significant efforts to adapt their practices and institutions in the changed context. Continuity of state-led developmentalism is not exclusive of changes, but due to changes.