Developmental welfare capitalism in East Asia with a special emphasis on South Korea

The aim of this paper is to clarify the kind of capitalist society that is emerging in South Korea. To keep the conceptual analysis focused, the paper addresses the questions of how and why the structural and institutional socio-economic and political arrangements have changed during South Korea’s catch-up process and what others could learn from it. Using a historical-comparative approach, the paper shows how the economic policy and welfare protection of the developmental welfare capitalism in East Asia in general and in South Korea in particular have changed during the different stages of the economic catch-up process. In addition, it points out the major challenges that the model faces in the future. It appears that the socio-economic and political arrangements of the era reflect the level of economic development and starting conditions, on the one hand, and the balance of power between labour, capital and the political establishment, on the other hand. The biggest challenge to the democratised and export oriented East Asian developmental welfare capitalism is the urgency to find quick but sustainable solutions to the accumulated social problems in the context of worldwide economic recession and intensified globalisation.