Foreign Economic Policy

Since 1987, South Korea’s foreign economic policies (FEPs) have undergone remarkable transformation with deregulation and liberalization trends. As a middle-power country that is highly susceptible to changes in its external trade relations, South Korea has also developed multi-layered economic ties. This chapter identifies FEP decision-making structures and examines the interactions between the dynamics of domestic and international economies in the context of South Korea. It demonstrates how the Korean institutions have evolved, since its democratization, to accommodate an increased level of influence by interest groups and the civil society. Nevertheless, traditional actors—including the government and, to a lesser degree, the Chaebols—continue to play pivotal roles in the contemporary FEP decision-making process. FEP goals and decision-making structures have been highly dependent on the government and are susceptible to changes in political leadership.