Confronting South Korea's Next Crisis

South Korea's extraordinary economic transformation in a matter of a few decades is well known and much acclaimed. Less familiar to outsiders is South Korea's present malaise - the product of a faltering economy, rising inequality and social polarization, and divisive politics. This excellent book not only tells the story with great skill, but also points the way to a more hopeful, more vibrant economic future. Jaejoon Woo confronts the challenges facing South Korea with detailed empirical work and good policy sense. He shows that addressing these challenges will require a state that is no less active than in the past, but focused on new priorities such as social inclusion, labor market dynamism, and service-sector productivity. * Dani Rodrik, Harvard University * Jaejoon Woo reviews the East Asian 'miracle' of Korean economic growth with rigorous economic analysis and keen insight. His prescience then guides the readers on how the country can overcome the present obstacles of structural rigidity and social polarization to take off yet again without succumbing to the trap of Japanification. The book is the study of Korean experience and prospects; yet, the solution offered by the author can apply to all countries seeking to leap toward the new phase of economic development. I recommend this book to academics, policymakers, and anyone interested in economic growth and overcoming crises. * Seoung Hwan Suh, 19th President of Yonsei University * This book presents almost an encyclopedia-like account of recent developments as well as policy challenges of the Korean economy. Based on a large set of data and an in-depth knowledge of the inner workings of the system, Jaejoon Woo presents his own rigorous analysis and work experience in plain language, thereby making them accessible to a wide range of audience. I would strongly recommend this book to anyone who is more than casually interested in the Korean economy. * Il-Houng Lee, Former Member of Monetary Policy Board at the Bank of Korea and Former President of Korea Institute for International Economic Policy * The economic miracle is well known, how South Korea transformed its economy within three decades to emerge as a leading innovation and technology hub. South Korea's influence and production sphere has expanded into culture, with K-pop group BTS , Oscar winner Parasite and Netflix hit Squid Games capturing the world's imagination. But the Asian financial crisis continues to cast a long shadow over the Korean miracle and remains a constant reminder of what can go wrong. Jaejoon Woo goes beneath the shiny surface and confronts the widening fractures - rising income inequality, an aging population, mounting household debt and populist politics. Jaejoon argues that active government policies, structural reforms and a stronger social safety net is needed to avoid the next crisis. Policymakers and investors should take heed to the undercurrents and flashing amber lights. * Hak Bin Chua, Regional Co-Head Macro Research, Maybank *