Description

Korea has seen rapid economic growth and social development with relatively low inequality in the last 5 decades. Since 1997, however, income inequality and bipolarization in the economy have increased while the potential growth rate has decreased. Therefore, Korea faces two intertwined fundamental challenges of sustaining economic growth and ameliorating bipolarization. This paper analyzes the status of the Korean economy in terms of inclusive growth indicators, and suggests some policy implications to respond to the challenges – productive employment, income inequality and poverty, human capital, and social protection for inclusive growth. The paper also provides an explanation of financial exclusion and microcredit programs in Korea, and suggests policy implications for financial inclusion.

Young Youn Lee is a Visiting Professor at the Centre for the Study of Korea, Asian Institute, University of Toronto. He is a Professor of International Trade and Business at the Kangwon National University. Dr. Lee received his BA and MA from the Korea University, and PhD from the University of Missouri-Columbia in 1985. He worked as a research fellow at the Overseas Economic Research Institute affiliated with the Korea Trade Association, Kangwon Development Research Institute, and as an evaluation administrator of the University Education Association of Korea. He served as the Dean of Office of Planning and Coordination and Asia-Pacific Cooperation Academy of Kangwon National University. Dr. Lee also served as the President of Northeast Asia Economic Association of Korea, President of the Accreditation Board for International Trade Education of Korea, and Chairman of the Smile Microcredit Bank Gyeonggi-guri Br. He published several books as a coauthor (Principles of International Trade and Business, Korean Ways of Economic Development: Past, Present, and Future, and Digital Monetary Economics) as well as articles related to international trade, welfare economics, and economic development.