Abstract

This paper specifically examines the relationship and its change between Korean government and the capitalists during the military regime. The May 16 military coup in 1961 put large capitalists illegally accumulated wealth on the verge of punishment. However, as the military government experienced difficulties in economic management, large capitalists taking a chance proposed various economic policies to the government and began negotiations. They submitted their proposals to the military regime, and successfully took charge of major projects in the economic development plan simultaneously reducing the fines. As much as the repeated failure of economic policy made the military government impatient, the illegal capitalists emerged as important partners in the nation’s economic projects. In the framework of economic and state management, the two actors shared a common understanding, and the capitalists reflect their understanding of the establishment and management of national policies. Since then, the Korean economy was developed in a way that the private understanding of chaebol(재벌) overwhelmed the national interest under the protection of authoritarian governments.

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