A Review of Korea's Rule of Law with a Case Study and Implications for the Legal Framework

Abstract

The market economy has three pillars: voluntary exchange, purposive rules of the game, and the rule of law. Unfortunately, the rule of law is notoriously weak in Korea partly because Korea follows the civil law tradition. In addition to general discussion, I present a case study which illustrates inequality before the law in Korea due to complexity of the regulatory framework. The goal of this paper is to suggest practical measures to enhance the rule of law in Korea as a precondition for speedier economic growth in the future. I rely on logical arguments and previous academic works in showing why the common law system is generally preferable. The main point is that common law is friendlier to rule abiders and subsequently less costly to the citizens and the government. In a word, common law is more effective and efficient in establishing the rule of law, ceteris paribus.