Fiscal policy and development in Korea

Abstract

This paper assesses Korea's tax and expenditure policies during the period 1962–1985, with special attention to their implications for the future. In its examination of Korean fiscal policy, the paper is concerned with whether Korea's fiscal system has contributed to the mobilization of domestic resources and whether it possesses a significant capacity for income distribution. In so doing, the paper examines the major deficiencies of the existing fiscal system in order to clarify what problems merit high priority in future tax reforms. Also, an attempt is made to analyze growth and shifts in the composition of tax revenues and expenditures.