Long-Term Implications of Neoliberal Restructuring and Rising Inequality

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More than a decade has passed since the 1997 Asian Financial Crisis, which not only severely debilitated many Asian economies at the time but also fundamentally altered the course of political economy of the countries ever since. In this study, I examine the long-term consequences and implications of the so-called “neoliberal socioeconomic restructuring” implemented in the wake of the crisis. In particular, I look at the case of South Korea and investigate how the implementation of neoliberal programs following the crisis resulted in substantial increase in socioeconomic inequality and polarization, which became a lasting feature of contemporary Korean society. I also discuss various adverse consequences of rising inequality to argue why it is necessary to contain increasing socioeconomic gaps between individuals for both the society and its members. In the concluding section, some solutions and policy measures for rising inequality are suggested in the light of more sustainable socioeconomic development than as in the current mode of capitalist development in the early twenty-first century.