An extensive literature argues that the state has a dominant power for rule-making of economic transactions in Korea. There is an unusual case in contrast with the existing findings. The society leads the state by initiating the formulation of new rul...
An extensive literature argues that the state has a dominant power for rule-making of economic transactions in Korea. There is an unusual case in contrast with the existing findings. The society leads the state by initiating the formulation of new rules in housing market. This study inquires political process regarding the disclosure of apartment construction cost in public sector. The factors which contributed to politicization of a specific economic issue are as follows: multiple illiteracy and mob psychology, ice braking by local government and success of agenda-setting, campaign strategy of “triangulation” by major political parties, and fragmentation of ruling party. The study suggests an implication that nationally contagious communitarian sentiment has power in revising economic norms. In the process of conflict management, Korean political parties have experienced a new type of complex politics standing in with public opinion contrary to their ideological colors. When government competes with business in housing market, the collaborative relation between them can be transformed into the tense relation. This new type of relation, which might be germinated by the growth of social forces, is metaphorically described as the wheel model rather than the locomotive model of developmental state.