The Social Market Economy means the economic order or economic order theory developed after World War II in Germany. The social market economy stresses the importance of market because of the efficiency of distribution of the resources and production ...
The Social Market Economy means the economic order or economic order theory developed after World War II in Germany. The social market economy stresses the importance of market because of the efficiency of distribution of the resources and production of goods, and the ideology related the assurance of the human worth and dignity. So in the economic order that approves the importance of market, the only state role in the economy shall be limited to protect the competitive environment from monopolistic or oligopolistic tendencies. On the other hand the social market economy is indelibly associated with the demands of social states, could not be realized by the market systems. That is to say the social market economy has been formed and developed as economy that would not only help the wealthy but also care for the workers and others who might not prove able to cope with the strenuous competitive demands of a market economy. There are some distinctive differences between the social market economy in Germany and the economic operating systems in Korea. But the social market economy could not be deprived of the theoretical validity from the differences. The equivalent combination of the market principles and the demands of social state is still important in korean economy and has the bases in constitutional law.