This paper first shows that Korea implemented industrial policy properly, promoting infant industries rather than mature ones. The paper then shows that infant industries promoted by industrial policy have matured over time, as well as grown faster than mature industries not promoted by...

This paper analyzes the effect of unions on the profitability of firms under different political and economic environments in Korea. During the authoritarian period (1981--1986), unions lowered firm profitability despite the repression by the state, due to the strong protection of individual...