From credible threats to credible commitments? the changing face of South Korean corruption
Abstract During the miracle years, the South Korean economy was hampered by rising inequality amidst widespread corruption under the institution of 'credible threats. The state used violence against private property holders to extort money in exchange for property protection. During democratization, the South Korean people were punished by both the predatory governments and chaebol owners in order to perfect free market reform by replacing credible threats with 'credible commitments. However, credible commitments between state actors, business owners, workers, consumers, and suppliers have never been fully institutionalized. The chaebol owners are now filling the vacuum of the predatory state by exerting threats over politicians and bureaucrats in the democratic state. Different forms of corruption ensued, including that of 'Samsung insurance, which politicians and bureaucrats purchased for personal safety and benefits after their terms in government expired in exchange for extending illegitimate protections to the chaebol.