Table of Contents

Executive Summary
Assessment and Recommendations
Chapter 1. Key Challenges Facing Korea
-The Shift to a More Market-Oriented and Open Economy
-Key Challenges to Sustaining High Growth
-Conclusion
-Annex. Taking Stock of Structural Reforms
Chapter 2. Economic Prospects and Macroeconomic Policies
-Economic Prospects
-Monetary and Exchange Rate Policy Considerations
-Coping with Fiscal Challenges
-Conclusion
Chapter 3. Getting the Most out of Public Sector Decentralisation
-The Trend towards Fiscal Decentralisation
-Issues in the Allocation of Spending Responsibilities
-Issues in Local Government Funding
-Securing Fiscal Discipline in a Decentralised Setting
-The Link between Fiscal Decentralisation and Policies for Balanced Regional Development
-Conclusion
Chapter 4. Sustaining High Growth through Innovation: Reforming the R&D and Education Systems
-Upgrading the R&D System in Korea
-The Impact of the Regulatory Framework on Innovation
-Security the Supply of Highly Qualified Human Capital
-Conclusion
-Annex. Progress in Regulatory Reform in Korea
Chapter 5. The Labour Market: Enhancing Flexibility and Raising Participation
-Reversing the Trend toward Increased Labour Market Dualism
-Increasing the Labour Force Participation Rate
-Conclusion
Chapter 6. Reform of the Corporate and Financial Sectors
-The Corporate Sector
-The Financial Sector
-Conclusion
-Annex. The Government's Programme for Small, Self-Employed Businesses