This chapter sets out the social and economic context for the review, including recent macroeconomic trends and a snapshot of Korea’s performance in the 2015 OECD Indicators of Regulatory Policy and Governance (iREG). It also provides an overview of the challenges and opportunities faced by the country in shaping and enhancing its regulatory environment and institutions. It demonstrates how Korea has made significant progress in regulatory reform over years, but is currently faced with slowing growth and productivity as well as regulatory gaps that limit the county’s potential in achieving its policy objectives. Sustainable growth in the long-term can be achieved by the country through implementing targeted, fit-for-purpose, and proactive regulations that ensure that the impacts from the regulatory reform initiatives are felt both at the local and national level.