1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Product Market Competition and Economic Performance in Korea

Maintaining rapid economic growth depends increasingly on productivity gains, particularly in the service sector. Competition has an important role to play in achieving such gains. However, Korea’s development strategy has tended to weaken competition and has left a legacy of government intervention. Strengthening competition requires upgrading competition policy, increasing openness to international trade and foreign direct investment and improving the regulatory framework in network industries. In particular, the power of the Korea Fair Trade Commission should be expanded, while raising the level of sanctions and scaling back special treatment for certain sectors. Barriers to imports remain above the OECD average, particularly in agriculture, while the stock of inward direct investment is among the lowest in the OECD area. Restructuring plans in the network industries, notably electricity and gas, have lagged behind schedule. Price distortions and the absence of independent ...

English

Keywords: retail sector, foreign direct investment, regulatory reforms, Korea, electricity, cartel, tariffs, gas, antitrust law, chaebol, telecommunications, trade policy, network industries, competition law, South Korean economy
JEL: L43: Industrial Organization / Antitrust Issues and Policies / Legal Monopolies and Regulation or Deregulation; L96: Industrial Organization / Industry Studies: Transportation and Utilities / Telecommunications; F13: International Economics / Trade / Trade Policy; International Trade Organizations; O53: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Economywide Country Studies: Asia including Middle East; K21: Law and Economics / Regulation and Business Law / Antitrust Law; Q17: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agriculture in International Trade; L94: Industrial Organization / Industry Studies: Transportation and Utilities / Electric Utilities; O57: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Comparative Studies of Countries; F21: International Economics / International Factor Movements and International Business / International Investment; Long-term Capital Movements; L11: Industrial Organization / Market Structure, Firm Strategy, and Market Performance / Production, Pricing, and Market Structure; Size Distribution of Firms; L40: Industrial Organization / Antitrust Issues and Policies / Antitrust Issues and Policies: General; L81: Industrial Organization / Industry Studies: Services / Retail and Wholesale Trade; e-Commerce; L95: Industrial Organization / Industry Studies: Transportation and Utilities / Gas Utilities; Pipelines; Water Utilities
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