In politics, as in economic life, South Korea has more closely fit the “strong state” model, in which the government has tended to outweigh particular social or group interests. Nonetheless, the balance between the government and various interest groups showed some dramatic changes in the late 1980s; as the 1990s began, observers found it likely that such changes would continue, despite efforts by the government to retain its traditionally strong position.

During most of the post war period, the South Korean government had encouraged organizations for the communication of economic interests, but had not encouraged professional or occupational interest groups to voice political demands. Independent or unsanctioned interest groups had come into existence from time to time to challenge fundamental policies of the government. In the late 1980s, such challenges accounted for a sizable proportion of extra governmental political activity.

The relationship between government and business associations in South Korea had its roots in the period of Japanese colonial rule, when the governor general established the Seoul Chamber of Commerce and Industry and other industrial associations as a means of communicating economic policies to the business community. Since 1952 all businesses were required by South Korean law to belong to the Korean Chamber of Commerce and Industry, the bylaws and initial membership of which closely paralleled those of the Seoul Chamber of Commerce and Industry of the colonial period. Since 1961, when the Park government began its economic development plans, the Federation of Korean Industry has represented the major conglomerates. A larger organization, the Federation of Small and Medium Industries, has had much less influence.

The government recognizes only a single association as the representative of that industry. Major business leaders may have individual access to administrators through personal ties and might be able to influence the government in minor ways, such as obtaining exemptions from specific taxes. For the most part, however, business associations through the 1980s were dominated by the government. As noted by one specialist, “it is through industry associations that the Korean government implements its policies, enforces routine compliance, gathers information, and monitors performance.” In the 1980s, this process was sometimes facilitated by the placement of retiring senior military or national security officials in industry association positions.

Institutional changes and pressures toward open markets began to change the traditional government-business relationship in the mid- and late 1980s. Larger corporations became interested in having a role in policy formulation more commensurate with their contribution to more than two decades of economic growth. This interest took several forms, including substantial corporate contributions to all major political parties during elections. As economic ministries grew in influence within a more decentralized economic planning structure in the 1980s, the related industry associations, just as in Japan and the United States, gained a greater voice.