South Korea is greatly admired in Southeast Asia, and for good reasons. It has transformed itself from a dirt-poor, war-torn country into the 10th largest economy in the world, all in a matter of two generations. It has executed one of the most impressive transitions from autocracy to democracy. The way in which South Korea overcame the Asian crisis of 1997-1998 was a remarkable testament to its economic and social resilience.
Although not as visible as the US, China or Japan, South Korea is an important partner for Southeast Asia. Its economic success provides a role model for emerging economies everywhere, while its growing trade and investment profile in the region will help contribute to the region’s prospects in coming years. Since its performance will be important to us, we need to understand its future prospects — in particular, how its likely responses to its multiplying challenges could impact the region.
South Korea is an economic giant now, but faces increasing risks
