The recent events in Eastern Europe and the Soviet Union,
and the outbreak of war in the persian Gulf signalled that the
1990s will be an era of both hope and challenge. A new order
on the Korean peninsula, improved dialogue between South and
North Korea, and democratization indicate a period rapid
This paper discusses ongoing changes of the Korean
economy. The recent changes in Korea`s environment, challenges
within the economy, and further policy directions are explored.
Lastly, Korea`s efforts to assume a more important role in the
global economy are discussed.