In spite of the reformist rhetoric of South Korea first post-military
administration inaugurated in 1993, the institutional foundations of c
orruption remain intact - the government-big business relationship in
which donations are exchanged for favourable official consideration of
the business sector. Recent measures to accelerate economic liberaliz
ation have strengthened the bargaining power of the business sector in
relation to the government rather than replacing collusion with compe
tition. The absence of countervailing power to the government-business
nexus and the current conservative political agenda reflect the incom
plete nature of the democratic transition since 1987 and contribute to
the persistence of corruption.