In contrast to such legacies of government-led development, the environment for Korea’s economic policy has undergone a drastic change in recent years, forcing the reform of the extisting economic management system. The Korean economy became increasingly open during the 1990s, integrating with the global economy through various policies of financial liberalization, including capital flow liberalization. Given the increasing openness of the economy, Korea can no longer rely on direct regulations for macroeconomic management.