The fundamental economic philosophies of the authoritarian regimes of Park
Chung-hee (1961–1979) and Chun Doo-hwan (1980–1988) can be characterized
as “Growth first, distribution later.” The basis for the Republic of Korea’s economic
miracle, based largely on export-oriented industrialization, was primarily
laid during this period. The welfare system during this time period is often referred
to as the developmental welfare state or the minimalist welfare state. However,
despite the limited welfare system, the extent of the income inequality of the
low-income households was tolerable due to rapid economic growth. Indeed,
income equity in terms of the Gini coefficient was kept at a reasonable rate during
the period of rapid economic development until the mid-1990s, as shown in
Table 11.1. This is partly due to the fact that the size of the pie multiplied and the
income level of middle- and low-income households also increased.