ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Constitution of South Korea stipulates that “the right of property of all citizens shall be guaranteed.” In other words, South Korea is based on a market economy, and thus it allows individuals and businesses to freely conduct economic activities and guarantees their profits and properties.

Detailed explanation-2: -South Korea’s economic freedom score is 73.7, making its economy the 15th freest in the 2023 Index. Its score is essentially unchanged from last year. South Korea is ranked 5th out of 39 countries in the Asia–Pacific region, and its overall score is above the world and regional averages.

Detailed explanation-3: -Hall & Soskice (2003, p. 8) defined the Korean capitalism as ‘coordinated market economy’ with the following characteristics: non-market relationships for coordination entailing relational contracting and network; equilibrium is outcome of interplay among market actors., not by supply and demand.

Detailed explanation-4: -Singapore’s economy is considered the freest, followed by Switzerland and Ireland, according to the Heritage Foundation’s 2022 Index of Economic Freedom. The United States ranks just 25th on the list. Venezuela and North Korea ranked last in terms of economic freedom in 2022.