The main purpose of this paper is first to elucidate
economic policy issues on how the current wave of
globalization affects the prospect of the Korean economy, and
then to seek policy suggestion in response to the trend of
globalization. In the coming decades, as globalization expands,
domestic economic liberalization and reform will gain new
momentum; and as a result, economic management based on
direct regulation in macro and microeconomic policies will tend
to lose effectiveness and become inconsistent with the general
philosophy of economic liberalization. Therefore, the prospect
of the Korean economy being globalized implies that to ensure
healthy and stable economic growth, economic policy making
and implementation should follow the internationally compatible
rule and the market mechanism.

Ⅰ. Introduction

Ⅱ. Historical Overview of Korea's Economic Performance
　1. Export-led Growth: 1961-1972
　2. The Heavy and Chemical Industry Drive: 1973-1979
　3. Stabilization, Liberalization, and Renewed Growth: 1980-1995

Ⅲ. Globalization and Macroeconomic Adjustments
　1. Capital Flow Liberalization and Its Implications
　2. Reform of Monetary Policy Practices
　3. Reform of Fiscal Policy Practices
　4. Reform of Exchange Rate Policy

Ⅳ. Globalization and Institutional Reform with Democratization
　1. Reform of the Central Banking System
　2. Emphasis on Rule-based Economic Policy Making
　3. Lengthening the Economic Policy Horizon

Ⅴ. Globalization and Microeconomic Adjustments
　1. Deregulation Policy
　2. Privatization Policy
　3. Structural Adjustments

Ⅵ. Concluding Remarks