A study on corruption and its economic cost in Korea

This paper analyses the corruption and its economic cost in Korea. A reason that corruptive activities and the resulting costs are rapidly increasing in Korea, is the change of corruption structure. In particular, after the declaration of democratization in 1987, corruption structure changed from bilateral monopoly type to competitive bribery type. This change not only increased the expenditure for corruptive customs but also intensified the malfunctions of corruption rather than the beneficial functions. In addition, the change of corruption structure caused the increase of unnecessary regulations and the recognition of Korean people that money works in everything.