Korean economy is now facing three crises: low social mobility, widening
bi-polarization, declining potential growth rate. Three reforms are therefore
necessary: a reform in economic system to enhance social mobility, a proactive
redistributive reform through higher tax burden, a structural reform to increase
the potential growth rate. These reforms are not easy since labor reform will be
rejected by the progressive whereas higher tax burden will not be welcomed by
the conservative. Therefore, both progressive and conservative reforms should
be driven at the same time.