SPECIAL ECONOMIC ZONES IN SOUTH KOREA AS A TOOL FOR POST-WAR RECOVERY: INSTITUTIONAL EXPERIENCE FOR UKRAINE

Abstract

The article presents a comprehensive and multidimensional study of the evolution of the Republic of Korea's economic development model, specifically focusing on the strategic role of Special Economic Zones (SEZs) as a primary tool for post-war recovery and structural transformation. Against the backdrop of unprecedented economic challenges facing Ukraine due to the full-scale Russian invasion, the authors analyze the applicability of the "Miracle on the Han River" to modern Ukrainian realities. Based on a thorough analysis of statistical data from 1953 to 2023, the study identifies fundamental phases of South Korea's macroeconomic dynamics and characterizes the evolution of SEZ generations – from labor-intensive export processing zones (Masan) to R&D hubs (Daedeok) and global business clusters (Incheon). The research empirically demonstrates that while Foreign Direct Investment (FDI) acted as a critical catalyst during early industrialization, its correlation with GDP growth has significantly diminished in the mature economy, giving way to domestic innovation and human capital. A central tenet of the article is the critical assessment of the "developmental state" model. The authors substantiate the impossibility of directly replicating the authoritarian mechanisms of the Park Chung-hee era in a democratic Ukraine aspiring for EU membership. Instead, the paper proposes a novel concept of "external institutional anchors." It argues that the European integration process and conditionalities tied to financial support mechanisms, such as the Ukraine Facility, can serve as functional equivalents to the "political will" and "discipline" that drove Korea's success. Furthermore, the article addresses the challenges posed by the changing global economic landscape, particularly the OECD/G20 Pillar Two global tax reform, which renders traditional tax-incentive-based SEZ models obsolete. Consequently, practical recommendations are formulated for the architecture of next-generation Ukrainian SEZs. The authors argue that Ukraine’s recovery strategy should shift focus from fiscal deregulation to creating "islands of institutional excellence." These zones should be designed around deep cluster specialization (specifically in defense-tech and agri-food sectors), regulatory harmonization with EU standards, and robust investor protection mechanisms to integrate Ukraine into global value chains effectively.