Korean economy experiences a period of High Profit Margins but Low Business Investment. Can government tax the corporations to invest? If it can, should it do the policy? We examine the recent experiences in Korea and other developed economies to find answers.

  But critics have their point. The money can be and perhaps should be better spent. It can generate a virtuous circle for the economy if it is used to hire more workers and newer investment goods. What is behind the national sentiment is the frustration coming from the recognition that leading business groups failed to invest and failed to create quality jobs.

  It is hard to miss the irony here. In 1997, when the country was in economic turmoil, over-investment, or better put inefficient investment, was viewed as a cause of the crisis. The same business conglomerates were accused of making haphazard and wasteful investment decisions fueled by cheap subsidized credit. The investment glut has become an investment shortage. This is indeed a significant change in just less than 20 years.