This chapter examines South Korea’s economic and social transformations from the 1980s to the 1997 Asian financial crisis. During Chun Doo-hwan’s administration, policies transitioned from state-led to market-driven growth, emphasizing price stabilization and private sector development. The democratization of 1987 unleashed previously suppressed demands, triggering widespread labor disputes and altering labor-management relations. Rapid urbanization, combined with soaring real estate prices, exacerbated housing challenges, while growing demands for equity led to reforms aimed at reducing income and wealth disparities. Efforts to strengthen fair trade laws sought to limit the expanding influence of the chaebols, reflecting a shift in policy priorities toward balancing economic growth with social equity. This chapter evaluates how these reforms and democratization redefined Korea’s economic and social framework, while also exploring the vulnerabilities that culminated in the 1997 financial crisis.