Managing Policy Dilemmas in South Korea: The Case of the Emissions Trading Scheme

Abstract: This paper analyses the policy dilemma of South Korea’s Lee Myung-bak government regarding the greenhouse gas Emissions Trading Scheme (ETS), the cornerstone of the government’s Low Carbon Green Growth (GG) policy. The paper analyses policy governance, with a focus on the deliberative nature of the policy process. The ETS was promoted as a way to overcome certain international, political and socioeconomic challenges facing the government, yet the process of its establishment featured severe confrontations between the stakeholders (industrialists and environmentalists), and a lack of effort on the part of the government to pursue deliberation with them, resulting in a significant policy dilemma. The government reacted passively at first, and later responded with a symbolic decision that failed to pursue deliberative processes and exacerbated the situation. This paper addresses the theoretical and policy implications of this policy process by identifying the mechanism that created the policy dilemma. The reliability and validity of the study are substantiated through a multi-strategy approach, including a review of the literature and an in-depth interview with a government economic official.