State dominance in banking has led firms to lobby for loans and over debt restructuring. Cozy business practices. Until President Kim Dae Jung took power in December 1997, there had been close ties between past governments and the giant conglomerates, or chaebol. When democracy came in 1988, these business groups provided campaign funds. Japan Taiwan State-supported industrialization.
Business obtains influence by funding patronage spending by politicians.
Government-business links are mainly between political parties or government agencies and industry groups. The Kuomintang, ruling party from 1949 until this year, has vast business interests. Another issue is corruption in infrastructure projects. There are links between politicians and criminal elements, some of whom have won seats in Parliament. Elections have created the need for campaign funding.