South Korea

Targeted industrial and sectoral subsidies (renewable energy, chip manufacturing, agriculture, green hydrogen, etc).

• ↑expanded sectoral subsidies
• ↓reduced sectoral subsidies

General government spending as share of GDP, excluding transfers already captured under fiscal.transfer_expansion to avoid double-counting.

• ↑higher spending share
• ↓lower spending share

Taxation of capital income (dividends, capital gains, inheritance, wealth). Distinct from corporate rate.

• ↑higher capital income tax
• ↓lower capital income tax

Statutory and effective corporate tax rates, treatment of depreciation, and international competitiveness.

• ↑higher corporate tax burden
• ↓lower corporate tax burden

Progressivity of the personal income tax schedule, including top marginal rates, bracket spread, and targeted credits (EITC-equivalents).

• ↑more progressive (higher top rates, wider spread, larger targeted credits)
• ↓less progressive (flatter rates, compression, smaller credits)

Size of cash and near-cash transfer programmes (unemployment benefits, means-tested assistance, universal child benefits). Architecturally distinct from forced-saving schemes — see condition welfare_architecture.

• ↑larger transfer footprint
• ↓smaller transfer footprint

Policy posture toward energy supply security — domestic production capacity, import diversification, strategic reserves, nuclear stance, fossil-fuel mix discipline.

• ↑higher supply-security posture (diversified, strategic reserves)
• ↓lower supply-security posture (single-supplier dependence, early phase-outs)

Environmental regulation stringency — emissions caps, standards, phase-out mandates, carbon pricing, renewable portfolio standards.

• ↑more stringent environmental rules
• ↓less stringent environmental rules

Financial-sector regulation — banking separation, capital requirements, cross-border activity rules, derivatives oversight.

• ↑tighter financial regulation
• ↓looser financial regulation

Ease of hiring/firing, collective-bargaining scope, minimum wage rigidity, temporary/permanent contract regulation.

• ↑more flexible (easier hiring/firing, less rigid bargaining)
• ↓less flexible (stronger employment protection)

Product-market regulation, entry barriers, licensing burdens, network-industry regulation, price controls.

• ↑more competition-friendly (lower entry barriers)
• ↓more restrictive regulation, higher entry barriers

Sector-specific licensing regimes, concentration / quota allocation, state-controlled entry (energy, telecoms, healthcare, banking).

• ↑tighter sectoral licensing / more state gating
• ↓looser licensing, more open entry

Trade policy openness — tariffs, non-tariff barriers, FTAs, industrial protection.

• ↑more open trade
• ↓more protectionist

Direction of monetary-base expansion decisions relative to trend. Separate from fiscal.transfer_expansion even when correlated.

• ↑expansionary (balance sheet, rates lower than Taylor)
• ↓contractionary (balance sheet shrink, rates above Taylor)

Independence of the judiciary from executive and legislative encroachment. Specifically captures court-packing, selective prosecution, judicial reshuffles.

• ↑stronger judicial independence
• ↓weaker judicial independence

Rule of law as institutional substrate — contract enforcement, judicial independence, equal treatment before the law. Upstream of most other axes.

• ↑stronger rule of law
• ↓weaker rule of law