AbstractExtortive corruption is a particularly harmful form of graft, in which politicians threaten private property to induce bribe giving. While perceived rates of corruption in Korea sharply declined with democratization, instances of abuse of power remain, most recently at the National Intelligence Service. Employing previously classified data, this comparative analysis of industrial restructuring programmes demonstrates how democratization and a stronger rule of law created an inhospitable environment for extortive corruption. Whereas the dictator Chun Doo-hwan manipulated industrial rationalization measures to confiscate the assets of average financial performers that had withheld bribe contributions or were politically suspect, democratic checks on authority protected firms from President Kim Dae-jung's willingness to sacrifice property rights for the sake of corporate restructuring objectives. Potential victims of expropriation could appeal for support from competing veto players. An independent j...