Korean economy is now facing three crises: low social mobility, wideningbi-polarization, declining potential growth rate. Three reforms are thereforenecessary: a reform in economic system to enhance social mobility, a proactiveredistributive reform through higher tax burden, a structural reform to increasethe potential growth rate. These reforms are not easy since labor reform will berejected by the progressive whereas higher tax burden will not be welcomed bythe conservative. Therefore, both progressive and conservative reforms shouldbe driven at the same time.