The field research was set to find out the correlations between the 1997 monetary crisis and the process ot democralic consolidation in South Korea, especially in term of industrial relations. As complementary components of industnalization; slate, business and labors are, by nalure, often pertormed conflictual actions. Like in many other developing contries or newly industrializing countries, South Korea experienced a shong developmential siate regime where state have a very tight relations with business group, while their labor policy was badly repressive. But as the 1997 crisis occ,llrred, the three conflicting and competing parties seemed to agree to some points according to solve the problems affected by the crisis The process of democratic consolidation seem to be swifted bec€use of it. The question of why the crisis seems to swift the democratization needs to be obseNed by then. The research was started by exploring the cause and impact of crisis to the three parties Some facts were found that the '1997 crisis affected all lhe economic, social and political sectors of the nation, which by any means it became a common threat of the nation. Some strategic recovery programs were set up, some agreement were signed up, and by then the democratlc consolidation were being comrmed.