Development in South Korea

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Development in South Korea
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Japanese rule (1910-45)

• Control educational system
• Japanese language and culture
• Control land (40 of entire country)
• Infrastructure
• railroads and telegraph lines
• Industrialization
• Provisional Government-in-exile (1919)

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38th Parallel (1945-50)

• Soviet U.S. divided Korea along 38th parallel
  after Japan surrendered in 1945
• 1948-08-15, Republic of Korea established
• 43 area, 60 population
• President Rhee Syngman
• 1948-09-09, Democratic Peoples Republic of Korea
  established
• Premier Kim Il-Sung

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Dulles, Rhee, MacArthur

• nationalist goals vs. Cold War strategies

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Korean War (1950 - 1953)

• Most fighting happened 1950 - 1951
• truce negotiations 1951 - 1953
• Military Demarcation Line (MDL) (1953 - )

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Republic of Korea

• President Rhee Syngman (1948 - 60)
• autocrat resigned amid popular protests
• 1961 military coup by Park Chung-Hee
• relations with Japan normalized in 1965
• economic takeoff
• assassinated in 1979
• Army General Chun Doo Hwan (1980-7)
• 1980 Kwangju massacre

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ROK Economic Takeoff

• Parks authoritarian rule (1961-79)
• annual economic growth rate of 9.2
• one of the four Asian little dragons
• year per capita GDP (US) export (US)
• 1962 87 56.7
  million
• 1980 1,503 17,500.0
  million

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Economic Takeoff Under President Park Chung-Hee
(1962-1979)
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Development in South Korea

• Development a matter of survival
• high population density (48 mil./105km²)
• few natural resources
• external military threat
• one of the Four Tigers of East Asia
• an incredible record of growth
• integration into the high-tech modern world
  economy

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Development in South Korea

• During 1960s GDP per capita was comparable with
  levels in the poorer countries of Africa and Asia
• Today its GDP per capita is more than 20 times
  North Korea's and comparable to that of the
  European Union
• Total GDP (p.p.p.) reached 2 trillion in 2017
  (ranks 14th in the world)

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Exports of Goods and Services ( of GDP) 1960-2017
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Success through the late 1980s

• a system of close government-business ties
  (chaebol)
• directed credit
• import restrictions
• import of raw materials and technology
• at the expense of consumer goods
• sponsorship of specific industries
• a strong labor effort

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Savings ratio

• savings and investment over consumption
• Savings 36 gt Japan 31 gt US 16
• Remains high even today

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Small Social Spending
Public social expenditure ( GDP) Public social expenditure ( GDP) Public social expenditure ( GDP) Public social expenditure ( GDP) Public social expenditure ( GDP)
1980 1990 2000 2010
France 20.2 24.3 27.5 30.7
Germany 21.8 21.4 25.4 25.9
Japan 10.2 11.1 16.3 22.1
Korea 2.7 4.5 8.3
U.S. 12.8 13.2 14.3 19.3
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Military Expenditure ( of GDP)
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Trade Partners 2017

• Exports (0.6 trillion) to
• China 25
• US 12
• Vietnam 8
• Imports (0.5 trillion) from
• China 21
• Japan 12
• US 11

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Asian financial crisis

• The Asian financial crisis of 1997 - 1998
• exposed longstanding weaknesses in South Korea's
  development model
• high debt/equity ratios
• massive foreign borrowing
• an undisciplined financial sector

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Democratization in ROK

• 1987 election, former general Roh Tae Woo
  defeated opposition leaders Kim Dae Jung and Kim
  Young Sam
• 1987, Declaration of Political Reforms
• 1988 election, opposition parties won majority in
  National Assembly
• Kim Young Sam won presidential election in 1992
  (1st elected civilian president)

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Former and Current President

• President Park Geun-hye (2013 - 2017)
• Daughter of former president Park Chung-hee
• President Moon Jae-in (2017 - present)