Running head: KOREA’S ECONOMIC DEVELOPMENT
Korea’s Economic Development
Student’s Name
Course
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KOREA’S ECONOMIC DEVELOPMENT
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Korea’s Economic Development
Introduction
Development in the Asian continent for the year ranging 2018 and 2021 continue to
showcase positive trajectory despite the military and economic tension with some of U.S trading
partners. Although both North and South Korea experience a rise in their economies; South
Korea has showcased a steeper economic development over the recent decades. South Korea’s
economy has grown exponentially especially in the last seventy years and economist considers it
as a “model of development”. Starting from the 1960s, less than twenty years after South Korea
independence, there were many factors that contributed to the steep Korean economic growth up
to the current period. South Koreans practice med economy, which is largely dominated by
conglomerates commonly known as chaebols, which are family owned. The ideologies, practices
and economic models applied in South Korea has placed the nation at the 4th biggest economy
across the Asian continent. Also, the country takes the10th position among the world’s biggest
economic power house. South Korea is famous for its magnificent rise from one of the
undeveloped, agrarian economy that rely largely on foreign assistance to a self-independent
nation. While there were many different contributions to the steep economic growth of South
Korea, a key player that greatly influenced the development of the region is Park Chung-Hee.
Park served as South Korea’s president between year 1944 to 1963 with practices that were
marred with controversies pertaining to his working culture. The Japanese occupation ending in
Korea, and the nation diverging toward a more export-oriented economy were the biggest
contributors to the country’s fast growth; considered as a substance economy by developed
nation, in less than thirty years, South Korea has grown to not only become a modern industrial
powerhouse but also a first-world country.
KOREA’S ECONOMIC DEVELOPMENT
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The term first- world was introduced during the Cold War era and during that time, the
term was “…referred to a country that was aligned with the United States and other Western
nations in opposition to the former- Soviet Union and its allies.”1 However, the term has evolved
from the need to compare countries to the United States and other Western nations and is now
“…used to describe a developed and industrialized country characterized by political stability,
democracy, the rule of law, a capitalist economy, economic stability, and a high standard of
living.”2 The Republic of South Korea was founded on August 15, 1948, after splitting from
North Korea, due to the Korean War. However, before this, beginning in 1910, Japan had taken
over and invaded the entire continent of Korea. Japanese occupation ended on August 15, 1945,
exactly two years before South Korea was officially founded3. The end of Japanese occupation
helped to build Korea as a whole and then South Korea after the split. Their economy had been
on the rise, after the Japanese left and has continued into today. Then with the election of Park
Chung-Hee, who implemented more government intervention to help with certain industries, and
the final major cause, export-orientated growth launched South Korea into a new, modern age.
Political Economic Analysis (PEA)
South Korea was only formed in 1948, hence scholars considerate (South Korea) a very
new country when compared to China, or the United States, even Britain. Becoming occupied
by an older and stronger country was not rare, however, escaping that occupation and then
splitting into two separate countries after, is something exclusive to South Korea4. The entire
1
Kenton, Will. First World Definition. Investopedia, February 18, 2018.
https://www.investopedia.com/terms/f/first-world.asp.
2
Kenton, First World Definition
3
Vierthaler, Patrick. "How to Place August 15 in South Korean History? The New Right, the “1948
Foundation” Historical View, and the 2008 Kŏn’gukchŏl Dispute." Vienna Journal of East Asian
Studies 10, no. 1 (2018): 137-174.
4
Ibid, 14
KOREA’S ECONOMIC DEVELOPMENT
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Korean peninsula, while under Japanese rule, was giving most of their resources to Japan, and
they were not working or earning for themselves or their country.
The Japanese began their occupation of the Korean peninsula in the year 1910, when
Korea was annexed after years of war, intimidation, and political schemes. Korea would be
considered a part of Japan, and under their rule, until the year 1945. The Japanese had influence
in Korea for the forty years that they occupied, hence were definitely a major contributor to how
Korea was able to evolve into modern day South Korea. “As late developers, the Japanese made
extensive use of state power for their own economic development, and they used the same state
power to pry open and transform Korea in a relatively short period.”5
Japan wanted to eradicate Korean culture on the peninsula, and this resulted in an all- out
war on Korea and the culture. While going to war against Korean culture, schools and
universities forbid the speaking of Korean at numerous public places, and even began to adapt
Japanese language rather than Korean. Much of the conflict between Japan and Korea has been
evident in the continuous military confrontation, economic and cultural exchanges. The
diplomatic condition within the Korean Peninsula keeps changing at a significant speed because
of the three primary factors. First, there is the fast development of the North Korean nuclear
programme6. Second, the issue on the election of former U.S president Donald Trump as well as
the election of Moon Jae-in as South Korea president7. Even though there had been increased
tension between North and South Korea, the establishment of two parallel diplomatic process
changed the situation at the Peninsula radically. The first enactment concerned South Korea and
focused on the reconciliation of the two states, while the second concerned the United State and
Kohli, Atul. “Where Do High Growth Political Economies Come From? The Japanese Lineage of Korea’s
‘Developmental State.’” World Development 22, no. 9 (1994): 1269–93.
6
Esteban, Mario. "The EU’s role in stabilising the Korean Peninsula." Real Instituto Elcano (2019).
7
Ibid
5
KOREA’S ECONOMIC DEVELOPMENT
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focused on attaining denuclearization as well as attaining the pacification and denuclearization of
the Korean Peninsula.
The recent meetings between core members i.e. United States of America and South
Korea leaders in Singapore in June have not brought about major advancement to ease the
tension between U.S and Korea. Even though the motivation behind the meeting are debatable,
the primary factor involves the need by North Korea to have the sanctions enforced on Korea by
U.S be lifted. Unfortunately, with no information pertaining to the process or the period for
denuclearization, the condition leads to a gap in expectation on bridging the friction between
Korea and United States8. Currently, the level of bilateral long term commitment and trust
necessary of the denuclearization were not achieved under Donald Trump leadership. At the
same time, the chance of North Korea totally handing over their nuclear arsenal is significantly
low because, economic sanctions are less likely to compromise the strategic plan of the
Northerner leadership of their nuclear weapons because North Korea believes that nuclear is its
strongest weapon toward protecting itself9. The situation has resulted in an economic fallout of
war, more so the effect that the United States has incurred because of the military confrontation,
which do affect the level of trade not only between United States of America and South Korea
but across the Asian continent.
To comprehend the negative effects that the tension has on the large United State
economy, it is necessary to assess the economic performance in the case of a conflict and the
current EIU baseline United State economic outlook. First, there would be job losses, especially
in food production and agriculture because South Korea serves as a key market for agricultural
8
Jackson, Van. "Buffers, Not Bridges: Rethinking Multilateralism and the Resilience of Japan-South
Korea Friction." International Studies Review 20, no. 1 (2018): 127-151.
9
Ibid, 140
KOREA’S ECONOMIC DEVELOPMENT
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product produced from United States. Statistically, South Korea purchased US $6.6 billion worth
of agricultural products and food in 2017, making South Korea to be U. S’s sixth biggest market
for food and agricultural product globally10. In the event of trade interruption between U.S and
South Korea, the condition warrants for negative impact in the employment sector back in U.S.
Another sector to incur job losses would be the parts production and motor vehicle sector.
The market for U.S automotive producers are primarily because of South Korea’s need for
specialized intermediate goods varying from simple parts like axels to complicated ones like
engines. Considering that United States auto sector depend majorly on intermediate good that are
exported, causing any form of trade disruption to the supply chain will have negative impact on
the production, which in turn will result in a domino effect to workers in the sector11. In the event
of a Korean conflict situation, the United States would incur a sharp decline in the yearly actual
GDP growth to a mere 1%12. The uncertainty involved with trade and war disruption reduces
demand for domestic exports. The rate i.e. 1% would be the lowest in America’s since the 2009
economic crash an even when compared to the existing EIU’s average prediction of 2.7 percent
growth in 201813. To establish the sectoral and economic outcome that the conflict on the Korean
peninsula would have, the EIU has developed various possibilities. One possible baseline
prediction is the possibility of a military confrontations in the Korean peninsula because of a preemptive attack by either the United States or North Korea. Second, with consideration of the first
year in conflict, there is the possibility of the war lasting either long or short term. The analysis
10
Grant, Jason H., Shawn Arita, Charlotte Emlinger, Robert Johansson, and Chaoping Xie. "Agricultural
exports and retaliatory trade actions: An empirical assessment of the 2018/2019 trade conflict." Applied
Economic Perspectives and Policy.
11
Dutt, Ishita, Anusha Goel, Iishika Saxena, Mukta Dhopeshwarkar, Shraddha Mahapatra, and Kashvi
Pathak. "Assessing India’s Post-Pandemic Outlook on Global Engagements with Reference to ASEANIndia Free Trade Agreement (AIFTA)." Annual Research Journal of SCMS, Pune (2021) (2021).
12
Diesendorf, Mark, and Ben Elliston. "The feasibility of 100% renewable electricity systems: A response
to critics." Renewable and Sustainable Energy Reviews 93 (2018): 318-330.
13
Ibid.,
KOREA’S ECONOMIC DEVELOPMENT
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developed in this case considers that the war will be carried out solely along the Korean
peninsula even though other regions like Japan have a higher possibility of getting caught in
between the crossfire hence incurring some economic damages.
Post Korean-War Period
The post Korean-War period was the most important period in Korea’s history in regards
to economic growth and prosperity. The first period after the Korean War, before Park ChungHee officially became president was devoted to physical and human capital infrastructures for
the industrial development of the country. Park Chung Hee whose term lasted between 1961 and
1979 is a primary leader in the contemporary history of the current Korean Peninsula14. Park’s
governance has brought about significant impact including economic plan. One majorly
overlooked factor tend to be the elements of early Korean nationalism that dates back to between
1890s and 1930s. Coming from an impoverished peasant family, Park Chung-Hee was born in
1917, when Korea was not yet split into the North and South. The country was was still under
Japanese rule, “Park first passed the test for the Japanese-run Manchurian Military Academy. His
talents as an officer were swiftly recognized and he was one of the few Koreans allowed to
attend the Japanese Imperial Military Academy near Tokyo. He was subsequently posted to a
Japanese Army regiment in Manchuria and served there until Japan’s surrender at the end of
World War II.”15 After the war, Park Chung-Hee returned to Korea and pledged his loyalty to
the Republic of South Korea during the Korean War. After the Japanese occupation in Korea,
World War II, and the Korean War, South Korea was in a prevailing situation. Park, a military
officer “…conspired with other military officers to form a junta, which came to be known as the
You, Jong-Sung. "Demystifying the Park Chung-Hee Myth: Land reform in the evolution of Korea’s
developmental state." Journal of Contemporary Asia 47, no. 4 (2017): 535-556.
15
“Wilson Center Digital Archive.” digitalarchive.wilsoncenter.org, n.d.
https://digitalarchive.wilsoncenter.org/resource/modern-korean-history-portal/park-chung-hee.
14
KOREA’S ECONOMIC DEVELOPMENT
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Military Revolutionary Committee, and began planning a coup. Park’s committee seized power
on 16 May 1961 and shortly thereafter announced the formation of the Supreme Council for
National Reconstruction (SCNR), of which Park was the chairman.”16 After his successful
bloodless coup takeover, Park would remain in control of South Korea until his assassination in
1972.
Park became South Korea’s president officially in 1963, and as president, he changed
how Korea had been running before after he took over. Park was faced with more than just
rebuilding the South after foreign occupation and war; he also had the North as an enemy which
was trying to destabilize the South. This was because the North held most of industry and
electrical power. One of the main ways that Park Chung-Hee improved life in the South was
through economic growth through export-led methods, something that Korea had been lacking17.
“Korea’s weak institutions, recent engagement in the Korean War, and situation in the Cold War,
conferred on the state a great responsibility in ensuring that industrialization through learning
was successful, and that development was sustainable.”18 Previously in Korea, the government
did not intervene in the lives of citizens and in certain industries. Park Chung-Hee, after growing
up impoverished, and watched Japanese occupation and war ravage his country before rising to
power, realized how important government intervention would be.
“Wilson Center Digital Archive.” digitalarchive.wilsoncenter.org, n.d.
https://digitalarchive.wilsoncenter.org/resource/modern-korean-history-portal/park-chung-hee.
17
Turner, Mark, Hae‐Young Jang, Seung‐Ho Kwon, and Michael O'Donnell. "Does history repeat itself?
Economic development and policy convergence in Vietnam and South Korea." Asian‐Pacific Economic
Literature 33, no. 2 (2019): 27-43.
18
Heywood, Loria-Mae. “Why Did South Korea Grow Rich, C.1960–1985?” E-International Relations, March 16,
2013. https://www.e-ir.info/2013/03/16/why-did-south-korea-grow-rich-c-1960-1985/.
16
KOREA’S ECONOMIC DEVELOPMENT
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Literature Review
South Korea has recorded significant economic improvement in the recent decade. A
major challenge facing the process involves the growing tension between the United State of
America and North Korea. According to report developed by The Economist Intelligence Unit, in
the event of military confrontation across the Peninsula, the aftermath would result in severe
impact not only upon the entire Korean region, but even U.S economic sector. Based on the
findings, the EIU report provide a well analyzed possible scenario that could emerge out of
varying situations in the event of military or economic confrontation between U.S and South
Korea. The article has significant information, which provide audience with depth understanding
that the event of a war in the Korean Peninsula would have on the nations involved. While the
report does not provide information on the measure that United States intend to take in the event
that North Korea do not halt it nuclear development process 19, it i.e. the article addresses the
negative consequences that a war in the Peninsula would have; not only on the immediate
nations, which are United States and North Korea, but also on other countries like Japan, which
are likely to incur direct and indirect damage.
Based on the approximate forecast made by the EIE, there would be an estimated 25,000
indirect and direct job loss in the auto sector. Even though the condition would first impact
regions like Georgia, Alabama and Michigan since the regions serves as the major source of auto
products, the effect would have a domino effect to the national level since majority of employees
in the auto sector generally earn an overall higher average salary compared to average record
within state. In the event of international economic fallout, the article does not provide diverse
19
Li, Fangxuan, Jun Wen, and Tianyu Ying. "The influence of crisis on tourists’ perceived destination
image and revisit intention: An exploratory study of Chinese tourists to North Korea." Journal of
Destination Marketing & Management 9 (2018): 104-111.
KOREA’S ECONOMIC DEVELOPMENT
10
situations like a steady increase or decline in the economic operation of South Korea and in the
amount of incurred in setting up these stations. Another key article that fits for its application is
the Korea’s Path of Development in Retrospect by Jong-Dae Park 20. The article is essential
because it analyzes the development of Korea by assessing the factor that scholars consider to be
the building block approaches applied across the Korean boundary. The article assesses the
evolution of Korea under a tough period in a multi-dimensional manner. The scholar takes into
account the historic background, the economic development, state building and liberation. The
information is critical because the author offer the development of Korea in a chronological
manner. The article concludes by recapping the overall South Korea’s achievement and issues a
detailed an and schematic itinerary explaining the development of Korea’ social and economic
sector. The information aid to understand how South Korea has managed to not only enhance the
economic but also social and cultural development. A main factor involving the development of
Korea is explained using synthesize development across the socio-political and economic
dimension.
The article by Park aids learners with the advantages involved in studying the
development case about Korea considering that the economic condition are attributed to diverse
timeframes within which the level of development span merely within 50 years. Even though the
article handles, much of the development that can be classified depending on when the period
occurs. For instance, during the Post War era that lasted of the 1950s, where the Korean nation
began to conduct reconstruction activities21. The second phase occurred in the 1960s, which the
article shade light on by assess the for the development of an economy that could sustain the
Park, Jong-Dae. "Korea’s Path of Development in Retrospect." In Re-Inventing Africa's Development,
pp. 177-205. Palgrave Macmillan, Cham, 2019.
21
Ibid., 180
20
KOREA’S ECONOMIC DEVELOPMENT
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Korean population; the article also addresses the third segment that involve developed of
structure that need to be upgrading of facilities used across industrial structure and growth in
rural regions and the fourth aspect that occurred during the 1980s period, which is associated
with the transition of the Korean region to an economy that was not only liberal but also open 22.
The final vital development period covered by the article occurs during the 1990s as the period
not only involved experiencing structural but even adjustments because of globalization.
Additionally, Park, aims at offering brief sketch of Korea’s historic heritage. Out of the
material, one critical thing is that Korea is a country located within the Far east and at the center
of countries that have a massive geographical area compared to the country around the Korean
nation. Understanding the detail is relevant because the audience get to understand that the total
population of the combined Korean Peninsula consisted of individuals who collaborated with the
objective to gradually forge together both ethnically and culturally.
The article South Korean Nationalism and the Legacy of Park Chung Hee: How
Nationalism Shaped Park’ s Agendas and the Future Korean Sociopolitical Landscape focus on
discussing one of the iconic figure of the Korean Peninsula, i.e. former president Park Chung
Hee, whose era is essential for the audience to comprehend the doctrine that got enforced to
initiate the economic development experience across the Koren region23. The article is important
for the research because it address the opinions of different age group with one of the group
especially the modern Korean that consider Park to be a power hungry leader, while the much
older generation and the international audience regard Park as a great achiever. The basis of the
22
23
Ibid., 18
Cates, Steven V., and Jason Jackson. "Is War Good for The United States: A Comparative
Look at The US and Ancient Rome Between Times of War and Conflict and the Economic
Implications on Economic Well Being and Employment During Times of Peace Versus
Conflict." European Journal of Business and Management Research 5, no. 5 (2020).
KOREA’S ECONOMIC DEVELOPMENT
12
argument is that prior to the civil war that faced the nations between the years 1950s and 1953,
South Korea emerged out drained both psychological, economically and physically.
The economic position of South Korea was significantly lower that most super power
nations like the United States regarded the nation as a hopeless scenario involves poverty,
political stability and social anomies24. Despite the bad reputation that various parties consider
Park to have, the establishment of well though and efficient reform by side stepping the
procedures necessary for democracy served as the basic foundation that enhanced modern South
Korean work force. The limitation of the article involves its inability to compare how different
leader before and after Park’s tenure performed25. The process would aid in comprehending
whether it is merely the doctrine established by Park on the people of Korea that influenced the
urge of economic development across the region or other different factors.
Modern Era South Korea
Park Chung-Hee’s presidency marked the beginning of South Korea’s modern era. His
major accomplishment was that he successfully created an industrial base for production of
exports. The two primary nationalist concepts that impacted Park’s leadership are the teachings
of early nineteenth century Korean nationalist majorly comprising of Chloe Nanson and Sin
Chadha. The ideologies provided Park with the fundamental to support his eventual regime26.
The concepts takes into account the Tan ‘gun that encouraged the Korean to feel prosperous and
entitled in their homogenized homeland27. Tan ‘gun did serve as a key element in the minor, for
24
Ibid
Santos, Brandon L. "South Korean Nationalism and the Legacy of Park Chung Hee: How Nationalism
Shaped Park’s Agendas and the Future Korean Sociopolitical Landscape." (2018).
26
Maxwell, Claire, Miri Yemini, Laura Engel, and Moosung Lee. "Cosmopolitan nationalism in the cases of
South Korea, Israel and the US." British Journal of Sociology of Education 41, no. 6 (2020): 845-858.
27
Ibid, 847
25
KOREA’S ECONOMIC DEVELOPMENT
13
it implies “the Korean citizens”. The ethnonating ideology meant that the entire Korean
population together with their homeland are bonded by blood. Park also instilled Neo-Confucian
doctrines inspired by Social Darwinist28. Park learnt these ideologies (bushido) while serving in
the Imperial Japanese military career. The combination of these elements, merged together
created a powerful institution familiar across each aspect that was run during Park’s regime in
south Korea.
After Park had ascended into power, the first act was to persecute South Korean business
leader who were profiting from corruption dealings within the South Korean government 29.
Approximately 24 business individuals got arrested, but some like Lee Byung Chull, who is
Samsung’s founder and was at the time out of Korea, by chance escaped the arrest. Upon Lee
Byng Chull return to Korea, he held a meeting with Park and agreed to work in agreement with
the economic development programs that had been set by Park30. Even though Lee and other
business moguls only made fine payments, the group of business individuals had offered to even
donate significant portion of their businesses to the Korean government 31. Park regime focused
less on dealing with corruption, but rather concentered on instilling the traditional Confucian
social system whereby the merchants needed to understand their status within the lower social
hierarchy32. The period also involved campaign against the adoption of foreign cultures such as
cigarette smoking and dancing.
28
Chey, Hyoung-kyu, and Eric Helleiner. "Civilisational values and political economy beyond the West:
the significance of Korean debates at the time of its economic opening." Contemporary Politics 24, no. 2
(2018): 191-209.
29
You, Jong-sung. "The changing dynamics of state–business relations and the politics of reform and
capture in South Korea." Review of International Political Economy (2020): 1-22.
30
Easley, Leif-Eric, and Kyuri Park. "South Korea’s mismatched diplomacy in Asia: middle power identity,
interests, and foreign policy." International Politics 55, no. 2 (2018): 242-263.
31
Xu, Jian, and Binghan Wang. "Intellectual capital, financial performance and companies’ sustainable
growth: Evidence from the Korean manufacturing industry." Sustainability 10, no. 12 (2018): 4651.
32
Ibid., 4651
KOREA’S ECONOMIC DEVELOPMENT
14
Despite that Park’s regime did not take over the businesses of individuals considered to
be illegal profiteers, it committed to Nationalizing the Korean banks. The action was done to
assume power over the overall financial flow of the capital across the nation with the objective to
direct the finance to the government projects that were under development. The three primary
institution set by Park included; The Ministry of Trade and Industry, The Economic Planning
Board (EFB), and The Ministry of Finance (MoF). The primary similarity in the mentioned
agencies tasked with Japan’s economic development is that they indirectly served other
economic sectors of the nation. Another key action was the establishment of the Korean Central
Intelligence Agency (KCIA), which plays a significant role in South Korea’s political control
and worked towards effecting the decision making of centralization economy33.
Park’s Economic Projects Initialization
The first project initiated during Park’s regime was the construction of the Seoul-Pusan
highway34. The highway not only connected the two main cities in South Korea but also did
serve as a symbolic infrastructure rather than a transportation medium on the basis of benefit
above cost35. To attain the industrialization of South Korea, which Park believed was important
for the country i.e. South Korea to be prosperous and also be able to protect, Park depended on
Chaebol, which involved the dependency on private businesses36. The exclusive instances where
33
Lee, KwangYu. "The Traumatic Twentieth Century of Korea: Japanese Imperialism, the Korean War,
and the Korean Military Governments." In Religious Experience in Trauma, pp. 99-131. Palgrave
Macmillan, Cham, 2020.
34
Kim, Hyung Min. "5 Inter-continental transport networks and Asian Economic Corridor for the Korean
Peninsula." International Perspectives on the Belt and Road Initiative: A Bottom-Up Approach (2021):
100.
35
Lee, KwangYu. "The Traumatic Twentieth Century of Korea: Japanese Imperialism, the Korean War,
and the Korean Military Governments." In Religious Experience in Trauma, pp. 99-131. Palgrave
Macmillan, Cham, 2020.
36
Klingler-Vidra, Robyn, and Ramon Pacheco Pardo. "Beyond the Chaebol? The Social Purpose of
Entrepreneurship Promotion in South Korea." Asian Studies Review 43, no. 4 (2019): 637-656.
KOREA’S ECONOMIC DEVELOPMENT
15
Park resolved to adopt public enterprises such as the Pohang Steel Company (POSCO) was
because the private sector had failed to establish a stable steel company.
Park’s success in the establishment of the steel industry and even the Hyundai
shipbuilding is a well-known and talked project across the Korean region. The main concept is
that Park started successful industries in South Korea that concentrated on export-oriented
industries that were not only guided but assisted by the government. Another major development
among Park’s strategic plan meant to enhance the economic development of the South Korean
nation was the establishment of the Heavy and Chemical Industries strategy (HCI)37. The setting
up of the HCI brought about a change in the orientation of Park’s program. The Heavy and
Chemical Industry scheme was developed during the beginning of the 1970’s when South Korea
need the establishment of chemical industries and heavy industries as the regime preferred for an
economy that preferred import substitution. The establishment of the HCI also occurred at a time
when South Korea had established the new Yushin constitution that issued the government with
more power while at the same time limiting the practices of political opposition. Even though the
HCI was successful in enhancing industrialization, Park’s regime carried the plan at the cost of
interfering with the economic dynamic of South Korea, resulting to failure of the HCL plan.
End of an Era Through Assassination
Park’s regime ended after the leader was assassinated by the Chief of the Korean Central
Intelligence Agency. The assassination was incited by Park’s demand for the use of harsh
method such as suppressing the riots and protests that were being conducted across South Korea
37
Choi, Young-Jin, and Jim Glassman. "A geopolitical economy of heavy industrialization and second tier
city growth in South Korea: Evidence from the ‘Four Core Plants Plan’." Critical Sociology 44, no. 3
(2018): 405-420.
KOREA’S ECONOMIC DEVELOPMENT
16
even at the cost of taking 30,000 lives38. While Park was attending a meeting at the Korean
Central Intelligence Agency with top level leaders in Korea, he criticized Jae-kyu who was the
chief of KCIA for his inability to suppress the riots taking place in Cholla area39. Kim countered
by informing Park that the action could result in the death of 3000 lives, upon which Park replied
that he did not care even if the number would total to 30,000 individuals, rather he wanted the
plan executed. Kim then left for the rest room to retrieve a hidden pistol, which he brought back
into the room where Kim was while still concealed. Upon Kim coming to close contact with
Park, he i.e. Kim retrieved the gun and first killed a member who had supported the sentiments
made by Park during the early argument. Kim then redirected the gun towards Park and shot the
Korean leader, killing Park on the spot. The assassination action made it possible for the
technocrats within South Korea’s government to convince the new regime of the need to revise
and redirect the economic plan of the country. Fortunately, South Korea still continues to record
a positive economic trajectory as it enhances its economy by adopting effective economic plan
connected to teachings pertaining to their culture and sense of entitlement to the greatness of the
Korean nation.
In conclusion, South Korea has displayed significant economic development within the
last seven decades and serves as an ideal model for development. While much of the country’s
i.e. Korea growth has been evident in the last few decades, the success has its foundation dating
back to even before the era of Park Chung-Hee. Beginning from 20 years after South Korea has
attained its independent, diverse factors consisting placed the Peninsula nation at a strategic
38
Lee, Sang Kyung. "The politics of anti-austerity protest: South Korea in 1997–1998 and Greece in
2009–2010." International Journal of Comparative Sociology (2021): 0020715221988951.
39
Hsu, Jinn-yuh, Dong-Wan Gimm, and Jim Glassman. "A tale of two industrial zones: A geopolitical
economy of differential development in Ulsan, South Korea, and Kaohsiung, Taiwan." Environment and
Planning A: Economy and Space 50, no. 2 (2018): 457-473.
KOREA’S ECONOMIC DEVELOPMENT
17
position to improve the economic condition of the region. The conditions have made South
Korea to be the 4th largest economy among nations in the Asian continent, while also being the
10th economic powerhouse internationally. While different nations have experienced diverse
growth, Korea stands out from growing from an agrarian economy that largely depended on
foreign aid for effective operation to become a major United States economic contributor. Even
though there exist diverse factors such as the Japanese ceasing their occupation in Korea and the
realignment of Korea to head towards an economy that concentrated on exportation that
catalyzed the economic growth across Korea, a major figure who had significant impact is
enactment of Park Chung-Hee as the head of state of the Korean government. forced the nation
to re-strategize, which led to Korea becoming an economic powerhouse globally.
KOREA’S ECONOMIC DEVELOPMENT
18
Bibliography
Cates, Steven V., and Jason Jackson. "Is War Good for The United States: A Comparative Look
at The US and Ancient Rome Between Times of War and Conflict and the Economic
Implications on Economic Well Being and Employment During Times of Peace Versus
Conflict." European Journal of Business and Management Research 5, no. 5 (2020).
Chey, Hyoung-kyu, and Eric Helleiner. "Civilisational values and political economy beyond the
West: the significance of Korean debates at the time of its economic
opening." Contemporary Politics 24, no. 2 (2018): 191-209.
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