Development in South Korea

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)

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 People’s Republic of Korea established Premier: Kim Il-Sung

Dulles, Rhee, & MacArthur nationalist goals vs. Cold War strategies

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

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

ROK Economic Takeoff Park’s 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

Economic Takeoff Under President Park Chung-Hee (1962-1979)

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

Development in South Korea Three decades ago 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)

Exports of Goods and Services (% of GDP) 1960-2017

Success through the late 1980s a system of close government-business ties directed credit import restrictions import of raw materials and technology at the expense of consumer goods sponsorship of specific industries a strong labor effort

Savings ratio savings and investment over consumption Savings 36% > Japan 31% > US 16% Remains high even today

Small Social Spending 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

Military Expenditure (% of GDP)

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%

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

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)

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