Development in South Korea

Japanese rule ( ) 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 ( ) Soviet & U.S. divided Korea along 38th parallel after Japan surrendered in , Republic of Korea established –43% area, 60% population –President: Rhee Syngman , Democratic People’s Republic of Korea established –Premier: Kim Il-Sung

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

Korean War ( ) Most fighting happened truce negotiations Military Demarcation Line (MDL) ( )

Republic of Korea President Rhee Syngman ( ) –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 ( ) –annual economic growth rate of 9.2% –one of the four Asian “little dragons” year per capita GDP (US$) export (US$) million ,503 17,500.0 million

Development in South Korea Development a matter of survival –high population density (48 mil./10 5 km²) –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 roughly 20 times North Korea's and equal to the lesser economies of the European Union GDP p.p.p. $10 12 (ranks 12 th in the world)

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 36.2% of GDP –Japan 31.4%, US 16.2% small social welfare expenditure

Trade Partners 2011 Exports ($552 billion) to –China 24% –US 10% –Japan 7% Imports ($520 billion) from –China 17% –Japan 13% –US 9%

Asian financial crisis The Asian financial crisis of 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)

Current President President Park Geun-hye ( ) Daughter of former president Park Chung- hee