Two Koreas Capitalism with Asia characteristics and Soviet style socialism in one peninsula A cultural bridge between China and Japan Economic Systems’

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Presentation transcript:

Two Koreas Capitalism with Asia characteristics and Soviet style socialism in one peninsula A cultural bridge between China and Japan Economic Systems’ division and reintegration (differences compared to Germany) Militarization (diversion of resources to defense/offense because of non-reconcilable issues)

History Language and culture (Confucianism) Hermit kingdom Almost 900 Invasions throughout history(1910 the beginning of Japanese occupation): Legacy of zenophobia - reforms, the development of infrastructure, a civil code, financial system, textiles - Syngman Rhee after 1919 formed a government in exile, resided in the US between 1925 and 1948

Division Cairo Conference of 1943 (the Chinese moved for free and independent Korea) 38 th parallel as demarcation After the Japanese surrender the superpower (US vs USSR power game started, also China pushed its agenda too) ROK in 1948 DPNK

The War 1950, June- the North attacks the South The UN response and the American invasion The ending date July 1953

The North Kim Il Sung and the cult of personality Juche or self-reliance Militarization Chollima (“flying Horse” and an emphasis on moral incentives in conjunction with a personality cult of Kim Il Sun) Political independence, economic self sustenance, military self defense 1973 borrowing binge ending in 1975 by debt repudiation

Stages 1950s “sovietization” with small business retention 1961 first seven year plan “juche” an emphasis on technical improvement and technology transfer scientification (1984 a law on joint ventures influence by the Chinese) 1987 opposition to reform 1996?

The South NIC and phenomenal rates of growth in State involvement and chaebol (distinctive ties to a family of owners) Indicative planning land reforms Pak Chung-hee guided capitalism General Chun Doo-hwan

Industrial organization Chaebol A clone of zaibatsu as a group of companies built around a bank and owned by an actual family A group of companies not a conglomerate No private bank as a part of it State owned banks as the center of a chaebol Examples: Samsung, Hyudai, Daewoo, Goldstar Keiretsu Cross holdings Large concentration Informal links with the government Private banks as a part of it