Korean Economic Development in Historic Perspective

 Achieving “shared growth” and democracy 1 Korea has been able to achieve rapid growth with equity since early 1960s. Free from poverty and foreign aid, and becoming self-sufficient economy Rapid transformation from light manufacturing to HCIs (Heavy and Chemical Industries) Economic development open the way to political democratization, all within one generation Free from poverty and foreign aid, and becoming self-sufficient economy Rapid transformation from light manufacturing to HCIs (Heavy and Chemical Industries) Economic development open the way to political democratization, all within one generation

Liberation from Japanese Colonial Rule Six 5-Year-Economic- Development Plans Financial Crisis ,000 10, ,432 7, Per Capita Income (US$) ,193 OECD Member 100(1964) 1,000(1977) ,372 Source : Bank of Korea 6 16,291  Per Capita Income (US$) 2 20,

1963 Agriculture / Fisheries Manufacturing Source : National Statistical Office  Changes in Employment Structure % 17.6% 7.4% Agriculture / Fisheries Manufacturing Service

 Rapid Growth and Low Income Inequality 4 Korea has been cited as one of successful countries with relatively low income inequality and rapid growth. Gini coefficient Per capita GDP growth rate (%)

 Reducing Poverty 5 Absolute poverty declined steeply from 48% in 1961 to less than 10% entering 1980s.

2 Why promote technical high school? 17 Absolute shortage of technicians Composition of Engineer : technician : simple unskilled worker (graduate from elementary school) as of 1969 * Korea 1 : 2 : 15 * US 1 : 25 : 5 ☞ Korean government, with a top priority, promoted technical high school education. * Target: producing 50,000 technicians every year nationwide Composition of Engineer : technician : simple unskilled worker (graduate from elementary school) as of 1969 * Korea 1 : 2 : 15 * US 1 : 25 : 5 ☞ Korean government, with a top priority, promoted technical high school education. * Target: producing 50,000 technicians every year nationwide