2. North Korea and South Korea: Different Perspectives on Globalization and Its Effects

3. History: Korean War zSoviets and Americans decide to divide Korea into their own sphere of influence Post WWII yNorth (U.S.S.R) and South (U.S.) 1948 Kim Il Sung took initiative to invade the South (1950-1953 Korean War) War ends ends in stalemate: “Cease Fire” z 38th parallel, DMZ (Demilitarized Zone) yBoth countries are ruined in the similar manner yIdeal comparison yEach embraces different ideology: xtotalitarian –Communist North Korea xAuthoritarian- Democracy South Korea

4. Path to Globalization zFollowing the Korean War, a decade of political turmoil begins zFirst President Syngman Rhee ousted from office (1960 ) yrigged elections for vice president cause student riots zDemocracy not initiated ymilitary coup d'état, Park Chunghee takes over zPark Chunghee begins to build South Korea into economic power ystability but still not democratic ytool: chaebol

5. Chaebol System (Illegal in U.S.- Anti Trust laws) zConglomerate Organization ylarge corporation with many unrelated subsidiaries ycentrally planned though privately operated ylack of input from minor shareholders-FASTER ACTING yfinancial security for all companies involved

6. Park’s Economic Plans for Chaebols zcreation of export-oriented industries yClothing yAutomobile zcreation and fostering of heavy industry zmaintenance of anti-union behavior Keep wages low Keep prices low zprotection of domestic market (Tariffs) zchaebols are major force in the South Korean economy

7. Top Chaebols in South Korea zHyundai yAutomobiles yEngineering, construction, shipbuilding and industrial activity yFinances zSamsung yElectronics yPetrochemicals yConstruction (Petronas Towers in Malaysia) zLG yHome appliances and electronics yPetrochemicals and chemicals

8. History: North Korea zAfter WWII Kim Il Sung controls zNationalization versus Chaebol y“people’s” property versus the highly private chaebol ywhile abuses in both, higher standard of living obvious only in one zJuche (self-reliance) yclosed all capital flow y"the hermit kingdom” zMilitarization versus Chaebol yto secure power Kim Il Sung diverted a third economy for military instead of economic reform (South Korea, 3%) y22 million population, 1.2 million military xwastes the most able-bodied men of society with unproductive job xfamines every year, starving people

9. North Korea: Economics zRefusal to join global markets lower standard of living ypolice state: complete lack of democratic institutions yarmy needed for government’s lacking legitimacy: massive famines yPROPOGANDA zNotable exceptions to global markets yDrugs (Opium) yArms Trade- xNuclear to terrorists? ySignificant portion of GDP xused for making the military bigger, not food