Korea’s Economic Modernization

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Korea’s Economic Modernization. Yong Yoon, PhD 30 Jan. 2013. Korea. 2. NASA Satellite Picture. Korea Economic Development Policy Experience. The Korean government has set explicit goals for national development in which the private sector has been instrumental. - PowerPoint PPT Presentation

Transcript of Korea’s Economic Modernization

Koreas Developmental Policy: Past, Present and Future

Koreas Economic ModernizationYong Yoon, PhD30 Jan. 2013Talk at Masters Program in Korean Studies, Graduate School of Chulalongkorn University.Course: 2024653 Foreign Direct Investment12Korea


https://www.cia.gov/library/publications/the-world-factbook/geos/ks.html23NASA Satellite Picture

4Korea Economic Development Policy ExperienceThe Korean government has set explicit goals for national development in which the private sector has been instrumental.1960s: Export-promotion strategy1970s: HCI Drive, and Saemaul Undong1980s: Automobile/electronics/household appliances, etc. (adv. Technology)1990s: IT & Communication Leader, Cinema2000s: Cultural leader (Hallyu)


The First Five-Year Economic Development Plan (1962 1966)The first plan sought to benefit the textile industry and make Korea self-sufficient. At the time, Koreas status was as a capital poor, inadequate saving, and predominantly U.S.-financed state, in need of independence.6The Second Five-Year Economic Development Plan (1967 1971)The second five year plan sought to modernize the industrial structure to make Korea more competitive in the world market, which was incorporated into all future five year plans.Fears also prevailed that the U.S. would no longer provide military defense for Korea. Plan promoted self-sustaining economic development (encourage import-substituting industries).


The Third Five-Year Economic Development Plan (1972 1976)Pres. Park implemented the third five-year plan which was referred to as the Heavy Chemical Industrialization Plan (HCI Plan) and, also, the "Big Push". To fund the HCI, the government borrowed heavily from foreign countries (not foreign direct investment, so that it could direct its project).Plan aimed at building an export-oriented industrial structure.8

The Fourth Five-Year Economic Development Plan (1977 1981)Development of industries that can effectively compete internationally in industrial export markets (promote technology and improve efficiency. )Plan to achieve self-sustaining economy. Promote equity through social development.9

The Fifth Five-Year Economic Development Plan (1982 1986)Establish foundation for price stability, improve quality of life, restructure governments functions and improve technology.Move concentration from the heavy and chemical industries, to technology-intensive industries.10The Sixth Five-Year Economic Development Plan (1987 1991)Emphases were placed on Research and Development and Manpower Training.Establish socio-economic systems, promote creative potential and initiative.Industrial restructuring and technological improvement.Improve national welfare through balanced growth and income distribution.


The Seventh Five-Year Economic Development Plan (1992 1996)Promote high-technology fields, such as microelectronics, new materials, fine chemicals, bioengineering, optics and aerospace.Promote economy through self-regulation and orderly competition.Management innovation and establishment of sound work and civic ethics.Five-Year Development Plans replaced by New Economy FYP (1993-97)

1112Seoul 2003

Korea War (1953)In 50 yrs!121313Changes in Employment StructureManufacturing

1960Service Sector

Service SectorAgriculture / FisheriesManufacturingAgriculture / Fisheries2002

Service SectorAgriculture /FisheriesManufacturing36.815.947.3ManufacturingAgriculture /Fisheries Service SectorChanges in GDP Structure Changes in Industrial Structure1414Agriculture to Manufacturing / Light Industry to Heavy and Chemical Industry1960197019901999 1980HCI ProductAgricultural ProductLight Industry Product50%WigAutomobile


Textile2003Semiconductor, Mobile Phone, DTV, Display, Automobile, Ship-building, etc.84.8%12.4%2.8%(ICT, 27.6%)Changes in Export Commodity Profile15

16Leaders of the pastSome history1617King Sejong the Great (, )South Korea's national language is Hangeul introduced in 1446 under King Sejong of the Choson dynasty.

17Sejong the Great (1397 1450) was the fourth king of the Joseon Dynasty of Korea.During his regency, he reinforced Korean Confucian policies and executed major legal amendments.Although most government officials and aristocrats opposed usage of hangeul, lower classes embraced it, became literate, and were able to communicate with one another in writing.

1718The Song of the Dragon Flying to Heaven (, )A tree whose roots are deep: in the wind does not shake; its flowers have luminance; its fruit, fragrance.

Water whose fountainhead is far away; in drought does not dry; it flows and becomes a stream; and to the sea it surely reaches

1819Shin Saimdang (, )On June 23, 2009, the Bank of Korea released the 50,000 Won note.19

- Shin Saimdang (15041551) was a prominent 16th-century Korean artist, calligraphist, noted poet, and the mother of the Korean Confucian scholar Yulgok (also known as Yi I, who is on the 5,000 Won note.)- Having had no brothers, she received an education that would have only been bequeathed to a son, and this background greatly influenced the way she educated her children.1920Yulgok (, )20

Yi I (December 26, 15361584) was one of the two most prominent Korean Confucian scholars of the Joseon Dynasty, the other being his older contemporary, Yi Hwang (Toegye).He is not only known as a scholar but also as a revered politician and reformer.Yi I is often referred to by his pen name Yulgok ("Chestnut valley").2021Yi Hwang (, )21

Yi Hwang (1501-1570) is one of the two most prominent Korean Confucian scholars of the Joseon Dynasty, the other being his younger contemporary Yi I (Yulgok).A key figure of the Neo-Confucian literati, he established the Yeongnam School and set up the Dosan Seowon, a private Confucian academy.Yi Hwang is often referred to by his pen name Toegye ("Retreating Creek").2122Coins (up till 2006)22

- Yi Sun-sin is remembered for his numerous victories fighting the Japanese during the Japanese invasions of Korea (15921598). Among his twenty-three victories, the Battle of the Battle of Hansan Island are the most famous battles.2223Japanese Rule ()In January 1876, following the Meiji Restoration, Japan employed gunboat diplomacy to pressure Korea to sign the Treaty of Ganghwa [], an unequal treaty, which opened three Korean ports to Japanese trade and granted extraterritorial rights to Japanese citizens.Korea was under Japanese rule as part of Japan's 35-year imperialist expansion (29 Aug. 1910 to 15 Aug. 1945).23

24North and South KoreaThe unconditional surrender of Japan, combined with fundamental shifts in global politics and ideology, led to the division of Korea into two occupation zones effectively starting on September 8, 1945, with the United States administering the southern half of the peninsula and the Soviet Union taking over the area north of the 38th parallel.The Korean War (25 June 1950 27 July 1953) was a war between the Republic of Korea (supported primarily by the USA, with contributions from allied nations under the aegis of the United Nations) and the Democratic People's Republic of Korea (supported by the People's Republic of China, with military and material aid from the Soviet Union).24- 1950-53 Korean War. A total of 15,708 Thai soldiers participated in the war and peacekeeping efforts thereafter, and 136 of them were killed and 1,160 wounded.2425

Crossing the 38th parallel. United Nations forces withdraw from Pyongyang, 195026Presidents of KoreaRecent leaders262727

28Yi Seungman (, )Yi Seungman or Syngman Rhee (18751965) was the first president of South Korea. His presidency, from August 1948 to April 1960.28

Rhee on a 1959 issued 100 hwan coin.Francesca Maria Barbara Donner (1900-1992) was the second wife of Syngman Rhee, and thus was the first First Lady of South Korea from 1948 to 1960.http://en.wikipedia.org/wiki/Syngman_Rhee2829Kim Gu (, )What if?29

A Korean politician, educator, leader of Korean independence movement against the Japanese occupation of Korea that lasted from 1910 to 1945, and reunification activist who had struggled for the independent reunification of Korea since its national division in 1945.On November 5, 2007, the Bank of Korea, the national central bank of the Republic of Korea, announced the new 100,000 Korean won bill would feature Kim's portrait. However, the issuing of the new bill was delayed indefinitely for an unknown reason.2930Park Chung-hee (, )Park Chung-hee (19171979) was a Republic of Korea Army general and the President of South Korea from 1961 to 1979.He has been credited with the industrialization and rapid economic growth of South Korea through export-oriented industrialization.30

Heo Jeong (Acting President: April 26, 1960 August 14, 1960) then Yun Bo-seon (a Korean former independence activist and politician, and the President of South Korea from 1960 to 1962).Park Chung-hee seized power in a military-led coup d'tat and held the office until his assassination on October 26, 1979.Yuk Young-soo (November 29, 1925 August 15, 1974; She was shot and killed by Mun Segwang , a Japanese-born North Korean sympathizer) was the wife of the former president Park Chung-hee and the mother of Korean politician, Park Geun-hye . The Yusin Constitution of 1972 was widely interpreted as Park's intention to rule South Korea as a dictator for life.

3031The Economic Policy of Park Chung-heePark had seen the development of Manchukuo based on Japanese investment in infrastructure and heavy industries when he was an officer in the Manchukuo imperial army.Intending to acquire money and technology for South Korea via Japanese grants and soft loans, Park normalized diplomatic relations with Japan in 1965 (Treaty on Basic Relations b