INTRODUCTION

A country in East Asia that

occupies the southern portion of
the Korean peninsula. South
Korea boasts one of the world’s
largest international airports, the
third largest subway system and
the third fastest land train, the
KTX.
1
 HISTORICAL BACKGROUND
of South Korea

Dynasties
Successive regimes
maintained Korean
political and cultural
independence for
more than a thousand
01
years.
 02
Colonial Period
At the outset of the 20th
century, Japan, China and
Russia vied for control over
the Korean Peninsula.

03
Korea Divided
After Japan’s defeat in
1945, the United States
and the Soviet Union
divided the peninsula
into two zones of
influence.

04
Korean War
South Korea’s declaration of
independence in 1950 led North
Korea, backed by China and the
Soviet Union, to invade its neighbor in
an effort to regain control of the
entire peninsula.
 05
Seoul Olympics
in Seoul in 1988, despite
continued student
protests and a boycott
by North Korea.

06
SOUTH KOREA TODAY
Today, South Korea is
one of East Asia’s most
affluent countries, with an
economy ranking just
behind Japan and China.
3.5
3
2.5
2
1.5
1
0.5
0
1960 1970 1980 1990 2000 2010 2018
Population Growth
50.4

50.2

50

49.8

49.6

49.4

49.2
1960 1970 1980 1990 2000 2010 2018
Male Female
12

10

0
1960 1970 1980 1990 2000 2010 2018
-2

-4
GDP GROWTH
2
T H R E E C R I T I C A L FA C T O R S
LAND REFORM
PARK CHUNG HEE
• General and Politician
• President of the Republic of
Korea (South Korea) from 1963 to
1981.
• His 18-year rule brought about
enormous economic expansion,
though at the cost of civil
liberties and political freedom.
• He put the foundation
for the economic
development of South
Korea.
• implemented the
modernization of South
Korea through
economic
industrialization and
export expansion that
directed by the state.
• has chosen the path of
maximizing capital
concentration
RURAL DEVELOPMENT STRATEGY
 PRONG
Revitalization of the
rural credit system
 PRONG
Enlarged flow of credit to
the rural areas and
contributing to the rise in
the agricultural growth rate
from 1.6% per year in 1957-
60 to 8.8% in 1962-65.
 PRONG
New Double Pricing Policy
The government bought grain from
the farmers at artificially high
prices at harvest time, then sold it
in a subsidized basis to urban
consumers in the off-season.
 PRONG
Plant Miracle Rice
More than 70% of the paddy land
were planted with Tongil Rice
 PRONG
Plant Miracle Rice

Incentives are mixed with

sanctions
 PRONG
Plant Miracle Rice

Incentives are mixed with

sanctions
 PRONG
Saemaul Undong

Also known as the New

Community Movement
President Park Chung-Hee
introduced the concept in 1971
when South Korea faces
problems due to rural-urban
disparity in development
priorities that always
emphasized export-oriented
industrialization.
SAEMAUL UNDONG
3
4
TRADE

war
Japan strengthened restrictions on
several high-tech exports to South
Korea in July and downgraded
South Korea’s status as a trusted
trading partner in August. South
Korea returned the trade fire, and
suddenly two of Asia’s largest
economies were locked in a trade
war.
OUTRIGHT
DEFLATION
STEEPEST DECLINE IN
EXPORTS
STEEPEST DECLINE IN
EXPORTS
 TOP
ECONOMIC
CONTRIBUTORS