AMIN A N M RUHUL

ID-2020201004

Assignment

On

Korean Economic Development

Self introduction

I am Amin A N M Ruhul from Bangladesh. I am pursuing my PHD in Global Marketing from

KC University. I have completed Masters of Business Administration from Ajou University
South Korea . as well as I have completed my Bachelor of Business Administration from
Bangladesh.

We are six members in my family. My father is in Business Profession and my mother is a

Teacher and My wife is a Student. I have two brothers.

About my achievements, I never made any achievements at state level. I participated as volunteer
in my home country.

My strengths are hard worker, self motivating and dedicated towards my work. And also I'm a
good learner. As well as, I have two years of job experience in Bangladesh.

My hobbies are making crafts, plying and visiting new places. My short term goal is to get
placed in well reputed company. My long term goal is to be a businessman.

Korean Economic Development

Korea is known for its fast economic development. It is widely believed that Korean
development is government-led, outward oriented and unbalanced one. Although Korea has been
a true success, no country can achieve fast growth by just following Korean steps because of two
reasons; First, economic, social, and political environment of each developing country may
differ. Second, there are strategies adopted by Korea that could not contribute, and strategies
which were important factors of growth that became causes of problems later. Therefore, it
requires much caution and discretion when a country tries to adopt Koran strategies of the
development.
Korean government mobilized and integrated a number of interacting economic, political, and
social factors. As for the economic policies to pro-mote the fast growth, all of its area, that is,
monetary, industrial, foreign exchange, and fiscal policies.

I think this 10 points should have in Korean economic Development

1. Monetary Policy

A core of the development strategy of Korea is concentrating all available resources to the
“leading sectors”. Monetary policy and system has served for that purpose well, and such policy
tools as control on the interest rate, regulation over and the protection of banks were used
intensively.

2. Development strategy

Korea is an un-balanced one and large corporations got much of the government support. it did
not mean that the every other sector which is not a leading one was “totally sacrificed”.
Particularly, small and medium sized enterprises (SMEs) were regarded to be very important and
got much support such as preferred loan and tax incentives. This policy stance has been
maintained until to-day, through the era of the heavy and chemical industry drive in’70s and
’80s, where much support was directed toward the big corporations.

3. Trade Policies

Korean Won was overvalued to support “import substitution” policy. This, at the sometime,
naturally causes the weakening of the competitiveness of the export industries. Although the
floating exchange system was officially adopted, Korean system had been close to the fixed
exchange system in reality because the monetary authorities could and did intervene the
exchange market heavily.

4. socio-economic Policies

The welfare expenditure was ‘sacrificed’. For example, the proportion of the social expenditure,
which is equivalent to the welfare expenditure, of the total government expenditure.

This is a socio-economic mobilization to encourage self-help, diligence, and corporation to

overcome the poverty. Although, it is not entirely for the rural area, most programs of the
movement are directed toward it. This certainly helped to increase the in-come in the rural area
which in turn helped to reduce the income gap between the urban and rural areas.

5. strong economic leadership

It is necessary to have the central government with the strong economic leadership. It does not
mean that the political dictatorship is inevitable as was the case in Korea. Rather it means that
the leadership with the vision on the market economy and the government which supports that
efficiently is the mini-mum requirement for the development.

6. Sound fiscal policy

The sound fiscal policy and system with the right principle. The issue of the “improper” fiscal
systemic found without exception from the former communist countries because the state owns
the asset contrary to the case of capitalist nations. Without this soundness of the fiscal system,
however, public services essential for the functioning of the market cannot be provided.

7. International Cooperation

South Korea does its best in the sector of international cooperation in keeping with its enhanced
economic strength. The country takes part in programs designed to provide support for
impoverished countries through the World Bank, the IMF, and the OECD. Recently, the country
has also joined worldwide efforts for peacekeeping, global economic stabilization, environmental
conservation, etc.

8. Political

The popular sector will make its way into the institutional politic-al arena as South Korcans saw
recently the organization of the mass party in November 1990. One can consider the external
sources of past and future democratization of South Korea. South Korea is dependent on the
United States for national security, export markets and industrial technology. At the same time,
the U.S. maintains a strong interest in this anti-communist nation for the military defense of the
Pacific region.

The internal sources of the South Korean political crisis can be best analyzed in terms of a
changing balance of power between the authoritarian state and civil society.

9. rapid industrialization

The rapid industrialization accelerated the migration of surplus rural labor to urban areas, and
the significant shift of employment from the primary to the industrial and service sectors.

10. Activization of the Civil Society

During the last two and half decades of successful economic growth, South Korea has emerged
as a modern, industrial society. One should recall that South Korea, like other NICs of East Asia,
is a "late-late" developer.
The rapid industrialization of this region brought the "simultaneous" growth of the middle class
and the working class. These expanding social 'classes of the urban sector are turning away from
the authoritarian regime.

Conclusion

It is true that economic growth by itself does not ensure development, hardly any development
can be sustained without economic growth. Therefore, in order to catch up with developed
nations, developing and emergent countries need to achieve and sustain higher than average
economic growth rates.