South Korea and It’s Development

By Tae Hoon Choe

The year was 1948 when South Korea declared its independence and became a proud country of its own. At first, South Korea didn’t have a sold government system, which led them to political instability and a very unstable economy. Under the autocratic leadership of Syngman Rhee, South Korea went through serious of turmoil, corruption and sorrow. After a decade of political discrepancies, in 1960 there was a movement called the student revolution, led by labor and student groups, which overthrew the autocratic regiment under Syngman Rhee. This granted a new minister called Heo Jeong to be elected and rule South Korea for two years. However, Heo Jeong was unable to accomplish much work due to the damage the previous minister has caused.

Decades went by and in 1993 a new president called Kim Young-sam was elected and he promised to build a “New Korea”.[1] The government under Kim Young-sam set out to correct the mistake of the previous administrations. Ever since Kim Young-sam South Korea’s economy has been booming at an exponential rate, which led them to become one of the most influential countries in the world.

Modern day South Korea is extremely different from the South Korea that existed half a century ago. For 50 years, South Korea’s economy has grown by an average of seven percent annually. The population more than doubled from 21 million to 43 million and the GDP per capita far exceeds other developed nations such as New Zealand and Spain.[2] South Korea is an emerging market and a very influential one. The country is wealthy, technologically advanced, mature democracy with an impressive record of innovation, economic reform and sound leadership. South Korea has a budget surplus of 0.7% of GDP and it has one the best IT technologies in the world. Not only that, South Korea had in place the building blocks for growth since the 1950s, an educated population, property rights, land reform and institutions of modern capitalism. When the right leader came to power, South Korea was able to take off and become an influential part of world economy.

Although South Korea has its positive sides, it also faces challenges. South Korea has a highly concentrated corporate sector, an again population, and politically dangerous neighborhood.[3] Geographically, Korea finds itself squeezed among three titans: China, Japan, and Russia – a position that presents great challenges. Economically, the country is controlled at a dangerous stage. While its mighty manufacturing engine powered it to great heights in the last century, to thrive in the new one, it will need to develop and equally strong service sector. South Korea also has to develop a way to attract more investors from abroad. By doing so, it will be able to increase its economy immensely making it an even better country than it is currently.

Despite the negative aspects it faces, South Korea has developed immensely ever since the 1950s. The citizens of South Korea have worked extremely hard to put the country where it stands now. There were countless numbers of bumps on the road along the way, however they were able to stand where they are now due to the well built and firm building blocks of South Korea. In order for South Korea to grow even larger, it has to attract foreign investors and also develop a stronger service sector to match the highly concentrated corporate sector. This will allow South Korea to become an even more influential country in the near future.

[1] http://www.foreignaffairs.com/articles/140335/marcus-noland/six-markets-to-watch-south-korea

[2] http://www.bluemarblecitizen.com/people/census-world-South-Korea

[3] http://www.mckinsey.com/insights/winning_in_emerging_markets/south_korea_finding_its_place_on_the_world_stage

Advertisements

About isaacchoe

Currently studying Development Economics and Northeastern University.

3 responses to “South Korea and It’s Development

  1. barghout

    There are many impressive statistics and improvements that were reached after the new president was in power. I believe that the corruption, as stated to be the negative aspect of South Korea, has decreased when Kim Young-sam ruled. All countries have a certain relative amount of corruption, and in the case of South Korea, the president would be wise to try to decrease the corruption rate so as to attract more tourists and immigrants to the country. This will help the economy generate more income and grow further.

    Like

  2. Independent is great but close is very bad for their economy development, hope South Korea government can realize it and make some change in the future.

    Like

  3. Dear Tae,

    With the help of your article, we have been given the opportunity to explore South Korea over its history. Just as it is inspiring to see the growth of a child, to see them develop as an individual into a mature adult, it is a similar feeling to look at the growth of a country. Surmounting challenge and obstacles it has strengthened and it will be interesting to see the country as it grows in the future.

    ~Professor Myra Chaudhary

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Authors

%d bloggers like this: