History Of Korean Economy

3 Pages 817 Words

Few scholars of economics describe Korean economic success as “The miracle on the Han.” Korean economic success from the 1960s to 1980s is contributed by a number of international, social, political, and cultural factors. Korea’s economic transformation did not happen overnight or restricted to just few ingredients. In my opinion these factors were interrelated in many ways. Not one factor by itself could be responsible for such a complicated task. Influences of international powers have shaped Korean economy in many ways. Japan and United States’ influence has been extraordinary compared to others. Japanese colonialism unmistakably laid foundations for transformation to modern economy of Korea. Under Japanese rule, Korea changed from agricultural oriented society to a modern industrialized nation. The colonial government, although its intentions were geared for their gains, helped establish railroads, textile factories, power plants, and others. United States plays a crucial role for war-devastated Korea in the 1950s. U.S. aided more than any nation through military and economic assistance. Its assistance laid foundations for modern economy that present Korea built itself on.
But international help alone cannot be held responsible for economic success of Korea. A dynamic class of entrepreneurs and a class of dependable and efficient industrial workers that were able to assimilate and change with global economic trends were also essential. Without them foreign capital and technology into the economy is likely to be a wasted effort (Eckert et al., 1990, p. 400). The country’s low standard of living and low pay invited and promoted foreign investments. Although Korea provided cheap labor and quality products it would not have been complete without government’s strong hold on policies. Authoritarian rule of General Part era might not be approved by most democratic nations at the time but for Korea, it seemed necessary. With...