Economic development of South Korea

South Korea’s progress is accelerating rapidly. In fact, the economy has grown approximately 150 times since 1960. (ECON 101: GDPxGNP)

Textiles first, then automobiles and cheap goods teach how to build a high-tech industry today with South Korea. The country is known for giant technology brands such as “Samsung”, Kia and LG.

South Korea expects the country to grow by 3 percent for 2022. It continues to develop in an area such as being the most popular place of the fair, in a car that takes place in the pandemic.

Here, South Korea will be spoken. We emphasize how it is designed in South Korea, on what basis it is displayed and considered things.

Introduction to South Korean Economy

The repeated conquests of the country by the Chinese, Japanese, and Manchurian armies played a decisive role in South Korea’s often unsuccessful economic development.

Feudal structures in rural South Korea helped resolve the agricultural production crisis, thanks to some advances in irrigation and paddy cultivation. In 1960, 50 percent of the workforce was still employed in rice production and processing. But of course, in 2010 that rate dropped to just three percent.

The agricultural reforms of the 1970s and 1980s and the mechanization of production brought increased prosperity to the farmers. Today, areas smaller than three hectares are still mostly cultivated by family businesses.

Rice is still one of the most important and frequently preferred foods in South Korea. Especially in 2011, per capita consumption was 70 kilograms. For comparison, per capita consumption of rice in South Korea was 130 kilograms in 1970. In Germany, the total consumption in 2011 was four kilograms.

Rising South Korean Economy with Park Chung-hee

Park Chung-hee is the head of industrialization, who came to power in South Korea in May 1961. Chung-hee is also known as the modernizer of South Korea and the head of the military dictatorship.

When Chung-hee came to power, he initially pursued a strict anti-communist policy. His political opposition and all political parties were banned. Later, this shift of power allowed full focus on the country’s economic boom and the diversion of production to export.

The banking system was nationalized and, along with the National Intelligence Service (KCIA), became the decisive power tool of military governments. Civil liberties had to be won bloodily by workers, students and trade unionists in decades of uprisings.

The rebellion against Chung-hee’s successors, called the Gwangju Uprising of May 1980, took several thousand victims. It was only in 1987 that South Korea became a parliamentary democracy again after a constitutional amendment and a freely elected president came to power.

But of course, rapid industrialization had its price. Until the mid-1990s, it was not fully known what sewage and ecological waste problems could cause.

In the same years, air pollution and pollution of rivers with all kinds of toxins reached health-threatening levels. Environmentalists at the time offered an ironic interpretation of the South Korean economic boom. Environmentalists commented that the history of industry left the war zone behind.

South Korea Economy and Exports

The military coup that took place in the country in 1961 gained a dominant importance in economic planning. Numerous investment incentives have been created for the export economy. In 1970, $835 million worth of goods were exported. In 2010, exports reached the level of 466 billion USD.

Even before 1961, mostly family-run conglomerates were established. Samsung, Goldstar (LG), Daewoo (until 1999), Ssangyong, Hyundai, SK. In the 1960s and 1970s, these companies became the dominant force in the South Korean economy. Today, each of these brands is among companies with global competitive power.

In the 1980s, South Korea’s exports were initially determined by textiles, cheap radio and television (Lucky Goldstar), but after the 2000s, these were replaced by high-quality electronic products such as video recorders and cars.

Today, one of the world’s largest companies and one of the largest South Korean companies, Samsung manufactures almost everything from solar cells to televisions, washing machines to cars and ships.

On the other hand, since 2000, the Samsung Electronics division has continued to strive to achieve a dominant position in the world market for smartphones, LCD and OLED displays, as well as electronic components.

It should be noted that since 2015, the South Korean industry has come under pressure from the Chinese economy. Especially the shipyard industry, the country had to defend itself against aggressive cheap suppliers from China in the world market.