On June 25, 1950, North Korean forces invaded South Korea
The war left almost three million Koreans dead or wounded and millions of others
homeless and separated from their families.
The Second Republic under the leadership of Chang Myon ended after only one
year, when Major General Park Chung-hee led a military coup. Park's rule, which
resulted in tremendous economic growth and development but increasingly
restricted political freedoms, ended with his assassination in 1979
. Subsequently, a powerful group of military officers, led by Lieutenant General
Chun Doo Hwan, declared martial law and took power.
throughout the Park and Chun eras, there were many strong protests against the authorities, led by students and labor union activists
movements reached a climax after Chun's 1979 coup and declaration of martial
law.
Thereafter, pro-democracy activities intensified even more, ultimately forcing
political concessions by the government in 1987, including the restoration of
direct presidential elections.
In 1987, Roh Tae-woo, a former general, was elected president
1992 election of a long-time pro-democracy activist, Kim Young-sam. Kim became
Korea's first civilian elected president in 32 years.
Former business executive and Mayor of Seoul Lee Myung-bak's 5-year term begins
with his inauguration on February 25, 2008.
Natural resources: Limited coal, iron ore, limestone, kaolinite, and
graphite.Agriculture, including forestry and fisheries:
Products--rice, vegetables, fruit, root crops, barley; cattle, pigs,
chickens, milk, eggs, fish. Arable land--17% of land area
PeopleNationality: Noun and
adjective--Korean(s).Population (2006): 48,846,823.Population annual
growth rate (2006): 0.42%.Ethnic groups: Korean; small Chinese
minority.Religions: Christianity, Buddhism, Shamanism, Confucianism,
Chondogyo.Language: Korean.Education: Years compulsory--9.
Enrollment--11.5 million. Attendance--middle school 99%, high
school 95%. Literacy--98%.Health (2006): Infant mortality
rate--6.16/1,000. Life expectancy--77.0 yrs (men 73.6 yrs.; women
80.8 yrs).Work force (2005): 23.53 million. Services--67.2%;
mining and manufacturing--26.4%; agriculture--6.4%.
Today, according to the 2007 Index, South Korea's economy is 68.6 percent
free, making it the world's 36th freest economy. Unfortunately, however, a
closer look reveals that South Korea's level of economic freedom is neither as
comprehensive nor as concrete as it should be.
For example, although its regulatory process has improved, bureaucracy and
lack of transparency still hinders entrepreneurial activities. Interventionist
government policies still linger. South Korea's labor freedom is also shackled
by restrictive employment regulations that hamper employment and productivity
growth. Militant labor unions make the situation worse, disrupting the rule of
law and undermining productivity.
South Korea's finance ministry said on Monday it was maintaining its 2008
economic growth target of around 6 percent, due to deregulation and tax cuts,
despite a slowing global economy.
Economic growth in 2007 was 4.9 percent.
Asia's fourth-largest economy is expected to be capable of 7-percent growth
and have a stable current account and prices in five years, the Ministry of
Strategy and Finance said in a report to the new president, Lee Myung-bak.
"The new government will endeavor to achieve a growth target of some 6
percent, continuing efforts for economic recovery and managing risk factors,"
said the ministry.
Korea recently pulled through an economic storm that began in late 1997. This
crisis, which roiled markets all across Asia, had threatened Korea's remarkable
economic achievements
Korea, once known to be one of the world's poorest agrarian societies, has
undertaken economic development in earnest since 1962. In less than four
decades, it achieved what has become known as the "Miracle on the Hangang River"
- an incredible process that dramatically transformed the Korean economy while
marking a turning point in Korea's history.
With a history as one of the fastest growing economies in the world, Korea is
working to become the focal point of a powerful Asian economic bloc during the
21st century
The goal of the nation is to overcome problems rooted in the past by creating an
economic structure suitable for an advanced economy.
Korea, once known to be one of the world's poorest agrarian societies, has
undertaken economic development in earnest since 1962
many successful development programs were implemented. As a result, from 1962 to
2006, Korea's Gross National Income (GNI) increased from US$2.3 billion to
US$887.3 billion, with its per capita GNI soaring from $87 to about $18,372.
Financially, South Korea is more integrated into the world economy now than
it was in 1994. Foreigners are major players in the capital markets, accounting
for nearly 40 percent of stock market transactions, and South Korean residents
have greater opportunities to move their funds abroad. The use by South Korean
financial firms of off-balance sheet transactions and financial derivatives,
which did not exist in 1994, is expanding rapidly. While it is true that the
South Korean stock market actually rose during the last crisis, the expanded
role of foreign participants and the increased complexity of the financial
transactions mean that the market today is far less susceptible to political
intervention than it was a decade ago.
IN THE FIRST THREE decades after the Park Chung Hee government launched the
First Five-Year Economic Development Plan in 1962, the South Korean economy grew
enormously and the economic structure was radically transformed. South Korea's
real gross national product (GNP) expanded by an average of more than 8 percent
per year, from US$2.3 billion in 1962 to US$204 billion in 1989. Per capita
annual income grew from US$87 in 1962 to US$4,830 in 1989. The manufacturing
sector grew from 14.3 percent of the GNP in 1962 to 30.3 percent in 1987.
Commodity trade volume rose from US$480 million in 1962 to a projected US$127.9
billion in 1990. The ratio of domestic savings to GNP grew from 3.3 percent in
1962 to 35.8 percent in 1989.
Over the last three decades,
the Republic of Korea has achieved what is widely acclaimed as "the economic
miracle on the Hang-gang River." Since Korea embarked on economic development in
earnest in 1962, its economy has grown at one of the fastest paces in the world.
As a result, Korea, long one of the world's poorest agrarian societies, has
emerged as an upper middle-income, fast-industrializing country.
Gross domestic product grew 0.7% from the previous quarter, down from the
1.6% expansion seen at the end of 2007.
Falling exports were largely to blame for the quarterly slowdown along with
weak consumer spending.
President Lee Myung-bak took office in February promising to boost annual
growth to 7% - it grew 5% in 2007.
The investment bank Goldman Sachs said it was keeping its growth forecast for
the full year at 4.8% despite the weak quarterly figures.
It predicted the government's programme of tax-cuts and deregulation would
boost growth while the weak currency would help exporters.
Inflation figures were also released on Friday, with consumer prices rising
3.9% in the year to the end of March.
That figure is above the government's target of between 2.5% and 3.5% for the
fourth month running.