The Economy of South Korea - The Rise of an Asian Tiger
South Korea in recent decades has been one of the most dynamic economies in the world. Over the period from 1965 to 1990, the rate of growth of per capita GNP was greater than that of any other country in the world (Watkins 1999). Major Korean enterprises such as Lucky Goldstar and Samsung are now common household brand names all over the world. As well, Hyundai and Daewoo, the two leading South Korean auto manufacturers, both offer products that are able to compete on the worldwide market along with other major car producers. In analyzing the South Korean economy, it is important to look at the various factors behind this remarkable success story. The boom and rapid expansion of the Korean economy is due largely in part to the radical changes and new policies introduced under the Park Chung Hee government of 1961-1979. Significant new economic policies included reinforcing the system of chaebol, creating a policy of import substitution with an export-led approach, fostering the development of industries designed to compete effectively in the world's industrial export markets, nationalizing the banks, as well as working on to reduce Korea's large external debt.
It is these policies, introduced throughout the 1960's and 70's, which caused a future boom in South Korea's economy and continue to influence it at the present day. When Park took control in 1961, one of his first orders of business was to extend government control over business by nationalizing the banks. As well, he merged the agricultural cooperative movement with the agricultural bank. The government's direct control over all institutional credit further extended Park's command over the business community. The Economic Planning Board was implement these policies and many are still in place today. South Korea is definitely an economic powerhouse to be reckoned with, and the world may still have yet to feel the wrath of this Asian Tiger. created in 1961 and became the nerve center of Park's plan to promote economic development (Kearny 1991). The Board exists to this day; it is charged primarily with economic planning, as well as coordinating the economic functions of other government ministries. The Bank of Korea continues to exist as a government-controlled financial institution, operated by the Ministry of Finance. in place solid debt management policies and has graduated from its status as a World Bank loan recipient. In the latter part of Park's reign as president, he fostered the development of industries designed to compete effectively in the world's industrial export markets. These major strategic industries consisted of technology-intensive and skilled labor-intensive industries such as machinery, electronics, and shipbuilding. The plan stressed large heavy and chemical industries, such as iron and steel, petrochemicals, and nonferrous metal. As a result, heavy and chemical industries grew by an impressive New industries were nurtured by making the importation of such goods difficult. When the new industry was on its feet, the government worked to create good conditions for its export. Incentives for exports included a reduction of corp
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Approximate Word count = 1339
Approximate Pages = 5 (250 words per page double spaced)
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