How has South Korea become economically successful?

Table of Content

Wikilatief - SOUTH KOREA SUCCESSFULLY ERADICATES POVERTY.

What made South Korea successful?

Korean flag

The Republic of Korea, also known as South Korea, gained independence on August 15, 1948, and was one of the poorest countries in the world for nearly a decade during the 1950s due to civil war. 

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According to UNPD data in 2000, about 60–70 percent of South Koreans were in postwar poverty.

Before the civil war, South Korea's economy relied solely on agriculture and livestock. 

The civil war resulted in the destruction of many agricultural lands and farms, causing South Korea to be starved.

After a near-famine following the civil war in 1953, South Korea was led by Park Chung Hee. 

Park Chung Hee was one of the presidents of South Korea who successfully laid strong foundations for South Korea's economic development. 

Park led from 1961 to 1979. Park is known as a dictator but has been the best president in South Korean history and is known as the Father of Development. 

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The nickname is given for his service in alleviating poverty in South Korea which we will discuss as follows

Strategy Industrialization in Export sector

In 1966, Park Chung Hee passed a law on foreign investment. The law contains the business of citizens will be approved only if the business supports export activities or helps the development of basic industries. 

The law was established because of South Korea's dependence on the import sector. Imports are widely carried out by the conglomerates (traders) who have proximity to state officials, so that, they can easily obtain import licenses for their own benefit.

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This foreign capital funding law succeeded in diverting capital from conglomerate traders to industrialists. 

Park is able to foster a strong industrial class and eradicate corruption.

Park Chung Hee

Economic Planning Board (EPB) program and Five Years Economic Development Plan.

Based on the aim of improving the industrial sector, Park Chung Hee's government formed an agency called the Economic Planning Board (EPB). 

This agency is tasked to encourage economic growth by creating investment in the form of capital, production, and also exports.

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EPB is responsible for the Five Years Economic Development Plan (Repelita). The program is organized in four stages starting from 1962 with different achievement objectives.

Repelita I is more focused on building industrial structures for the independence of the nation. 

South Korea is industry oriented to introduce domestic products to the international world.

Repelita II focuses more on modernizing the industrial foundation and building import replacement industries. 

The government is downplaying its role and expanding the private sector. At this stage there is a change in livelihoods from the agrarian sector to a larger industrial sector.

Repelita III is to create a balance between industrial development and agriculture. The industrial sector is built export-oriented by promoting heavy industry and chemicals.

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Repelita IV is an independent economic development and equitable development results. 

South Korea effectively promotes its industry concerning export industry markets on the international scene. 

At the stage of shifting the industrial sector from light industry to heavy industry.

Repelita's achievement was first reaped in 1998, during the reign of Kim Dae Jung where South Korea's annual economic growth reached 8.6% and became the eleventh largest trading country in the world.

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Education, one of the most significant contributing factors in economic development and growth.

In addition to the industry strategy, educational factors are also one of the supporting components that are inseparable in the process of poverty alleviation in South Korea. 

After the War, South Korea began a five-year campaign to eradicate illiteracy. In four years, the adult literacy rate rose from 22 percent to 96 percent. 

According to the South Korean Government learning and cognitive skills are a major component in national economic development. 

The education provided can produce a skilled workforce that is ready to work in the world of industrialization that also wants to be flown by South Korea. 

Efforts to improve the quality of education by the South Korean government are building many schools and providing qualified teachers.

South Korea's economic development continues to increase to date South Korea as one of the top global economies. 

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South Korea outperformed Australia, Saudi Arabia and Switzerland. South Korea is becoming increasingly popular with trademarks such as Hyundai, Samsung-Daewoo, and LG, which are so well known to the eyes of the world's consumers. In fact, Samsung's sales were able to rival Apple's in 2012. 

Korea, has successfully eradicated the poverty of its citizens