South Korea

1
South Korea
2
(No Transcript)
3
The korean mirracle

• 60s
• GDP p.c. 85 USD
• Export 30 mil. USD
• Unemployment 20
• Population below poverty line 40
• huge inflation
• social tensions

Today GDP p.c.19200 USD Export 250.6 billion
USD Unemployment 3.6 Population below poverty
line 4 Slovakia GDP 14500 EU 26900
4
History of Korea

• China Russia and Japan were fighting over the
  power inKorea the result was a destruction of
  Korea an poor conditions for development
• China was superior to Korea and represented an
  important source for culture technology and
  knowledge. Also China protected Korea and claimed
  to be its older brother

5
History of Korea

• Periods of relative peace were filled by internal
  conflicts between local noble families fighting
  for more influence and greater power
• Poor conditions for farmers- high payments to the
  government corrupt administration
• Isolation
• 1860- China and Japan were forced to end the
  isolation and to establish trading relations with
  western countries
• 1976 opening of Korea

6
Japanese occupation of Korea The dark Age

• 1894 war between China and Japan Japanese are
  preparing the anexation of Korea
• 1904- war between Japan and Russia. During the
  post war negotiations under the mediation of
  Theodor Roosvelt Japan gained considerable
  territories that belonged to Russia and special
  rights in Korea
• For the USA Japan was more acceptable to gain
  grater power in Asian than Russia

7
Japanese occupation of Korea The dark Age

• accepting Japan as the Main power in Korea by
  USA
• USA were acknowledged by Japan to be the only
  Power in Phillipines and other territories in
  that region this happened by the signing of the
  Taft-Kacura treaty in july 1905.

8
Japanese occupation of Korea The dark Age

• The Japanese kicked out all foreign ambassadors
• All protests of Koreans were brutally suppressed
  by the Japanese police
• Japanese were free to dissolve the Korean
  government and took over the Korean police army
  and justice.
• annexation treaty was signed in 1910

9
Japanese occupation of Korea The dark Age

• Korean emperor lost all his pover Japan gains
  its first territory on the continent and Korea
  disappeared from the politic maps
• The Japanese gradually strengthened their power
  and suppressed the Korean culture
• Huge growth of economy
• Poor living conditions for Koreans
• Koreans decide to proclaim independence in 1919

10
Japanese occupation of Korea The dark Age

• Peaceful mass demonstrations occurred in whole
  Korea
• Japanese police used weapons to solve the
  situation
• The result was 7000 death and thousands of others
  wounded or arrested
• smaller demonstrations followed but the result
  was always the same one of these was led by 15
  years old Ju Kwan-sun a national hero

11
Japanese occupation of Korea The dark Age

• At the beginning of the Second World War
  industrial manufacturing intensified bringing the
  need for further labor force. A huge migration
  from agricultural rural areas and south to
  industrial centers in the north and to Japan
  followed.

12
Japanese occupation of Korea The dark Age

• The Japanese oppression intensified also
  Japanese became the only language at schools
  Korean literature disappeared and so should the
  Korean culture. Also tradition Japanese religion
  Shintoism was violently introduced to Korea.
  Everybody had to go regularly to Shintoist
  temples.

13
The end of Japanese rule in Korea

• Conference in Teheran Churchil Rooslvelt and
  Chiang Kai-shek agreed on creating an independent
  Republic of Korea but not immediately
• Strong disputes between the right and the left
  wing appeared together with strong disputed
  inside this

14

• According to the agreement between USA and Russia
  the Korean peninsula was divided in two parts
  along the 38 parallel.
• First in 1948 an independent Republic of Korea
  was established and new Government was recognized
  as the only legitimate and sovereign power on the
  Korean peninsula. Syngman Rhee became the first
  president thank to his strong pro-american
  attitude.

15

• A month later the northern part announced the
  creation of the Peoples democratic republic of
  Korea with Kim-Il-Tseng as a new president

16
The Korean war

• After 1948 both Russian and American forces were
  supposed to leave Korea
• Noth Korea had twice as much soldiers as South
  Korea and also had much better equipment thanks
  to the military help and support from Russia and
  partly China. North Korea also had 200 military
  air planes and 500 tanks.

17
The Korean war

• Main reasons why North attacked the South
• North Korea was much stronger (better army and
  equipment)
• the announcement of Acheson
• support of USA and China

18
The Korean war

• North Koreans pushed South Korean (70 000) and
  American army (47 000) very fast. Soon they had
  90 of South Korea under control.

19
The Korean war

• South Korea refused to sign any armistice that
  would keep Korea divided
• Syngman Rhee sought to hinder the talks
• The United States decided Rhee could not be
  trusted and developed plans to remove him in a
  coup détat. The coup was never carried out

20
The Korean war

• On July 27 1953 the UN North Korea and China
  signed an armistice agreementSouth Korea refused
• 4 million Koreans died throughout the peninsula
  two-thirds of them civilians
• China lost up to 1 million soldiers
• United States suffered 36934 dead and 103284
  wounded. Other UN nations suffered 3322 dead and
  11949 wounded

21
Syngman Rhee

• He became a president in the year 1948 (was 73
  years old)
• he was anti Japanese and anti-communist
• strong support from USA (due to the Truman
  doctrine of halting the communism)
• extremely corrupt
• became a dictator
• poor governance of the country (his main goal was
  to eliminate any opposition and concentrate all
  power)-The national security law

22
Syngman Rhee

• In 1950 round 60 000 were in prison some 80 for
  violating the national security law
• The anticommunist madness introduced by Sygman
  Rhee led to several not very well know but awful
  massacres (Jeju Island)
• in 1949 when 16 parliament members were arrested
  for violating the national security law
• 1952 when the constitution was changed and direct
  election of president was introduced- several
  parliament members were arrested

23
Syngman Rhee

• president had huge competences He had control
  over the import licenses the American help
  credits and he was also in charge for the
  property of ex-colonialists (Japanese). This
  helped him to create a small group of successful
  businessmen who were obliged to him (Samsung
  being one of these).
• His political rivals didnt have an easy life
  most of them died. Some after a an Attempt
  (assassination) or have disappeared died by a
  natural death or almost natural death.

24
Syngman Rhee

• In 1960 a new election was held. After his main
  rival mysteriously died several days before the
  election Syngman Rhee became a president again.
• After obvious machinations and tricks a new vice
  president became I-Ki-Bung a close friend and
  political partner of Syngman Rhee

25
Syngman Rhee

• General disagreement and protests started all
  around the country. 115 students were killed and
  about 1000 were wounded. As a result Syngman Rhee
  left the office and all four members of I-Ki-Bung
  committed suicide
• Syngman Rhee as president was unable of
  cooperating with other politicians he didnt
  care much about the economy and he didnt even
  understand the economy

26
Syngman Rhee

• GDP p.c. was only 82 USD in 1962. Despite the
  huge help from USA (building up 58 of the
  government budget in 1956)
• One of the few things that improved during the
  Rhee administration was the education.
• The new president became Jun-po Son

27
Park Chung Hee

• In 1961 an peaceful military coup led by Park
  Chung He was carried out. At the beginning of his
  rule even Park could enjoy the assistance and
  generosity of the USA 70 of the military
  spending was financed by USA.
• Park managed the country through a group of
  military officers (The highest council for
  country transformation). This Council was the
  highest body in the state superior to any other
  institution.

28
Park Chung Hee

• After Park took close control over the Highest
  council he started with far-reaching reforms
• He removed the corrupt civil servants and
  military officers
• Soon the Parliament was dissolved and any
  political activity was banned.
• Censorship and press constrains were introduced

29
Park Chung Hee

• constrains on personal spending were implemented.
  Bars prostitution and cafés were eliminated
• In 1971 a state emergency was announced. The
  constitution was abandoned. Political activity
  was banned again governments administration was
  transformed and a martial law was introduced.

30
Park Chung Hee

• apolitical technocrats were largely involved in
  managing the country
• private businesses largely supported Park. These
  were implementing Parks export-oriented policy
  and were rewarded by tax forgiveness cheap
  credits government guarantees on foreign
  credits investment incentives
• An important momentum in gaining support from USA
  was the war in Vietnam
• South Korea was the main ally and biggest
  supporter of USA (sending 300.000 soldiers)

31
Park Chung Hee

• In a longer perspective the president was loosing
  the favor of his citizens. The violation of human
  rights being the main reasons. Especially
  students were showing strong disagreement.
• A big loss in popularity occurred after 1969 when
  the constitutions was changed in order to allow
  Park to become a president for the third time

32
Park Chung Hee

• Main reasons for disagreement
• Signing the treaty with Japan
• The change of constitution
• involvement in Vietnam
• Violating human rights
• Social inequities and regional inequities (huge
  poverty in western regions)

33
Park Chung Hee

• Bad situation of workers (low wages no real
  unions)
• Aggressive oppression of the opposition and
  critics (article 9-criticism of Park became
  illegal)
• Lawless arrests torture imprisonment
  executions and manipulated trials

34
Park Chung Hee

• even former Park supporters left Park. Park
  became more and more isolated.
• Also foreign relations deteriorated. Park
  remained an ally of USA but the relations
  worsened considerably after the Korea Gate
• The second oil shock also lead to further anti
  Park movements.
• Park demanded hard action against protesters
  the head of KCIA was strongly against. The
  dispute resulted in assassinating Park in 1980

35
Chun Doo Hwan

• Immediately a huge demostration in Seoul
  appeared (80 000 students). The president
  imposed a strict martial law closed
  universities strikes were banned and all major
  politicians were arrested.
• The opposition moved out of the strictly
  controlled Seoul moved to to smaller cities. The
  town of Kwangju became the center of resistance
  where the next big student demonstration appeared

36
Chun Doo Hwan

• units of paratroopers were used
• the city was surrounded by military forces and
  truce talks begun
• The result was the death of round 2000 people
  mostly students.
• Chun planned to bring more freedom to prevent any
  bigger unrest. He allowed the opposition to gain
  more power. Social reforms occurred to loose the
  tensions in the society. Since 1983 further
  detente appeared student activities were
  legalized all opposition leaders and university
  professors were released from prison.

37
Chun Doo Hwan

• Chun announced free election in 1988
  surprisingly this really happened. The problem
  was that Chons favorite and close friend Roh Tae
  Woo won this election
• demonstrations followed. Police used tear gas
  the demostrants answered with stones Molotov
  cocktails and home made bombs. The violence
  lasted for weeks.

38
Roh Tae Woo

• He announced a return of democracy direct vote
  of president and further moves toward full
  political and public freedom. A relaxation
  followed.
• positive changes
• the army was isolated from politics
• the competences of president were significantly
  reduced
• Despite this positive steps the bureaucracy
  remained suspiciously unchanged.

39
Roh Tae Woo

• Roh brought also an change in the foreign policy
  especially towards North Korea. After decades of
  strict isolation and hostility with North a new
  era of dialogs begun.
• More important was the establishment of
  diplomatic relations with China and Russia in
  1990-91.
• In 1991 Korea became a member of OSN.

40
Roh Tae Woo

• The main problems of Rohs administration
• no progress in fighting corruption
• strong connwctions between politics bureaucracy
  and bussiness
• no progress in investigation of the crimes
  committed by Chun.

41
Kim Yong Sam 1992

• His main goal was to fight corruption and to
  remove the residues of the dictatorship. Hundreds
  of civil servants politicians and also military
  officer were investigated and punished
• the corruption remained and the president was
  forced to soften his efforts (after an
  intervention of Chun and Roh).

42

• The president also planned to investigate and
  punish the crimes of Chun and Roh
• Only the military coup and corruption were
  investigated. Roh admitted hiding 630 mil. USD
  (he kept 222 mil USD when he left the office)
  but also mentioned that Kim Young Sam also got a
  portion from this money. Kim immediately
  announced a need to investigate the Kwangju
  event
• all responsible persons were protected from
  persecution except of Chun and Roh. In 1996 both
  were punished. Initially Chun was sentenced to
  death and Roh to 22 years in prison. Later this
  was changed to life sentence and 17 years.
• there was an expected happy end for both of them
  as Jong decided to impose amnesty on both of
  them.

43
Kim Yong Sam

• Main problems
• A number of scandals of Young
• Disagreement with his attitude towards North
  Korea
• Unrest among workers
• Some dictator like actions (hard crack down on
  students strengthening of KCIA)
• Slow growth
• Corruption

44
Kim Dae Jung

• Korea sunshine policy aiming to overcome the
  pressures in their relationships he got a Nobel
  price for this.
• Political instability. Strong regionalism and
  preference of the Chola province
• Problems in economy- Asian crisis corruption
  big power of Chaebols

45
Roh Mu Hyon

• Again huge corruption scandals appear and
  scandals about Chaebols financing politicians
• opposition and coalition parties were bribed by
  the same companies assuring good relations and
  advantages regardless election results

46
Economy

• 50s
• lack of consumer gods leading to massive imports
• import substitution policy -enormous growth of
  the spinning industry (important was the base of
  this industry built by the Japanese)
• poor government
• Several big Korean businesses were established
  (only those in favor of Syngman)

47
60s

• important reforms allowing fast development were
  made
• risk for businesses was reduced through
  government guarantees
• policy of greater independence from USA (in
  economy means)
• new export promoting policy (important
  partnership between government and Chaebol)
• unions were dissolved or crippled
• manipulation of Won value in order to promote
  exports
• banks were ordered to provide credits or
  guarantees on foreign loans

48
60s

• government gained capital from abroad and
  distributed it among main exporters
• establishment of KOTRA to improver foreign
  marketing for import of new technologies and
  providing many other useful services for the
  export industries
• the government succeeded in transforming their
  industry into labor intens industries
• huge improvement in education led to availability
  of highly educated and cheap labor force
• normalizing relations with Japan and cashing the
  war compensations (800 mil USD in different forms

49
70s

• deepening relations between Chaebols and
  government
• heavy and chemical industry drive
• stress on technology imports
• in the period from of 1970 till 1977 export grew
  by 45 annually
• enormous investment and growing debt of Korean
  companies this increased the vulnerability of
  Korean companies to external shocks
• 1972- slow down of Korean economy occurred
  causing problems for companes- Park ordered a
  decrease of interest rates and delayed the
  reapaiment of the debts
• from 40 to 16

50
70s

• by this inefficiency was rewarded and the
  managers were not punished for mismanagement
• At the end of the 70s the investment in heavy
  and chemical industry made 80 of all investment
• a negative real interest rate
• huge government assistance to several Big
  corporations these became even bigger and very
  difficult to control

51
70s

• in some cases companies were forced to invest
  even if the managers refused to
• the responsibility and financial burden of
  failure was taken over by government and paid by
  tax payers
• companies became too big to fail
• poor conditions for employees low wages no
  health and safety standards no independent
  unions
• conflict in Vietnam (1965-73)

52
80s

• stress was on stabilization and liberalization
• redirecting capital from developed industries to
  underdeveloped industries
• the need for Chaebol dissolution
• the lack of own research and development was
  identified
• decrease of duties
• development of semiconductor industry
• independent financial sector was needed

53
90s and the Asian crisis

• the Chaebols were still too powerful starting to
  control even the financial system
• state was getting less and less involved but
  still much more than needed
• too slow reforms
• low competitiveness on international markets
  inflexible labor market

54
90s and the Asian crisis

• lack of foreign direct investment
• huge debt to assets ratio of Chaebols (2000 )
• the fall of semiconductor prices and overall
  terms of trade of Korea
• first bankruptcies of financial companies
  (leading to better management of the survivors)
• mass lay offs workers started to improve their
  skills and market price

55
90s and the Asian crisis

• managers started to realise their responsibily
  for the company
• the debt to assets ratio improved to 369 in 1997
  and further to 210 in 2000
• affectivity of investment has significantly
  increased
• after the first important changes further reforms
  were terminated government provided financial
  injections for several banks and companies
• a growth of 10 in GDP in 1999

56
(No Transcript)
57
(No Transcript)
58
(No Transcript)
59
(No Transcript)
60
(No Transcript)
61
(No Transcript)
62
(No Transcript)
63
(No Transcript)
64
(No Transcript)
65
(No Transcript)
66
(No Transcript)
67
(No Transcript)
68
(No Transcript)