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North Korea and South Korea: Different Perspectives

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Title: North Korea and South Korea: Different Perspectives


1
North Korea and South Korea Different
Perspectives
  • One peninsula with one nationality who share a
    common history and culture.
  • Two countries with different governments and
    economic systems.

2
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5
Warm Up - Korea
  • What nations have influenced the culture and
    history of Korea?
  • Why are U.S. soldiers in Korea?
  • Why does North Korea have a lower standard of
    living than the south?
  • What divides Korea?
  • What organizations dominate the South Korean
    economy?

6
Geography of Korea
  • Mountainous
  • Peninsula
  • Strong neighbors
  • China
  • Japan
  • Russia
  • Divided by DMZ

7
Korean People
  • Buddhist
  • Hard working
  • In addition to the 46 million people in South
    Korea and 23 million in the North, some 6 to 7
    million people of Korean descent, or
    approximately 10 percent of the population of the
    two Koreas combined, live outside the Korean
    peninsula. In proportion to the population of the
    home country, the Korean diaspora comprises one
    of the largest groups of emigrants from anywhere
    in Asia.

8
North and South Korea
  • How are North Korea and South Korea similar?
  • How are North Korea and South Korea different?
  • Is the south a true democracy?

9
20th Century in Korea
  • Controlled by Japan until 1945
  • Divided by superpowers during Cold War
  • North invades south in 1950
  • Cease fire results in divided country

28,500 military personnel from U.S. stationed in
South Korea.
10
History Korean War
  • Soviets and Americans decide to divide Korea into
    their own sphere of influence
  • North and South (1948)
  • Secretary of State Dean Acheson neglected to
    include Korea in the US sphere of influence in
    Asia.
  • Kim Il Sung took initiative to invade the South
    (1950)
  • not Stalin but Stalinist
  • War ends ends in stalemate, 38th parallel, DMZ
  • Both countries are ruined in the similar manner
  • Ideal comparison
  • Each embraces different ideology totalitarian
    vs. authoritarian

11
China and United States
  • North Korea is an ally of China and Russia
  • South Korea still has U.S. troops
  • Two million soldiers on peninsula!

12
Path to Globalization
  • Following the Korean War, a decade of political
    turmoil begins
  • First President Syngman Rhee ousted from office
    (1960)
  • rigged elections for vice president cause student
    riots
  • Democracy not initiated
  • military coup detat, Park Chunghee takes over
  • Government in south not democratic
  • Park Chunghee begins to build South Korea into
    economic power
  • stablity but still not democratic
  • tool chaebol multinational corporation

13
Chaebol System
  • Conglomerate
  • large corporation with many unrelated
    subsidiaries
  • centrally planned though private
  • lack of input from minor shareholders
  • financial security for all companies involved

14
Parks Economic Plans for Chaebols
  • creation of export-oriented industries
  • creation and fostering of heavy industry
  • maintenance of anti-union behavior
  • protection of domestic market
  • pegging won to dollar
  • chaebols are major force in the South Korean
    economy
  • 1960s to 1990s
  • big enough to utilize limited resources
    effectively
  • government contracts and subsidies

15
Top Chaebols in South Korea
  • Hyundai
  • Automobiles
  • Engineering, construction, shipbuilding and
    industrial activity
  • Finances
  • Samsung
  • Electronics
  • Petrochemicals
  • Construction (Petronas Towers in Malaysia)
  • LG
  • Home appliances and electronics
  • Petrochemicals and chemicals

16
Emerging Globalization (Advantages)
  • Through the chaebols, South Korea emerged as an
    export leader of the world
  • Import raw materials to manufacture exports
  • Industrialization and Service Economy
  • Higher standard of living
  • better education
  • more material possessions
  • increased leisure time
  • GDP skyrockets from third world equivalent to
    Western European standards

17
Emerging Globalization (Disadvantages)
  • Profits appease populace as long as they are
    positive
  • economic downturn leads to civil disobedience and
    revolution
  • no democratic process or structure to deal with
    problems
  • political stability dependent on economic
    situation
  • authoritarian until 1987, numerous revolutions,
    undemocratic
  • chaebols are undemocratic by nature

18
Decline of Chaebols
  • Ultimate decline of chaebols
  • Too big to manage effectively
  • Core competency (unrelated industries)
  • Decline
  • rise in labor cost
  • standard of living
  • competition from other Asian countries (China)
  • cheaper workforce
  • Effect
  • lower of standard of living to match
    competitiveness
  • contributed to South Koreas economic crisis
    (1997)

19
Globalization (Financial Crisis)
  • Convergence of misfortunate economic events
  • banking sector was burdened with non-performing
    loans
  • excess debt
  • lower credit rating
  • chaebol oversight and accountability low
  • Democracy swiftly corrected recession
  • 1998 GDP -6.6
  • 1999 GDP 10.8
  • 2000 GDP 9.2
  • allowed for greater input of populace

20
South Korea Conclusion
  • Globalization
  • started to higher wages
  • demands for social reforms
  • South Korea became less competitive
  • Ironically, the good of globalization caused the
    bad

21
One people, two countries
  • North Korea
  • South Korea
  • 23,000,000 people
  • Pyongyang
  • Mountainous, cold
  • Natural resources
  • Cold
  • Authoritarian
  • Command
  • 47,000,000 people
  • Seoul
  • Densely populated
  • Import resources
  • Warmer
  • More democratic
  • Capitalist

22
KoreaNorth or South?
  • North Korea
  • South Korea
  • Open society
  • Labor unions
  • Large corporations
  • Higher standard of living
  • Export products
  • Few civil rights
  • Government controls economy
  • Shortages
  • Nuclear weapons
  • Mr. Kim

23
History North Korea
  • After Korean War, Kim Il Sung takes over
  • Nationalization versus Chaebol
  • peoples property versus the highly private
    chaebol
  • while abuses in both, higher standard of living
    obvious only in one
  • Juche (self-reliance)
  • closed all capital flow
  • "the hermit kingdom
  • Militarization versus Chaebol
  • to secure power Kim Il Sung diverted a third
    economy for military instead of economic reform
    (South Korea, 3)
  • 22 million population, 1.2 million military
  • wastes the most able-bodied men of society with
    unproductive job
  • famines every year, starving people

24
North Korea Economics
  • Refusal to join global markets through Juche
    state mandated belief system
  • lower standard of living
  • Police state complete lack of democratic
    institutions
  • Army needed for governments lacking legitimacy
    massive famines
  • Significant portion of GDP used for making the
    military bigger, not consumer goods

25
Conclusion
  • North Korea is the best example of complete
    nonacceptance of globalization and capitalism.
  • While South Korea experienced problems, it is now
    on a democratic path with an economy that is
    substantially better in every aspect

26
Phillippines
27
Taiwan
28
Hong Kong
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