Economic Growth of South Korea

This review essay summarizes and evaluates the above entitled book in which Korean author Kim discusses the factors which explain the remarkable economic growth of South Korea during the period 1960-1990. His central theses are that: (i) rapid economic development was successfully launched in the 60s by the authoritarian government of former General Park Chung Hee (Park) which through its centralized planning and controls over capital, credit and labor guided large industrial firms or chaebols into export-oriented industries in favorable international markets; (ii) in the 70s the South Korean economy made a successful transition from light manufacturing to heavy industry and continued to grow rapidly. The relationship between the Park regime and the chaebols became more symbiotic and coequal, the regime itself gradually losing legitimacy until finally Park was assassinated in 1979; and (iii) the developmental nature of the South Korean state itself changed under its new military leader Chun Doo Hwan (Chun) (1980-1988), as pressures on the state from the chaebols for less state control over the economy and from labor and others for more democracy and welfare spending grew. Nevertheless, the principal political and economic institutions of South Korea adapted sufficiently well to such changing conditions to permit a high rate of economic growth to continue well into the 90s. The South Korean experience is very similar but not identical to

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es of scale achieved by utilizing large business groups enabled South Korea to jump-start its economy" (92); (2) "the state kept wages low to keep South Korean products competitive in the world market" (204). Wage levels in South Korea did not approach those in other newly industrializing countries in East Asia (NICs) until the mid-80s. The organization of labor unions was discouraged and severely repressed, especially under the repressive Yushin system introduced by Park in 1972 (204). Industrialization in heavy industry and chemicals in the 70s. In the 70s the Park regime pressed the chaebols to invest in heavy industry, such as autos, and shipbuilding, and chemicals. Even though the decade as a whole generated high growth rates, social unrest rose toward its end resulting finally in Park's death at the hands of the Korean CIA. Chun succeeded in restoring order, but he was forced to move in the direction of greater economic and in the late 80s political liberalization. The relationship between the government and the chaebols, the five largest of which by 1987 accounted for over 75 percent of manufacturing GDP, became more symbiotic, with the government becoming more dependent on big business for political support. This leads Ki
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Some common words found in the essay are:
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Approximate Word count = 1705
Approximate Pages = 7 (250 words per page)

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