The main purpose of this paper is to inform the historical economic changes and the current macro economic system of Korea related to the political and economical events.

First of all, to understand Korean economic, we need to acquire some historical information about what Korea has undergone and overcome.

During World War II, Japan ruled Korea for 48 years, and when Japanese colonial rule ended in 1945, which implied separation from imperial system of division of labor, Japanese entrepreneurs and skilled workers returned to Japan, forcing a number of firms and plants to stop operating. After the independence from Japan, rapid contraction between foreign countries, such as United States and Russia has been concluded confidentially. Korea, eventually, had to be divided by two parts, South and North. North Korea has become to follow socialism affected by

In 1994, the constant and rapid rising of the economy of Korea resulted GDP of 402.4 billion U.S. dollars with the growth rate of 8.3%. The GDP was 489.4 billion and 520 billion in 1995 and 1996 respectively. As a result, in 1996, worldwide public relations reported Korea as the world's eleventh largest economy with an impressive record of macroeconomic performance. Yet, nobody knew the high growth period was coming to an end.

For the past three years, the Korean people committed themselves to tiding over the economic crisis that swept the country in the late 1997. Now, Korea has fully discovered from the financial crisis. In addition, the domestic economy is currently in full swing and the accomplishments of the restructuring are becoming increasingly apparent. However, Korean people should know that it is too early to let their guards down. In order to become a top-tier economy in the 21st century, Korea still has to resolve many problems, such as the unstable financial market. Koreans should implement the second round of restructuring thereby building a strong foundation for a strong market economy.

After the war, Korean (South) per capital GDP grew by 7.3% per each year from 1962 to 1991. This was remarkable growth compared to other countries. In the early 1960s, Korea started out with import substitution industrialization policy (ISI), as many other post- W.W II developing countries did. The ISI policy promoted the growth of three "White Industries", which are sugar, cotton yarn, and wheat flour, at the expense of agriculture and service. Another important consequence of ISI was the growth of rent-seekers trying to perpetuate the ISI regime. Politicians needed money to win votes. Thus an important byproduct of ISI was corruption. Then, they switched its policy to Exports Promotion, which was driven by military coup of 1961 led by Pa

Some topics in this essay:
IMF IMF, Korea Asian, Doo Hwan's, Chung Hee, Chung Hee's, II Japan, Michael Bordo, Seoul Olympics, White Industries, South Korea, park chung, south korea, korean people, led park chung, foreign currency exposure, korea war, led park, military force, chung hee, chun doo hwan's, remarkable growth, park chung hee's, chung hee's, park chung hee, hwan's government,