Government Intervention
Why was South Korea in an economic crisis?
Korea’s economy was very bad due to it being a Japanese colony from 1910 to 1945 and became even worse after the Korean war (1950-1953)
To ensure economic growth, build infrastructure and transform South Korea from an agrarian economy to an industrial economy.
In what sectors was the most progress achieved during the five year plans?
The manufacturing and export sectors
Why did South Korea need an industrial revolution?
Because 40% of the country's economy was based on agriculture and there was a big need for factories
Who was the creator of the first economic plan?
President Park Chung Hee and his administration.
Why did exports account for 31% of South Korea's GNI in 1979?
Because South Korea started producing a lot of domestic goods such as cars, ships and electronics.
Why was Korea a third world country?
In 1961, Korea’s economy was worse than Thailand’ and India’s, Korea’s GDP per capita in 1961 was 94$ while that of Thailand in 1961 was 111$
Why was Korea so behind economically?
Because she was a colony of Japan from 1910-1945 during which not a significant amount of economic progress was achieved and the Korean war from 1950 until 1953 furthermore deteriorated South Korea's economic state.
How many percent of South Korea's GNI did agriculture make up in 1982?
13.5%
What was the goal of all five year economic plans?
The goal of all economic plans was to stimulate economic growth, turn South Korea from an agrarian economy to an industrial economy, and build many more factories and industries
Why did people from rural areas in the 1970's during South Korea's economic boom start to migrate rapidly to bigger cities?
Because South Korea was becoming less and less reliant on agriculture and greatly expanded the industrial sector within a very short amount of time. As a result, people from villages who worked very hard jobs and were paid very low salaries were very intrigued by the idea of living in a big city and working in a factory where they will recieve a 3-4 times larger salary.
What was the 3rd economic plan (1972-1976) focused on?
It was focused on developing South Korea's heavy industry and establishing many factories for things such as steel, petrochemicals, automobiles, machine building, shipbuilding and electronics