The legacy of the Korean War has remained in a variety of forms in the South and North Korean economies, though four decades have passed since the War. The most immediate and direct effect of the War on both economies might be summarized as follows. F...
The legacy of the Korean War has remained in a variety of forms in the South and North Korean economies, though four decades have passed since the War. The most immediate and direct effect of the War on both economies might be summarized as follows. Firstly, the War had destructed most of the pooriy remained industrial facilities inherited from the Japanese colonial rule and therefore, both economies could not help depending on foreign aid for reconstruction. Secondly, the War had completely fixed the fact of split between the South and the North to establish different economic systems, a market-oriented one in the South and a socialist centrally planned one in the North. Reconstruction after the War was rapid and essentially complete by the late 1950s. However, at the beginning of the 1960s both South and North Korea were still typically underdeveloped countries and to make matters worse, foreign aids in both countries were sharply decreased. So, the two countries had to devise their own economic policy to pursue economic growth. Even in the process of economic growth, the War has been exerting a prolonged effect via its impact on the factors of economic growth such as the change of social structure, political competition and militaty confrontation, and adoption of different strategy, In this regard, the aim of this paper is to analyze and compare the effect of the Korean War on the economic development of South and North Korea.