The Theories of Economical Development that were Argued and Debated during the Modern and Contemporary Periods of Korea
Korea's transformation into a modernized society was accompanied by the forced opening of the country to the world by Japan, and K...
The Theories of Economical Development that were Argued and Debated during the Modern and Contemporary Periods of Korea
Korea's transformation into a modernized society was accompanied by the forced opening of the country to the world by Japan, and Korea's subsequent absorbtion into the global network of Capitalistic economy. Such abrupt absorbtion proved to be both favorable and unfavorable to Korea at the same time. It opened the possibility of Korea's exporting commercial goods to outer worlds, and it also made certain attempts possible to develop a modernized basis for Korean domestic industries.
After the Liberation in 1945, the previous economy system that had been based upon colonial capitalism regulated by the Japanese, was replaced by two distinctively different economical systems. There was basically a competition going on between the two political factions(Left and Right) in Korea, over a strategic decision of which course of economical development should be taken for the Korean people. Such competition started in 1948, when the peninsula witnessed the establishment of two independent governments both in the North and South.
The first thing to be examined in this study were the relationship between the government and merchants, and also certain discussions that were going at the time regarding the issue of opening a National Bank during the initial stage of accumulating necessary capital in the ending days of the Daehan Empire and the early days of Japan's colonial control of the peninsula. Through such examination, the nature of the so-called 'Government-controlled' Finance, which has been one of the most distinct characteristic of the Korean economy for a long time, was fully examined.
During the ending days of the Daehan empire, an attempt to achieve an independent Modernization in financial terms were launched based upon the traditional bond between the government and the civilian merchants, but the attempts ultimately failed and the country fell into a colonized state. The Korean tradition of being firmly centric-based in political terms was also mirrored in the relationship between the government and the merchants, and practically such relationship was led by King Gojong himself.
During the Occupation period, the Encouragement Movement of Consuming Korean products led by the members of the National Movement front thrived for a moment, but this only meant that the recommended and endorsed main figure by the public to oversee the economical development was changed from the Official government to an 'Image' of a conglomerated group of Korean people themselves. During the 1930s, the Japanese colonial authorities issued a new policy of economic control.
After the Liberation the Communists, backed by public demand and support, tried to achieve fast economical development, and demonstrated active efforts to found a new country for the Korean people. And to them, the most effective way to do just that was undoubtedly granting the government full control of the process. But such goal required the general public to be harshly mobilized and to be succumbed to a rather totalitarian goal, while the democratic principles that should have been adhered to in any cases were being compromised and also sacrificed.
In the meantime, after the South and North both witnessed the establishment of each of their own governments, the Lee Seung Man administration of South Korea remained under heavy influences from the U.S., in political, economical and also military terms. The U.S. utilized their relief programs for Korea as an opportunity to ensure their interests regarding Korean resources. U.S. wanted to use Korea as a frontline facility in their Anti-Communism efforts, so there had to be reforms made to the existing format of Korean economy and the military defenses.