As we all know, South Korea is today a developed country on a peninsula, and its economic development far exceeds that of its neighbor North Korea, which is of the same language. Counterintuitively, in the sixties of the last century, this balance of national power was reversed, when North Korea's economic development far exceeded that of South Korea. So what made South Korea a developed country in decades, and what is the "Han River miracle"?
North-South gap
In 1961, when there was a military coup in South Korea, Park Chung-hee, who had enlisted in the Japanese Army, stood at the highest point of power in South Korea, and his first international vision was how to make South Korea surpass North Korea. Because Korea was so poor at that time. South Korea itself, located in the south of the Korean Peninsula, is more scarce than the north in terms of resources, such as coal, iron, and oil. Despite substantial U.S. aid, the first president, Syngman Rhee, was a traitor. From 1953 to 1960, South Korea's economic growth rate was basically zero. When natural disasters occur, such as the typhoon in 1958, countless peasants across the country died of hunger and countless displaced people spread throughout the South Korean Peninsula.
Park Chung-hee
In the past, North Korea's economy grew rapidly compared to South Korea. Between 1954 and 1960, North Korea's economic growth rate remained at around 20 percent. The country's production in steel, timber, electricity, etc. is several times or even dozens of times that of South Korea. In addition, North Korea can produce more than 3,000 tractors a year, while South Korea does not have one, and the gap between the two sides is huge.
How to go about reform?
At first, Park Chung-hee wanted to stimulate economic domestic demand through currency reform, as long as the people have money in their hands and can consume, there is no doubt that they can drive the second of the troika of economic development, but unexpectedly, the reform did not achieve good results, but led to inflation, the people's hands, originally a hundred yuan, in a few months, can only buy the previous twenty or thirty yuan to buy things, purchasing power declined, but caused social unrest. So he made up his mind and made up his mind to find a true path to prosperity.
The Soviet model is engaged!
At that time, there was no doubt that the main representative of the rapid industrialization of the country was the Soviet Union, and in traditional agricultural countries, the industrial base was weak, and it was impossible to develop industry by private capital, so it was necessary to rely on the state and the government.
Under the reference of the Soviet model Zhuyu, South Korea first began to learn to engage in the five-year plan from 1962, the first five-year plan was from 1962 to 1966, mainly vigorously developing infrastructure, building roads and railways, developing shipping, in these five years, South Korea cultivated a group of basic talents familiar with industrialization, textile, sugar, cement, glass and other light industries also developed.
The second five-year plan ran from 1967 to 1971. Since the Second Five-Year Plan, South Korea has embarked on an export-oriented industrial development strategy, which is to sell things to the country. In these two five-year plans, South Korea focused on strengthening the industrial development that already had a foundation, and exported a large number of products in exchange for foreign exchange, and achieved certain results.
Blood and tears of workers and women
At that time, South Korea's weak industry could not actually obtain the foreign exchange needed for its own development, so the South Korean government, especially Park Chung-hee, led some less glamorous construction.
For example, the state-run "comfort center" opened next to the US military base, which is actually a national brothel, training women to engage in the sex industry, using their bodies to earn foreign exchange, these women, at the peak of the period, reached a terrifying number of more than 1 million per year, known as "foreign princesses", while South Korea's economic development, their spirit and body were destroyed, and it was difficult to return to their original normal life.
In addition to "foreign princesses", there are also "foreign workers", in order to create foreign exchange, the South Korean government also sent a large number of workers and nurses to West Germany, engaged in mining and nursing industry, South Korean miners at that time, the mortality rate was very high, many people went again and again difficult to return to their hometown, many people, often deceived by the government's false propaganda of the good life scene, deceived to West Germany only to find that the working environment was bad, including many high school graduates, and later South Korea has a movie "International Market" is to show the life of these people.
International market stills
The blood and tears of countless people have supported the foundation of South Korea's economy, but the blood and tears of workers and women should not be forgotten, and sacrifices should not be just sacrifices.
The economy takes off
After learning the Soviet model and engaging in export-oriented industries, South Korea's economy grew rapidly under multiple blessings, and export trade developed rapidly. Foreign exchange reserves grew from $120 million in 1964 to $584 million in 1970.
In addition, Park Chung-hee also vigorously introduced foreign investment, and government departments concentrated on supporting the development of shipbuilding, non-ferrous metals, petroleum, chemical and electronics industries. Large enterprises such as LG Group, Samsung Group, and Daewoo Group, a large capital consortium supported by the government, have developed rapidly under the premise of implementing monopoly by default. This has enabled South Korea to achieve independent industrial progress in the turbulent world capitalist economy, and it is also the key to South Korea's subsequent sustained economic growth.
Table of South Korea's GDP per capita
By the end of the 70s, South Korea's economy had taken off, with per capita GDP growing from $82 in 1962 to $1,640 in 1979, far more than North Korea. On both sides of the Han River, ten years ago the land and fields were lined with high-rise buildings, and American journalists shouted, "South Korea transformed from a backward agricultural country into a modern country almost overnight!"
Retribution is not pleasant
Park Chung-hee's economic development at all costs was not without cost, using the military to suppress opposition, forcibly defending his dictatorship and paving the way for his policy continuity. During his tenure, South Korea's workers were treated more than ever, with hundreds of thousands of people moving to the city to work in chaotic shantytowns, living in worse conditions than pigs and dogs, extremely poorly paid but extremely employed, working 11-12 hours a day, sometimes up to 18 hours a day, with no days off. In this context, the people's anger gradually pointed at Park Chung-hee, and also laid the groundwork for his subsequent shooting in a coup d'état.