- The Republic of Korea (South Korea) today is a prosperous nation
with a per capita annual income of around $US 10,000, putting it
in the middle ranks of developed nations–less affluent than
the United States, Japan, or Germany, but on par with Portugal, Spain,
and Greece. It is also a developing democracy, having thrown off
military rule in the early 1990s and maintaining a representative
civilian democratic government.
- The Democratic People’s Republic of Korea (North Korea), although
ahead of the South economically until the 1960s or even the early
1970s, has suffered great economic hardship in recent years, and
went through a period of severe famine in the mid-1990s. North Korea’s
government is a single-party state established along Leninist principles
borrowed from the Soviet Union, and was under the leadership of Kim
Il Sung from its founding in 1945 until Kim’s death in 1994.
After Kim IL Sung’s death, leadership passed to his son Kim
- At the end of the Korean War in 1953, both Koreas lay utterly devastated.
In addition to the loss of millions of lives, the two Koreas were
beset with a ruined economic infrastructure, millions of displaced
persons, and hundreds of thousands of war orphans. South Korea in
1953 was one of the poorest countries in the world. Despite a huge
amount of economic assistance from the United States, the United
Nations, and other Western countries for post-war reconstruction,
the South Korean economy did not really begin to pick up again until
the early 1960s. In 1961 the civilian government was removed in a
coup led by Major General Park Chung Hee, who ruled South Korea until
his assassination in 1979.
Economic and Political Development in the Two Koreas Today
- The Park Chung Hee era saw both extraordinary economic growth and
deepening political dictatorship. In the 1970s and 1980s Korea was
known as one of the four "Little Dragons" of newly industrialized
East Asian countries, which also included Taiwan, Hong Kong, and
- After Park’s death and a brief period of civilian rule, South
Korea was again brought under the control of the military, this time
under General Chun Doo Hwan.
- Despite the continued economic growth and rising international stature
of South Korea, culminating in the 1988 Seoul Olympics, protests
against Chun’s dictatorship grew throughout the 1980s. Chun
stepped down in 1987 and was replaced by his close comrade-in-arms,
Roh Tae Woo, who was elected president in a closely fought race against
two longtime political dissidents, Kim Young Sam and Kim Dae Jung.
- In 1992, Kim Young Sam, who had by then joined Roh Tae Woo’s
ruling coalition, was elected South Korea’s first civilian
president since the 1961 military coup.
- Another presidential election was held in December 1997, amidst a
devastating financial crisis that deeply shook the economies of South
Korea and several other Asian countries. This time Kim Dae Jung was
elected president, his fourth attempt at the presidency since 1971,
when he was defeated by Park Chung Hee.
- Under Kim Dae Jung’s presidency the South Korean economy made
a substantial recovery from the 1997-98 financial crisis, democratic
institutions were further developed, and South Korea pursued a policy
of engagement and dialogue with the North.
- North Korea also recovered from the destruction of war with a great
deal of outside assistance, in the North’s case from the Soviet
Union, China, and several Eastern European states. The North’s
economy recovered more quickly than the South’s, and in the
late 1950s North Korea may have had the fastest economic growth rate
in the world.
- In the l960s North Korean leader Kim Il Sung began advocating a policy
of juche, or "self-reliance," partly to avoid becoming
entangled in the growing conflict between China and the USSR. Although
North Korea was not completely isolated and continued to receive
some outside aid, it generally pursued a policy of economic self-sufficiency.
- Much like traditional Korea, North Korea tightly restricted travel
in and out of Korea and North Koreans’ contacts with foreigners.
Also like traditional Korea, North Korea’s closest ally has
been, and remains, China.
- After the East European communist states collapsed and the Soviet
Union disintegrated in 1989-90, many observers predicted that North
Korea would follow suit. The absorption of East Germany into the
German Federal Republic (West Germany) suggested that a similar kind
of unification could occur in Korea, with the collapse of North Korea
and it absorption into the far more affluent South.
- But such a scenario did not occur, and despite grave economic hardship
and the death of North Korea’s leader Kim IL Sung, the North
Korea regime remained in place into the twenty-first century. Kim
IL Sung was replaced as leader by his eldest son Kim Jong IL, a succession
that North Korea had been planning for decades.
- How long such an impoverished and isolated regime can last, seemingly
so out of touch with the rest of the world, is impossible to predict.
But by the turn of the century North Korea showed no noticeable sign
of political collapse or even significant change, despite years of
profound economic hardship.
- Korea’s division was a product of the cold war, but continued
long after the global cold war between the United States and the
Soviet Union ended in 1991. In some ways, North-South Korean division
has been more complete and hostile than the divisions between East
and West Germany, North and South Vietnam, or China and Taiwan. Direct
communication, including the exchange of letters and phone calls
between ordinary citizens on non-official business, much less travel
back and forth, is almost nonexistent. The one exception, introduced
in the late 1990s, was the luxury cruise ship line to the Kum Kang
Mountains in North Korea, sponsored by the South Korean corporate
giant Hyundai, which brought many South Korean tourists for brief
visits to the North.
- As of 2000, communication and travel between the two Koreas had not
reached nearly the level of the two Germanies in the 1970s or contemporary
Taiwan and mainland China. Nevertheless, there have been several
periods of official inter-Korean contact and attempts at reconciliation
between the two Koreas.
- In 1972, the two regimes signed a joint declaration on peace and
reconciliation for the first time. Nearly twenty years later, after
a series of high-level visits between the two governments, a more
extensive agreement on reconciliation, nonaggression, exchange and
cooperation was signed in late 1991.
- In June 2000, the leaders of the two Koreas, Kim Dae Jung and Kim
Jong IL, met in Pyongyang for the first-ever North-South summit meeting
since the two states were created in 1948. While the summit meeting
raised high hopes for unification between the two Koreas, the summit
meeting appeared to be only the first step in a long process of mutual
recognition and coexistence.
- Divided Korea is an anomaly in today’s post-cold war world.
More than 50 years after the country was occupied by the allied powers,
the two Korean states remain bitter rivals and are officially still
at war with each other.
- What began as a temporary expediency to effect the surrender of Japan
in Korea at the end of World War II has become an enduring national
division. The two Koreas have developed drastically different economic
and political systems.
- Yet both sides insist that their ultimate goal is a unified Korea.
The long history of political, cultural, and linguistic unity on
the Korean peninsula up to the twentieth century suggests that, at
some point in the future, unification is probably inevitable. But
as long as both regimes remain in place, the two Koreas will most
likely continue to work at a gradual reconciliation, leading toward
some form of unification that cannot be foreseen at present.
Korea and the World Today
- Korea, long an important source of cultural and religious creativity
and commercial trade in East Asia, has become an important player
on the world stage today, especially in the economic realm. With
neither the economic stature of Japan nor the military might and
population of China, Korea (at least South Korea) is nevertheless
a major trading nation and participant in global affairs.
- Nor is Korea a "small country": with 46 million people,
South Korea alone is larger than an average European nation. In land
area Korea is about the size of Britain.
- The combined population of North and South Korea is nearly 70 million,
larger than Britain or France.
- Furthermore, more than five million people of Korean descent live
in other countries. The largest overseas Korean communities are in
China (two million), the United States (over one million), Japan
(700,000) and the states of the former Soviet Union (500,000).
- In modern times Korea has been at the center of rivalry between regional
great powers and between the two superpowers, the United States and
the Soviet Union. Korea’s current division is a result of that
rivalry, but has outlasted the cold war as a problem unique to Korea.
- The hostility and potential for military conflict between the two
heavily armed Korean states is a cause of great concern for the rest
of East Asia, as well as for the United States and other countries
in the world.
- Despite their many differences, the two Koreas have both built modern
industrial societies on the basis of a common history and cultural
- The high value placed on family, social propriety, and education
are part of that heritage, closely associated with Korea’s
- Whether and in what form the two Koreas may one day be unified remains
to be seen, but however the current division is resolved, Korea has
long been an important and integral part of East Asian affairs, and
is becoming increasingly visible in world affairs as well.
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