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The Causes And Consequences Of The Rapid Industrialisation Of South Korea

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The Causes And Consequences Of The Rapid Industrialisation Of South Korea South Korea is located between China and Japan the north and south of Korea had been in a war for three years (from 1950). The population of the Republic of Korea was approximately 5.9 million in 1997, and the capital city, which is Seoul has more than 11 million inhabitants. Since 1950 it has developed rapidly (and is known as a tiger ecomony) and as a result there has been a lot of migration from the rural to the urbanised parts of the country. There has also been a great shift in industry, presently there are many more people in the country working in the secondary sector that before whereas prior to the 1950s the majority of people were employed in the primary sector or subsistence farming (for themselves). This influx of people moving into the urbanised areas is due to higher wages being paid by TNCs and also by the higher standard of living and quality of life. The TNCs were interested in locating in Korea for a number of reasons, Firstly there was a large pool of cheap (for them) ...read more.


The reason for such movement has already been described above (they are same as the incentives). There has been an evident multiplier effect in South Korea. The higher wages of the workers encourages more people to set up shops as they know more people are likely to buy them. These people then pay taxes and then the development of infrastructure, such as transport ect. builds up a higher need for work and so more people migrate from the rural areas to the urban areas to take up these jobs. This then causes entrepreneurs to set up their own businesses and through this they employ more people, and the process repeats itself. There are three major industries in South Korea; they are steelworks, shipbuilding and car manufacture. The steel production plants run by the government (POSCO) have increased their production from one to thirty million tonnes. The government is keen to protect this industry as it is a major overseas currency earner for Korea. Another major industry is shipbuilding. At the moment South Korea is the leading producer of bulk carriers and controls a third of the world shipbuilding trade. The reason for its proficiency is the cheap, pool or work and the modern shipyards which aid manufacture. ...read more.


Also because a lot of jobs are dangerous due to their being no restrictions and no unions to fight the cause injuries and even deaths are common. The Korean way of life is being lost through theses changes to the society. Environmental problems include the fact land has been cleared to make way for new businesses and industries. Also the factories produce harmful emissions that affect the local areas. An increase in the population in the urban areas has resulted in an increase in the number of cars on the roads which also pollute the air and also makes it unsafe. Often the industrial waste is discharged into the rivers, usually without being treated first. This results in serious health issues and also kills wild life and causes pollution. The economic growth has risen from $100 in 1963 to over $10,000 in 1997. The growth rate of GDP is also 9% with GDP per capita at $16,100 and the industrial production growth rate is 17%. The rapid industrialisation has led to South Korea having the 12 largest economies in the world. From this we can conclude that for Korea has industrialised but with the sacrifice of it's environment, and its traditional way of life. As well as this there will be long term problems with the intervention of unions. ...read more.

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