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Economic growth in South Korea

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Introduction

INTRODUCTION The Republic of Korea, more commonly known as South Korea, was born of the Cold War, which left the Korea peninsula divided into communist North Korea and capitalist South Korea. As one of the Four Tigers of East Asia1, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. About there decades ago, GDP2 per capita was comparable with levels in the poorer countries of Africa and Asia, however today its GDP per capita is 18 times North Korea's and equal to the lesser economies of the European Union. Through times, we could s see the South Korea's economy was growth with a very fast record. As the limit of this Assignment, I do not have an ambition to discuss all the aspects of South Korea economy but just focus on some important issues of this country's economic. The reasons for South Korea's economic growth, contemporary challenges, strategies to promote future economic prosperity, educational policies, global development...would be highly investigated. REASONS FOR ECONOMIC GROWTH Following the history, in 1961 General Park Chung Hee overthrew the popularly elected regime of Prime Minister Chang Myon. A nationalist, Park wanted to transform South Korea from a backward agricultural nation into a modern industrial nation. The Park administration decided that the central government must play the key role in economic development because no other South Korean institution had the capacity or resources to direct such drastic change in a short time. The resulting economic system incorporated elements of both state capitalism and free enterprise. The economy was dominated by a group of chaebo3l, large private conglomerates, and also was supported by a significant number of public corporations in such areas as iron and steel, utilities, communications, fertilizers, chemicals, and other heavy industries. One of the important reasons for South Korea's economic growth in Park regime was the Economic Development Plan in 1962. ...read more.

Middle

Most significantly, the Ministry of Science and Technology (MOST) was established in 1967 as the central government agency for S&T development, the ministry was ordered with arranging national technology policies. The emphasis of S&T policy was placed on strengthening technical and engineering education in the fields of heavy and chemical industries, improving the institutional mechanism for adapting imported technology, and promoting domestic Research and Development (R&D) to meet industrial needs. Through time, some Technology Development Plan was created in order to make another great transition to join to ranks of the advanced economies. A Long-range Science and Technology Plan was published by MOST in 1985, it called for Korea to place among the world's top most technologically advanced countries by 2000. The implementation of the Five-Year Plan for Scientific and Technological Innovation (1997-2002), the implementation of the Highly Advanced National (HAN) Project (1992) and the Creative Research Initiative (1997) were also invented with same goals. In addition, the National Research and Development (R&D) Program was initiated in 1982 to build up domestic R&D capabilities in the areas of core and public welfare technologies with generic characteristics. Since the 1960s, spending in R&D in Korea had increased rapidly; also the Korean government has undertaken a variety of measures, including incentive systems, to promote R&D in the private sector. These enterprises are qualified for a maximum subsidy of 50% of the total R&D expenditures; the government also provides financial support of up to 80% to big firms and up to 90% of the total cost to individuals or small firms to help commercialize new technologies. EDUCATIONAL SYSTEM AND POLICIES Asian countries have long been noted for the importance, which they attach to education. But in South Korea, the competition for a good education has become even more intense in order to demand future opportunities. South Korea has had a long history of providing formal education. But during the Choson Dynasty, the central government established a system of secondary schools in Seoul and the provinces. ...read more.

Conclusion

While economic aid, especially from United States and Japan, has been vital to economic growth of the country, which is the span of a generation grew of the world's poorest nations to an industrial power. In order to keep developing the economy, South Korea's government should: * Keep their contemporary challenges facing the economy developing * Promotes comparative advantage, educational systems, and technology developments * Create a closer relationship with North Korea. In order to do this, they have to do two things: 1. Commit to the principle that engagement should be done on efficient, transparent terms with North Korea 2. While engaging, South Korea should prepare for the possibility of collapse And also in order to prevent another financial crisis like 1997-1998, South Korea needs more than one solution to solve a multidimensional problem. South Korea and other East Asian countries need to manage the international capital flows more closely and in a more integrated fashion. And finally, lack of transparency, greater caution about financial liberalisation and globalization also needs to be addressed. In my opinion, by doing this Assignment, it really helps me to have some ideas not only about the South Korea economy but also international business environment's knowledge REFERENCE From websites and searching articles: * http://www.swlearning.com/economics/econ_news/ups_and_1100.html * www.eiu.com * http://www.sunsonline.org/trade/areas/industry * http://countrystudies.us/south-korea * http://www.odci.gov/cia/publications/factbook/geos/ks.html * http://southkoreanews.net/ * http://www.newsonkorea.com/ * http://times.hankooki.com * http://www.korea.net/learnaboutkorea/koreaandtheworld/future.html * http://www.posco.co.kr/ * http://english.koreaneconomy.go.kr/esubpage.cgi?sec=inv * www.google.com * http://www.unn.ac.uk/central/isd/srchjnl.htm (University of Northumbria- Learning Resources) From text books: Dicken, Peter. - Global shift: Transforming the world economy. - 3rd ed. - London: Paul Chapman, (1998). Griffin, Ricky W.. - International business: A managerial perspective / Ricky W. Griffin / Micha. - Internat.4r.e. - Prentice-Hall, (2004). Hickson, David J., David John, 1931-. - Management worldwide: distinctive styles amid globalization / David J. Hicks. - [2nd Ed]. - London: Penguin, (2002). 1 The four tigers: South Korea, Taiwan, Hong Kong, Singapore 2 Gross Domestic Product 3 Groups of specialized companies with interrelated management. 4 http://countrystudies.us/south-korea 5 According to Ricardo, David. 6 http://www.sunsonline.org/trade/areas/industry 7 Statistics from www.eiu.com 8 According to http://www.swlearning.com/economics/econ_news/ups_and_1100.html South Korea's economic profile 21-05-2004 Le Tuan Nguyen - 1 - ...read more.

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