4 Key Points for Korea’s Economic Development in 1960S and 1970s
South Korea’s rapid economic development in the period of 1961 to 1979.
First of all the implementation of a series of policies that helped exploitation by the government, highlighted on the importance of specific industries, like electronics and steel. South Korea captured many markets outside the region and made multiple foreign exchanges that enhanced the economy’s growth, in terms of exchange, and in terms of globalization of the market altogether. Also the government of South Korea, the financial support and provided domestic industries by giving them incentives of tax, earned by providing subsidies and loans, all of that, while simultaneously developing an improving the infrastructure of South Korea to help ultimately improve the economic structure and ecosystem.
Important policies that South Korea implemented during the period.
There were many policies that were economic implemented by the South Korean government that has the main focus and aim to develop the economically. There was one policy that helped with the economy overall from all sides and aspects, that is the promotion of industries, which were heavily export oriented, the policy took place with the help of the zones for expectation and establishment of expert promotion agencies. The government also implemented crucial policies that made people reduce the reliance on foreign trade, services and products. In addition to that industrial pulses were implemented to specify, and emphasize in importance of chemical and heavy industrialization, which aimed to develop such industries so the country could utilize petrochemicals and steel. The South Korean government also provided support both financial and mental to improve and enhance performance of banks, institutions, and all other actors in the economic area of the country, whether it was public or private.
Foreign Direct Investments (FDI) in South Korea.
South Korea had a government that focused on employing multiple strategies that would ultimately result in an attraction of foreign direct investment. Firstly, the export processing zones provided organized procedures for companies that come from abroad in order to provide tax incentives and to help ease the process of exporting towards foreign companies in foreign countries. South Korea also had investment plans which showed potential to outsiders and offered incentives for foreign investors by providing low interest loans with a lot of tax support systems alongside well designed infrastructural support. Also, the government tried its best to improve businesses’ and private organizations’ environment and ecosystem by reducing any bureaucratic interventions and hurdles to ensure the protection of the rights of owners of businesses and private companies in general. All of these efforts, combined alongside the skilled labour force in the market of South Korea which was rapidly growing, made the country very attractive for investors, whether it was, in terms of foreign direct investment, or in any other way of investment.
Enhancing the Labour force and human capital in that period.
The government played a very important role to develop human capital and to improve the performance of the labour intensive market of South Korea. Multiple policies were implemented to increase access to schooling to let everybody and all families be educated enough for them to acquire more skills to ultimately become productive labour. South Korea also recognized that education so important to have future generations that could improve the countries economic conditions overall, and that’s exactly why South Korea implemented policies that made it easy to access schooling, and improved the quality of schooling and education in general, and more importantly, enhanced vocational training for any potential labour that would like to train, and to acquire more skills and experience to be fully ready to be employed in the job market. The country improved educational infrastructure, expand opportunities of education at all levels, not only elementary education. Scholarships and grants were also provided to students who are pursuing higher education so they could be encouraged to join universities in to excel in them. The government as well, worked hand-in-hand with private businesses, so that they develop programs for training that go in line with the needs of the industry to make sure that an industrial growth supported by the government to ultimately form of workforce that is both skilled and experienced.
Anas Mousa
Social Sciences University of Ankara — Department of Economics.
