Yong Yoon PhD 30 Jan 2013 2 Korea 2 3 NASA Satellite Picture 4 Korea Economic Development Policy Experience The Korean government has set explicit goals for national development in which the private sector has been instrumental ID: 600715
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Slide1
Korea’s Economic Modernization
Yong Yoon, PhD
30 Jan. 2013Slide2
2
Korea
2Slide3
3
NASA Satellite PictureSlide4
4
Korea Economic Development Policy Experience
The Korean government has set explicit goals for national development in which the private sector has been instrumental.
1960s: Export-promotion strategy
1970s: HCI Drive, and Saemaul Undong
1980s: Automobile/electronics/household appliances, etc. (adv. Technology)
1990s: IT & Communication Leader, Cinema
2000s: Cultural leader (‘Hallyu’)
4Slide5
5
The First Five-Year Economic Development Plan (1962 – 1966)
The first plan sought to benefit the textile industry and make Korea self-sufficient. At the time, Korea’s status was as a capital poor, inadequate saving, and predominantly U.S.-financed state, in need of independence.Slide6
6
The Second Five-Year Economic Development Plan (1967 – 1971)
The second five year plan sought to
modernize the
industr
ial structure
to make Korea more competitive in the world market, which was incorporated into all future five year plans
.Fears also prevailed that the U.S. would no longer provide military defense for Korea. Plan promoted self-sustaining economic development (encourage import-substituting industries).Slide7
7
The Third Five-Year Economic Development Plan (1972 – 1976)
Pres. Park implemented the third five-year plan which was referred to as the Heavy Chemical Industrialization Plan (HCI Plan) and, also, the "Big Push". To fund the HCI, the government borrowed heavily from foreign countries (not foreign direct investment, so that it could direct its project).
Plan aimed at building an export-oriented industrial structure.Slide8
8
The Fourth Five-Year Economic Development Plan (1977 – 1981)
Development of industries that can effectively compete internationally in industrial export markets (promote technology and improve efficiency. )
Plan to achieve self-sustaining economy.
Promote equity through social development.Slide9
9
The Fifth Five-Year Economic Development Plan (1982 – 1986)
Establish foundation for price stability, improve quality of life, restructure government’s functions and improve technology.
Move concentration from the heavy and chemical industries, to technology-intensive industries.Slide10
10
The Sixth Five-Year Economic Development Plan (1987 – 1991)
Emphases were placed on Research and Development and Manpower Training.
Establish socio-economic systems, promote creative potential and initiative.
Industrial restructuring and technological improvement.
Improve national welfare through balanced growth and income distribution.Slide11
11
The Seventh Five-Year Economic Development Plan (1992 – 1996)
Promote high-technology fields, such as microelectronics, new materials, fine chemicals, bioengineering, optics and aerospace.
Promote economy through self-regulation and orderly competition.
Management innovation and establishment of sound work and civic ethics.Slide12
12
Seoul 2003
Korea War (1953)Slide13
13
13
Changes in Employment Structure
Manufacturing
1960
Service Sector
Service Sector
Agriculture / Fisheries
Manufacturing
Agriculture / Fisheries
2002
Service Sector
Agriculture /
Fisheries
Manufacturing
36.8
15.9
47.3
Manufacturing
Agriculture /
Fisheries
Service Sector
Changes in GDP Structure
Changes in Industrial StructureSlide14
14
14
Agriculture to Manufacturing /
Light Industry to Heavy and Chemical Industry
1960
1970
1990
1999
1980
HCI Product
Agricultural
Product
Light Industry
Product
50%
Wig
Automobile
Semiconductor
Textile
2003
Semiconductor, Mobile Phone, DTV, Display, Automobile, Ship-building, etc.
84.8%
12.4%
2.8%
(ICT, 27.6%)
Changes in Export Commodity ProfileSlide15
15Slide16
16
Leaders of the past
Some history
16Slide17
17
King Sejong the Great (
世宗大王
,
세종대왕)
South Korea's national language is
Hangeul introduced in 1446 under King Sejong of the Choson dynasty.
17Slide18
18
The Song of the Dragon Flying to Heaven (
龍飛御天歌
,
용비어천가)
A tree whose roots are deep: in the wind does not shake; its flowers have luminance; its fruit, fragrance.
Water whose fountainhead is far away; in drought does not dry; it flows and becomes a stream; and to the sea it surely reaches
18Slide19
19
Shin Saimdang (
申師任堂
,
신사임당)
On June 23, 2009, the Bank of Korea released the 50,000 Won note.
19Slide20
20
Yulgok (
李珥
,
이이)
20Slide21
21
Yi Hwang (
李滉
,
이황)
21Slide22
22
Coins (up till 2006)
22
무궁화
거북선
이순신Slide23
23
Japanese Rule (
일제시대
)
In January 1876, following the Meiji Restoration, Japan employed gunboat diplomacy to pressure Korea to sign the
Treaty of Ganghwa
[강화도조약], an unequal treaty, which opened three Korean ports to Japanese trade and granted extraterritorial rights to Japanese citizens.
Korea was under Japanese rule as part of Japan's 35-year imperialist expansion (29 Aug. 1910 to 15 Aug. 1945).
23Slide24
24
North and South Korea
The unconditional surrender of Japan, combined with fundamental shifts in global politics and ideology, led to the division of Korea into two occupation zones effectively starting on September 8, 1945, with the United States administering the southern half of the peninsula and the Soviet Union taking over the area north of the 38th parallel.
The Korean War
(25 June 1950 – 27 July 1953) was a war between the Republic of Korea (supported primarily by the USA, with contributions from allied nations under the aegis of the United Nations) and the Democratic People's Republic of Korea (supported by the People's Republic of China, with military and material aid from the Soviet Union).
24Slide25
25Slide26
26
Presidents of Korea
Recent leaders
26Slide27
27
27Slide28
28
Yi Seungman (
李承晩
,
이승만)
Yi Seungman or Syngman Rhee (1875–1965) was the first president of South Korea. His presidency, from August 1948 to April 1960.
28Slide29
29
Kim Gu (
金九
,
김구)
What if?
29Slide30
30
Park Chung-hee (
朴正熙
,
박정희)
Park Chung-hee (1917–1979) was a Republic of Korea Army general and the President of South Korea from 1961 to 1979.
He has been credited with the industrialization and rapid economic growth of South Korea through export-oriented industrialization.
30Slide31
31
The Economic Policy of
Park Chung-
hee
Park had seen the development of
Manchukuo
based on Japanese investment in infrastructure and heavy industries when he was an officer in the Manchukuo imperial army.Intending to acquire money and technology for South Korea via Japanese grants and soft loans, Park normalized diplomatic relations with Japan in 1965 (
Treaty on Basic Relations between Japan and the Republic of Korea).Beginning of Chaebols (Korean conglomerates).
31Slide32
32
Korea’s Economic Take-off
(The Miracle on the Han River)
"(When visiting Korea), I recall seeing a billboard in the Korean language (near the airport) that was roughly translated to me by my taxi driver as '
export or die
.'...”
"I heard from the bureaucrats that the president would never cancel a meeting with the business community to receive a visiting dignitary. He knew early on that Korean success would depend on unleashing the potential of the private sector."
32Slide33
33
Export-Promotion Strategy (1960’s)
“Export contests!”
Monthly/Annual Meetings led by Pres. with ministry officials, business leaders, scholars
Evaluation/Coordination/Re-alignment/Signaling
Incentives: Tax benefits (lower rates, exemption); Credit allocation (“policy loans”, low interest rates); Entry barriers (licensing, FX); etc.
Rise of the Chaebol (Korean large corporations, e.g. Samsung, Hyundai, LG, etc).
Annual Export Growth jumps from 3% (1950s) +> 30% (1960s) +> 40% (1970s)
33Slide34
34
Institution Building
Creation of economic development agencies
Economic Planning Board (EPB)
Ministry of Trade and Industry (MTI)
Ministry of Finance (
MoF
)
34
foreign aid
1953
1973Slide35
35
Economic Planning Board (EPB)
EPB
(1961-94)
“Super ministry” modeled after Japanese MITI in charge of both planning and budgeting..
Preparing Five-year EDPs and annual EMPs
Coordinating economic policesHead of EPB holding the post of Deputy Prime Minister and chairing Economic Ministerial Meetings
Allocating domestic and external resources for economic development.Slide36
36
Other Institutions
Ministry of Finance
(1948-94)
Financial market, monetary policy, tax policy, treasury.
Ministry of Finance and Economy
(1995-)
EPB and MOF merged to produce MOFE.“Planning” effectively abandoned .In 1998, transferred budgeting, prudential regulation, and monetary policy to MPB, FSC, and BoK, respectively.Still in charge of coordinating economic policies.
Ministry of Planning and Budget (1998-)
Responsible for central government budgeting.
Increasing its role in long-term planning and policy coordination with the introduction of MTEF.Slide37
37
37
Economic Growth in 1970’s
Promotion of Heavy and Chemical Industries (‘73-‘79)
<Shipbuilding, steel, automobiles, machinery and petrochemicals>
Gradual weakening of competitiveness of labor-intensive light industries:
Protectionism and world-wide stagnation caused by the first oil crisis.
Rapid wage increase and fierce competition from other developing countries.
Fast-forward petrochemical industry development in the aftermath of the fall of Vietnam and U.S. pullout.
Transform industry to become more capital-intensive and reduce C/A deficit.
National-defense related industries also encouraged.
Successful firms in 1960s “selected” to lead HCI industries.Slide38
38
Chun Doo-hwan (
全斗煥
,
전두환)
President from 1980-1988
After his inauguration, Chun clamped down on out-of-school tutoring and banned individual instruction or tutoring.
In 1981, Chun enacted the "Care and Custody" legislation. In the winter of 1984, before declaring a moratorium on the Korean economy, Chun visited Japan and requested a loan for $6 billion.
Later he passed the 3S Policy (Sex, Screen, Sports).
Chun tried to appeal to the citizens in order to ensure
the success of the 1988 Seoul Olympics preparations :
e.g. forming a pro-baseball and pro-soccer team,
starting the broadcast of color TV throughout the nation,
lessening censorship on sexually suggestive dramas and movies
making school uniforms voluntary, etc.
In 1981, Chun held a large-scale festival called "
Korean Breeze
", but it was largely ignored by the population.
38Slide39
39
Democratization
Sustained economic growth and stability enabled people to pay more attention to human rights, to care for individual freedom, and to demand a full-fledged democracy. Demands for freedom from every corner of Korean society culminated in a democratization movement in 1987.
One of the first reform movements was the free labor movement. Yet it was translated into incessant labor disputes, a reaction to the oppressed labor movement in the 1960’s and 1970’s.
Korea’s declaration of democratization in June 1987 paved the way for accelerated political democracy and market liberalization during the Roh Tae-woo regime (1988-1992).
39Slide40
Jeon Tae-Il (1948-1970)
40Slide41
41
wagesSlide42
42
Roh Tae-woo (
盧泰愚
,
노태우)
Roh Tae-woo (born December 4, 1932) is a former ROK Army general and politician.
He was President of South Korea from 1988–1993.
42Slide43
43
Slowdown in Economic Growth : 1989-1993
The late 1980s saw Korea’s export competitiveness deteriorate due to rising labor costs, rising domestic interest rates, and a sharply appreciating won (the won rose against the US dollar by 18% in 1988 alone).
The trade surplus of the later 1980’s dwindled to practically nothing in 1989 and was followed by progressively larger deficits in the 1990’s.
Labor policy helped strengthen union’s influence and favored wage increases: tremendous wage hikes (11% annually during 1989-91) far exceeded the rise in productivity.
Increased financial costs, excessive administrative regulations on business activities, and low social overhead capital investment were typical of the period, which gradually afflicted industrial and firm competitiveness and entrepreneurship.Slide44
44
Kim Young-sam (
金泳三
,
김영삼)
Served as Korea’s (first civilian) President from 1993 to 1998.
He presided over a massive anti-corruption campaign, the arrest of his two predecessors, and initiated an internationalization policy called Segyehwa 세계화 ( lit. Globalization)
.Acceleration of liberalization!
44Slide45
45
Economic Deregulation
Deregulation
land use (1990)
import liberalization (1992)
open stock market to foreigners (1992)
open domestic capital market (1994)deregulate loan financing in foreign market (1994)Slide46
46
Phenomenal Growth
46Slide47
47
Integration into the World
47
imports
exportsSlide48
48
1997/8 Financial Crisis
48Slide49
49
Kim Dae-jung (
김대중
)
Kim
Dae-jung
(1925-2009) was President of South Korea from 1998 to 2003, and the 2000 Nobel Peace Prize recipient (for the Sunshine policy)
He successfully shepherded South Korea's economic recovery from the 1997/8 economic crisis; brought in a new era of economic transparency ; and fostered a greater role of South Korea in the world stage (including the FIFA World Cup 2002,
jointly hosted by Korea and Japan).
49Slide50
50
Sunshine policySlide51
51
Roh Moo-hyeon (
盧武鉉
,
노무현)
Roh Moo-hyeaon (1 September 1946 – 23 May 2009) was President of South Korea 2006–2008.
"I will root the method of discussion inside the government. … discussion should be familiarized until we are called 'Republic of discussion'.“
Dubbed “Participatory Government”.Achievements include: the expansion of social welfare, the pursuit of "balanced national development" to help underdeveloped areas, the eradication of corruption, reform of education and tax systems, reform of labor-management relations, reform of mass media, and a recasting of the relationship with the United States and Japan.
51Slide52
52
Lee Myung-bak (
李明博
,
이명박)
Lee won the presidential election in December 2007 with 48.7% of the vote which was considered to be a landslide.
52Slide53
53
53Slide54
54Slide55
55
Private companies
Korean
Chaebols
55Slide56
56
Chaebol
A conglomerate of many companies.
Companies hold shares in each other.
Concentration of national economy.
Does not have own financial institution.Spreads across industries.
Has centralized structure and control.Tends to be family-based.Slide57
57
Chaebols
Family-oriented Korean conglomerates
57Slide58
58
58Slide59
59
Founded in 1938 (by Lee Byung Chull)
exporter of dried/pickled seaweed and fish, vegetables, and fruits
flour mill and confectionery machines
1950’s Economic Stabilization
Korean War - Samsung lost all assets
aimed to help rebuild Korean economy; entered the manufacturing industry (sugar, fabrics 1954: Cheil Industry)
became a leader in modern business practices (recruiting from outside; 1st HR dept.)1960’s Expansion of Key Industriesentered electronics and chemical industries1969 established Samsung Electronics Co.
59Slide60
60
60
distribution
hotels
amusement theme parks
trading
construction
textile
advertising
baseball team
security
cameras
aircraft
ships
dump trucks
oil trucks
polymerized compounds
plastics
specialty chemicals
life insurance
credit card services
securities trading
finance and trust management services
home appliances
wireless communication
semiconductorsSlide61
61
Samsung Electronics
SAMSUNG ELECTRONICS: established in January, 1969
1970’s: Bet the future on electronics
laid the groundwork for electronics in Korea
helped the domestic economy grow
paved the way for exports
1980’s: A more comprehensive electronics companyestablished plants in Portugal and USestablished Semiconductor and Communication corporationbegan memory chip business (DRAM)Early 90’s: Integration and Globalization
Mid-Late 90’s: Implementing new management strategies2000’s: Digital Vision --
“
A Company that leads the digital convergence revolution”
61Slide62
62
62
Home Multimedia
Mobile Multimedia
Personal Multimedia
Core Components
Samsung ElectronicsSlide63
63
Lee Kun-
hee
:
"Change everything except your wife and kids“: 1993
As of 2010, his son Lee Jae-yong is President and COO of Samsung Electronics. Lee Boo-jin
, his eldest daughter is President and CEO of Hotel Shilla, a luxury hotel chain, as well as President of Samsung Everland, a theme park and resort operatorHis eldest brother's son is currently chairman of the CJ Group, a company holding businesses in food, beverages and entertainmentHis second eldest brother's sons ran Saehan Media, one of the largest blank media producers.
His older sister is the owner of Hansol Group, the country's largest paper manufacturer and producer of electronics and telecommunications.
One
of his sisters is married to Koo
Ja-hak
, brother of former chairman of the LG Group and himself a former chairman of LG Semiconductor. He is currently running one of the largest food services firms in Korea.
His
younger sister, Lee
Myung
Hee
is currently the chairman of the
Shinsegae
Group, the largest retail company in Korea, with major holdings such as the
Shinsegae
Department Stores and E-Mart
.
63Slide64
64
LG Corp.
is
the second-largest South Korean
chaebol
following Samsung.LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display, LG Telecom and LG
Chem in over 80 countries.LG Corp. founder Koo In-Hwoi established Lak-Hui Chemical Industrial Corp. in 1947. As the company expanded its plastics business, it established
Goldstar Co., Ltd., (currently LG Electronics Inc.) in 1958.
64Slide65
65
65Slide66
66
Chung Ju-yung (1915 - 2001)
66Slide67
67
Pony (1975-1980)
67Slide68
68
Diversified BusinessesSlide69
69
Daewoo was
founded on 22 March 1967 (by Kim
Woo-
jung
) as Daewoo Industrial and was dismantled by the Korean government in 1999.
The group was reorganized into three separate parts: Daewoo Corporation (a.k.a Daewoo Electronics), Daewoo Engineering & Construction and Daewoo International Corporation.
69Slide70
70
Park Tae-
joon
(1927-Dec
2011): retied 1993
Began
production in 1972, just four years after the company's inauguration in April 1968 with thirty-nine employees (initially funded by Japan.)
By the late 1980s POSCO's growth had been immense. It was the fifth biggest steel company in the world, with an annual production approaching 12 million tons worth 3 trillion won.Listed in NYSE 1994.In 2000, full privatization of POSCO was completed.
70Slide71
71
Rank
Chaebol
Billions of USD
Comparable economy
1
Samsung Group
174.2
Malaysia
2
Hyundai Kia Automotive Group
109.8
New Zealand
3
LG Group
94.8
Peru
4
SK Group
88.0
Vietnam
5
POSCO
34.0
Syria
6
Korea Electric Power
31.4
Tunisia
7
GS Group
29.5
Guatemala
8
Shinhan
Financial Group
28.7
Kenya
9
Woori Financial Group
28.6
Costa Rica
10
STX Corporation
24.5
Uruguay
Rank
Chaebol
Billions of USD
Comparable economy
11
Hanwha
Group
24.4
North Korea
12
Hyundai Heavy Industries
22.5
Uzbekistan
13
Kumho
Asiana
Group
22.2
Yemen
14
KT
21.7
Cameroon
15
Kookmin
Bank
20.2
Ethiopia
16
Doosan
Group
19.8
Jordan
17
Hyundai Department Store Group
19.8
Ghana
18
Hanjin
Group
18.7
Burma
19
LG Display
15.4
Bolivia
20
Shinsegae
10.8
Paraguay
21
Lotte
10.4
Georgia
Largest Chaebols by revenue 2007
Source: IMF List of countries by GDP (nominal) & CIA World Fact bookSlide72
72
1973 Oil-crisis
Economic Episodes
72Slide73
73
The First Oil Crisis (1973)
Before the crisis, Korea was able to achieve a remarkable economic growth. It was growing at the rate of 9.6 percent each year. Under the environment of free trade and global economic boom, export-driven economic development plans had paid off.
The first oil crisis in 1973 dealt a deadly blow to a country without any oil fields.
Severe stagflation set in: prices of oil and raw materials soared, while production and income fell. Yet when the second oil crisis hit, the Korean government and the public were prepared and managed to get around it. Slide74
74
The “Three Lows”
Economic Episodes
74Slide75
75
75
Increased exports leading to a balance of payments surplus
A record US$8.8 billion trade surplus in 1988 or 8% of GDP
Rapid rise in real GDP growth
Average annual GDP growth recorded 10.7% in 1986-88
The 1985 Plaza Accord lowered the relative value of US dollars and Korean won vis-à-vis the Japanese yen thereby helping Korean exports.
World oil price fell, helping Korea’s balance-of-payments situation and profitability.
World interest rates dropped, thereby favoring countries with large foreign debt like Korea.
Economic performance during the so-called 'three lows' period (1986-88):Slide76
76
In the era of “Three Lows” (low exchange rates, low interest rates, and low raw material prices), income grew continuously at a high rate, but the inflation rates remained low.
From 1988, however, CPI inflation began to rise (7.1, 8.6, and 9.3% in 1988, 1990, and 1991 respectively) accelerated largely by increasing labor costs and increased money supply helped on by the mounting current account surplus.Slide77
77
1997/8 Financial Crisis
Economic Episodes
77Slide78
78
78
Deteriorating environment for corporations including policy bias against large corporations as well as widespread moral hazard caused corporate profits to drop drastically and minor chaebols including Hanbo, Sammi, Jinro, Haitai, Halla, New Core and Kia to experience serious problems, yet they were continuously maintained with the government’s help, which led to loss in government credibility and a fall in Korea’s credit rating.Slide79
79
79
An overvalued real exchange rate, which helped mask inflationary pressure, together with high interest rates adversely affected export competitiveness.Slide80
80
80
Too fast and wrong sequencing of capital account liberalization increased the probability of default from creditors refusing to roll over debt: Specifically, short term capital flow was liberalized prior to long term Capital flow, which left domestic banks increasingly vulnerable to foreign interest spikes, domestic currency depreciation and/or a creditors panic.Slide81
81
81
Insufficient foreign reserves base of 3-months worth of imports was maintained following IMF estimates that were based on a rigid exchange rate system and non-liberalized capital accounts. Slide82
82
82
A too narrow and immature financial system under pervasive government control coupled by prudential regulations not strictly abided by, upon accelerated liberalization of the country’s financial sector, exacerbated the sector’s weaknesses and vulnerabilities. Slide83
83
83
Economic impact of the crisis
An immediate effect of the crisis was the depreciation of the won to the US dollar—at the end of September 1997, one US dollar bought 915 won, but by the end of the year, the won had fallen to a record low of 1,965.
Depletion of foreign reserves to US$8.9 billion by end of 1997.
The depreciation of the won exerted inflationary pressure, which shot up to an average of 7.5% in 1998 (compared to 4.4% in 1997 and 0.8% in 1999).
Increasing rate of bankruptcy (more than 17,000 firms were bankrupt in 1997 alone).
Non-performing loans exceed 20% of their total loan portfolio at some banks and total irrecoverable loans were estimated at 32 trillion won (about US$20 billion)
Korean stock price index dropped to 366 point in December 1997 from about 750 in mid-1997.
Social disruption increased as the unemployment rate more than doubled from 2.6% in 1997 to 6.8% in 1998.Slide84
84
Recovery
IMF announced a bailout package of $58.4 billion(13% of Korean GDP).
IMF Loans required:
Higher interest rates*
Further deregulation; liberalization
Reform/rejuvenate dormant bankruptcy law
Allow foreign investment in financial sectorIFIs: “Don’t try to export your way out!”Korean response: Export, export, exportRepay IMF loans ()Rationalize Chaebol (“Big Deal” program)
Adjust to new structural realitiesMore liberal financial system
Greater foreign presence
More rights-oriented societySlide85
85
2008/9 Global Recession
Economic Episodes
85Slide86
86
Not again!
Korea depends on exports, but somehow Korea was a little better off (better prepared) than in 1997/8.
In Nov. 2008, government poured $120 billion into financial markets to support the won.
In Dec. BOK executed $30 billion currency swap with U.S Fed. (increase liquidity in credit market & prop up the economy.)
Korea’s national debt was 33% of GDP (OECD average was 75%).
Strong safety nets established (e.g job-training programs like JUMP). Job-sharing.
Long-term contracts (like ship-building increased market share to 33% in 2008.)Cheaper won (Toyota start to purchase Korean steel in 2009).Slide87
87
Japan
Neighbors
87Slide88
88
Japan Relations
Rivalry (World baseball classic 2009, football).
Dokdo island (
독도
).Koreans in Japan (Zainichi) 600,000
‘Comfort women’Slide89
89
China
Neighbors
89Slide90
90
China Relations
Yellow cloud (
황사
[黃砂
] )Choseonjok (조선족): Korean ethnicities living in China (2 million).Slide91
91
U.S
International Relations
91Slide92
92
The U.S
Trade: From ginseng (
인삼
)
to SUV’s.
The Republic of Korea-United States Free Trade Agreement (also known as KORUS FTA) is a trade agreement between the US and Korea (April 1, 2007).Main issues were food, cars, and services.
Beef crisis! (Downer in 2003).Koreatowns.Slide93
93
Technological Nirvana
Economic Leader
93Slide94
94
Korea’s Technological EdgeSlide95
95
1990’s: US took up dial-up access, while Korea chose DSL.
By 2000, 90% of Korean homes had braodband connection.
Korea’s IT exports grew from $20 billion in 1997 to $78 billion in 2005.
In 2004, gov’t announced the IT 839 policy (8 services, 3 infrastructures, 9 products).
There have been successes (chose
CDMA over GSM for coding wireless signal) as well as failures (DMB).
A nation of gamers: Korean video game produced more than $2 billion in revenue in 2008 (1/4 from exports). This is double the country’s movie industry.I.TSlide96
Samsung again!
96Slide97
97
Korean Wave
Entertainment
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98
Hallyu (
韓流
,
한류)
Korean Wave (Hallyu) refers to the spread of South Korean culture around the world.
The term was coined in China in mid-1999 by Beijing journalists surprised by the fast growing popularity of Korean entertainment and culture in China.The Korean wave is responsible for achieving over one billion dollars in revenue annually for South Korea through cultural exports.
For example, in 2011 based on international activity the Korean wave added approximately $3.8 billion dollars of revenue to the Korean economy.
98Slide99
99
K-Pop
Entertainment
99Slide100
100
S.M. Entertainment
S.M. Entertainment
is an independent Korean record label, talent agency, producer, and publisher of pop music, founded by Lee Soo-man in South Korea.
100Slide101
101
S.M. Entertainment (cont.d)
101
Girls' Generation Slide102
102
S.M. Entertainment (cont.d)
Super Junior Slide103
103
J.Y.P Entertainment
JYP Entertainment is a Korean music record label, founded in South Korea in 1997 by Park Jin-young.
103Slide104
104
J.Y.P Entertainment (cont.d)
104
Wonder GirlsSlide105
105
105Slide106
106
Others …
DSP Entertainment
YG Entertainment
106
Big BangSlide107
107
Series
Entertainment
107Slide108
108
Winter Sonata
108Slide109
109
Dae Jang Geum
109Slide110
110
Full House
110Slide111
111
Cinema
Entertainment
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112
Evolution
Early period (until 1926) :"Motion pictures have finally been introduced into Joseon … beginning of October 1897”,
The Golden Era of Silent Films (1926-1930): Na's film, Arirang (
아리랑
) (1926) considered
the start of the era of silent film in Korea.Early sound era (1935-1945): Korea's first sound film was Lee Myeong-woo's 1935 Chunhyang-jeon
Liberty (1945-1950) and War (1950-1953) eras: Choi In-gyu's Viva Freedom! 자유 만세) about Korean freedom-fighters during the waning days of the colonial period, is considered the major film of this era.Golden Age (1953-1973): With the ascension of Park Chung Hee in 1962, government control over the film industry increased substantially. Under the
Motion Picture Law of 1963, a series of increasingly restrictive measures were placed on the film industry. The number of films produced and imported were limited under a strict quota system
(domestic film-production companies dropped from 71 to 16 within a year.) Government censorship at this time also became very strict, focusing mainly on any hint of pro-communist messages or obscenity.
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113
Evolution (cont.d.)
"Revitalizing Government" era (1973-1979) :Governmental control reached its height in the mid- and late-1970s, nearly destroying the vibrant film culture that had been established in the preceding decade and a half. Also, the
Korean Motion Picture Promotion Corporation
(
영화진흥위원회
) was created in April 1973.(1980-1996): the government's relaxation of censorship and control.
Current (1997 through present): This government-enforced screen quota system has stood since 1967, which limits the number of days per year non-domestic movies can be shown on any one movie screen in South Korea.There are three important dates in new wave Korean films: 1992,
Marriage Story was financed by Samsung, marking the first non-government funded film. 1999,
Shiri
was released and led to Korean films taking over 50% of the local market.
Ultimately,
My Sassy Girl
became the most popular and exportable Korean film in history.
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114
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115
Growth of Creative Industry
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116
Is Hallyu sustainable?Slide117
117
TourismSlide118
118
CURRENT PERSONALITIES
People to Watch
118Slide119
119
PsySlide120
120
Jung Ji-Hoon (RAIN)
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121
Park Ji Sung
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122
Pak Se-Ri
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123
Ban Ki-moon
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124
Jim Yong Kim
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125
Concluding REMARKS
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126
Main Lesson from Korea’s Developmental Policy Experience
Marriage of government-private sector
Policy Cycle (Selection, Support, Evaluation)
Set up of Institutions for government-control
Examples:
Export-led growth (Formation of chaebol)
Science and TechnologySaemaul undong (rural developmet)
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127
127
Saemaul Undong (
새마을운동
)
Stage of Villages
1973 (%)
1974 (%)
1975 (%)
Kicho-Maul
(Primary village)
18,415 (53.1)
10,656 (29.1)
6,165 (17.8)
Jajo-Maul
(Self-helping village)
13,943 (40.2)
19,763 (67.1)
21,500 (62.0)
Jarib-Maul
(Self-supporting vi.)
2,307 (6.7)
4,246 (12.2)
7,000 (20.0)
Total
34,665 (100)
34,665 (100)
34,665 (100)
Number of Villages by Saemaul Stage and Year
Source
: Tae-Yeung You (1986), “The Patterns of Rural Development in Korea,”
The Institute of Saemaul, Kon-kuk University, Seoul, p.65.Slide128
128
The future?
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129
Society
The Korean childhood (over-protection).
In 2007, Korean families spent $13.6 billion on private schooling.
English!
SKY universities.
Korean women.Foreign-wives (and multi-culturalism).
Aging society.
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131
Challenges ahead
Korea’s energy challenge.
The greening of Korea.
From centralized planning to dispersed leadership.
Opening the networking system.Slide132
132
And, of course, N. KoreaSlide133
133
Thank youSlide134
References
Amsden
, Alice (1989)
“Asia’s
Next Giant: South Korea and Late Industrialization”, New York: Oxford University Press.Chang
, Se-Jin (2003) “Financial Crisis and Transformation of Korean Big Business Groups: The Rise and Fall of Chaebols”, Cambridge: Cambridge University Press.
Kim, Myung Oak and Sam Jaffee (2010) “The New Korea” New York: AMACOM.Song,
Byung-Nak (2003) “The Rise of the Korean Economy” 3rd ed.. Oxford: Oxford University Press.134Slide135
135
youtube
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http://www.youtube.com/watch?v=IXtTsYIwmD8&feature=fvwp&NR=1
http://www.youtube.com/watch?v=Cy24S8Rb1Ek&feature=related
History channel: A Nation to Watch
http://www.youtube.com/watch?v=W3_zsVijn2Y
http://www.youtube.com/watch?v=qH2krIpqBXQhttp://www.youtube.com/watch?v=dDFlSRZ1n-8http://www.youtube.com/watch?v=Kt52a5gZufohttp://www.youtube.com/watch?v=4BbOwupqAyU
http://www.youtube.com/watch?v=vyGfQHxAl00http://www.youtube.com/watch?v=jaWVxgGu5tc
http://www.youtube.com/watch?v=3961ODlntiM
Whole program
http://www.youtube.com/watch?v=YKA5TwcxMm0
http://v.youku.com/v_show/id_XMjk1OTkzMTc2.html
Extender (wave)
http://www.youtube.com/watch?v=INZ9mKpH9UASlide136
136
youtube
K-pop
http://www.youtube.com/watch?v=UUEsjO_83OY&feature=related
Seoul
http://www.youtube.com/watch?v=Oaa92oFv-NQ&feature=related
Unravel travel Korea & Seoul Gourmet
http://www.youtube.com/watch?v=4K6AKp1bE6A&feature=relatedK-pophttp://www.youtube.com/watch?v=8tyEsOtV0FY&feature=related
Caught in the web
http://www.youtube.com/watch?v=Yfm-2rEoDg4&feature=relmfuSlide137
137
International Championship Host