Miracle of the Han River: The Economic Growth of South Korea

Running head: ECONOMICS
Economics
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ECONOMICS
Introduction
After the Korean War, South Korea is known to remain one of the poorest countries in
the world for a decade. In the year of 1960, the gross domestic product over the country had
been quite lower. The growth of the industrial sector was the main objective of the economic
development. The economic downturn of South Korea resulted in a sharp decrease of the
exports and imports of the various goods. However after the year 1962, the gross domestic
product have increased by more than eight percent from more than US$2 billion to US$230
billion in the year 1989. After that in the 1980s inflation took place in South Korea. The
inflation is mostly controlled by monetary policy along with tight fiscal measures.
Thesis statement
The rapid growth and the success of the economy in case of South Korea are mostly
termed as the miracle of the Han River. Miracle of the Han River takes place after the Korean
War when the country had been transforming to a developed economy. It has known to
become the 12th largest economy in the wold after the miracle of Han River. It have also
become one of the wealthiest nations. The economy of South Korea also have known to rise
from one of the poorest countries to a high income country within a few generation. The
growth in the economy is known to be a miracle and is described as the Miracle on the Han
River. It has known to bring South Korea to the ranks of some of the elite countries in the
world.
Body
The most important factor that leads to the success of the economy came from
transition from the agriculture to industrial based economy. The transition took place when
South Korea had opened their markets to the foreign nations. The war that took place in
Korea made people poor. Large number of factories have been built at that time for providing