Analyzing South Korea's Economic Success: Essay on Miracle Han River

This essay examines South Korea's remarkable economic transformation, often referred to as the "Miracle on the Han River," which propelled the nation from one of the world's poorest to a leading economic power. The essay highlights the transition from an agricultural to an industrial-based economy, driven by trade openness and strategic government policies under President Park Chung-hee. The rise of chaebols, large industrial conglomerates, played a crucial role in export-led growth, though they also contributed to financial crises. The essay concludes that South Korea's success was due to strong fundamentals, high savings rates, human capital, sound institutions, and trade openness, with the people being the most critical factor. Desklib provides students access to similar essays and solved assignments for academic support.

Running head: ECONOMICS
Economics
Name of the student
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Author note

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

ECONOMICS
food, clothes and other necessities. South Korea became the fifth largest exporter in the
world when they opened their market in the foreign nation. The president of Korea, Park
Chung-hee managed to open the way to South Korea in order to make fastest economic
growth.
Park Chung-hee served as the president of South Korea for about sixteen years. He
also had many reforms and diplomatic agreements with the foreign nations which lead to
rapid economic growth. In the year 1996, the United States of America and South Korea
known to sign a status of Forces Agreement. Park has also known to sign a treaty for the
betterment of relations with Japan. Park have also known to support automobile and
electronic companies and those companies started to export goods under the brand name
made in Korea. The electronic and the technical companies became giant companies since
they got a huge support from the government.
One of the reasons behind the growth of the technical corporations is due to the rapid
growth, which is also termed as Chaebol in South Korea. The chaebol is a kind of large
industrial conglomerate in South Korea where they have a driving force for the economic
growth. There are various Chaebols which have a huge influence on the politics and also on
the economy of Korea. In the year 1997, South Korea was experiencing financial crisis
which resulted from bankruptcies o some of the chaebols. From the year 1980, Chaebols have
known to export huge amount of products overseas which became one of the driving force of
the growth rate. Some of the examples of the chaebols are LG, Kia and Hyundai. The
chaebols are known to play huge role for the economic growth and their products in the world
which will increase the brand name.

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Conclusion
South Korea is known to transform from developing to one of the developed countries
in the world. There are many reasons behind this transforming along with the miracle of the
Han River. The economic performance of South Korea over the last fifty years took place
largely due to good fundamentals, high rate of savings, strong human capital, and sound
institutions along with sound fiscal and monetary management. The trade openness also
allowed inexpensive imported goods to enter in the country. Although, one of the most
important driving factor of the success of South Korea are people.

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Reference list
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