Реферат: Korea in Focus
KOREA IN FOCUSA People and History in Harmony<span Times New Roman",«serif»;font-style:normal">IntroductionIn the past two decades,Korea has been one of the fastest developing nations in the world — both ineconomic and social terms. Rapid industrial and economic growth has seen theRepublic nearly reach developed nation status in a remarkably short time. TheKorean people also find themselves in the midst of a new era of democraticdevelopment following the birth of the civilian Administration of President KimYoung Sam on February 25, 1993. This wiped out the negative legacy of decadesof military-backed authoritarian rule. The country has since been implementingbold political and economic reforms to eradicate corruption and revitalize andrestructure the economy with the goal of building a New Korea — a mature andvibrant industrial democracy.
Thisrapid economic and social development has brought Korea increased internationalexposure and recognition, as the Republic begins to expand its role on theinternational stage. Testifying to this was the successful hosting of the 1988Seoul Olympics, the largest held in history up to that time. This was followingby the 1993 hosting of an international exposition, the Taejon Expo ‘93. Both the Seoul Olympics and the Taejon Expoplayed an important role in deepening ties between Korea and countries all overthe world and gave an impetus to the Korean economy.
Thisera of stability and expanding international ties represents the most excitingperiod in the country’s history — and yet, in retrospect, Korea has, in its5,000-year history, quite an enviable record for governments of longevity andstability. The country’s last dynasty, the Yi Dynasty of the Choson Kingdom,lasted 500 years.
TheKoreans of today, while enormously proud of their country’s past, look at Korea’srole and reputation from a more recenthistorical perspective; but, in order to understand today’s Korea — its land,people, culture, history, and recent economic and political transitions — it isnecessary to look at both the past and the present. “Korea In Focus” aims togive you a brief overview to help in your general awareness of Korea today.More detailed information can be obtained from individual organizations orgovernment offices.
Land
TheKorean Peninsula, located in Northeast Asia, is bordered on the north by Chinaand Russia and juts towards Japan to the southeast. Since 1948, the 221,487 square kilometers which make up the entirePeninsula have been divided, roughly along the 38th parallel, into the Republicof Korea in the south and the Democratic People’s Republic of Korea in thenorth. The Republic of Korea covers 99,221 square kilometers, a land area alittle more than twice the size of Switzerland.
Seoulis the capital of the country which is made up of nine provinces; other majorcities include Pusan, Taegu, Inch’on, Kwangju, and Taejon.
Thelandscape is spectacular in its variations and about 70 percent of it ismountaneous. The oceans around the Peninsula are a major source of livelihoodand recreation for Koreans. The shoreline is dotted by more than 3,000 islands.
ThePeninsula’s longest river is the Amnokkang (790 km) in the North. One of theSouth’s major waterways is the Han-gang River, which flows through Seoul to theWest Sea (Yellow Sea).
History
Alook back at the 5,000 years of Korean history reveals triumphs and tragedies,successes and struggles which have been instrumental in shaping the Korea andKoreans of today. One remarkable fact that emerges from such a historical examination is that Korea has largely beenruled by long-term, stable governments. Korea’s kindoms and dynasties generally lasted about 500 years ormore.
AlthoughKorea’s traceable history began considerably earlier that the seventh century,it was the Shilla Unification in 668 that Korea, as a historical entity with acohesive culture and society, came to occuрy most of the Peninsula as it existstoday.
Itwas almost a decade after the end of the war before the Republic of Korea hadrecovered sufficiently to establish stability and start the momentum for itsnow remarkable recovery and development. The three decades since then have beena time of spectacular progress which has seen the creation of a modern,industrialized nation.
People
Koreais homogeneous society, although there have been historic and prehistoricmigrations of Chinese, Mongols and Japanese. Koreans are very conscious of theethnic differences and cultural distinctions which give them their uniqueidentity.
Thepopulation of the Republic of Korea was estimated at 44.1 million in 1993. Itspopulation density is among the world’s highest and Seoul, the capital, hasmore than 10 million inhabitants. The annual population growth in the Republichas dropped from an average of 2.7 percent in the 1960-66 period to only 0.90percent in 1993. The slowdown is alsopartly the result of the increasing number of young working women.
Thecountry’s rapid industrialization is responsible for today’s concentration ofpopulation in urban centers. Theproportion of Koreans living in cities has jumped from only 28 percent in 1960to 74.4 percent as of 1990 — very similar to the 73 to 76 percent levels in theUnited States, Japan and France.
Language
The Korean language is spoken by some 60 million people living on thePeninsula and its outlying islands as well as some 1.5 million Koreans livingin other parts of the world.
Koreanbelongs to the Ural-Altaic language group, which is found in an narrow bandfrom Korea and Japan across Mongolia and central Asia to Turkey. Korean is a non-tonallanguage, with agglutinative and polysynthetic elements.
Religion
Religion in today’s Korea covers a broadspectrum of faiths and beliefs. Buddhism, Christianity, Confucianism, Islam andnumerous other indigenous religions exist in Korea. Although none of themdominates, they all influence contemporary culture.
Education
Educationhas been at the heart of Korea’s growth by training and supplying the manpowerneeded for rapid industrial and economic expansion.
Amulti-tiered educational system is currently in use, encompassing elementaryschool (six years), middle school (three years), high school (three years), andcollege (four years), as well as various graduate and professional programs.
Thegovernment has eased regulations on overseas study. This new policy alsoencourages those in the teaching profession to take advantage of opportunitiesfor training abroad.
Transportation
The tremendous pace of domestic economicgrowth in the past two decades has been reflected in the expansion oftransportation facilities and the increases in Korea’s annual passenger andcargo volumes. The annual volume of passenger transportation rose from 1.6billion persons in 1996 to 14.24 billion in 1993.
Seoulhas a well-developed mass transit system of subways, buses, and taxis. Airportshuttles or city buses are conveniently available and operate throughout thecity. The subway system is the eighth longest in the world, carrying 1,388million people in 1993. Its four lines reach most major locations in the city.
Koreahas three international airports in Seoul (Kimpo), Pusan (Kimhae) and Cheju(Cheju), all of which are equipped with modern air traffic control facilitiesand support systems. Korean Air’s worldwide network serves 43 cities in 24nations, including recently inaugurated flights to Rome. The newly launchedAsiana Airlines recently started international flights with regular service tofourteen cities in Japan, the U.S., Singapore, Hong Kong, Taipei and Bangkok.
Allexpressway system also connects Seoul with provincial cities and towns, puttingany place in mainland South Korea within a one-day round trip of the capital.Express buses transport passengers to and from all principal cities and resortsin the country.
Therailway also serve the entire country through an efficient and extensivenetwork. The super-express train, Saemaul, runs 444.5 kilometers from Seoul toPusan in four hours and 10 minutes. There are also ordinary express and localtrains.
Oceanliners, cruise ships, and passenger-carrying freighters visit Korean ports. Aferry service links Pusan with Chejudo Island and the Japanese ports ofShimonoseki, Kobe and Hakada. Another ferry service recently started betweenInch’on and Tianjin China.
Telecommunications
Telephone services have rapidly expanded during the last decade, particularly duringthe last 5 Years (1988-”92). During these years, with the investment of US$2.64billion in communications annually, 1.76 million new telephone circuits wereinstalled each year, increasing the total number of telephone lines to 10.14million as of 1993. Virtually every home in the country now has its owntelephone and all the telephone circuits are connected by automatic switchingsystems.
Also,through the launch of KOREASAT scheduled in 1995, Korea will be able to providesatellite communication services by using its own satellite from October 1995.
THE ECONOMYLooking Ahead to the 21st CenturyIn the last quarter century,Korea’s economic growth has been among the fastest in the world. The countryhas overcome obstacles and challenges to transform itself from asubsistence-level economy into one of the world’s leading newly industrializedcountries. Today, however, the Korean economy faces the new challenges ofinternationalization and globalization in an increasingly complex globaleconomic environment.
Past Performance and PoliciesSinceKorea launched its First Five-Year Economic Development Plan in 1962, thecountry’s real GNP has expanded by an average of more than 8 percent per year.As a result, Korea’s GNP has grown from US$2.3 billion in 1962 to US$328.7billion in 1993; per capita GNP has increased from a meager US$82 in 1962 toUS$7,466 in 1993 at current price levels.
Theindustrial structure of the Koreaneconomy has also been completely transformed. The agricultural sector’s shareof GNP declined from 37.0 percent in 1962 to 7.1 percent in 1993. Themanufacturing sector’s share has increased from 14.4 percent to 27.1 percent inthe same period. The service sector accounted for only 24.1 percent of GNP in1962 but grew to 40.0 percent in 1993.
Korea’smerchandise trade volume increased from US$500 million in 1962 to US$166billion in 1993. The nation continuously posted trade deficits until 1985 whenits foreign debt reached US$46.8 billion, the fourth largest in the world. From1986 to 1989, Korea recorded current account surpluses and its debt declined.
Trends of Major Economic IndicatorsUnit
‘62
‘70
‘80
‘85
‘90
‘92
‘93
GNP
US$ bil.
2.3
8.1
60.5
91.1
251.8
305.7
328.7
Per Capita GNP
US$
8.2
242
2,194
2,242
5,883
7,007
7,466
GNP Growth Rate
%
2.2
7.6
7.0
7.0
9.6
5.0
5.6
Domestic Savings
%
3.3
17.9
29.1
29.8
35.9
34.9
34.9
Ratio
Trade Volume
US$ bil.
0.5
2.8
39.8
61.4
134.9
158.4
166.0
Producer Price
%
9.4
9.2
38.9
0.9
4.2
2.2
1.5
Consumer Price
%
8.3
15.9
28.8
2.4
8.6
6.2
4.8
Inflationin Korea was one of the major economic problems in the 70s and early 80s,during which consumer prices rose at annual rates of 10-20 percent. Since 1982,Korea has managed to keep inflation down to a single digit. The ratio ofdomestic savings to GNP grew from 3.3 percent in 1962 to 34.9 percent in 1993.
Recent ChallengesBeginningin 1989, the Korean economy began experiencing slower growth, high inflationand a deterioration in the balance of payments. The GNP growth rate fell to 6.7percent in 1989 from the 12 percent level of previous years. A slump in thegrowth of the manufacturing sector, from 18.8 percent in 1987 and 13.4 percentin 1988 to 13.7 percent in 1989, contributed largely to this decline in GNPgrowth rate. The export growth rate on a customs clearance basis, which was 36.2percent in 1987 and 28.4 percent in 1988, fell to just 2.8 percent in 1989.Reflecting this fall in the export growth rate, the current account surpluslowered to around US$5.1 billion, a significant drop from the 1988 surplus ofUS$14.2 billion.
In1991, the economic growth rate showed signs of recovery. The GNP grew duringthe year 9.1 percent. However, most of this growth was attributed to anincrease in domestic demand, particularly domestic consumption. Exportsincreased 10.3 percent compared to 1990, while the growth rate of importsincreased 17.7 percent. The trade balance deteriorate rapidly to a US$7.0billion deficit in 1991 from the US$4.6 billion surplus in 1989. In addition,price stability, which had served to boost Korea’s competitiveness, weakened.Consumer prices, which had risen on an annual average of 2-3 percent between1984 and 1987, rose 9.3 percent in 1991.
Recent Economic Trends‘91
‘92
‘93
‘94. 1 <span Times New Roman""><span Times New Roman"">~
6GNP
GNP
Growth Rate in %
9.1
5.0
5.6
8.5
Manufacturing Sector
Growth Rate in %
9.1
5.1
5.0
10.0
Private Consumption
Growth Rate in %
9.5
6.6
5.7
7.2
Investment
Growth Rate in %
12.6
0.8
3.6
10.3
Equipment
Growth Rate in %
12.1
1.1
0.2
17.7
Prices
Producer Price
%
4.7
2.2
1.5
2.2
Consumer Price
%
9.3
6.2
4.8
6.2
Balance of Payments
7.0
2.2
1.9
1.6
Export
US$ bil.
69.6
75.1
81.0
43.1
Imports
US$ bil.
76.6
77.3
79.1
44.7
Current Account
Balance
US$ bil.
8.7
4.5
0.4
2.7
In 1992, the Korean economyrapidly cooled off, with the GNP growth rate dipping to 5.0 percent, influencedchiefly by blunted investment in capital goods. The consumer price index rosejust 6.2 percent, and the deficit in the balance of payments also dropped toUS$4.5 billion.
At that time, the Koreaneconomy faced many challenges on both the internal and external fronts. Part ofthe economic slowdown may be explained by the cyclical adjustment of theeconomy after three consecutive years of rapid growth. However, the stagnationwas more likely the result of a structural deterioration in competitiveness,due to a combination of the lingering legacies of the past government-ledeconomic management system, which had now become inefficient, and thedisappearance of the advantages derived from the once ample availability oflow-cost labor: Thus the country was forced to search for a new driving forcesufficient for sustained economic growth.
Major Tasks and Policy DirectionsTorevitalize the economy, the Kim Young Sam Administration, which wasinaugurated in February 1993 as thefirst civilian democratic government in over three decades, is endeavoring toconstruct a new developmental paradigm called “the New Economy”. This signals aclean departure from the past, when thegovernment directed and controlled the concentrated investment of capital,labor and other resources in selected “strategic” industrial sectors to achieverapid economic growth. Instead, the New Economy will promote the autonomyand creativity of all economic actors inorder to maximize efficiency, while ensuring the equitable distribution ofincome. In that way, it seeks to enable the nation to leap into the ranks ofthe developed nations within the next five years.
Asan initial step, the new Administration implemented a short-term 100-Day Planfor the New Economy in March 1993, designed to promptly create conditionsconductive to revitalizing the economy. This was followed by the development ofa new five-year economic development plan. Formally announced in July 1993, theFive-Year Plan for the New Economy was conceived primarily to lay the basis forjoining the ranks of advanced countries and thus to effectively prepare for theeventual unification of the Korean Peninsula.
TheGovernment will continue its efforts to ensure the effective implementation ofthe five-year plan through the spontaneous participation of the people byreforming economic institutions including the improvement or simplification ofexisting financial and tax systems and administrative measures. Furthermore,the Government will continue to endeavor to fully realized the nation’seconomic growth potential, strengthen its international competitiveness, andimprove the economic conditions of the public.
Ifthe plan is implemented as intended, the Korean economy is projected to changeas follows:
Firstwith increased efficiency and greater realization of growth potential, thegross national product should rise at an average annual rate of about 6.9percent, raising per capita GNP to US$14,076 in 1998.
Second,greater price stability should prevail as balance is maintained between themore steadily rising demand and the more briskly expanding supply, while wageincreases are linked to rises in productivity. The stabilization of the valueof the won currency should help stabilize the prices of imported goods andservices. The net effect should be to hold down the rise in consumer prices toan annual average of 3.7 percent, the increase in producer prices to an annualaverage of 1.6 percent and the rise in the GNP deflator to an annual average of4.6 percent.
Targets of the 5-Year Plan for the New Economy‘91
‘92
‘93
‘94
‘95
‘96
‘97
‘98
‘93-’98
GNP growth, %
8.4
4.7
6.0
7.1
7.2
7.1
7.0
7.0
6.9
Per capita GNP, US$
6,518
6,749
7,306
8,196
9,339
10,716
12,305
14,076
14,0762)
Rise in producer prices, %
4.7
2.2
1.8
1.8
1.7
1.6
1.5
1.4
1.6
Rise in consumer prices, %
9.3
6.2
4.9
4.3
3.7
3.6
3.2
2.9
3.7
Rise in GNP deflator, %
11.2
6.3
5.3
5.3
4.8
4.5
4.1
3.8
4.6
Balance on curren account,
8.7
4.6
1.4
0.9
2.1
3.7
5.3
5.32)
US$ billion
Exports 1) ,US$ billion
69.6
75.1
82.3
82.3
99.3
110.1
122.6
136.3
136.32)
Rate of increase, %
(10.2)
(7.9)
(9.5)
(9.5)
(10.2)
(10.9)
(11.3)
(11.2)
(10.4)
Imports, US$ billion
76.6
77.3
81.3
81.3
95.8
105.3
116.1
128.1
128.12)
Rate of increase, %
(17.5)
(1.0)
(5.1)
(5.1)
(9.3)
(9.9)
(10.2)
(10.3)
(8.8)
Note: 1)On a balance-of-payments basis
2) In terms of 1998 current marketprices
The Real name Financial Transaction SystemOn August 12, 1993, the Presidenttook a decisive step toward revitalizing the economy and eliminating corruptionby announcing the inplementation of the long-anticipated real-name financialtransaction system. In the past, it had been possible to open accounts andconduct business transactions under false names, directly and indirectlyfostering institutionalized-corruption and illegal financial dealings. Deemingthis reform as the most important in the creation of a New Korea, the Presidentannounced this action in a Presidential Emergency Decree, stating that thereal-name system was essential for cutting the dark link between politics andbusiness.
Withthe introduction of the real-name financial transaction system, it appears thatfinancial dealings are becoming fullytransparent and underground economic dealings and nonproductive landspeculation are diminishing. It is hoped the funds that had been channeled intopolitical circles in the past as a result of government-business collusion arenow available for more productive activities.
Encouraging SignsTheimplementation of a real-name financial transaction system, the easing ofadministrative controls, expanded capital investment by major enterprises, andincreased financial and administrativesupport for small-and medium-sized enterprises all combined to lay a solidfoundation for another economic take-off. Exports rose 7.6 percent in 1993 toUS$82.4 billion, while imports grew just 2.5 percent. Korea was thus able toregister a US$600 million trade surplus last year for the first time in fouryears. The current account also yieldeda surplus of US$200-300 million. Industrial production has been growing at about a 10 percent rate duringthe first half of 1994. Furthermore, labor disputes decreased markedly lastyear, while the composite stock index of the Seoul Stock Exchange climbedmarkedly. In view of these indications, the Korean economy seems to be well onthe way to revitalization.
External Policies for Greater International CooperationImport Liberalization
Koreais committed to fulfilling its international responsibilities. It positivelysupports the trend toward openness and utilizes it as a catalyst for furtherenhancing the international competitiveness of industry and thus speeding theadvancement of the economy, so that it can join the group of advancedcountries.
Since1980, Korea has made continuous efforts toward import liberalization. Theimport liberalization rate increased from 68.6 percent in 1980 to 98.1 percent in 1993. The averagetariff rate decreased from 24.9 percent to 8.9 percent during the same periodand is expected to be only 7.9 percent by the end of 1994, the same averagelevel of tariffs found in OECD member countries.
InOctober 1989, Korea decided to relinquish GATT balance of payments protectionwhich mostly covers agricultural products. According to the decision Korea willmove to eliminate its remaining restrictions or otherwise make them conformwith GATT rules by July 1, 1997.
Liberalizing Foreign Exchange Transactions andCapital Markets
InJune 1993, the Korean Government made public the third-phase of the blueprintfor financial liberalization and internationalization, which was implementedfrom the second half of 1993. Under the plan, procedures for various foreignexchange transactions are being gradually simplified. Beginning in 1994, theceiling on foreign investment in the stock market will be gradually raised, andthe bond market will also be gradually opened to foreign investment. Initially,from 1994 foreign investors will be allowed to purchase convertible bonds, eventhose issued by small-and medium-sized domestic enterprises.
Foreign-investedfirms engaged in the manufacture of high-tech products or banking and otherservices are currenlty allowed to induce foreign credit repayable within threeyears. Beginning in 1997, the liberalinducement of foreign credit by both domestic and foreign-invested enterpriseswill be allowed.
Increasing Opportunities for Foreign Investors
InJune 1993, the Korean Government also announced a five-year plan forliberalizing foreign investment. Under the plan, 132 of the 224 business linescurrently being protected from foreign competition will be opened to foreigninvestment in five phases, over a period of five years starting from July 1993.With the implementation of this plan, of the total 1,148 business lines underthe standard industrial classification of Korea, 1,056 will be open to foreigncompetition. This means that the foreign investment liberalization rate willrise from 83 percent as of June 2, 1993 to 93.4 percent by 1997.
Includedamong the business lines to be opened to foreign competition under the plan aremost of the service industries including distribution and transportation,hospital management, vocational training and “value-added” communications.
Thebusiness conditions for foreign-invested firms will also be greatly improvedthrough various measures, including relaxed control on the acquisition of landby foreign-invested firms, the augmented protection of foreign intellectualrights, and other similar steps.
Cooperation with the Rest of the World, Including Developing Nations andSocialist CountriesExpandingTrade and Economic Exchanges
The Republic of Korea hasemerged as a major global trader by steadily pursuing freer trade and greateropenness, while promoting its business presence around the world. In the past,Korea’s foreign trade concentrated on the developed world — mainly the UnitedStates, Japan and the EU. In more recent years, however, it has rapidlyexpanded trade and capital cooperation with Southeast Asia, former and presentsocialist countries and Third World nations as well.
Especiallysince the 1988 Seoul Olympics, economic interactions with the former Sovietrepublics have been brisk. The Republic of Korea is also increasing its supportof economic development efforts in the Third World on the basis of its morethan three decades’ experience with successful domestic development.
Thenation will continue to pursue expanded and more diversified trade and topromote economic cooperation on a long-term basis with the rest of the world,taking into consideration the individual economic characteristics of eachcountry.
Withthe United States, the Republic of Korea will pursue not only expandedbilateral trade and increased mutual private investment and technologicalcooperation but also government-to-government cooperation in industrialtechnologies. As for Japan, the Republic will pursue Forward-lookoing practicaleconomic relations and will, in particular, strive to attract Japaneseinvestment more effectively. Since Korea does not have serious trade issueswith the EU it will focus on promoting overall economic cooperation, includingmutual investment and industrial and technological cooperation.
Withthe dinamically growing Asian economies, such as China and Southeast AsianNations, the Republic of Korea will endeavor to continue to expand two-waytrade, especially by helping to meet their expanding needs for capital goods andintermediate products to support their continuing rapid development, whileincreasing imports from them as much as possible. The nation will alsoencourage Korean business investment in these countries and make efforts tobuild an industrial structure complementary with theirs.
TheRepublic of Korea is increasing its official development assistance todeveloping countries proportionate to its economic strength. In this, effortsare being made to combine such assistance with private Korean investment, withthe aim of maximizing its effect, while developing two-way trade and othereconomic ties on a long-term basis.
Economicties with the Commonwealth of Independent States and East European countrieswill continue to focus on commercial applications of their high technologies and other forms oftechnological cooperation and joint development of natural resources.
Korea Tradewith and Investment in Various Countries and Regions
Country or Region
Trade (US$ bil.)
Investment (US$ mil.)
1987
1993
1987
1993
U.S.A.
27.1 (30.7)
36.1 (21.7)
165.3 (40.3)
380 (30.3)
Japan
22.1 (25.0)
31.6 (19.0)
1.4 (0.3)
6 (0.5)
EU
11.2 (12.7)
19.6 (11.8)
6.5 (1.6)
157 (12.5)
China
1.7 (1.9)
9.1 (5.5)
6.0 (1.5)
260 (20.7)
Southeast Asia
8.9 (10.1)
27.8 (16.7)
130.5 (31.8)
179 (14.3)
Note:Figures in parenthesis represent percentage of the total.
Active Participation in Multilateral Economic Forums
Korea has actively participated in virtually allmajor multilateral forums. During the Uruguay Round of trade talks, finallyconcluded in December 1993, Korea tried to make conrtibutions commensurate withits capabilities as a major world trading power, and play a mediating rolebetween the developed and developing countries. Korea introduced variousproposals in the Uruguay Round negotiations to reduce tariffs, eliminatenon-tariff barriers, liberalize the textile trade, improve safeguards andreduce subsidies and countervailing duties.
TheRepublic of Korea is actively participating in global efforts to protect theenvironment, a crucial task facing all of humanity. Inrecent years it has joined the Convention on Climate Change, the BaselConvention on the Control of Transboundary Movements of Hazardous Wastes andtheir Disposal, the Convention on the Prevention of Marine Pollution by Dumpingof Wastes and Other Matter, also called the London Dumping Convention, theConvention on International Trade in Endangered Species of Wild Fauna andFlora, and the Convention on Biological Diversity.
Koreahas also begun an informal dialogue with the Organization for EconomicCooperation and Development (OECD) and has expanded participation in itsvarious committees. Korea hopes and intends to improve its economic systems tothe level of advanced countries so as to join the OECD in 1996.
Oneorganization in which the Republic of Korea has played a particularly criticalrole has been the Asia-Pacific Economic Cooperation (APEC) forum, a forum formultilateral discussions on economic issues concerning the Asia-Pacificregion.Two examples of Korea’s valuable efforts have been the “SeoulDeclaration” adopted at the third APEC Ministerial Meeting hosted by theRepublic which laid the foundation for the institutionalization of APEC, andits diplomatic role in bringing China, Taiwan and Hong Kong, three key regionaleconomic powers, into the APEC fold, giving the forum a new impetus.Subsequently, the Republic played a leading role at the first APEC LeadersEconomic Meeting in Seattle in November 1993, which coincided with the fifthAPEC Ministerial Meeting, and was elected the chair member of the Committee onTrade and Investment (CTI).
ConclusionTherise of the Korean economy over the past several decades, often called the“Miracle of the Han”, has been an inspiring model of modern economicdevelopment. The rapid pace with which the Koeran economy rose from the ashesof war and expanded stunned the outside world. However, this rapid growth wasnot unaccompanied by growing pains which began to manifest themselves in allsectors of society particularly during the late 1980s. Excessive wage hikes,high capital costs and an overly bureaucratic administration, not to mentioninstitutionalized corruption, served to weaken Korea’s internationalcompetitiveness, and this was aggravated by unfavourable externalcircumstances. In the past year, though, strenuous efforts have been made toovercome these impediments and throughthis, as well as improving international economic climate, it appears that theKorean economy is regaining its former vigor. The upcoming years pose severe challenges for the Republic in lightof the December 1993 conclusion of theUruguay Round and the rise of the Asia-Pacific region as the new global economiccenter, but with the increasing emphasis in both the public and private sectoron globalization and internalization, the Republic seems braced to meet thesechallenges.
REFORM TOWARD A NEW KOREA<span Times New Roman",«serif»;font-style:normal">TheBasic Goals and Reform Process of the Kim Young Sam AdministrationWhatare the vision and goals of the Administration of Kim Young Sam, inaugurated on February 25, 1993. In anutshell, the answer is the “creation of a New Korea” through “Reform AdmistStability.” This concept was the keynote of the President’s inaugural addressas well as the main slogan of his presidential election campaign in December1992.
“Ihave a dream. It is the creation of a New Korea in which a new politics, a neweconomy and a new culture will bloom. This is my dream and vision; it is thedream and vision of all our people.” This quotation appears in the book, “Kim Young Sam: New Korea 2000,”published in Korea in October 1992 prior to the presidential election.
Inhis inaugural speech on February 25, 1993, President Kim Young Sam defined thethree major priorities of his policies to create a New Korea: the eradicationof social injustice and corruption, the revitalization of the national economyand the establishment of officialdiscipline and public order.
ThePresident declared that the eradication of corruption was a vital foundationfor reforms in every sector of the country, and that there would be nosanctuary from the investigation of misconduct. The movement to establishofficial discipline and public order, which began with high-ranking governmentofficials, is intended to ensure integrity and high ethical standards by“purifying the upper reaches of the stream,” i.e., the upper levels ofgovernment and society.
Themain purpose of these reforms is to revitalize the nation and elevate theoverall standard of living. President Kim Young Sam has thus pushed ahead withfirm determination since his inauguration, bringing about enormous changes inthis country.
Fromthe very start of his Administration, President Kim Young Sam concentrated oneliminating corrupt practices and behavior which arose from decades ofauthoritarian rule. This kind of housecleaning was unhead of in the past.President Kim believes, and popular opinion supports him on this, that suchreform must be carried on without letting up in the interest of the long-termstability and economic development of Korea.
<span Times New Roman",«serif»;font-style:normal">TheConcept of a New KoreaThecreation of a New Korea means the building of unified, fully mature democraticstate. To that end, drastic changes and reforms are being pursued to raise thequality of life for all those who were sacrificed in the blind quest for rapidgrowth over the past 30-odd years.
Whatwill the future New Korea be like? Korea’s first non-military President since1961, President Kim in his inaugural address said the New Korea will be:
·<span Times New Roman"">
A freer and more maturedemocratic society.·<span Times New Roman"">
A community where peopleshare, work and live together in harmony. A higher quality of life willflourish and the dignity of the individual will be upheld.·<span Times New Roman"">
A state where justice flowslike a river throughout the land. In other words, it will be a just society inwhich honest and earnest individuals live well.·<span Times New Roman"">
A new country in which humandignity is respected and culture is valued.·<span Times New Roman"">
A unified land where thepresently divided people live in peace as one.·<span Times New Roman"">
And, it will stand tall andproud on the center stage of the civilized world, making vital contributions toglobal peace and progress.<span Times New Roman",«serif»;font-style:normal">Curingthe Korean DiseaseThe problems which arewidespread in Korea today are often referred to as the Korean disease: (1)Korean industriousness and ingenuity — long the envy of the world — seem to beevaporating, (2) values continue to erode, due to injustice, corruption, lethargy,bigotry, inertia, strife and confrontation, and narrow self-interests, and (3)self-confidence has been lost and defeatism has set in.
Tocreate a New Korea, the new Administration has been vigorously addressing thesesymptoms through drastic change and reform. The President outlined the goals ofthese changes and reforms in his inaugural address: (1) the establishment of anew era of courage and hope by shaking off frustration and lethargy, (2) thereplacement of bigotry and inertia with openmindedness and vitality, strife andconfrontation with dialogue and cooperation, mistrust with trust, and (3) the buildingof a society which sees all citizens not only living together but also trulycarring about one another, discarding narrow self-interests.
<span Times New Roman",«serif»;font-style:normal">ThreeTasksThe President outlined threeessential tasks in his inaugural address.
First,misconduct and corruption must be rooted out. He defined misconduct andcorruption as the most terrifying enemies attacking the foundation of society,and called for an end to all manner of impropriety and graft, allowing nosanctuary. He called for immediate reform starting from the very top.
Second,the economy must be revitalized. He vowed that the new Administration would doaway with unwarranted controls and protection and instead guaranteeself-regulation and fair competition. “Private initiative and creativity willthus be allowed to flourish”. He went on to say. “The Administration will bethe first to tighten uts belt. Our citizens must also conserve more andsave more. Extravagance and wastefulnessmust be eliminated… Only when theGovernment and the people, and labor and business work together with enthusiasmwill it be possible to turn our economy around...”
Third,national discipline must be enhanced. “Respect for authority must bereestablished… Freedom must serve society… The true meaning of freedom isin using it to plant a flower in the park rather than picking a flower from thepark.” The President also said, “Ethics… must be made to prevail. To thisend, education must henceforth cultivate wholesome character and unwaveringdemocratic belief, as well as equip our young people for the future withknowledge and skill in science and technology...”
<span Times New Roman",«serif»;font-style:normal">Fourmajot Goals of the New AdministrationThefour major goals of the Administration are clean government, a sound economy, ahealthy society and peaceful unification.
Cleangovernment means a government free ofcorruption and injustice. There is a saying that the lower reaches of a riverwill be clean only when the upper reaches are kept clean. The President isdetermined to keep the upper reaches of the stream clean, and all the Cabinetmembers and high-ranking public officials will join in this effort so that thepublic will have confidence in the Government.
Thecampaign to keep the upper reaches of the stream clean means reforms from thetop. The new Government has required high-ranking public officials to registerand make public their personal assets to discourage the illegal accumulation ofwealth under the Public Officials’ Ethics Law. The President himself has madepublic his own assets and has said that he would not accept politicalcontributions.
Asound economy means a New Economy free of unwarranted controls and protection — an economy which guarantees self-regulation and fair competition and encouragesthe private initiative and creativity necessary for economic revitalization.The economy has been marked by quantitative growth in the past three decades;now it needs qualitative development. In order to develop New Economy, Koreamust (1) establish a liberal market system, (2) liberalize financing, (3) decentralizeeconomic power and (4) promote economic reforms.
TheNew Economy emphasizes concentrated efforts for the renovation of science andtechnology. In the 21st century, the strength of nations will be measured bythe development of science and technology. It is for this reason the newAdministration is sharply raising research and development expenditures.
PresidentKim Young Sam announced on August 12, 1993, implementation of real-name systemfor all financial transactions to assist in the realization of economic justiceand clean government. The new Administration also has a f