The Korean Miracle The story of South Korea’s exceptional growth has been described by "The Economist" as a "from barefoot to broadband" journey. Slowly emerging in the early 1960s from a fratricidal war and devoid of natural resources, the country was poor and utterly dependent on American financial and military aid. Since 1962, however, gross domestic product has grown steadily and average per capita income has increased 100 times. Once a major recipient of development aid, today South Korea is a proud member of the exclusive club of donor countries. Yet relatively little is known about South Korea, besides its penchant for digital technology and sport utility vehicles and the meteoric rise of Psy and his Gangnam Style. The author describes the roots of the country’s success – the importance of long-term planning; the role of Samsung, LG, Hyundai and other large industrial conglomerates; the primacy of education – and points to its limits – the chaebols’ ability to hinder potential competitors, rising inequality, and a fast aging population. South Korea’s vitality is already a source of inspiration for many developing economies and its journey offers lessons for Italy and Europe more broadly. Keywords: Korea, economic development, chaebol, hallyu. JEL Classification: L22, L53, O14, O53, P10.
Description:
The Korean Miracle The story of South Korea’s exceptional growth has been described by "The Economist" as a "from barefoot to broadband" journey. Slowly emerging in the early 1960s from a fratricidal war and devoid of natural resources, the country was poor and utterly dependent on American financial and military aid. Since 1962, however, gross domestic product has grown steadily and average per capita income has increased 100 times. Once a major recipient of development aid, today South Korea is a proud member of the exclusive club of donor countries. Yet relatively little is known about South Korea, besides its penchant for digital technology and sport utility vehicles and the meteoric rise of Psy and his Gangnam Style. The author describes the roots of the country’s success – the importance of long-term planning; the role of Samsung, LG, Hyundai and other large industrial conglomerates; the primacy of education – and points to its limits – the chaebols’ ability to hinder potential competitors, rising inequality, and a fast aging population. South Korea’s vitality is already a source of inspiration for many developing economies and its journey offers lessons for Italy and Europe more broadly. Keywords: Korea, economic development, chaebol, hallyu. JEL Classification: L22, L53, O14, O53, P10.