Over the past three decades, mankind had the opportunity to watch some developing countries that showed the world some economic miracles. Of course, we are talking about young and most developed countries, which in 1960s-1970s stood out and formed a group, called New Industrializing Countries. This group is constantly updated, and now it consists of about a dozen countries and territories. South Korea is one of such countries.
The rapid economic growth of the Republic of Korea is associated with high rates of GDP growth, which reached 8.6% in the period from 1962-1988 and the conversion of traditionally agricultural country into an industrial one, among the achievements of which is the GDP level per capita of the population, which is more than $ 5000. Korea is the 13th in the list of the leading trading nations of the world.
The rapid economic growth of South Korean was affected by a variety of factors – both objective and subjective, political and economic, internal and external (export-oriented; interaction with the outside world; development strategy; favorable international economic climate of 1960s-first half of the 1970s; strong and effective leadership in the face of authoritarian governments that postponed democratic and political reforms in favor of economic development; comparatively low cost of maintenance of the military and industrial complex; attracting foreign investment; ethnic and cultural uniformity, as well as the Confucian tradition, which gives a special value to hard work, education, success in life and devotion to their nation.
Government adopted new laws and thoroughly reviewed the existing ones, as well as took a variety of policy measures in order to increase savings, expand exports, promote investment of both domestic and foreign private capital, and attracts investment and technology from abroad. The government has done its utmost to create the social infrastructure such as roads, dams, ports, railways and schools. The government was often asked to take on the risk associated with investment activities of private entrepreneurs by providing guarantees for external loans used to cover large-scale projects costs.
It is clear that in the modern conditions of highly developed division the basis of any regulatory measures is the circulation of money. In Korea, the achievement of financial and monetary balance has been given high priority. Even in years of significant economic problems currency, inflation, the state budget deficit was not out of state control. A central role played a state monopoly in the credit and financial system.
Over the past three decades, mankind had the opportunity to watch some developing countries that showed the world some economic miracles. Of course, we are talking about young and most developed countries, which in 1960s-1970s stood out and formed a group, called New Industrializing Countries. This group is constantly updated, and now it consists of about a dozen countries and territories.