Transcript North Korea and South Korea:

North Korea and South Korea:
Different Perspectives
One peninsula with one
nationality who share a
common history and
culture.
Two countries with
different governments
and economic systems.
Warm Up - Korea
What nations have influenced the culture
and history of Korea?
Why are U.S. soldiers in Korea?
Why does North Korea have a lower
standard of living than the south?
What divides Korea?
What organizations dominate the South
Korean economy?
Geography of Korea
Mountainous
Peninsula
Strong neighbors
China
Japan
Russia
Divided by DMZ
Korean People
46 million people in
South Korea
Buddhist
23 million in the
Hard working
North,
6 to 7 million people
of Korean descent, or
approximately 10%,
live outside the
Korean peninsula.
We call this a
diaspora.
North and South Korea
 How are North
Korea and South
Korea similar?
How are North
Korea and South
Korea different?
Is the south a
true democracy?
20th Century in Korea
Controlled by Japan
until 1945
Divided by
superpowers during
Cold War
North invades south
in 1950
Cease fire results in
divided country
28,500 military
personnel from U.S.
stationed in South
Korea.
History: Korean War
 Soviets and Americans decide to divide
Korea into their own sphere of influence
 North and South (1948)
 Kim Il Sung took initiative to invade the
South (1950)
not Stalin but Stalinist
 War ends in stalemate, 38th
parallel, DMZ
Both countries are ruined in the similar
manner
Ideal comparison
Each embraces different ideology:
totalitarian vs. authoritarian
China and United States
North Korea is an
ally of China and
Russia
South Korea still
has U.S. troops
Two million
soldiers on
peninsula!
Path to Globalization
Following the Korean War, a
decade of political turmoil begins
First President Syngman Rhee
ousted from office (1960)
rigged elections for vice president
cause student riots
Path to Globalization
Democracy not initiated
military coup d’etat, Park Chunghee
takes over
Government in south not democratic
Park Chunghee begins to build South
Korea into economic power
stablity but still not democratic
tool: chaebol – multinational
corporation
Park’s Economic Plans for
Chaebols
 creation of export-oriented industries
 creation and fostering of heavy industry
 maintenance of anti-union behavior
 protection of domestic market
pegging won to dollar
 chaebols are major force in the South
Korean economy
1960’s to 1990’s
big enough to utilize limited resources
effectively
government contracts and subsidies
Chaebol System
Conglomerate
large corporation with many
unrelated subsidiaries
centrally planned though
private
lack of input from minor
shareholders
financial security for all
companies involved
Top Chaebols in South
Korea
 Hyundai
Automobiles
Engineering, construction, shipbuilding and
industrial activity
Finances
 Samsung
Electronics
Petrochemicals
Construction (Petronas Towers in Malaysia)
 LG
Home appliances and electronics
Petrochemicals and chemicals
Emerging Globalization
(Advantages)
 South Korea emerged as an export
leader of the world
Import raw materials to
manufacture exports
 Industrialization and Service
Economy
 Higher standard of living
better education
more material possessions
increased leisure time
GDP skyrockets from third world
equivalent to Western European
standards
Emerging Globalization
(Disadvantages)
 Profits appease populace
 But, economic downturn leads to civil
disobedience and revolution
no democratic process or
structure to deal with problems
political stability dependent on
economic situation
authoritarian until 1987, numerous
revolutions, undemocratic
chaebols are undemocratic by
nature
Decline of Chaebols
 Ultimate decline of chaebols
Too big to manage effectively
Core competency (unrelated
industries)
 Decline
rise in labor cost
standard of living
competition from other Asian
countries (China)
cheaper workforce
 Effect
lower of standard of living to match
competitiveness
contributed to South Korea’s
economic crisis (1997)
Globalization (Financial
Crisis)
 Convergence of misfortunate
economic events
banking sector was burdened
with non-performing loans
excess debt
chaebol oversight and
accountability low
 Democracy swiftly corrected
recession
1998: GDP: -6.6%
1999: GDP: 10.8%
2000: GDP: 9.2%
allowed for greater input of
populace
South Korea Conclusion
Globalization
started to higher wages
demands for social reforms
South Korea became less
competitive
Ironically, the good of globalization
caused the bad
One people, two countries
North Korea
South Korea
23,000,000 people
P’yongyang
Mountainous
Natural resources
Cold
Totalitarian
Command
47,000,000 people
Seoul
Densely populated
Import resources
Warmer
More Democratic
Capitalist
Korea…North or South?
North Korea
Few civil rights
Government
controls economy
Shortages
Nuclear weapons
Mr. Kim
South Korea
Open society
Labor unions
Large corporations
Higher standard
of living
Export products
Korea…North or South
North Korea
Hydroelectric power
– rivers (71%)
Nuclear weapons
 Life expectancy – 68.68
 GDP per capita $1,800
 State religion – cult of
personality
 4th largest army in world
South Korea
Nuclear power for
electricity 36%
Life expectancy –
80.87
 GDP Per capita $22,590
 Buddhist
 Fewest guns per capita
History: North Korea
After Korean War,
Kim Il Sung takes
over
Juche (self-reliance)
closed all capital
flow
"the hermit
kingdom”
History: North Korea
Militarization versus Chaebol
 Kim Il Sung diverted 33% of the economy
for military instead of economic reform
(South Korea, 3%)
 22 million population, 1.2 million military
 most able-bodied men of society go into
military
 famines every year, starving people
Nationalization versus Chaebol
 “people’s” property versus the highly
private chaebol
 while abuses in both, higher standard of
living only in one
North Korea: Economics
 Refusal to join global markets
through Juche – state
mandated belief system
lower standard of living
Police state: complete lack of
democratic institutions
Army needed for government’s
lacking legitimacy: massive
famines
Significant portion of GDP
used for making the military
bigger, not consumer goods
Conclusion
North Korea is the best example of
complete nonacceptance of globalization
and capitalism.
While South Korea experienced problems,
it is now on a democratic path with an
economy that is substantially better.
The Korean peninsula is inhabited by one
people but divided into two very different
countries.
Homework - Essay
Question – “Should the United States
continue to station our soldiers in South
Korea?”
Decide your position and list three
reasons and supporting facts.
Develop your reasons into a five
paragraph essay.
Introduction, three supporting
paragraphs, conclusion.