North Korea and South Korea:

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Transcript North Korea and South Korea:

North Korea and South Korea:
Different Perspectives on
Globalization and Its Effects
History: Korean War
 Soviets and Americans decide to divide Korea
into their own sphere of influence Post WWII
 North (U.S.S.R) and South (U.S.) 1948
Kim Il Sung took initiative to invade the South
(1950-1953 Korean War)
War ends ends in stalemate: “Cease Fire”
 38th parallel, DMZ (Demilitarized Zone)
 Both countries are ruined in the similar manner
 Ideal comparison
 Each embraces different ideology:
totalitarian –Communist North Korea
Authoritarian- Democracy South Korea
Path to Globalization
 Following the Korean War, a decade of political turmoil
 First President Syngman Rhee ousted from office (1960)
rigged elections for vice president cause student riots
 Democracy not initiated
military coup d'état, Park Chunghee takes over
 Park Chunghee begins to build South Korea into
economic power
stability but still not democratic
Chaebol System (Illegal in U.S.- Anti
Trust laws)
Conglomerate Organization
large corporation with many
unrelated subsidiaries
centrally planned though
privately operated
lack of input from minor
shareholders-FASTER ACTING
financial security for all
companies involved
Park’s Economic Plans for
 creation of export-oriented
 Clothing
 Automobile
 creation and fostering of
heavy industry
 maintenance of anti-union
Keep wages low
Keep prices low
 protection of domestic
market (Tariffs)
 chaebols are major force in
the South Korean economy
Top Chaebols in South
 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
History: North Korea
 After WWII Kim Il Sung controls
 Nationalization versus Chaebol
 “people’s” property versus the
highly private chaebol
 while abuses in both, higher
standard of living obvious only in
 Juche (self-reliance)
 closed all capital flow
 "the hermit kingdom”
 Militarization versus Chaebol
 to secure power Kim Il Sung diverted a
third economy for military instead of
economic reform (South Korea, 3%)
 22 million population, 1.2 million military
 wastes the most able-bodied men
of society with unproductive job
 famines every year, starving people
North Korea: Economics
 Refusal to join global markets lower
standard of living
 police state: complete lack of
democratic institutions
 army needed for government’s lacking
legitimacy: massive famines
 Notable exceptions to global markets
 Drugs (Opium)
 Arms Trade Nuclear to terrorists?
 Significant portion of GDP
used for making the military bigger,
not food