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
 In addition to the 46 million
people in South Korea and 23
million in the North, some 6 to 7
million people of Korean
descent, or approximately 10
percent of the population of the
two Koreas combined, live
outside the Korean peninsula. In
proportion to the population of
the home country, the Korean
“diaspora” comprises one of the
largest groups of emigrants
from anywhere in Asia.
Buddhist
Hard working
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)
 Secretary of State Dean Acheson neglected to
include Korea in the US sphere of influence in
Asia.
 Kim Il Sung took initiative to invade the South
(1950)
 not Stalin but Stalinist
 War ends 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
 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
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
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
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)
 Through the chaebols, South
Korea emerged as an export
leader of the world
 Import raw materials to
manufacture exports
 Industrialization and Service
Economy
 Higher standard of living
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better education
more material possessions
increased leisure time
GDP skyrockets from third
world equivalent to Western
European standards
Emerging Globalization
(Disadvantages)
 Profits appease populace as
long as they are positive
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
 lower credit rating
 chaebol oversight and
accountability low
 Democracy swiftly corrected
recession
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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, cold
Natural resources
Cold
Authoritarian
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
 Nationalization versus Chaebol
 “people’s” property versus the highly
private chaebol
 while abuses in both, higher standard of
living obvious only in one
 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
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.