How did Korea get this rich so fast?! 50 years ago or so it was a mudpit!

How did Korea get this rich so fast?! 50 years ago or so it was a mudpit!

Thanks to our charismatic president Park Chung Hee (1917-1979). He was formerly an army general, became acting President of South Korea in 1961 at the head of a military junta. Then he was elected to the office in 1963 and re-elected four times, although opponents accused him of rigging the last three contests. President Park Chung Hee often used repressive methods, but he did much to transform South Korea into an economic powerhouse. He was assassinated in 1979, by the director of his own intelligence agency. If he was not assassinated in 1979 but ruled our country (even though he is a dictator) South Korea could have enter the G8 (or G6, G7, G9 so on....)

http://www-cgsc.army.mil/carl/resources/csi/Bolger/IMAGES/004.JPG
http://www.sungshin.ac.kr/~yann/images/Parkchunghee.gif
(at left) President Park when he was former army general.....
http://english.chosun.com/media/photo/news/199912/199912270381_00.jpg

Thanks to our charismatic president Park Chung Hee (1917-1979). He was formerly an army general, became acting President of South Korea in 1961 at the head of a military junta. Then he was elected to the office in 1963 and re-elected four times, although opponents accused him of rigging the last three contests. President Park Chung Hee often used repressive methods, but he did much to transform South Korea into an economic powerhouse. He was assassinated in 1979, by the director of his own intelligence agency. If he was not assassinated in 1979 but ruled our country (even though he is a dictator) South Korea could have enter the G8 (or G6, G7, G9 so on....)


Well, as controversial as Pres. Park was, he actually contributed so much in restoring South Korea's economy from an agarian society to an industrial society. He actually set up an foundation to help South Korea's economy where it is right now.

Actually, G8 is somehow sucky,,,
South Korea can be fit in G7 few years later.

Actually, G8 is somehow sucky,,,
South Korea can be fit in G7 few years later.
I know that this article may be too long but it might bring some light about Korea's chances to enter the G-10.

Will Korea Join G-10?

By Cho Hyung-kwon
Staff Reporter

Although South Korea now boasts the 12th largest economy in the world, the question remains whether it can join the G- 10 industrialized countries over the next 50 years. The answer is quite negative, at least according to projections made by Goldman Sachs and McKinsey.

The Group of Seven (G7), an organization of the world's seven biggest industrialized countries, is currently made up of the United States, Japan, the United Kingdom, France, Germany, Italy and Canada.

But in 50 years, this could all change and the world's largest economies may well be represented by their land mass. While China, Russia and Brazil - three of the world's biggest countries - are still well behind the industrialized nations in terms of economic size, they are expected to warrant themselves as the six largest economies by 2050.

By then, with the exception of the U.S. and Japan, the G7 may look very different from now as the list of the largest economies based on gross domestic product (GDP) will likely include China, Russia, Brazil and India.

Goldman Sachs, the global investment bank, released a report in early October concerning the rise of the BRICs economies - referring to Brazil, Russia, India and China by their initial letters - as a formidable force in the world economy over the next 50 years.

Goldman said that in 2050, China would become the largest economy in the world, followed by the U.S., India, Japan, Brazil and Russia.

"By mapping out gross domestic product (GDP) growth, income per capita and currency movements in the BRICs until 2050, we find that the BRIC economies together could be larger that the G6 (excluding Canada from the G7) in U.S. dollar terms," said Dominic Wilson and Roopa Purushothaman, economists at Goldman.

"Currently, the BRIC economies account for less than 15 percent of the size of the G6 but by 2025, they could account for over half the size of the G6," they said.

Goldman forecast that China could overtake Germany in the next four years, Japan by 2015 and the U.S. by 2039.

It added that India's economy could be larger than all but the U.S. and China in 30 years while Russia would overtake Germany, France, Italy and the U.K.

"The key assumption underlying our projections is that the BRICs maintain policies and develop institutions that are supportive of growth, since each BRICs faces significant challenges in keeping development on track," Wilson said.

"If these economies can fulfill their potential for growth, they could become a dominant force in generating spending growth over the next few decades," he added.

While China's growth potential is no surprise, the rise of Russia, India and Brazil as the largest economies could be, and this shift in the balance of the global economies will certainly bring vast changes in the economic activity of the rest of the world.

Where Does Korea Stand? If the BRICs do become as important as Goldman Sachs projects, what are the possible implications for Korea and what should it do to benefit from the BRIC economies?

"Korea lies in between the BRICs and G6 in terms of income levels, so would have greater growth potential than the G6 economies and should show further convergence with them,"

Wilson told The Korea Times. "I think Korea, like many of its Asian neighbors, would potentially be a big beneficiary of continued strong growth in Asia.

By 2050, on our projections, three of the six biggest economies in the world (Japan, China, India) - four if you include Russia - would be in Asia and new demand growth from this source could be even more important," he said.

"Korea is already benefiting from its growing role as a supplier and trading partner of the Chinese economy. Sustained growth in China, and more dynamic growth in India and Russia would cement the region's role as an important growth area and provide opportunities for Korean and Asian economies as suppliers to that growth story,"he noted.

And despite the rapid growth of the BRICs, individuals in the four countries are still likely to be poorer on average than individuals in the G6 economies by 2050, Goldman Sachs said.

"The largest economies in the world by GDP may no longer be the richest by income per capita as China's income per capita could be around what Korea's is today by 2030," Wilson said.

In fact, according to Goldman's projections, by 2050, only Russia ($49,600) would overtake Germany ($48,950) and Italy ($40,900) in terms of income per capita. China ($31,300), Brazil ($26,600) and India ($17,400) would still remain relatively poor by individual income compared to the G6. In 2050, the income per capita of the U.S. is expected to reach $80,000.

McKinsey & Company recently said that Korea's GDP/capita could be among the top Organization for Economic Cooperation and Development (OECD) countries by 2010.

So Korea is likely to remain one of the largest economies in world by 2050, although it will still not be invited to the top 10. And its income per capita is also likely to be among the highest in the world despite being overtaken by Brazil, Russia and India by total economic size.

However, McKinsey & Company noted that while the BRICs could provide opportunities, they and the ASEAN nations could also become Korea's rivals in the future.

The consulting firm said China and especially India could emerge as the biggest challenges for Korea.

"India's consumer aspirations are changing fast with larger credit card base and higher mobile phone subscriptions while the country is on the verge of an information revolution," according to a McKinsey & Company.

"It also has one of the best talent pools in the world and has made use of its chances to give birth to a number of competitive companies," it added.

McKinsey & Company outlined some of the steps Korea needs to take in the next 50 years so that it remains a relevant economic force in the world.

"Korea needs to modernize the labor-management relationship, improve the depth, breadth and quality of the capital markets and deregulate the service sector to increase its significance in our economy," the firm said.

It also called for educational reform, globalization of the public mindset and the development of Korean global corporate leaders.

The BRIC economies will change how the global economy looks in 50 years and Korea is expected to benefit from the growth opportunities of these countries but it also needs to implement and adopt appropriate measures if it does not want to be left behind.

kevincho@koreatimes.co.kr

11-04-2003 16:36

GDP of South Korea ranked at 11th.

anyway, Hopefully, Korea keeps its growing .

and all thanks to the best president (and perhaps the only good president) of korea, Mr. Park Chung Hee
i REALLY hope his daughter, 박근혜 (i dunno how to spell her name in english...) be the president of Korea. She would boost the country up

and all thanks to the best president (and perhaps the only good president) of korea, Mr. Park Chung Hee
i REALLY hope his daughter, 박근혜 (i dunno how to spell her name in english...) be the president of Korea. She would boost the country up

His daughter's name in English is Park Geun Hye. This is what she looks like:
http://www.hannara.or.kr/hannara/img/info/greating/img_park.gif

Interesting article.

http://www.koreaherald.co.kr/img/pic/top_logo_pic50.gif

Parties debate: Cut taxes or spend more?

Rival political parties are engaged in a heated debate over how to prop up domestic demand amid growing concern that Asia's fourth-largest economy may fall into a longer recession.

The ruling Uri Party yesterday proposed a sharp increase in government spending next year to revitalize investment and consumption, even at the risk of a budget deficit.

"The government's current budget draft for 2004 is not enough to cope effectively with a recession," Uri chief policymaker Hong Jae-hyong said.

"The party plans to demand further expansion of budget spending and a more aggressive fiscal policy," he said in a news conference outlining the activities of three special parliamentary committees on the economy.

The opposition Grand National Party, meanwhile, called for drastic tax cuts, saying they were a more feasible way to restore confidence in the economy among consumers and businesses.

Lee Han-koo, GNP policy chief, argued that an expansion in fiscal outlay has proved ineffective for the past years and that the government needs to take a more fundamental approach to stimulate growth.

The debate is likely to heat up in the run-up to the National Assembly's ordinary session in September, when parliament sets next year's budget.

The government has forecast that Korea could post more than 5 percent growth next year. But private-sector economists are doubtful, as stagnant investment and consumption show no signs of improvement. Rising oil prices and a slowdown in export growth also put a dent in hopes for an economic recovery,

"Investment in social overhead capital, education and research and development, and financial support for small and midsize companies can play a positive role in an economic recovery," Uri floor leader Chun Jung-bae said.

Hong admitted increased fiscal spending might leave the government budget in the red.

"But well-focused investment could encourage economic growth and make up for the fiscal deficit as well," he said.

In July, the government allocated a supplementary budget of 1.82 trillion won to help revive the economy. It has earmarked 4.5 trillion won in additional fiscal spending in the second half, compared with the 87.5 trillion won spent in the first half.

Both officials ruled out an additional supplementary budget within the year.

So far, the government and the ruling party have opposed proposals from business leaders and opposition politicians for a tax cut, saying it would lower state income without a major impact on consumer spending.

The government has already seen its borrowing sharply increase in the first seven months of this year due to increased spending to boost the economy. The Ministry of Finance and Economy said state debt reached 8 trillion won ($6.84 billion) as of late July, up from 2 trillion for the whole of 2003.

The GNP has pushed for reduction of corporate and consumption taxes and exemption of smaller companies from capital gains taxes and tax auditing for the next three years.

"The government should cut taxes to increase consumers' disposable income and give more room for corporate investment," Lee said in a policy report released yesterday.

A tax cut has become the panacea in the search for ways to boost domestic demand, with more than a few economists endorsing it as viable and even necessary.

In its latest report, Samsung Economic Research Institute, a private economic think tank, said the government should consider lowering income tax and lessening social security fees, such as for medical insurance and national pension fund, to stimulate demand.

"The main reason behind a prolonged slump in consumption, which takes up a considerable portion of domestic demand, is the fall in consumers' disposable income," the report said.

More cash in hands, the report said, would at least enable consumers to repay their debts, which is crucial for boosting consumption.

The report added additional spending by the government since last year has had done little to prop up the economy, while Korea's tax burden is higher than that of the United States or Japan at the time their per capita incomes reached $10,000.

Jang Jae-chul, the SERI economist who wrote the report, agreed as the government has argued, the effect could be minimal. Still, he said it seemed a more reasonable thing to raise the annual GDP growth to 7 or 8 percent through tax cuts than to muddle through the current impasse.

The idea is shared by many economists at foreign investment banks.

"I completely agree (on tax cut)," Oh Suk-tae, economist and vice president of Citigroup Inc. said. "The government should share in the pain suffered by citizens. If not income tax because of fear of benefiting only the high-income bracket, it could always lower the national pension fees."

Oh said the government concerns about the negative effects of reduced tax revenues are not convincing enough given the seriousness of domestic slump that is taking an especially high toll on small and medium-sized firms.

Until now, the government has dismissed tax cut measures to stimulate the economy.

Last week, Minister of Finance and Economy Lee Hun-jai said a tax cut would simply lead to a drop in tax revenues rather than an increase in spending.

The government-funded Korea Institute of Public Finance also has dismissed a tax cut on grounds that the current tax system is unfair to salaried workers. It is an open secret that a high percentage of Korea's self-employed underreport their earnings.

"The point is that half of the Korean people aren't paying taxes," said Park Hyung-soo, a KIPF researcher.

Park said a tax cut would only work in a long-term recession, given it takes six months to a year just to revise the law. "Some indexes show the economy could turn around as early as the fourth quarter. It would be too rash to enforce a tax cut at present," Park said.

( soyoung@heraldm.com) (mhkim@heraldm.com)

By Kim Min-hee and Kim So-young

2004.08.10

Economist bills Roh administration leftist

A leading economist yesterday denounced President Roh Moo-hyun's administration for pursuing what he called a "leftist" agenda.

"As some political scientists and economists put it, the incumbent government is a leftist regime and is caught in a trap of leftist values," said Ahn Kook-shin, an economics professor at Chungang University in Seoul.

Ahn, a leading figure among self-identified free-market proponents, was addressing a seminar hosted by the Korean Economic Association.

He said the Korean economy was losing growth momentum because of a widespread sense of uncertainty over the ideological leanings of the president and the power elite around him.

"They should stop their leftist and populist experiment of the kind that ended in failure in history," charged Ahn. "We cannot improve our national competitiveness when policymakers are oriented toward fairness and equality rather than efficiency and growth."

Ahn's remarks are the latest in a barrage of criticism from conservative economists amid a growing sense of economic crisis.

Concerns are mounting that Asia's fourth-largest economy may fall into a longer recession amid sluggish domestic spending and signs of slowing exports.

On Tuesday, Jwa Sung-hee, president of the Korea Economic Research Institute, a think tank affiliated with the Federation of Korean Industries, said the Korean economy was trapped in "egalitarianism, the political view supporting equalization of outcomes."

Roh's aides dismissed the criticism of the president's politics.

"Such views are too far removed from reality and do nothing but stir confusion and unease," said Lee Joung-woo, chairman of the presidential commission on policy planning, during the seminar.

He called for a halt to the ideological dispute, saying it was a waste of effort that could be better directed toward reforming the economy.

During yesterday's seminar, Minister of Finance and Economy Lee Hun-jai voiced concern about what he called "growing anti-market and fundamentalist voices" in Korea.

"It is urgent to head off ideological biases and fundamentalism and make efforts to solidify the market economic system," he said.

Lee stirred controversy last month after criticizing young political leaders in the ruling Uri Party and Cheong Wa Dae for lack of awareness of economic issues and being preoccupied with politics.


2004.08.13

the article-"will korea join in g-10 " is a big joke.

korea is now getting on recession in domestic economy and shows sign of less annual economic growth recently.