AP Econ-Lee-07

Republic of Korea(south Korea) regained its independence in 1945 and has been democratic, republic and capitalistic nation. Yet, there was military ruling in early days. South Korea had been devastated by Japanese control and was one of the poorest country. Park Jung Hee is the president who remarkably improved nation's economic status. Although he was forceful and suppressive through military control, he quickly industrialized the nation from agrarian society and reduced its ill effects. For instance, there was severe inflation during those days, but the citizens were not influenced by the inflation because the government controled the price of necessities. Unfortunately, Park Jung Hee was assassinated by military coup lead by Jeon Du Hwan (개 씨발 좆같은 천하에 하나없을 후레비 자식). He killed numerous students and citizens who fought for real democracy. (Everyone wants him to be in jail or to have death penalty, but it failed, so he is living very well).

Since then, South Korea became prosperous democratic nation. Although Koreans advocate a free enterprise economy, government has an important role in its economy through its policies and regulations. The government policies protected industies from foreign competition, established public projects and paid foreign debts. Many enterprises became private during IMF, but the government still plays big role.

Interesting Facts(?)
Korea is divided into North(Democratic People's Republic of Korea) and South(Republic of Korea). North is communist monarchy ruled by Kim Ilsung Kim JungIl and Kim JungEun. Since 1990, North Korea suffered severe famine due to isolation, underinvestment, waste of labor, lack of money circulation and security, and poor maintenance. Many food aid delieveries were sent to North Korean, but most of them went to the soldiers. North Korean men and women serves in military for 10 years. They have 38,000 Kim family  statue, and poor money into meaningless thing. The soldiers work to dig tunnels to invade South Korea or underground facilities. Robbery is frequent, and they plant illegal drugs to sell. In order to evade famine, many North Koreans cross the river and live in China, but if they are caught by chinese police, they must go labor camp. Therefore, North Koreans usually do not get paid well like illegal mexican workers. The slave trade is common since they have no protection from their nation. Naive North Korean family who just crossed the river get seperated by these swindles and slave trade.

There is 5000 North Korean refugees in South Korea. There is several ways to come South Korea: to cross desert to mongol, to enter South Korean embassy in China, and to go south east asia and wait till South Korea can let them in. More you pays the broker, more safer the way is. After arriving South Korea, they are tested whether they are spy or not. Most spies are uncovered because they are so disciplined in military that they do not know real North Korean life. Then the refugees get education a while and start their own lives with initial 5thousand million won.
If they get caught, they're dead. ^^
South Korea has fastest internet connection and well developed public transportation system. Yet, average satisfaction rate is very(very*100) low due to sever competitions.

AP Econ-Lee-Graphs

GDP

AP Econ-Lee-06

In 1998, South Korea had the highest unemployment rate (8.7%). This was due to overall Asian economic crisis, which caused currency devaluation and lack of foreign currency reserve. The result was the worst inflation South Korea ever met. It was Stagflation. Yet, the unemployment issue quickly improved by government's short-term employment measures, such as increases in public works projects, and the rapid recovery of the South Korean economy. Now, current South Korea unemployment rate is 3.4%. Youth unemployment rate (age 15-24) is approximately 9.8%.

Close government and buisness ties made this incredible growth possible.

AP Econ-Lee-05

http://www.inflation.eu/inflation-rates/south-korea/historic-inflation/cpi-inflation-south-korea.aspx
Historic CPI inflation South Korea (yearly basis)

From Jan. 1965 to Feb 2013.

Since its independence in 1945, the general trend of inflation rate has been decreasing, and consumer price index has been increasing. The reason why the inflation rate was so high in the beginning (more than 100%) is that the nation had nothing left after the brutal Japanese occupation. While Korean government had nothing to support the value of money, Korean government still printed money. The result was the inflation caused by higher supply of money than the demand. Since then, the value of money contantly decreased: due to sudden increase in the quantity and quality of the production, increase in wage, and forein impact (increase in oil price). Fast growth caused the inflation.

However, people in those days did not feel the inflation due to the controlled price by the government. President Park Jung Hee was a tyranny, although he worked for the nation and promoted the economic growth; the governemnt strictly controlled the price of necessities.

Recently, the inflation rate is usually between 1% and 4%. The inflation rate seems to have no influence from 1998 currency crisis and 2009 global crisis.

On the other hand, the consumer price index graph has steep slope in 1998 and 2009, which is relevant to GDP.