The Five-Year Plans of South Korea is a economic development project of South Korea

South Korea

The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

.

Background

Both North and South Korea had survived the Korean War

Korean War

The Korean War was a conventional war between South Korea, supported by the United Nations, and North Korea, supported by the People's Republic of China , with military material aid from the Soviet Union...

 (1950–53). From the end of World War II

World War II

World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, South Korea remained largely dependent on U.S. aid until an internal revolution occurred in 1961. In 1961, General Park Chung-hee

Park Chung-hee

Park Chung-hee was a Republic of Korea Army general and the leader of South Korea from 1961 to 1979. He seized power in a military coup and ruled until his assassination in 1979. He has been credited with the industrialization of the Republic of Korea through export-led growth...

 grasped political power and decided the country should become self-reliant by utilizing five year plans.

Five Year Plans

The plans were designed to increase wealth within South Korea and strengthen political stability. A change in policy from import substitution industrialization to export-oriented growth occurred throughout these five year plans. South Korea had three five year plans under the auspices of the Economic Planning Board, a state bureaucracy pilot agency.

1962–1966

The first plan sought to benefit the textile industry and make South Korea self-sufficient. At the time, Korea's status was as a capital poor, inadequate saving, and predominantly U.S.-financed state, in need of independence.

1967–1971

The second five year plan sought to shift the South Korean state into heavy industry by making South Korea more competitive in the world market, which was incorporated into all future five year plans.

U.S.-China's opening up

1972 Nixon visit to China

U.S. President Richard Nixon's 1972 visit to the People's Republic of China was an important step in formally normalizing relations between the United States and the People's Republic of China. It marked the first time a U.S. president had visited the PRC, who at that time considered the U.S. one...

 in 1972 led to a greater competitive marketplace for South Korean goods and services. Fears also prevailed that the U.S. would no longer provide military defense for South Korea.

1972–1976

Park Chung Hee implemented the third five-year plan which was referred to as the Heavy Chemical Industrialization Plan (HCI Plan) and, also, the "Big Push". To fund the HCIP, the government borrowed heavily from foreign countries (not foreign direct investment, so that it could direct its project), which led to South Korea's vulnerability in the East Asian financial crisis

East Asian financial crisis

The Asian financial crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion....

 of 1997.

See also

• List of Korea-related topics
• Economy of South Korea
  Economy of South Korea
  South Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity , identifying it as one of the G-20 major economies. It is a high-income developed country, with a developed market, and is a member of OECD...
  
  
• New Community Movement
  New Community Movement
  The New Community Movement, also known as the New Village Movement or Saemaeul Movement, was a political initiative launched on April 22, 1970 by South Korean president Park Chung Hee to modernize the rural South Korean economy...
  
  
• Five-year plans of other countries