Business Development

Download Korea As a Knowledge Economy: Evolutionary Process and by Joonghae Suh, Derek H. C. Chen PDF

By Joonghae Suh, Derek H. C. Chen

Korea's improvement approach bargains precious classes for different constructing and no more constructed economies. specifically, the way in which Korea makes use of outdoor applied sciences, via gathering indigenous services, remains to be legitimate within the period of the information economic system. This quantity examines the Korean version and Korea's march towards an information economic system from a poverty-ridden economic climate prior to the release of full-scale industrialization within the early Sixties. It additionally emphasizes Korea's achievements, in addition to final initiatives in the 4 pillars of the information economic climate, with a typical subject all through -- how Korea has narrowed the gaps in its wisdom and associations in international pageant with international leaders.

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Additional resources for Korea As a Knowledge Economy: Evolutionary Process and Lessons Learned (Wbi Development Studies)

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5 percent per year, thereby offering a direct incentive for exports (Park 2004). Throughout these actions, Korea’s banking system was transformed to support the industrial development goals of the government. Requiring private banks to leave a portion of their deposits with the government-owned Korea Development Bank meant that private savings could be tapped for industrial development projects. Despite these measures, however, Korea suffered chronic shortages of domestic savings, which made it necessary to rely heavily on foreign capital to finance the rapid industrialization.

Earlier, in 1961, the military government had expropriated the majority of bank shares that were owned by big businesses and limited the voting powers of private owners, which enabled the government to directly control the banking system. The following year, the law of the Bank of Korea was revised in a way that gave the EPB more discretionary power over financial and banking policy. Furthermore, the private banks were required to deposit some of the savings in the government-owned Korea Development Bank so that the deposits could be funneled to the industrial development projects.

According to Lee (1991, p. 461), there are two contrasting views regarding the HCI plan for Korea’s economic development. The viewpoint that is critical of the plan consists of the following points: First, contrary to the logic underlying the HCI plan, the plan’s execution led to misallocation of resources, thereby weakening the Korean economy’s growth potential. Second, the process of implementing the HCI plan distorted various market prices. Third, implementation of the overly ambitious plan was responsible for the rapid inflation of the late 1970s and early 1980s.

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