South Korea

South Korea, officially the Republic of Korea and often referred to as Korea (Korean: 대한민국, IPA: [tɛː.han.min.ɡuk̚], Hanja: 大韓民國), listen (help·info)) is a presidential republic in East Asia, occupying the southern half of the Korean Peninsula. Also known as the "Land of the Morning Calm", it is neighbored by China to the west, Japan to the east and borders North Korea to the north. South Korea's capital and largest city is Seoul, the second largest metropolitan city in the world.^[2]

Korea is one of the oldest continuing civilizations in the world,^[3] founded in 2333 BC by the legendary Dangun according to Samguk Yusa. The Korean Peninsula was first inhabited as early as the Lower Paleolithic.^[4] Following the unification of the Three Korean Kingdoms under Silla in AD 668, Korea went through the Goryeo and Joseon Dynasty as one nation until the end of the Korean Empire in 1910. After division, South Korea was established in 1948 and has since developed a successful democracy, maintaining a strong alliance with the United States and its allies. South Korea is now working towards a peaceful reunification with North Korea.

South Korea is a major economic power and one of the wealthiest countries in Asia. It had one of the world's fastest growing economies since the 1960s, now highly developed^[5] and the fourth largest^[6] in Asia and 13th largest^[7] in the world. Forming the G20 industrial nations and the world's top ten exporters, it is an APEC and OECD member, defined as a High Income Nation by the World Bank and an Advanced Economy by the IMF and CIA. A major non-NATO ally, it has the world's sixth largest armed forces and the tenth largest defence budget in the world. The Asian Tiger is leading the Next Eleven nations and is still among the world's fastest growing developed countries.^[5] Today, its success story is known as the "Miracle on the Han River", a role model for many developing countries.^[8]

South Korea is leading several key industries in the world, particularly in the fields of science and technology.^[9] It has a very advanced and modern infrastructure^[10] and is a world leader in information technology such as electronics, semiconductors, LCD displays, computers and mobile phones, led by Samsung and LG. Home of the world's third largest steel producer, POSCO, it is the world's largest shipbuilder, the world's fourth largest oil refiner^[11] and one of the world's top five automobile producers, headed by Hyundai and Kia. It is also a leading country in biotechnology, construction, engineering, machinery, petrochemicals, robotics and textiles.

Government

Main article: Government of South Korea

The National Assembly of South Korea.

The government of South Korea is divided into three branches: executive, judicial, and legislative. The executive and legislative branches operate primarily at the national level, although various ministries in the executive branch also carry out local functions. Local governments are semi-autonomous, and contain executive and legislative bodies of their own. The judicial branch operates at both the national and local levels. South Korea is a constitutional democracy.

The South Korean government's structure is determined by the Constitution of the Republic of Korea. This document has been revised several times since its first promulgation in 1948 (see History of South Korea). However, it has retained many broad characteristics; with the exception of the short-lived Second Republic of South Korea, the country has always had a presidential system with an independent chief executive.^[12] South Korea has developed a successful liberal democracy since the 1960s and the first direct election was held in 1987. The CIA World Factbook describes South Korea's democracy as a "fully functioning modern democracy".^[13]

History

Before division

Main article: History of Korea

Tomb mural of Goguryeo, an ancient Korean kingdom.

Archeological findings indicate that the Korean Peninsula was occupied by humans as early in the Lower Paleolithic period.

Korea began with the founding of Joseon(The name Gojoseon is almost always used to prevent confusion with another Joseon dynasty founded in 14th century; the prefix Go- means 'old' or 'earlier') in 2333 BC by Dangun.^[14] Gojoseon expanded until it controlled much of the northern Korean peninsula and parts of Manchuria. After numerous wars with the Chinese Han Dynasty, Gojoseon disintegrated, leading to the Proto-Three Kingdoms of Korea period.

In the early centuries of the Common Era, Buyeo, Okjeo, Dongye, and the Samhan confederacy occupied the peninsula and southern Manchuria. Of the various small states, Goguryeo, Baekje, and Silla grew to control the peninsula as the Three Kingdoms.

Bulguksa temple, built during the Silla period, is a UNESCO World Heritage Site.

The unification of the Three Kingdoms by Silla in 676 led to the North-South States period, in which the much of the Korean peninsula was controlled by Unified Silla, while Balhae succeeded the northern parts of Goguryeo. In Unified Silla, poetry and art was encouraged, and Buddhist culture flourished. Relationships between Korea and China remained relatively peaceful during this time. However, Unified Silla weakened under internal strife, and surrendered to Goryeo in 935. Balhae, Silla's neighbor to the north, was formed as a successor state to Goguryeo. During its height, Balhae controlled most of Manchuria and parts of Russia. It fell to the Khitan in 926.

After the North-South Period, successor states fought for control during the Later Three Kingdoms period. The peninsula was soon united by Wang Geon of Goryeo. Like Silla, Goryeo was a highly cultural state and created the Jikji in 1377, using the world's oldest movable metal printing press.^[15]

The Mongol invasions in the 13th century greatly weakened Goryeo. However, Goryeo continued to rule Korea as a tributary ally to the Mongols. After the fall of the Mongolian Empire (Yuan Dynasty), Goryeo continued its rule. After severe political strife and continued invasions, Goryeo was replaced by the Joseon Dynasty in 1388 following a rebellion by General Yi Seong-gye.

Map of Korea during the 18th century.

General Yi declared the new name of Korea as Joseon in reference to Gojoseon, and moved the capital to Seoul. The first 200 years of the Joseon Dynasty was marked by relative peace and saw the creation of hangul by King Sejong the Great in the 14 century and the rise and influence of Confucianism.

In the latter of the 16th century, Joseon was invaded by a newly unified Japan. During the Japanese invasions of Korea (1592–1598), centuries of peace had left the dynasty unprepared, and the lack of technology and poor leadership from the Joseon government and generals led to the destruction of much of the Korean peninsula. However, continued Korean dominance at sea led by Admiral Yi, the rise of local militias, and the intervention of Ming China put Japan under great pressure to retreat in 1598.

Today, Admiral Yi is celebrated as one of Korea's foremost heroes and his turtle ships, used with great success against the Japanese, are considered the world's first ironclad warships, although lack of hard evidence of iron plating sparks much debate.

During the last years of the Joseon Dynasty, Korea's isolationist policy earned it the name the "Hermit Kingdom", primarily for protection against Western imperialism before it was forced open trade beginning an era leading into Japanese colonial rule.

After division

Main article: History of South Korea

A sculpture at the Incheon Landing Operation Memorial Hall.

In the aftermath of World War II, Soviet Union and United States troops controlled the northern and southern halves of the country respectively. The two Cold War rivals established governments sympathetic to their own ideologies, leading to Korea's division into two political entities: North Korea and South Korea.

Despite the initial plan of a unified Korea in the 1943 Cairo Declaration, escalating Cold War antagonism eventually led to the establishment of two separate governments: the communist North and the capitalist South. In the North, a former anti-Japanese guerilla and communist activist, Kim Il-sung^[16] and in the South, an exiled Korean political leader, Syngman Rhee, were installed as presidents.^[17]

On June 25, 1950, North Korea invaded the South leading to the Korean War. The Soviet boycott of the United Nations at the time, and therefore, no veto, allowed the UN to intervene when it became apparent that the superior communist forces would easily take over the entire country. The Soviet Union and China backed North Korea, with the later participation of millions of Chinese troops. After huge advances on both sides, the war eventually reached a stalemate. The 1953 armistice, never signed by South Korea, split the peninsula along the demilitarized zone near the original demarcation line. No peace treaty was ever signed, and the two countries are still technically at war.^[18]

In 1960, a student uprising led to the resignation of the autocratic and corrupt President Syngman Rhee. A period of profound civil unrest and general political instability followed, broken by General Park Chung-hee's military coup (the "5.16 coup d'état") against the weak and ineffectual government the next year. Park took over as president until his assassination in 1979, overseeing rapid export-led economic growth as well as severe political repression. Park is heavily criticized as a ruthless military dictator, although the Korean economy developed significantly during his tenure.

The years after Park's assassination were marked by, again, considerable political turmoil as the previously repressed opposition leaders all campaigned to run for president in the sudden political void. In 1980, there was a coup d'état, by General Chun Doo-hwan against the transitional government of Choi Gyu Ha, the interim president and a former prime minister under Park. Chun assumed the presidency. His seizure of power triggered nationwide protest demanding democracy, in particular the city of Gwangju, in Jeollanam-do where Chun sent in special forces to violently suppress the city, in what is now known as the Gwangju Massacre.

Red Devils supporting South Korea in Seoul during the 2002 FIFA World Cup co-hosted by South Korea and Japan.

Until 1987, he and his government held Korea under despotic rule when Park Jong Chul — a student attending Seoul National University — was tortured to death.^[19] The Catholic Priests' Association for Justice revealed that Park was tortured, igniting huge demonstrations around the country. The demonstrations snowballed when another student from Yonsei University, Lee Han Yeol, was killed by a police-fired tear gas bomb while he was demonstrating against the military government. The period of resistance is called the Resistance of June when all joined the national movement. Eventually, Chun's party, the Democratic Justice Party, and its leader, Roh Tae-woo announced the June 29th Declaration, which included the direct election of the president.^[20]

In 1988, Seoul hosted the 1988 Summer Olympics, a cause of both national and international celebration in contrast to great turmoil of the past. In 1996, South Korea became a member of the OECD, a testament to further economic growth. As with many of its Asian neighbors, South Korea suffered the 1997 Asian Financial Crisis, but the country was able to re-emerge and continue its growth towards a major economic power after a swift recovery.^[21]

In June 2000, as part of South Korean president Kim Dae-jung's Sunshine Policy of engagement, a North-South summit took place in Pyongyang, the capital city of North Korea. That year, Former President Kim received the Nobel Peace Prize "for his work for democracy and human rights in South Korea and in East Asia in general, and for peace and reconciliation with North Korea in particular."^[22]

In 2002, South Korea and Japan jointly co-hosted the 2002 FIFA World Cup. The event marked South Korea's emergence in the world stage and provided stronger economic growth and a cultural union between South Koreans. The South Korean national football team became the first and only Asian nation to reach the semi-finals, beating Spain, Portugal and Italy in the knock-out stages.

In 2005, South Korea's GDP broke the US$1 trillion mark, with its per capita GDP now comparable to that of Greece, Italy, New Zealand, Portugal and Spain.^[23] The economy is continuing to grow rapidly and per capita GDP is forecasted to surpass Germany and Japan by 2035, Canada and France by 2040 and the United Kingdom by 2045.^[24]

Foreign relations

Main article: Foreign relations of South Korea

Secretary-General of the United Nations, Ban Ki-moon, with the President of the United States, George W. Bush.

United States

The United States engaged in the decolonization of Korea (mainly South, Soviet Union engaged North Korea) from Japan after World War II. After 3 years of military administration by the United States, the South Korean government was established. Upon the onset of the Korean War, the United States sent soldiers to South Korea to defend against the invasion of North Korea and later China. Since then, the two nations have had strong economic, diplomatic and military ties, although they have at times disagreed with regards to policies towards North Korea. Currently, the U.S. Eighth Army, Seventh Air Force and US Naval Forces Korea are stationed in South Korea.

China

Historically, Korea has had relatively close relations with China. Before the formation of South Korea, Korean independence fighters worked with Chinese soldiers during the Japanese occupation. However, after World War II, the People's Republic of China embraced Maoism while South Korea became a representative democracy under the influence of the United States. The People's Republic of China assisted North Korea with manpower and supplies during the Korean War, and in its aftermath the diplomatic relationship between South Korea and P. R. China almost completely ceased. Relations thawed gradually and South Korea and P. R. China re-established formal diplomatic relations on August 24, 1992. The two countries sought to improve bilateral relations and lifted the forty-year old trade embargo, and^[25] South Korean-Chinese relations have improved steadily since 1992.^[25] Korea broke off official relations with the Republic of China on Taiwan upon gaining official relations with the People's Republic.

Japan

Although there were no formal diplomatic ties between South Korea and Japan after the Korean War, South Korea and Japan signed the Treaty on Basic Relations between Japan and the Republic of Korea in 1965 to establish diplomatic ties. There was heavy anti-Japanese sentiment in South Korea due to a number of unsettled Japanese-Korean disputes, many of which stem from the period of Japanese occupation. During World War II, more than 100,000 Koreans were forced to serve in the Imperial Japanese Army.^[26] Longstanding issues such as Japanese war crimes against Korean civilians, the visits by Japanese politicians to the Yasukuni Shrine honoring Japanese soldiers killed at war, including class A war criminals like Hideki Tojo, the re-writing of Japanese textbooks to overlook Japanese aggression during World War II, and the territorial disputes over Liancourt Rocks continue to trouble Korean-Japanese relations. In response to then-Prime Minister Junichiro Koizumi's repeated visits to the Yasukuni Shrine, President Roh Moo-hyun suspended all summit talks between South Korea and Japan.^[27]

North Korea

Both North and South Korea continue to officially claim sovereignty over the entire peninsula and any outlying islands. With longstanding animosity following the Korean War from 1950 to 1953, North Korea and South Korea signed an agreement to pursue peace.^[28] On October 4, 2007, Roh Moo-Hyun and North Korean leader Kim Jong-il signed an eight-point agreement on issues of permanent peace, high-level talks, economic cooperation, renewal of train services, highway and air travel, and a joint Olympic cheering squad.^[28]

Despite the Sunshine Policy and efforts at reconciliation, the progress was complicated by North Korean missile tests in 1993, 1998, and again in 2006. Recently, North Korea agreed to temporarily suspend its pursuit of a nuclear weapons program for economic and diplomatic support, although some Korean and American officials criticized the North for not being fully cooperative in its temporary suspension of a nuclear weapons program.^[29]

Other nations

South Korea maintains diplomatic relations with approximately 170 countries. The country has also been a member of the United Nations since 1991, when it became a member state at the same time as North Korea. On January 1, 2007, South Korean Foreign Minister Ban Ki-moon assumed the post of UN Secretary-General. It has also developed links with Association of Southeast Asian Nations as both a member of ASEAN Plus three, a body of observers, and the East Asia Summit (EAS).

There is an ongoing effort at negotiating a Free Trade Agreement with the European Union, the second largest importer of Korean goods.^[30] South Korea is also negotiating a Free Trade Agreement with Canada.^[31]

Military

Main article: Military of South Korea

A South Korean Marine watches his line of fire.

The T-50 Golden Eagle is an advanced trainer and fighter aircraft.

The K2 Black Panther is one of the most advanced main battle tanks in the world.

A major military power in the world, South Korea has the world's sixth largest active troops, the world's second largest reserve troops and one of the ten largest defence budgets in the world. The South Korean army has 2,300 tanks in operation,^[32] consisting of technologically advanced models such as the K1A1 and the new K2 Black Panther. The South Korean navy has the world's sixth largest fleet of destroyers and is one of the five navies in the world to operate an Aegis guided missile enabled destroyer, the King Sejong the Great class destroyer.^[33] It has also the world's largest fleet of frigates, the sixth largest of corvettes and the fourth largest of submarines in operation. The South Korean airforce operates the ninth largest airforce in the world,^[34] composed of advanced American fighters such as the F-15K, KF-16 and indigenous models such as the T-50 Golden Eagle.

The South Korean military consists of the Army (ROKA), the Navy (ROKN), the Air Force (ROKAF), and the Marine Corps (ROKMC), together with reserve forces.^[35] Many of these forces are concentrated near the border with North Korea, near the demilitarized zone. All South Korean males are constitutionally required to serve in the military, typically for a period of two years. However, there have been debates about shortening the length of the military services, and even dismissing the mandatory service itself. The government recently allowed some male students who were in the process of earning a university bachelor's degree and master's degree to dismiss the military requirements to allow them to further study and research their fields.

A South Korean midshipman waves to fellow sailors aboard ROKS Daecheong.

From time to time, South Korea has sent its troops overseas to assist American forces. It has participated in most major conflicts that the United States has been involved in the past 50 years. South Korea dispatched 320,000 troops to fight alongside American, Australian, Filipino, and South Vietnamese soldiers in the Vietnam War, with a peak strength of 50,000. Most recently, South Korea sent 3,300 troops of the Zaytun Division to help re-building in northern Iraq, and was the 3rd largest contributor in the coalition forces after only the US and Britain.^[36]

The United States has stationed a substantial contingent of troops in South Korea since the Korean War to defend South Korea in case of a North Korean attack. There are also approximately 29,000 US military stationed in Korea,^[37] most of them serving one year of unaccompanied tours. The American Troops, which primarily are assigned to the Eighth United States Army are stationed in installations at Osan, Yongsan, Dongducheon, Sungbuk,and Daegu, of which are considered camps not for their lack of buildings or support structure, but to make a political and military statement representing a lack of permanence. A still functioning UN Command controls all forces in South Korea, including the US forces and the entire South Korean military.

Administrative divisions

Main article: Administrative divisions of South Korea

See also Special cities of Korea and Provinces of Korea

The Namdaemun in Seoul at night.

Principal divisions of South Korea.

The Haeundae Beach in Busan at night.

General map of South Korea.

The Cheonjiyeon Waterfall in Jeju-do island.

	Name^a	hangul	hanja
Special cities (Teukbyeolsi)^a
1	Seoul (National Capital)	서울특별시	서울特別市
Metropolitan cities (Gwangyeoksi)^a
2	Busan	부산광역시	釜山廣域市
3	Daegu	대구광역시	大邱廣域市
4	Incheon	인천광역시	仁川廣域市
5	Gwangju	광주광역시	光州廣域市
6	Daejeon	대전광역시	大田廣域市
7	Ulsan	울산광역시	蔚山廣域市
Provinces
8	Gyeonggi-do	경기도	京畿道
9	Gangwon-do	강원도	江原道
10	Chungcheongbuk-do (Northern Chungcheong)	충청북도	忠淸北道
11	Chungcheongnam-do (Southern Chungcheong)	충청남도	忠淸南道
12	Jeollabuk-do (Northern Jeolla)	전라북도	全羅北道
13	Jeollanam-do (Southern Jeolla)	전라남도	全羅南道
14	Gyeongsangbuk-do (Northern Gyeongsang)	경상북도	慶尙北道
15	Gyeongsangnam-do (Southern Gyeongsang)	경상남도	慶尙南道
Special self-governing province (Teukbyeoljachi-do)^a
16	Jeju-do	제주특별자치도	濟州特別自治道

^a Revised Romanization.

Geography and climate

Main article: Geography of South Korea

Topography of South Korea

Seoraksan mountain in Gangwondo.

South Korea occupies the southern portion of the Korean Peninsula, which extends some 680 miles (1,100 km) from the Asian mainland. This mountainous peninsula is flanked by the Yellow Sea to the west, and the Sea of Japan (East Sea) to the east. Its southern tip lies on the Korea Strait and the East China Sea.

The country's total area is 38,622.57 square miles (100,032.00 km²).^[38]

South Korea can be divided into four general regions: an eastern region of high mountain ranges and narrow coastal plains; a western region of broad coastal plains, river basins, and rolling hills; a southwestern region of mountains and valleys; and a southeastern region dominated by the broad basin of the Nakdong River.

South Korea's terrain is mostly mountainous, most of which is not arable. Lowlands, located primarily in the west and southeast, constitute only 30% of the total land area.

About three thousand islands, mostly small and uninhabited, lie off the western and southern coasts of South Korea. Jeju-do is located about 100 kilometers (about 60 mi) off the southern coast of South Korea. It is the country's largest island, with an area of 1,845 square kilometres (712 sq mi). Jeju is also the site of South Korea's highest point: Hallasan, an extinct volcano, reaches 1,950 metres (6,398 ft) above sea level. The most eastern islands of South Korea include Ulleungdo and Dokdo, while Marado and Ieodo are the southernmost islands of South Korea.

Climate

Cheonggyecheon flowing through Seoul.

Climate chart for Seoul

-7

-5

134

369

294

169

-4

temperatures in °C
precipitation totals in mm
source: climate-charts.com

Imperial conversion

South Korea has humid continental climate and humid subtropical climate. and is affected by the East Asian monsoon, with precipitation heavier in summer during a short rainy season called jangma (장마), and winters that can be bitterly cold. In Seoul, the average January temperature range is -7 °C to 1 °C (19 °F to 33 °F), and the average July temperature range is 22 °C to 29 °C (71 °F to 83 °F). Winter temperatures are higher along the southern coast and considerably lower in the mountainous interior. Rainfall is concentrated in the summer months of June through September. The southern coast is subject to late summer typhoons that bring strong winds and heavy rains. The average annual precipitation varies from 1,370 millimeters (54 inches) in Seoul to 1,470 millimeters (58 inches) in Busan. There are occasional typhoons that bring high winds and floods. The government is concerned of the impact of global warming on the natural disasters.

Environment

Main article: Environment of South Korea

In the past, urban areas such as Seoul had minor problems associated with air pollution and water pollution. However, the Mayor of Seoul has been working hard to restore the flow of clean water in South Korea, by recovering the flow of Cheonggyecheon in central Seoul, for example.^[39] South Korea is a member of numerous international environmental organizations with specific regards to Antarctic-Environmental Protocol, Antarctic Treaty, Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution (MARPOL 73/78), Tropical Timber 83, Tropical Timber 94, Wetlands, and Whaling.^[40]

The South Korean government's July 2008 decision to boost investment into renewable energy to reduce its reliance on foreign oil imports may provide a boost to conglomerates' solar plans.^[41] The Ministry of Knowledge and Economy said the country intends to spend 194.4 billion won ($193 million) on technologies and projects, including solar, wind and biofuels, in 2008.^[42]

Economy

Main article: Economy of South Korea

Seoul is a leading financial center in Asia and one of the five most expensive cities in the world.

South Korea is a major economic power and one of the wealthiest countries in Asia. The South Korean economy is highly developed^[5] and one of the four largest^[43] in Asia and 13th largest^[44] in the world. Often called the "Miracle on the Han River", South Korea's tremendous economic growth was fueled by the export of high-tech goods. The South Korean economy continues to grow at a very fast pace, having one of the highest GDP, export and industrial production growth rate in the developed world. By 2050, the South Korean economy would have grown to over $4 trillion and have an income per capita of over $90,000, surpassing all of the current G7 except the United States.^[45] Today, South Korea is leading several key industries in the world, particularly in the fields of science and technology. The Asian Tiger's strongest industries are automobiles, biotechnology, construction, computers, electronics, petrochemicals, robotics, semiconductors, shipbuilding, and steel.

Miracle on the Han River

South Korea's exponential economic growth and success is often called the Miracle on the Han River.

In the 1950s South Korea became one of the poorest countries in Asia; its infrastructure and resources were severely exploited during the Japanese occupation and completely destroyed by the Korean War. However, following the military coup led by General Park Chung-hee in 1962, South Korea became for four straight decades one of the fastest-growing economies in world history, completely transforming it from a farming and fishing based economy into one of the world's most high-tech industrial powers.

Park Chung-hee embarked on a series of ambitious five-year plans for economic development that were similar to the macro-economic schemes of the Soviet Union.^[46] Emphasis shifted to foreign trade with the normalization of relations with Japan in 1965, which resulted in a boom in trade and investment. South korea received 800 million dollars in grants and soft loans from Japan as compensation for its colonial rule in the treaty. South Korea government spent most of the money establishing social infrastructures and corporation,founding POSCO,building Gyeongbu Expressway and the Soyang River Dam.^[47] Rapid expansion in light industries, which were later followed by subsequent development in heavy industries, made South Korea in 1973 the 34th wealthiest country in the world.^[48] Park's government plans for economic development significantly boosted the Korean economy. This growth is often called the "Miracle on the Han River", the Han River being the main river that runs through the nation's capital and largest city, Seoul. In the 1980s and 1990s, growth continued as South Korea transformed itself from an exporter of textiles and shoes into a major global producer of automobiles, electronics, shipbuilding, steel and, later, high-tech products such as digital monitors, mobile phones, and semiconductors.

Hyundai Genesis Luxury sedan

The South Korean model of encouraging the growth of large, internationally competitive financial services companies, business groups, and banks through easy financing and tax incentives led the South Korean economy to be dominated by family-controlled conglomerates. These companies, known as chaebol, flourished under the support of the Park regime.^[49] Some such as Hyundai, Samsung, LG and the SK Company became global corporations.

Since the 1997 Asian Financial Crisis the corporate landscape has changed considerably as a result of massive bankruptcies and government reforms. The crisis exposed longstanding weaknesses in South Korea's economy, including high debt-to-equity ratios, massive foreign borrowing, and an undisciplined financial sector. This led to two rounds of financial and industrial restructuring; one in 1997 and another following the collapse of Daewoo in 1999.^[50] Daewoo's collapse has been recorded as one of the largest bankruptcies in world history.^[51] By 2003, just over one-half of the 30 largest chaebol from 1995 remained.^[52]

South Korea is the world's largest shipbuilder and one of the top ten exporters in the world.

Between 2003 and 2005, economic growth had slowed to about 4% per year.^[53] A downturn in consumer spending, attributed to massive personal credit card debt, was offset by rapid export growth, primarily to China. In 2005, the government proposed labor reform legislation and a corporate pension scheme to help make the labor market more flexible, and new real estate policies to cool property speculation.^[54] In 2006, the South Korean economy has brought its growth rate to 5.1%. Traditionally less of an open economy compared to Japan, South Korea is now pursuing free trade policies with various other nations, notably the U.S.-Korea Free Trade Agreement and European Union-South Korea free trade agreement.

Modern economy

Like other developed nations, the service sector has grown to comprise about two-thirds of GDP.^[55] At the same time, living standards and in particular the education level in South Korea rose exponentially to become equivalent or higher than that of other developed Western European