Syngman Rhee Government’s Economic Policies
after the Korean War
Chung, Jin-a
This research focuses on the Syungman Rhee government’s postwar policies designed by its economic bureaucrats. it discusses how Rhee government led industrialization in order to overcome the limits as a developing country and to achieve economic independence through rapid industrialization.
The Team for Reconstruction Plan, which was led by Paek Doo Jin, thought that Korea had to be fully incorporated in the U.S. centered capitalist world order in order to secure the U.S. aid, which would be the key for revitalizing the economy.
However, considering the special situation of Korea which experienced division and a war as a developing country, they thought that it was necessary for the government to directly distribute the U.S. aid to end users for production increase, and to build both infrastructure such as roads, harbors, railroads, electric power and key basicindustries such as steel manufacture and cement in order to strengthen the base for production. This plan was a state-led industrialization policy via planned reconstruction, which pursued both light industry controlled by businessmen and key basic industries supported by the government’s loans and investments.
This contributed much to 1) strengthening social infrastructure, 2) the growth of key basic industries, and 3) the making of big private businesses, whereas it encouraged the close relationship between the political and business society and exploited workers and farmers.