Another Episode of Political Turmoil in South Korea – Solution Needs to Be Found
South Korea is one of the affluent countries in Asia. The term of “Korea” is a derivative form of Goryeo. It means the dynasty of Goguryeo. Persian traders and businessmen visited this small country for establishing long lasting rapport with regional entrepreneurs to expand business. Korea is a wonderfully decorated nation with natural resources. However, slowly this country is becoming a powerful nation with a sound economy. However, recent political deadlock in SK with the news of impeachment of Park for her involvement in information leakage and money laundering must bring another episode of mishap to South Korea.
History of South Korea
It dates back to 19th Century. South Korea was targeted by a neighboring country. The imperialism and vandalism seemed to eat into the South Korean society because of the arrival of Japanese force to occupy the capital city of South Korea. In 1910, Japanese government declared the annexure of SK with the mainland of Japan. So, South Korean people had to suffer from subjection to slavery. However, South Korea was able to be independent way back to 1948. Right now, South Korea is a modernized country with a new façade and vision to attract the world.
South Korean Political Scenario with a Change in SK Economy
South Korea had no powerful economic infrastructure fifty years ago. This country was even poorer than Bolivia. However, SK is now a rich nation with approximately $23000 per capita earning. It is richer than Spain. SK has developed in technological sector. It exports sophisticated electronic gadgets, mobile phones and television sets to Europe. The gross income by exporting products to foreign nations is around $1.25 trillion. Many large scale industries have been established in South Korea. The structure of South Korean economy was not based on growth under the control of Japanese imperialists. However, after Second World War, this country started to chalk out more constructive plans to rebuild the nation from the grass root level. However, South Korea had to fight for establishing a separate state this bloodshed battle claimed over thousand lives. Park Chung-hee is the innovator with handful of economic refurbishing plans to implement. Park modernized the economy of South Korea by brining few exceptional and marvelous plans to boost up the national economy of the country. To be frank, Park Chung is the reformer to brush up the traditional economy of SK for the sake of faster development. The overall financial reform and development made SK much more powerful financially. The ground work which was completed to renew the domestic trading by offering more flexible business loans to family owned conglomerates was a step towards the business expansion for profit making. That’s why; SK market is enriched through the participation of family run business and small traders who are encouraged by government of SK to make the investment on the companies to expand. In 1970-80, many Seoul based chaebols/ family owned private companies were given strong financial support to grow business. Samsung or Hyundai are sample models of conventional chaebols or business conglomerates which got massive pecuniary assistance from government.
Innovation Keep Continuing to Make SK Powerful with Sound Economy
A number of powerful and bold rulers were found controlling the administration of SK. However, in 1987, Roh Tae woo, the president elect, came to power through fair election. He opted for the innovation in the economic reforms. Later, Kim Young Sam and Kim Dae had changed the facelift of the South Korean society through implementation of several innovative economic development projects. The flow of investment in public sectors was accelerated due to the market liberalization. South Korea needed comprehensive table work and better plans to have a new solid economic platform.
To be frank, it was a learning process to Kim Dae Jung to upgrade his concepts for strengthening up the national economic infrastructure. His determination to bring an overall change to the economy was a success through reforms and economy reconstruction mechanisms. Truly speaking, he got good results when he forced weak banking sectors with bad credit histories. He stopped negotiating with corrupted organizations. Similarly, he helped regional or domestic market to thrive overtaking the crisis. South Korean political history is stormy. However, slowly this republican country in Asia seems to shrug off the imperialistic attitude with a supportive role to decentralize power. The liberty in generating ideas and rights to expression were legalized.
In a steadfast way, South Korea concentrated on the progression and a greater transition through modernization. The result of such economic reform in South Korea energized entrepreneurs to fight with currency depreciation in 2008, the compensation and recovery programs took place to modify the existing economy. IMF predicted that SK would experience 3.7 percent growth in 2014 and 3.5 percent every year. It is not a short lived economic development but it is a continuing process to renovate the structure of the economy more brilliantly.
Statistics Report on GDP Rate in SK
According to World Bank, the GDP growth rate of SK from 1960-2015 was 28.6 percent on an average basis. However in 1960, the minimum GDP rate was hovering around 3.16 percent. However, in 2012 South Korean industry had had the 56.34 percent GDP rate with a bright scope for young entrepreneurs to export products to the international clients. Basically, South Korean economy is the fourth largest and 11th in Asia as wells as in the world respectively. South Korea has had not a smooth economic revolution as it struggled to revive gross domestic product or GDP rate. South Korean market was in uncomfortable condition during Second World War. However, after the split, South Korea was able to add the speed and mobility to let the vehicle of economy run fast.
The innovative Miracle on Han River economic reform plan accelerated the high expectation of making South Korean economy resilient. It got membership in G-20 and SK was welcomed to participate in OECD. In 21st century, South Korea must be a key player to compete with Europe and America. It is defying China, and Japan. Democracy in South Korean market got new speed but still there are few unavoidable challenges to handle. Aging population is increasing to threaten up the development process in the country. Pension holders get massive financial benefits. Lot of fund is wasted by government to spoon feed these oldies. Besides, after the recession, the clash between chaebol and the large scale corporate sectors is visible. Excessive dependency on chaebol type family run business harms national economy of South Korea. Secondly, South Korean GDP grown depends on the gross product exporting rate. So it must be changed by giving better scope to small scale industries and regional business set-ups to expand. Deregulation and more business promotion in South Korea must enhance such a long lasting innovation to gear up the production rate.
Political Turmoil in SK with Impeachment of President –Trump in Passive Attitude
South Korean president has been impeached by National Assembly. Park Geun-hye has been charged of corruption and mistrust. She has leaked confidential classified materials which can be dangerous to South Korean people. The country will be at stake if these secret documents are handed over to foreign force. Besides, she pampered one of her friends to enhance money laundering for shuttering down a big company. These illegitimate deals must be negative to make South Korean citizens to suffer from another recession. If Park is impeached for fraudulence, the chance of arrival of Ban-ki-Moon as the next president of SK is more prominent. On the other hand, the political scenario seems to take a switchover with the Trump’s declaration over nuclear deals with South Korea. US defense will no longer be present to assist SK if North Korean force attacks this country. Even Thaad nuclear deal will be postponed by Trump. Park, the present president of SK, has called her top brass to hold a meeting to discuss. Trump talked to Park over phone and ensured his support to her country during emergency. However, in return, SK will have to pay American force to patrol in the border close to North Korea. Near about 26000 US soldiers are present to defend SK. American force is not getting any financial support from SK. Then it is an expensive deal. Park will have to release fund to hire American force. Maybe, it will be a sumptuous deal for Park.
Probably, Ban-ki-Moon, UN General Secretary, can be the next president of SK. His term as a UN General Secretary will end this year. So, it is a great opportunity to go back to his home land after spending ten springs abroad as an international mentor. His comeback must be appreciated by his family members. However, if Ban-ki-Moon is elected as president, it is a matter of evaluation. He has been far away from home land without keeping in touch with regional politics. Earlier he served as foreign minister in South Korea. However, he stayed out of SK for ten years as he was found to serve as a UN General Secretary. Unofficially, it has been declared that Ban will join Saenuri Party led by Park Geun-hye. In the midst of misunderstanding and misconception, Ban’s expertise in leading the country must not be forgotten. He will keep the flow of economic reforms and good political stability in South Korea. He needs to be accustomed to the modern South Korean climate in which he will have to do table works to reset the country.