The Transformation of the Economic Strategy of the Republic of Korea in the Late 1970s: the Transition to Deregulation during the Last Years of Park Chung-hee’s Presidency

Abstract

This article examines the economic policy in the last years of Park Chung-hee’s presidency (second half of the 1970s), ending the period of rapid economic growth and marking the transition to economic deregulation. The period under review is marked by significant political, social and economic changes. In Russian Korean studies, the process of transformation of the economic policy of the Republic of Korea at the turn of the 1970–80s is shown in insufficient detail. This work analyzes the political aspects of the transition from industrialization, built on the budget support of heavy industry, to deregulation of economic in the Republic of Korea during the last years of presidency of Park Chung-hee. Particular attention is paid to the role of economic management institutions in this transformation. The article examines internal and external factors which South Korean economy faced in 1970s (including imbalances resulted from industrialization, 1970s oil shocks, etc.) as well as methods South Korean government utilized to deal with their consequences. The system for making key economic decisions and the discussion around economic policy measures, in particular the role of the Economic Planning Department, are analyzed. Particular attention is paid to the analysis of the stabilization measures announced by Park Chung-hee in 1979, which actually marked the transition to a neoliberal model of economy.

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