The Causes of Economic Growth

Korea has been affected by near nations. In the past, Korea was pillaged by Japan and China. We always had wars, so we couldn’t develop our economy. In addition, after independence from Japan, we made Korean war, so we divided South and North Korea. In that time we lost everything: buildings, technology, and property, and people. We needed to develop. Any one couldn’t guess our country will have strong economy; however, Korea did. Now Korea became strong economy in short time. Korea has experienced great economic growth. Three major factors have expanded the Korean economy and earned its name of Asian Tiger: 1) wise use of technology, 2) intelligent economic policy 3) cultivation of workers.
One cause of economic growth is big companies and our own technology. Korea didn’t have any big companies before the1960’s. The Korean government believed big company and our own technology could make strong economy. The WTO (World Trade Organization) tells developing countries that they have to open a FTA (Free Trade Agreement) in order to be strong economy. However, it is too bad for developing countries. If developing countries open FTA about everything, people will buy already developed technology and something; as a result, their own company can’t be strong. Korea government knew it, so we had protective trade. For example, we never imported cars, electronic manufactures, and semiconductor in order to help the growth of our companies. If people wanted to buy other cars of other countries, they had to pay too much, so people bought our own manufactures. Through this strategy, Korean companies earned great profits. As a result, we made great companies like Samsung, LG, and Hyundai, especially Samsung which has become one of best companies in the world. Moreover, we perceived China had a lot of business potential, so we entered into diplomatic relationships with China. Actually, many Korean companies earned money from China. Many people live in China. It means China is very big market. We have been keeping relationship. It is good policy.
The second cause of economic growth is the government’s support. Government procured and cultivated talented personal. First, they made every citizen learn until high school. Thus, 98% people in Korea can read and write. It tells education rate is highest. Person is future. Smart person is good resource in order to make good nation. Moreover, government supported many young talents can study abroad. Before the 1960’s, Korea was very poor, so many smart people couldn’t study abroad. However, the government helped them. They learned developed technology and used their knowledge. Most important cause is spirit. Every Korean thinks we are family, and they had patriotic sentiment. In poor time, every people’s mind is one. Actually, everyone worked until night. They were never annoyed. It was very powerful. Another example, in 1998, Korea had big economic panic. Our government didn’t have dollars and couldn’t get out of debt. As an aftermath of the economic crisis, many companies went bankrupt. However we overcame trials. Every Korean collected own gold, dollars, save electricity and so on. Maybe people in other countries can’t understand. It is our culture.
Through 3 major causes, Korea has experienced dramatic economic growth. Only during 40~50 years, everything was changed. Korea also earned the name of Asian Tiger. Technology of Korea and good policies of Korea made economy strong, but it is not powerful. Really powerful thing is Korean people. Great economic powers have to be afraid of Korean, because Korea will be strong more and more through the Korean people.