Korean Economics
A short history of the economics of Korea.
Location: North Korea; South Korea
Trade in Early Korea
As a small peninsula bordering larger empires, Korea has been relatively isolated for most of its history. Nevertheless, it practiced regular trade with the outside world. Buddhism traveled from India through China and took root in Korea around the 4th century CE. Those same routes brought new goods and ideas from across Asia, including its most popular games and philosophies.[1][2]
For much of its early history, Korea was a tributary state of China. Diplomatic missions traveled to Chinese courts bearing gifts of gold, ceramics, and other valuable goods. They came home laden with Chinese wares, promoting cultural exchange between the two nations. During the Goryeo dynasty, typical exports included copper, gold, silver, ginseng, paper, ramie cloth, furs, and horses. Merchants traded these items for books, medicine, silk, porcelain, tea, and lacquerware.[3]
Economics of the Joseon Dynasty
For most of the Joseon period, Korea remained closed to the Western world. It continued trade with China, but only the nobility fully enjoyed the benefits of imports and exports. Japanese trade rose and then declined by the 18th century. Merchants at this time occupied some of the lowest rungs of society. Shops needed an official license to operate. Those without a license traveled as wandering peddlers, carrying all of their goods on their backs.[4]
Economics of a Divided Korea
After World War II, outside pressures from the Cold War splintered the fragile Korean government. North Korea withdrew from the world to form a totalitarian dictatorship. With the fall of its ally, the Soviet Union, it has suffered from famines and relative poverty. South Korea, by contrast, embraced global capitalism and modernized its workforce. South Korean companies are now spread across the globe. They include major corporations like Samsung, Hyundai Motor Company, POSCO, and Kia Motors.[5][6]
"Hyper-Consumerism" in South Korea
The economic success of South Korea has been fueled by both international markets and internal consumption. Its swelling middle-class has created an economic culture labelled "hyper-consumerism" by observers. The pressure to wear and use only the latest clothing and technology, however, is also a source of financial stress for many young Koreans. Pressure from China and the instability of North Korea pose further challenges for the growing South Korean economy.[7]
Bibliography
E-Wah Lee, Korea's Pastimes and Customs: A Social History, trans. Ju-Hee Park (Paramus, NJ: Homa & Sekey Books, 2006), 1-25.
Oliver Leaman, Encyclopedia of Asian Philosophy (London: Routledge, 2013), 487.
Michael J. Seth, A History of Korea: From Antiquity to the Present (Lanham: Rowman & Littlefield, 2011), 85.
Ibid., 194.
South Korea Diplomatic Handbook (Washington, DC: International Business Publ., 2010), 10-11.
Hwy-Ch'ang Mun, The Strategy for Korea's Economic Success (New York, NY: Oxford University Press, 2016).
Steven Denney, "South Korea's Changing Attitudes on Inequality and Capitalism," The Diplomat, November 30, 2014, The Diplomat, accessed May 12, 2017.
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