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Overview of Korea’s development experience

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Development Overview
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Foreign capital inflows into Korea (1980~1997)

Whereas the principal types of foreign capital introduced in the 1960s and 1970s were public and commercial loans, financial institutions started to play a major role in the introduction of foreign capital since the 1980s. During the period from 1980 to 1985, the borrowing from financial institutions amounted to $13.36 billion, which exceeded the amount of public or commercial loans (public loan of $9.02 billion and commercial loan of $6.36 billion) introduced during the period. Also, during the period from 1986 to 1992, the amount of borrowing from financial institutions exceeded the amount of public or commercial loans (borrowing from financial institutions: $10.30, public loan of $4.69 billion and commercial loan of $526 million) introduced during the period. In addition, the amount of debt securities issued by private companies was $834 million during the period from 1980 to 1985 and increased to $4.52 billion during the period from 1986 to 1992. Foreign direct investment was also increased from $962 million during the period from 1980 to 1985 to $5.68 billion during the period from 1986 to 1992 <Table 1-1>.
 
[Table 1-1] Introduction of Foreign
Introduction of Foreign Capital (1980~1992) 1
Introduction of Foreign Capital (1980~1992) 2

Source: Lee, Jinsoo. 2013. Foreign capital in economic development: Korean experiences and policies. Seoul: KDI School of Public Policy and Management.