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Comments on Dr. Lim’s heavy and chemical industry drive in Korea

Related Document
Frame of Image gs to finance investment
<Investment, Domestic Saving, Foreign Saving in Korea>
(1953-91, % of GNP)
40 35
2. How did Korea fill the financing gap?
30 25
Q: Q: How a predominately agrarian poor economy with little export base, could finance the massive investment without setting off hyper-inflation?
20 15 10 5 0 53-59 62-66 67-71 72-76 77-81 82-84 85-91
I /GNP DS/GNP F S/GNP
Korea largely relied on foreign savings to finance investment
< Investment and Savings in Korea (%)>
53~59 62~66 (1ST 5 yr Plan) 16.3 8.0 8.3 50.9 67~71 (2nd 5 yr Plan) 25.4 15.1 10.3 40.6 72~76 (3rd 5 yr Plan) 29.0 20.4 8.6 29.7 77~81 (3rd 5 yr Plan) 31.0 25.5 5.5 18.1 82~84 (3rd 5 yr Plan) 28.2 24.8 3.4 12.1
33
<Box 1> Seeking foreign loans
To industrialize toward HCIs, Korea needed to make capital investments; it had to import equipment, which required foreign currency. However, Korea had little export base and lacked a foreign exchange reserve. To To get foreign loans, President Park freed the industrialists that were arrested for corruption on the condition that they go out and secure loans to finance capital investment. • A delegate of top businessmen went on an international road-show to drum-up foreign investors. But their efforts proved futile … Not even the government’s legislation of the Foreign Loan Repayment Guarantee Act in 1962 did much to induce foreign borrowings, due to chronic budget deficit.
2 2 1 4
85~91 (3rd 5 yr Plan) 32.7 34.8 -2.1 -6.4
Investment/GNP Domestic Saving/GNP Foreign Sav


Full Text
Title Comments on Dr. Lim’s heavy and chemical industry drive in Korea
Similar Titles
Material Type Proceedings
Author(English)

Kim, Joon-Kyung

Publisher

[Seoul]:KDI School of Public Policy and Management

Date 2012-08
Event

KDI-MIT-WBI 공동 후발개도국의 산업정책과 리더십 연구 전문가워크숍

Pages 5
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Financial Policy
Industry and Technology < General
Social Development < Education
Holding KDI; KDI School of Public Policy and Management

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