Park Chung Hee Era
Page 106
both in The Political Economy of the New Asian Industrialism, ed. Frederic C.
Deyo (Ithaca: Cornell University Press, 1987), 136–164 and 44–83; Robert Wade, Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization (Princeton: Princeton University Press, 1990); World Bank, The East Asian Miracle (New York: Oxford University Press, 1993).
3. Council on Economic Planning and Development , Taiwan Statistical Data Book, 1998 (Taipei: CEPD, 1998); National Statistical Office, Major Statistics of Korean Economy, 1997.3 (Seoul: National Statistical Office, 1997).
4. Tun-jen Cheng, “Political Regimes and Development Strategies: South Korea and Taiwan,” in Manufacturing Miracles, ed. Gary Gereffi and Donald L.
Wyman (Princeton: Princeton University Press, 1990), 139–178; Byung-Nak Song, The Rise of the Korean Economy, 2nd ed. (New York: Oxford University Press, 1997).
5. Kozo Yamamura and Yasukichi Yasuba, eds., The Political Economy of Japan, vol. 1, The Domestic Transformation (Stanford: Stanford University Press, 1987); Fujimoto Takahiro, NÃryoku kÃchiku KyÃsÃ: Nihon no JidÃsha Sangyà wa Naze Tsuyoi no ka [Competition on the Basis of Constructing Ca-
Notes to Pages 605–612
730
pabilities: Why the Japanese Auto Industry Is Strong] (Tokyo: ChÄÃ KÃron Sha, 2003), esp. chap. 3, pp. 61–110.
6. Wade, Governing the Market; Alice H. Amsden and Chu Wan-wen, Beyond Late Development: Taiwan’s Upgrading Policies (Cambridge: MIT Press, 2003).
7. Through the Park era, the proportion of national investment going to the public sector was not much lower in Korea than in Taiwan. Wade, Governing the Market, 176–178.
8. Alice H. Amsden, Asia’s Next Giant: South Korea and Late Industrialization (New York: Oxford University Press, 1989), 291–314; Ha-Joon Chang, The Political Economy of Industrial Policy (New York: St. Martin’s Press, 1994), esp. chap. 4; Linsu Kim, Imitation to Innovation: The Dynamics of Korea’s Technological Learning (Boston: Harvard Business School Press, 1997).
9. Changrok Soh, From Investment to Innovation? The Korean Political Economy and Changes in Industrial Competitiveness (Seoul: Global Research Institute, Korea University, 1997); Mark L. Clifford, Troubled Tiger: Businessmen, Bureaucrats, and Generals in South Korea (Armonk, N.Y.: M. E. Sharpe, 1994).
10. Eun Mee Kim , Big Business, Strong State (Albany: State University of New York Press, 1997).
11. Amsden, Asia’s Next Giant, 291; Soh , From Investment to Innovation?, 168–
170.
12. Standard accounts of the development of the Japanese steel industry are Iida Ken’ichi, òhashi ShÄji, and Kuroiwa Toshiro, eds. , Tekkà [Steel] (Tokyo: Gendai Nihon Sangyà Hattatsushi KenkyÄkai, 1969); TsÄsho SangyÃshÃ, ShÃkà Seisakushi, Dai 17 Kan, TekkÃgyà [A History of Commercial and Industrial Policy, vol. 17, The Iron and Steel Industry] (Tokyo: ShÃkà Seisaku KankÃkai, 1970); Seiichiro Yonekura, The Japanese Iron and Steel Industry, 1850–1990 (New York: St. Martin’s, 1994).
13. Kent E. Calder, Strategic Capitalism (Princeton: Princeton University Press, 1993), 183–195.
14. Yonekura , Japanese Iron and Steel Industry, 226.
15. Leonard H. Lynn, How Japan Innovates: A Comparison with the U.S. in the Case of Oxygen Steel Making (Boulder: Westview, 1982).
16. Taiwanqu Gangtie Tongye Gonghui (TISIA), Taiwan Gangtie 20 Nian
[Twenty Years of the Taiwan Iron and Steel Industry] (Taipei: Taiwanqu Gangtie Tongye Gonghui, 1983), 503–532; Diao Ping and Yao Shifu, eds., Shida Jianshe yu Guojia Qiantu [The Ten Major Construction Projects and the Future of the Country] (Taipei: Ganjiang Chubanshe [1975]).
17. Jingjiren Bianji Weiyuanhui, ed., Caijing Juece Qiangren [Strong Men of Economic and Financial Decision Making] (Taipei: Jingjiren Zazhishe, 1984), 22; Liu Yuzhen , Tietou Fengyun: Zhao Yaodong Chuanqi [Ironhead: The Story of Zhao Yaodong] (Taipei: Lianjing Chuban, 1995).
18. Caixun Zazhishe, ed., Toushi Caijing Renmai [A Penetrating View of Human Networks in Finance and Economics] (Taipei: Caixun Zazhishe, 1986), 142–
163.
Notes to Pages 612–619
731
19. Gregory W. Noble, Collective Action in East Asia: How Ruling Parties Shape Industrial Policy (Ithaca: Cornell University Press, 1998), 90.
20. Amsden, Asia’s Next Giant, 293–295. Wade notes, however, that Korea made use of many other state-owned enterprises, including Korea Electric Power and Korea Telecom.
21. See Chapter 11 above.
22. Joseph J. Innace and Abby Dress, Igniting Steel: Korea’s POSCO Lights the Way (Huntington, N.Y.: Global Village Press, 1992), 14.
23. Ibid., 33.
24. Clifford, Troubled Tiger, 4, 68–75; Innace and Dress, Igniting Steel.
25. Nagano Shin’ichirÃ, “SÃgà izon no Kannichi kankei: hokà sÃgà seitetsujo setsuritsu to paku te jun no yakuwari” (Interdependent Korean-Japanese relations: The establishment of the Pohang integrated steel mill and the role of Pak Tae-joon), TÃyà Keizai NippÃ, April 24, 2009. http://www.toyo-keizai.co.jp/
news/opinion/2009/post_902.php.
26. Amsden, Asia’s Next Giant, 295n1. On textiles, personal communication from Byung-Kook Kim.
27. Innace and Dress, Igniting Steel, 39–46.
28. Ibid., 63–103.
29. Amsden, Asia’s Next Giant, 297, 302; Soh , From Investment to Innovation?, 172–173.
30. Amsden, Asia’s Next Giant, 306–309; Innace and Dress, Igniting Steel, 135–
137.
31. Amsden, Asia’s Next Giant, 297; Innace and Dress, Igniting Steel, p. 2, emphasizes that POSCO never lost money even during downturns in the cyclical steel business, but the data at pp. 248–249 show that POSCO’s rate of return was very thin.
32. Amsden , Asia’s Next Giant, 301.
33. Clifford, Troubled Tiger, 312.
34. Noble, Collective Action, 167, 235.
35. Korea Times, March 25, 2008; Korea Herald, January 6, 2010.
36. Ira C. Magaziner and Thomas M. Hout , Japanese Industrial Policy (London: Policy Studies Institute, 1980).
37. Calder , Strategic Capitalism.
38. John Jay Tate, Driving Production Innovation Home: Guardian State Capitalism and the Competitiveness of the Japanese Automobile Industry (Berkeley: BRIE, 1995).
39. Calder, Strategic Capitalism, 178–182.
40. Winified Ruigrok and John Jay Tate, “Public Testing and Research Centres in Japan: Control and Nurturing of Small and Medium-Sized Enterprises in the Automobile Industry,” Technology Analysis and Strategic Management 8, no.
4 (December 1996): 381–406; David Friedman, The Misunderstood Miracle: Industrial Development and Political Change in Japan (Ithaca: Cornell University Press, 1988).
41. Sumimaru Odano and Saiful Islam, “Industrial Development and the Guidance Policy Finance: The Case of the Japanese Automobile Industry,” Asian
Notes to Pages 619–622
732
Economic Journal 8, no. 3 (1994): 285–315. Calder, Strategic Capitalism, emphasizes that the Industrial Bank of Japan, rather than government banks, was the crucial early source of financing for auto firms, but he also demonstrates that IBJ was deeply influenced by MITI and the Ministry of Finance.
42. Yun-han Chu, “The State and the Development of the Automobile Industry in South Korea and Taiwan,” in The Role of the State in Taiwan’s Development, ed. Joel D. Aberbach, David Dollar, and Kenneth L. Sokoloff (Armonk, N.Y.: M. E. Sharpe, 1994), 125–169; Walter Arnold, “Bureaucratic Politics, State Capacity, and Taiwan’s Automobile Industry Policy,” Modern China 15, no. 2
(April 1989): 178–214; Jingjibu Jishuchu, 1999 Qi, Ji, Zixingche Chanye Xiankuang yu Qushi Fenxi [An Analysis of Current Conditions and Trends in the Automobile, Motorcycle and Bicycle Industries, 1999] (Xinzhu: Gongye Jishu Yanjiuyuan Jijie Gongye Yanjiusuo, 1999).
43. Gregory W. Noble, “Trojan Horse and Boomerang: Two-Tiered Investment in the Asian Auto Complex,” Berkeley Roundtable
on the International Economy Working Paper, December 1996.
44. Zhanghua Shangye Yinhang Zhengxinshi, ed., Taiwan Qiche Gongye zhi Xiankuang yu Zhanwang (7) [The Taiwan Automobile Industry: Current Conditions and Future Prospects (7)] (Taipei: Zhanghua Shangye Yinhang Zhengxinshi, 1985).
45. Noble, “Trojan Horse.”
46. Edward Cunningham, Teresa Lynch, and Eric Thun, “A Tale of Two Sectors: Diverging Paths in Taiwan’s Automotive Industry,” in Global Taiwan: Building Competitive Strengths in a New International Economy, ed. Suzanne Berger and Richard K. Lester (Armonk, N.Y.: M. E. Sharpe, 2005).
47. Chapter 10 above; Amsden, Asia’s Next Giant; Michael McDermott, “The Development and Internationalization of the South Korean Motor Industry: The European Dimension,” Asia Pacific Business Review 2, no. 2 (Winter 1995): 23–47; Myung-oc Woo, “Export Promotion in the New Global Division of Labor: The Case of the South Korean Automobile Industry,” Sociological Perspectives 36, no. 4 (1993): 335–357; Richard F. Doner, “Limits of State Strength: Toward an Institutionalist View of Economic Development,” World Politics 44, no. 3 (April 1992): 398–431; Clifford , Troubled Tiger, 253–262; Maruyama Yoshinari, ed., Ajia no JidÃsha SangyÃ, rev. ed. [The Asian Automobile Industry] (Tokyo: Aki ShobÃ, 1997).
48. Chapter 10 above.
49. Clifford, Troubled Tiger, 254.
50. Chapter 9 above.
51. Donald Kirk, Korean Dynasty: Hyundai and Chung Ju Yung (Armonk, N.Y.: M. E. Sharpe, 1994), 124–136.
52. Chapter 10 above.
53. Unless otherwise stated, all figures on auto production in Korea are from McDermott, “Development and Internationalization,” 29–30, and for Taiwan from Zhanghua Shangye Yinhang Zhengxinshi, ed., Taiwan Qiche Gongye, 11. Differing definitions of light trucks and ways of compiling statistics preclude exact comparison, but the figures given in the text are fairly comparable.
Notes to Pages 622–632
733
54. McDermott, “Development and Internationalization,” 26.
55. Chapter 10 above.
56. Quoted in Clifford, Troubled Tiger, 256.
57. Amsden, Asia’s Next Giant, 132.
58. Clifford, Troubled Tiger, 256–261.
59. McDermott, “Development and Internationalization,” 29; Maruyama, Ajia no JidÃsha SangyÃ, 118–119.
60. Maruyama, Ajia no JidÃsha SangyÃ, 111–120.
61. Amsden, Asia’s Next Giant, 175–176. Amsden may overstate Hyundai’s independence. Four-fifths of Hyundai’s license fees went to Mitsubishi Motors.
Clifford, Troubled Tiger, 262n15.
62. Maruyama, Ajia no JidÃsha SangyÃ, 132.
63. Doner, “Limits of State Strength,” 410–411.
64. Amsden, Asia’s Next Giant, 179–188; Maruyama, Ajia no JidÃsha SangyÃ
121–134; McDermott, “Development and Internationalization,” 41–45.
65. Maruyama, Ajia no JidÃsha SangyÃ, 140–141.
66. McDermott, “Development and Internationalization,” 33.
67. Noble, Collective Action.
68. Although most Korean exports came from large companies, the number of small companies relative to GDP and the proportion of workers employed in small companies were nearly as high as in Japan and Taiwan. It is true that the share of very large enterprises was somewhat larger than in Japan or Taiwan, but the average number of employees per firm was slightly smaller in Korea (14) than in Japan (16). Korea lacked not small firms but medium-sized ones.
Song , Rise of the Korean Economy, 111–114.
69. Noble, Collective Action.
70. Amsden, Asia’s Next Giant.
71. Gregory W. Noble and John Ravenhill, “The Good, the Bad and the Ugly? Korea, Taiwan and the Asian Financial Crisis,” in The Asian Financial Crisis and the Structure of Global Finance, ed. Noble and Ravenhill (Cambridge: Cambridge University Press, 2000).
72. Clifford, Troubled Tiger; Soh, From Investment to Innovation?
Conclusion
1. O Wôn-ch’ôl, Han’gukhyông kyôngje kônsôl: enjiniôring ôp’¤roch’i 3 [Korean-Style Economic Development: An Engineering Approach], vol. 3 (Seoul: Kia kyôngje yôn’guso, 1995), 167.
2. The quotation is from Cho Kap-che’s biography of Park Chung Hee, Nae mudôm-e ch’im-¤l paet-ôra [Spit on my grave], vols. 1–5 (Seoul: Chosun Ilbosa, 1999), and vols. 6–8 (Seoul: Chosun Ilbosa, 2001).
3. Yung Chul Park and Dong Won Kim, “Korea: Development and Structural Change of the Banking System,” in The Financial Development of Japan, Korea, and Taiwan: Growth, Repression, and Liberalization, ed. Hugh T. Patrick and Yung Chul Park (New York: Oxford University Press, 1994), 214.
4. Tibor Scitovsky, “Economic Development in Taiwan and South Korea,” in
Notes to Pages 632–638
734
Models of Development: A Comparative Study of Economic Growth in South Korea and Taiwan, ed. Lawrence J. Lau (San Francisco: ICS Press, 1990), 165.
5. Gerardo R. Ungson, Richard M. Steers, and Seung-Ho Park, Korean Enterprise: The Quest for Globalization (Cambridge, Mass.: Harvard Business School Press, 1997), 23–81.
6. See Chapter 7 above for an analysis of Park’s regulatory policy.
7. Bella Balassa and John Williamson, Adjusting to Success: Balance of Payments Policy in the East Asian NICs (Washington, D.C.: Institute for International Economics, 1987).
8. Ibid. The state generously rescheduled and even wrote off 74 percent of the nonperforming loans, a large part of which were financed through three tril-lion won in special assistance from the central bank. See Yung Chul Park and Dong Won Kim, “Korea: Development and Structural Change of the Banking System,” 209.
9. Dong-A Ilbo, August 22, 1984; and December 16, 1986.
10. Robert E. Bedeski, The Transformation of South Korea: Reform and Reconstruction in the Sixth Republic under Roh Tae Woo, 1987–1992 (Seoul: Routledge, 1994), 86–88.
11. Dong-A Ilbo, May 9, 1990.
12. Dong-A Ilbo, September 27, 1980.
13. Joongang Ilbo, July 24, August 6, and October 28, 1991.
14. Chosun Ilbo, September 20, 1991; and Dong-A Ilbo, August 3, October 10, and October 21, 1992.
15. The Ministry of Industry, Trade and Resources (MTIR), “Taegyumo kiôp chipdan¤i ôpjong jônmunhwa yudo pang’an (A measure to induce sectoral specialization of large-scale business groups),” May 1993.
16. Financial Team, Korea Development Institute, 1998nyôn k¤myung pumun jôngch’aek yôn’gu charyo mo¤mjip [A collection of policy study materials on the financial sector in 1998] (Seoul: Korea Development Institute, 1999), 3–14.
17. International Monetary Fund (IMF), “Republic of Korea: Economic and Policy Developments,” IMF Staff Country Report No. 00–11 (February 2000), 96, 99–101.
18. Han’gyorae sinmun, August 16, August 26, and November 1, 1999; August 13 and August 24, 2000; and May 20 and July 9, 2001. See also Dong Gull Lee, “The Restructuring of Daewoo,” in Haggard, Lim, and Kim, eds., Economic Crisis and Corporate Restructuring in Korea (Cambridge: Cambridge University Press, 2003), 150–177.
19. Korea Chamber of Commerce, “Giôp yuboyul hyônhwang’gwa sisajôm”
[The current situation of corporate retained earnings and its implications], July 4, 2007.
20. Son Uk and Yi Sang-je, “G¤myung sôbis¤ sônjinhwar¤l wihan kwaje” [Policy issues for the advancement of the financial service sector] in Kim Ju-hun and Ch’a Mun-jung, eds., Sôbis¤ bumun-¤i sônjinhwa-r¤l wihan chôngch’aek kwaje [The policy agendas for advancing the service sector], Policy Paper 07–
04, Korea Development Institute (2007), 288, 293–297, 300.
21. For data, see Yang Sông-ch’ôl, Han’guk chôngburon: yôkdae chônggwôn
Notes to Pages 639–645
735
kowijik haengjông elit¤ yôn’gu, 1948–1993 [A Theory of the Korean State: Analysis of Its High-Ranking Executive Elite, 1948–1993] (Seoul: Pakyôngsa, 1994).
22. The l
ist of chaebol groups was compiled by Eun-Mi Kim and Gil-Sung Park.
See Chapter 9.
23. The smaller regions of Kangwôn, Ch’ungch’ông, and Seoul each produced two top-ten chaebol at one time or another after 1972, while Kyônggi Province belatedly had its share of power and glory in 1979 with Ch’oe Chong-hyôn’s highly successful SK Group.
24. The other industrial complexes were built in Kyônggi-Inch’on (1966), Kuro (1967), Kumi (1967), P’ohang (1973), Masan (1969), Yôch’ôn-Kwangyang (1973), and Ch’angwôn(1973).
25. The Korea Industrial Complex Corp.
26. Michael Borrus, Dieter Ernst, and Stephan Haggard, International Production Networks in Asia: Rivalry or Riches? (London: Routledge, 2000); and Gary Gereffi and Michael Korzeniewicz, eds., Commodity Chains and Global Capitalism (New York: Praeger, 1994).
27. Dong-A Ilbo, September 10, 1979.
28. New York Times, September 16, 1979. Also see Dong-A Ilbo, September 19, 1979.
29. Dong-A Ilbo, October 4 and 6, 1979.
30. Cho Kap-che, Yugo! [The death of Park!] (Seoul: Han’gilsa, 1987), 1:242–
319, 2:5–111.
31. Dong-A Ilbo, December 13, 1978.
32. See Byung-Kook Kim, “Electoral Politics and Economic Crisis, 1997–1998,”
in Larry Diamond and Kim, eds., Consolidating Democracy in South Korea (Boulder: Lynne Rienner, 2000), 181.
33. See Angelo Panebianco, Political Parties: Organization and Power (Cambridge: Cambridge University Press, 1988), 3–32.
34. Consult Pak Pyông-sôk, “Chôngch’i piri” [Political corruption], in Im Chông-ch’ôl et al., Han’guk sahoe-¤i piri [Corruption in Korean society] (Seoul: Seoul National University Press, 1994), 5–36, for an analysis of political corruption.
35. Consult former Democratic Republican Party chairman Chông Ku-yông’s Chông Ku-yông hoegorok: silp’aehan tojôn [The recollections of Chông Ku-yông: The failed challenge] (Seoul: JoongAng Ilbosa, 1987), 264.
36. Dong-A Ilbo, October 5, 1971.
37. See Kim Dae-jung napch’i sagôn-ui chinsang kyumyông-¤l wihan simin-¤i moim [the Citizens’ Forum to Find the Truth about the Kidnapping of Kim Dae-jung], Kim Dae-jung napch’i sagôn chinsang [The True Story behind the Kidnapping of Kim Dae-jung] (Seoul: P’ur¤n namu, 1995).