This paper aims to show where Korea is now in the international economy, and how it got there, as well as the implications of this for Australia as a trading partner. From a war tom agricultural community, Korea has become a formidable industrial nation in approximately fifty years.
It is necessary to distinguish between North Korea and South Korea for the purpose of this paper, as the two sectors of the country followed very different paths as they entered the latter half of the twentieth century. North Korea today forms part of the communist bloc and little is really known of her economic performance, while South Korea is a well developed industrial nation. For the purposes of this paper, given space and information constraints, only' South Korea will be discussed.
South Korea has effectively moved from a colony to an economic power in its own right. This has been achieved through sheer hard work as well as an intelligent economic policy effectively mixing Government intervention and the free market. Part of this Government intervention included an effective import substitution policy combined with an export growth policy. Given Australia's proximity to Korea, Korea's development and growth have had important ramifications for our economy as a trading partner.