11:12, 25 August 2022
YEREVAN, AUGUST 25, ARMENPRESS. Korea Development Institute (KDI) has a special place in South Korea’s economic life.
Founded in 1971, Korea Development Institute has been recognized as a leading think tank of Korea significantly contributing to the economic and social development of the country. KDI has conducted research on a broad range of economic and social issues, including macroeconomics policy, fiscal policy, and labor.
From the moment of its establishment up to 1996 the Institute has developed and presented to the country’s leadership 5-Year Economic Development Plans which have been consistently implemented by ensuring the country’s drastic economic development. Since 1996, this policy of fulfilling 5-Year Plans has been suspended, but the Institute continues cooperating with the government, assisting with policy development and implementation.
Within the frameworks of the media tour organized by the Korean Culture and Information Service, ARMENPRESS spoke with KDI Visiting Senior Fellow Byung Koo Cho. He said that the development and implementation of these 5-Year Economic Development Plans is justified, the evidence of which is the high level of economic development of South Korea.
“In 1960s we thought it’s necessary to achieve economic development with the use of own technologies, and the 5-Year Plans served for achieving this goal. Everything worked out well for us, that’s why we achieved such success”, he said.
According to him, Korea has achieved wonderful economic results because of these 5-Year Plans, however, notes that this path was also full of barriers and crisis situations which were overcome thanks to a flexible policy.
“During the implementation of the 4th Plan, President Park Chung-hee died, and starting from late 1960s up to mid-1970s our country faced an economic and political crisis. There was also the conflict with North Korea, and that time North Korea was a richer country economically, politically and militarily. We were mainly exporting light industry products that time, such as clothing, shoes, etc. The problem was that many other countries had that product and were exporting it, therefore, we understood that we need to focus on other directions. There was a goal to develop the military and defense industry. But Korea didn’t have that capacities that time, and starting 1973 our country began developing the heavy and chemical industry”, Byung Koo Cho said.
How South Korea made such a drastic economic development thanks to the 5-Year Plans, Byung Koo Cho gives a very simple explanation. According to him, many countries have developed economic development plans, but developing plans only is one thing, and implementing them is another. He thinks that these plans must be implemented, not be left on paper.
The KDI Visiting Senior Fellow informed that every time facing a new crisis the leaders of South Korea were changing the development plans in order to adapt to the new situation and overcome the crisis.
Another feature that Korea has, according to Byung Koo Cho, is that here private companies have a big role and freedom in promoting the economic development plans. “In other countries the government is pushing forward the economic development plan, but in our country private companies have freedom in this regard. That’s why Samsung and Hyundai developed that time and still continue their development course”, he said.
Currently, South Korea also has its own military production as the country is producing tanks, missiles, fighter jets. South Korea started its own military production after the collapse of the Soviet Union when they managed to obtain the military technologies of the collapsed Union. “On its basis we achieved the development of the military industry, but, of course, with developing, improving the technologies that we have obtained. Now we have orders for military products from Poland, Norway and other countries”, he added.
Before the interview, the reporter of ARMENPRESS also toured the Global Knowledge Exchange & Development Center where the models and main directions of economic development of modern Korea are presented in chronological order.
Shant Khlghatyan
Photos by PENTA PRESS