Supreme Council for National Reconstruction (SCNR), which thereupon undertook a military-led modernization of the whole country.
General Pak Chong-hui, one of the few older officers associated with the 1961 coup, headed the SCNR. He was elected President in 1963, when the government was "civilianized" under a revised constitution that returned government to the strong presidential type of Rhee's time. The constitution was further amended in 1969 and 1972 to give Pak even greater leeway. President Pak is a peasant's son whose military career was boosted by the prestigious prewar officer training he had undergone in Japan. His twin goals for Korea reflect his background as a peasant and as an officer: agricultural improvement and technological advancement. He is a good example of the modern, scientifically trained officer who nevertheless retains a deep bias against urban life and politicians. Democratic political values have been subordinated to economic considerations under Pak, as under the Japanese. In fact, in many ways Pak's Korea is reminiscent of the bureaucratic, economy-oriented, militarily efficient, depoliticized, and rigidly anti-communist regime under Japan. The great difference of course is that it is a strongly nationalistic government of, by, and for Koreans.
In any case, the Pak regime has reaped remarkable economic results. Under a series of 5-year plans, natural resources and manpower had been mobilized to achieve economic modernization. Although the Pak government has resorted to centralized planning, governmental direction and support, and even outright public ownership and operation, it has eschewed any reference to socialism and describes the country as a "capitalist showcase." By and large, the government has not been coercive and has carried out its economic plans pragmatically and with deft flexibility. The South Koreans like to look to West Germany as an example of the successful survival of a divided country; they point with pride to their own "Miracle on the Han." (The Han River is the "Korean Rhine" and the nation's main inland waterway.)
South Korea achieved an economic breakthrough in the mid-1960's which has basically altered the economy. Sparked by an expansion of manufacturing, which about doubled its contribution to the gross national product (GNP) between 1961 and 1971, the GNP grew at the extraordinarily high average rate of about 10% annually. During the decade, per capita GNP rose from $100 to over $250. The government has already set a goal to achieve a per capita GNP of $1,000 by 1980; even half that in real terms would be a great jump. During the 1960's living standards improved, particularly in the cities. In the process, South Korea is becoming more urban than some of the industrialized countries of Europe; it is moving out of the less-developed category and may be considered a semideveloped country. In late 1972 the Director of the Economic Planning Board foresaw South Korea achieving a self-supporting economy in the 1980's.
In the meantime, however, South Korea remains heavily dependent on its ability to continue to reduce imports and expand exports, and on continued infusions of foreign capital, including aids, as well as investment. In these respects, Seoul depends heavily on economic relations with the United States and Japan. These two countries account for about 70% of ROK exports, 67% of its imports, 90% of foreign private investment, and the bulk of official economic aid.
The most immediate economic problems facing the Pak regime include inflation, a lagging agricultural sector, in adequate housing and other largely urban ills, and the growing inequality of incomes making for large, depressed sectors of the population. Basic services are still unavailable to many, particularly in the urban slums. Poor sanitation, industrial pollution, and a high incidence of disease and delinquency plague many Korean poor and detract from the success of industrial progress. The Pak government, concerned with a population growth rate of nearly 3% between 1955 and 1965, has succeeded in cutting it down to about 2%, primarily through birth-control measures. Abortion has recently been legalized and the government's goal is to reduce the rate of growth to 1% by 1981. Social welfare is still largely in private hands, though the regime has talked about moving in a comprehensive way to meet the crying need for action in this field.
