U.S. Department of State
Background Notes:  South Korea, January 1996
Bureau of East Asian and Pacific Affairs


Prepared and released by the Bureau of East Asian and Pacific Affairs,
Office of Korean Affairs

January 1996
Official Name: Republic of Korea

PROFILE

Geography

Area: 98,500 sq. km. (38,000 sq. mi.); about the size of Indiana.
Cities: Capital--Seoul (1994: 10.9 million). Other major cities--Pusan 
(1993: 3.8 million), Taegu (1993: 2.2 million), Inchon (1994: 2.1 
million).
Terrain: Partially forested mountain ranges separated by deep, narrow 
valleys; cultivated plains along the coasts, particularly in the west 
and south.
Climate: Temperate.

People

Nationality: Noun and adjective--Korean(s).
Population (1994): 44.5 million.
Annual growth rate (1994): 0.9%.
Ethnic groups: Korean; small Chinese minority.
Religions: Christianity, Buddhism, Shamanism, Confucianism, Chondogyo.
Language: Korean.
Education: Years compulsory--9. Number of students (1994)--11,482,013. 
Attendance (1993)--of those eligible, 99.1% attended middle school, 
94.6% attended high school. Literacy--96%.
Health (1994): 1 doctor/817 persons. Infant mortality rate (1993)--
22/1,000. Life expectancy (1994)--men 67.7 yrs., women 75.1 yrs.
Work force (19.3 million, 1993): Agriculture (1993)--14.7%. Mining and 
Manufacturing (1993)--24.4% Services (1993)--60.9%.

Government

Type: Republic with powers shared between the president and the 
legislature.
Independence: August 15, 1948.
Constitution: July 17, 1948; last revised 1987.
Branches: Executive--president (chief of state). Legislative--unicameral 
National Assembly. Judicial--Supreme Court and appellate courts, 
Constitutional Court.
Subdivisions: 9 provinces, 6 administratively separate cities (Seoul, 
Pusan, Inchon, Taegu, Kwangju, Taejon).
Political parties: Government party--New Korea Party (NKP). Opposition 
parties--National Congress for New Politics (NCNP), Democratic Party 
(DP), United Liberal Democrats (ULD). Suffrage: Universal at 20.
Central government budget (1993): Expenditures--$65.8 billion.
Defense (1994): $12.6 billion, about 3.5% of nominal GNP and 23.3% of 
government budget; about 650,000 troops.
Holidays: Lunar New Year, February 9-11; Independence Movement Day, 
March 3; Buddha's Birthday, May 18; Memorial Day, June 6; Constitution 
Day, August 15; Liberation Day, September 15; Chusok (Thanksgiving), 
October 19-21.
Flag: Centered on a white field is the ancient Chinese symbol of yin and 
yang in red and blue; at each corner of the white field is a different 
trigram of black bars.

Economy

Nominal GNP (1994): $331 billion.
Annual growth rate (1965-86): 7%; (1985-92): 9.6%; (1994): 5.8%.
GDP Growth Rate (1994): 7.9%.
Per capita GNP (1994): $8,483.
Consumer price index (1994 avg. increase): 6.2%.
Natural resources: Limited coal, tungsten, iron ore, limestone, 
kaolinite, and graphite.
Agriculture, including forestry and fisheries (7.1% of 1993 GNP): 
Products--rice, vegetables, fruit. Arable land--22% of land area.
Mining and manufacturing (27.6% of 1993 GNP): Textiles, footwear, 
electronics and electrical equipment, shipbuilding, motor vehicles, 
petrochemicals, industrial machinery.
Trade (1994): Exports--$96.0 billion: manufactures, textiles, ships, 
automobiles, steel, computers, footwear. Major markets--U.S., Japan, 
ASEAN, European Community. Imports--$102.4 billion: crude oil, food, 
machinery and transportation equipment, chemicals and chemical products, 
base metals and articles. Major suppliers--Japan, U.S., European 
Community, Middle East.
Exchange rate (Mar. 1995): 758 won=US$1.
Fiscal year: Calendar year.

Membership in International Organizations

UN member; active in many UN specialized agencies (FAO, GATT, IAEA, 
IBRD, ICAO, IDA, IFAD, IFC, IMF, IMO, ITU, UNCTAD, UNDP, UNESCO, UNICEF, 
UNIDO, UPU, WHO, WIPO, WMO, WTO) and other international organizations 
(APEC, Customs Cooperation Council, Korean Peninsula Energy Development 
Organization (KEDO), COCOM, Economic and Social Commission for Asia and 
the Pacific, Geneva Conventions of 1949 for the Protection of War 
Victims, Asian Development Bank, INTELSAT, the Administrative Council of 
the International Telecommunications Council, International Whaling 
Commission, Interparliamentary Union, INTERPOL); official observer 
status in African Development Bank (member of Africa Development Fund), 
and International Labor Organization.

PEOPLE

Korea was first populated by a Tungusic branch of the Ural-Altaic 
family, which migrated to the peninsula from the northwestern regions of 
Asia. Some also settled parts of northeast China (Manchuria); Koreans 
and Manchurians still show physical similarities--in their height, for 
example. Koreans are racially and linguistically homogeneous, with no 
sizable indigenous minorities, except Chinese (20,000).

South Korea's major population centers are in the northwest area of 
Seoul-Inchon and in the fertile southern plain. The mountainous central 
and eastern areas are sparsely inhabited. The Japanese colonial 
administration concentrated its industrial development efforts in the 
comparatively underpopulated and resource-rich north, resulting in a 
considerable migration of people to the north from the southern agrarian 
provinces. This trend was reversed after World War II, as Koreans 
returned to the south from Japan and Manchuria. In addition, more than 2 
million Koreans moved to the south from the north following the division 
of the peninsula into U.S. and Soviet military zones of administration. 
This migration continued after the Republic of Korea was established in 
1948 and during the Korean War (1950-53). About 10% of the people in the 
Republic of Korea are of northern origin. With 44.5 million people, 
South Korea has one of the world's highest population densities--much 
higher, for example, than India or Japan--while the territorially larger 
North has about only 22 million people. Ethnic Koreans now residing in 
other countries live mostly in China (1.9 million), the United States 
(1.52 million), Japan (681,000), and the countries of the former Soviet 
Union (450,000).

Language

Korean is a Ural-Altaic language. It is related to Japanese and remotely 
related to Hungarian, Finnish, Estonian, and Mongolian. Although 
dialects exist, the Korean spoken throughout the peninsula is mutually 
comprehensible. Chinese characters were used to write Korean before the 
Korean Hangul alphabet was invented in the 15th century. These 
characters are still in limited use in South Korea, but the North uses 
Hangul exclusively. Many older people retain some knowledge of Japanese 
from the colonial period (1910-45), and many educated Koreans can read 
English, which is taught in all secondary schools.

Religion

Korea's traditional religions are Shamanism and Buddhism. Buddhism has 
lost some influence over the years, but is still followed by about 27% 
of the population. Shamanism (traditional spirit worship) is still 
practiced in some rural areas.

Although Confucianism remains a dominant cultural influence, its 
religious adherents are few and tend to be elderly. Some sources place 
the number of adherents of Chondogyo, a native religion founded in the 
mid-19th century that fuses elements of Confucianism and Christianity, 
at over one million.

Christian missionaries arrived in Korea as early as the 16th century but 
it was not until the 19th century that they founded schools, hospitals, 
and other modern institutions throughout the country. Christianity is 
now one of Korea's largest religions. In 1993, nearly 10.5 million 
Koreans, or 24% of the population, were Christians (about 76% 
Protestant)--the largest figure for any East Asian country except the 
Philippines.

HISTORY

According to Korean legend, the god-king Tangun founded the Korean 
nation in BC 2333. By the first century AD, the Korean Peninsula was 
divided into the kingdoms of Silla, Koguryo, and Paekche. The Silla 
kingdom unified the peninsula in 668 AD. The Koryo dynasty (from which 
is derived the Western name "Korea") succeeded the Silla kingdom in 935. 
The Choson dynasty (ruled by members of the Yi clan) supplanted Koryo in 
1392 and lasted until the Japanese annexed Korea in 1910.

Throughout most of its history, Korea has been invaded, influenced, and 
fought over by its larger neighbors. Korea was under Mongolian 
occupation from 1231 until the early 14th century and was devastated by 
Chinese rebel armies in 1359 and 1361; the Japanese warlord Hideyoshi 
launched major invasions in 1592 and l597. Korea's closed-door policy, 
adopted to ward off foreign encroachment, earned it the name of "Hermit 
Kingdom." Although the Choson Dynasty paid fealty to the Chinese throne, 
Korea was, in fact, independent until the late 19th century. At that 
time Japanese, Chinese, and Russian competition in Northeast Asia led to 
armed conflict and foreign intervention in Korea's domestic and foreign 
policy. Japan defeated its two competitors and established dominance in 
Korea, formally annexing it in 1910.

The Japanese colonial era was characterized by tight control from Tokyo 
and ruthless efforts to supplant Korean language and culture. Organized 
Korean resistance to such colonialism, notably the 1919 Independence 
Movement, was unsuccessful and Japan remained firmly in control until 
the end of World War II.

Near the end of the war, the April 1945 Yalta Conference agreed to 
establish a four-power trusteeship for Korea. The trusteeship was 
intended as a temporary administrative measure pending democratic 
elections for a Korean government. With the unexpected early surrender 
of Japan, the United States proposed--and the Soviet Union agreed--that 
Japanese troops surrender to U.S. forces south of the 38th parallel and 
to Soviet forces north of that line.

At a December 1945 Foreign Ministers' conference in Moscow, it was 
proposed that a trusteeship be established in Korea. The Moscow 
Conference generated a firestorm of protest in the South. Its most 
critical opponents were rightist Korean leaders associated with the 
provisional government established in Shanghai in 1919 by Korean 
nationalists living abroad, most notable among them was nationalist 
leader Syngman Rhee.

The U.S. military government initially found itself at odds with the 
local self-governing bodies established after the Japanese surrender -- 
the "people's committees."  It relied on the advice of conservative 
elements but later tried to put together a moderate coalition to provide 
itself with a broader base of political support. In December 1946, the 
military government established the Interim Legislative Assembly to 
draft legislation, and appointed moderates to half of the seats. (The 
others were indirectly elected seats that went to rightists.) But the 
July 1947 assassination of a prominent leftist in the coalition and the 
decision of a coalition moderate to enter into unification talks with 
the north led to the demise of the coalition efforts.

The joint Soviet-American commission provided for by the Moscow 
Conference met intermittently in Seoul but became deadlocked over the 
issue of free consultations with representatives of all Korean political 
groups for establishment of a national government. The U.S. submitted 
the Korean question to the UN General Assembly for resolution in 
September 1947. In November the General Assembly ruled that UN-
supervised elections should be held.

Korean Conflict

The Soviet Union and Korean authorities in the north ignored the UN 
General Assembly resolution on elections. Nonetheless, elections were 
carried out under UN observation in the south, and on August 15, 1948, 
the Republic of Korea (ROK) was established. Syngman Rhee became the 
republic's first president. On September 9, 1948, the Democratic 
People's Republic of Korea (DPRK) was established in the north under Kim 
Il Sung.

Guerrilla fighting in the south and clashes between southern and 
northern forces along the 38th parallel intensified during 1948-50. 
Although it provided modest military aid to the south, withdrew its 
occupation forces, leaving behind a 500-man Military Advisory Group by 
June 1949.

On June 25, 1950, North Korean forces invaded South Korea. The UN, in 
accord with its Charter, engaged in its first collective action by 
establishing the UN Command (UNC), under which 16 member nations sent 
troops and assistance to South Korea. At the request of the UN Security 
Council, the United States, contributor of the largest contingent, led 
this international effort.

After initially falling back to the southeastern Pusan perimeter, UN 
forces conducted a successful surprise landing at Inchon and rapidly 
advanced up the peninsula. As the main UN force approached the northern 
Yalu River, however, large numbers of Chinese "people's volunteers" 
intervened, forcing UN troops to withdraw south of Seoul. The battle 
line seesawed back and forth until the late spring of 1951, when a 
successful offensive by UN forces was halted to enhance ceasefire 
negotiation prospects. The battle line thereafter stabilized north of 
Seoul near the 38th parallel.

Armistice negotiations began in July 1951, but hostilities continued 
until July 27, 1953. On that date at Panmunjom, the military commanders 
of the North Korean Army, the Chinese People's Volunteers, and the UNC 
signed an armistice agreement. Neither the United States nor South Korea 
is a signatory of the armistice per se, though both adhere to it through 
the UNC. No comprehensive peace agreement has replaced the 1953 
armistice pact; thus, a condition of belligerency still technically 
exists on the divided peninsula.

The Military Armistice Commission (MAC) was created in 1953 to oversee 
and enforce the terms of the armistice. The Neutral Nation Supervisory 
Committee (NNSC)--originally made up of delegations from Poland and 
Czechoslovakia on the DPRK side and Sweden and Switzerland on the UN 
side--monitors the activities of the MAC. In recent years, North Korea 
has sought to undermine the MAC by various means. In April 1994 it 
declared the MAC void and withdrew its representatives. Prior to this it 
had forced the Czechs out of the NNSC by refusing to accept the Czech 
Republic as the successor state of Czechoslovakia, an original member of 
the NNSC. In September 1994 China "recalled" the Chinese People's 
Volunteers representatives to the MAC, and in early 1995 North Korea 
forced Poland to remove its representatives to the NNSC from the North 
Korean side of the DMZ.

Postwar Developments

Syngman Rhee served as president of the Republic of Korea until April 
1960, when unrest led by university students forced him to step down. A 
caretaker government was then established, the constitution was amended, 
and national elections were held in June. The opposition Democratic 
Party easily defeated Rhee's Liberal Party, and the new National 
Assembly named Chang Myon prime minister in August. Chang's democratic 
but ineffectual government--the Second Republic--lasted until May 1961, 
when it was overthrown in an army coup led by Maj. Gen. Park Chung Hee. 
After two years of military government under Park, civilian rule was 
restored with the advent of the Third Republic in 1963. Park, who had 
retired from the army, was elected president. (He was reelected in 1967, 
1971, and 1978).

In 1972 a referendum approved the Yushin (revitalizing) constitution, 
greatly strengthening presidential and executive branch powers. Key 
provisions included indirect election of the president, presidential 
appointment of one-third of the National Assembly, and presidential 
authority to issue decrees restricting civil liberties in times of 
national emergency.

The Park era, marked by rapid industrial modernization and extraordinary 
economic growth, ended with his assassination in October 1979. Prime 
Minister Choi Kyu Ha assumed office briefly (the Fourth Republic), 
promising a new constitution and presidential elections. In December 
1979 Maj. Gen. Chun Doo Hwan and close military colleagues staged a coup 
in which they removed the army chief of staff and soon effectively 
controlled the government.

University student-led demonstrations against this government spread in 
the spring of 1980. The government declared martial law in mid-May, 
banned all demonstrations, and arrested many political leaders and 
dissidents. Special forces units in the city of Kwangju dealt harshly 
with those who ignored the ban, setting off a confrontation which left 
at least 200 civilians dead. This incident left a wound that has proven 
slow to heal. By September 1980, President Choi had been forced to 
resign, and General Chun, by then retired from the army, was named 
president.

In October 1980, a referendum approved a new constitution, beginning the 
Fifth Republic. This Constitution retained key features of earlier ones, 
including a strong executive and indirect election of the president, but 
limited the chief executive to a single seven-year term. Elections were 
held in early 1981 for a National Assembly and an electoral college; the 
latter then elected President Chun to a seven-year term (1981-1988).

Although martial law ended in January 1981, the government retained 
broad legal powers to control dissent. An active and articulate minority 
of students, intellectuals, clergy, and others remained critical of the 
Chun government and demonstrated against it.

In April 1986 the president appeared to yield to a signature campaign by 
the opposition New Korea Democratic Party (NKDP) that demanded an 
amendment to the Constitution that would allow direct election of the 
next president. They agreed to eight demands for reform including 
constitutional revision, repeal or revision of onerous laws, and release 
of political prisoners.

However in June 1987, Chun suspended all discussion of constitutional 
revision, and the ruling Democratic Justice Party (DJP) approved Chun's 
hand-picked successor, Roh Tae Woo. Students, and then the general 
public, took to the streets to protest Chun's suspension of 
constitutional revision. On June 29, in a surprise move, ruling party 
presidential candidate Roh Tae Woo distanced himself from President Chun 
by announcing that he would implement democratic reforms if elected. The 
constitution was revised in October to include direct presidential 
elections and a strengthened National Assembly consisting of 299 
members.

Because of a power struggle, the NKDP soon split into two opposition 
parties--Kim Dae Jung's Peace and Democracy Party (PPD) and Kim Young 
Sam's Reunification Democratic Party (RDP). In December 1987 Roh Tae Woo 
won with 37% of the vote in the first direct presidential election since 
1971. Kim Dae Jung and Kim Young Sam, unable to agree on a single 
candidate, both ran and lost.

The new constitution entered into force in February 1988, when President 
Roh assumed office. Elections for the National Assembly were held on 
April 26. President Roh's ruling Democratic Justice Party (DJP) won only 
34% of the popular vote, thereby losing control of the Assembly, the 
first time this had happened since 1952. The final count was 125 seats 
for the DJP, 70 seats for Kim Dae Jung's Party for Peace and Democracy 
(PPD), Kim Young Sam's Reunification Democratic Party (RDP) won 59 
seats, Kim Jong Pil's New Democratic Republican Party (NDRP) took 35 
seats, and 10 seats went to independent candidates.

The new opposition-dominated National Assembly quickly challenged the 
president's prerogatives. In July 1988 it turned down President Roh's 
choice for chief of the Supreme Court. In the fall, the Assembly 
conducted the first government audit in 16 years and began televised 
hearings into the practices and policies of former President Chun's 
Fifth Republic. By late November, Chun was forced to make a public 
apology to the nation, turn over his personal wealth to the nation, and 
go into internal exile in a Buddhist temple. In December, the government 
and the Assembly for the first time worked together to pass the budget, 
which the government had previously handed down.

In January 1990 the three political parties led by President Roh, Kim 
Young Sam, and Kim Jong Pil merged. This new alliance left Kim Dae Jung 
and his Party for Peace and Democracy (PPD) as the primary opposition, 
since the tiny Democratic Party (DP) controlled just eight seats in the 
National Assembly. In March 1991 the ROK held its first local elections 
in 30 years, electing delegates to local councils but not to local 
executive organs, and the trend toward greater democratization continued 
to gain momentum.

South Korean politics changed dramatically because of the 1988 
legislative elections, the Assembly's greater powers under the 1987 
constitution, and the influence of public opinion. In free and fair 
elections in December 1992, Kim Young Sam, the former opposition leader, 
received 43% of the vote and became Korea's first civilian president in 
nearly thirty years. For the first time in recent Korean history, the 
losing candidates, Kim Dae Jung of the Democratic Party and former 
Hyundai Chairman Chung Ju Yung of the United People's Party, 
acknowledged their defeat and congratulated the winner.

Under the mantle of "Building a New Korea," President Kim has introduced 
a series of reforms aimed at eradicating the excesses and corruption 
that plagued past administrations. Leading a campaign against 
corruption, Kim removed several leaders of the military establishment.

Since 1987 there has been significant political liberalization, 
including freedom of the press, greater freedoms of expression and 
assembly, the release of political prisoners and the restoration of the 
civil rights of former detainees.

In June 1995 Korea held direct elections for local and provincial 
executive officials (mayors, governors, county and ward chiefs) for the 
first time in more than 30 years. Although the ruling LDP won only five 
of fifteen major posts, it accepted the results and the election was 
widely regarded as a huge step for political progress and democracy in 
Korea. At the end of 1995, the LDP changed its name to the New Korea 
Party (NKP).

Principal Government Officials (as of January 1996)

President--Kim Young Sam
Prime Minister--Lee Soo-song
Deputy Prime Minister; National Unification Board Minister--Kwon O-kie
Deputy Prime Minister; Finance and Economy Minister--Rha Woong-bae
Minister of Foreign Affairs--Gong Ro-Myung
Minister of Home Affairs--Kim Woo-suk
Minister of Justice--Ahn Woo-Mahn
Minister of Defense--Lee Yang-Ho
Minister of Education--Ahn Byung-young
Minister of Culture & Sports--Kim Young-soo
Minister of Agriculture, Forestry, & Fisheries--Ghang Wun-Tae
Minister of Trade and Industry--Park Jae-Yoon
Minister of Information and Communication--Lee Suk-chae
Minister of Environment--Chung Chong-tuk
Minister of Construction and Transportation--Choo Kyung-suk
Ambassador to the United States--Park Kun-Woo
Ambassador to the UN--Park Soo-Gil
Speaker of the National Assembly--Hwang Nak Joo

Korea maintains an embassy in the United States at 2450 Massachusetts 
Avenue NW., Washington, DC 20008 (tel. 202-939-5600).

ECONOMY

Over the past 30 years the Republic of Korea's economic growth has been 
spectacular. Despite the need to maintain a large military, South Korea, 
one of the world's poorest countries only a generation ago, is now the 
United States' eighth largest trading partner and has the 13th largest 
economy in the world.

The division of the Korean peninsula in 1945 created two unbalanced 
economic units. North Korea inherited most of the peninsula's mineral 
and hydroelectric resources and most of the heavy industrial base built 
by the Japanese. South Korea was left with a large, unskilled labor pool 
and most of the peninsula's limited agricultural resources. Both North 
and South suffered massive destruction in the Korean War, but an influx 
of refugees added to the South's economic woes. South Korea began the 
postwar period with a per capita gross national product (GNP) far below 
that of the North. It received large amounts of U.S. foreign assistance 
until the 1970s. All direct aid from the United States ended in 1980.

South Korea's meager mineral resources include tungsten, anthracite 
coal, iron ore, limestone, kaolinite, and graphite. There is no oil, and 
energy is a continuing concern for the ROK's economic planners. An 
ambitious program to develop nuclear power is well underway; Korea 
presently has nine nuclear plants in operation, with seven others under 
construction.

The nation's successful industrial growth program began in the early 
1960s, when the Park government instituted sweeping economic reforms 
emphasizing exports and labor-intensive light industries. The government 
also carried out a currency reform, strengthened financial institutions, 
and introduced flexible economic planning. In the 1970s Korea began 
directing fiscal and financial policies towards promoting heavy and 
chemical industries (HCI), as well as consumer electronics and 
automobiles.

From 1963 to 1978, real GNP rose at an annual rate of nearly 10%, with 
average real growth of more than 11% for the years 1973-78. While 
Korea's national production was rising throughout the 1960s and 1970s, 
the annual population growth rate declined to slightly below one 
percent, resulting in a 20-fold increase in per capita GNP. Per capita 
GNP, which reached $100 for the first time in 1963, now exceeds $8,400, 
or eight times that of North Korea and is expected to reach $10,000 in 
1996.

Since 1978, Korea has continued its strong economic growth interspersed 
with occasional periods of slow down. From 1979-83 growth slowed in 
Korea due largely to the effect of world economic developments, 
including the drastic increase in world oil prices in 1979. External 
debt was also a serious concern during that period, peaking at $47 
billion in 1985. Rapid growth in exports has eased the debt management 
problem, a major priority of the government as Korea's external debt 
continues to increase.

Economic growth strengthened again beginning in 1983, and from 1986 to 
1988 booming exports led to growth rates averaging 12% per year. Current 
account surpluses reached a total of $14 billion by the end of 1988, at 
which time foreign debt had decreased to $31 billion--18% of GNP and 44% 
of exports.

Korea's global trade and current account surpluses and the bilateral 
surplus with the U.S. have declined since 1989, yielding a trade 
deficits with the U.S. for the first time in 1994. The appreciation of 
the won, increasing labor disputes in the wake of the 1987 
democratization, cumulative wage increases, and strong domestic demand 
have all contributed to this phenomenon.

At the beginning of the decade, government stabilization policies 
clamped down on construction, private consumption and investment. 
Consequently, real GNP growth slowed to approximately 5% in 1992. 
However, recent increases in private consumption and investment 
spending, particularly by the large conglomerates, or chaebol, are 
driving a new period of expansion. While annual GDP growth has risen to 
7.6 percent (1994) and is expected to exceed 8% in 1995, public 
consumption remains low and President Kim has vowed to curb 
administrative spending.

Following the ROK government's 1988 decision to allow trade with the 
DPRK, South Korean firms began to import North Korean goods, all via 
third-country contracts. The DPRK has denounced and denied this trade. 
Nevertheless, the North publicized a late January 1989 visit by Hyundai 
Corporation founder Chung Ju Yong as well as a private protocol he 
signed to develop tourism and other projects in the North.

Trade between the two Koreas has increased ten-fold from $18.8 million 
in 1989 to $177.9 million in 1993. During this period of greater 
economic cooperation, Daewoo's chairman, Kim Woo Choong, visited the 
North and an agreement was created to build a light industrial complex 
at Nampo. In other negotiations there were discussions to build (re-
establish?) road and rail links in Korea. The first contract directly 
negotiated by businessmen of both sides was also signed in the spring of 
1993. While inter-Korean trade has continued to grow, tension over North 
Korea's nuclear program and the scarcity of foreign currency north of 
the border have slowed the rate of growth considerably in recent years. 
In 1994 inter-Korean trade measured approximately $200 million.

Although prospects for long-term growth remain bright, there are several 
challenges--external and internal--to South Korea's continued economic 
ascendancy and prosperity. Historically, much of Korea's prosperity was 
achieved through strict adherence to an export-driven market model. 
Today Korea must redefine its role in an environment of increasing 
economic interdependence shaped by the General Agreement on Trade and 
Tariffs (GATT) and the World Trade Organization (WTO). Unreasonably high 
tariffs and other trade barriers continue to impede significant progress 
in opening the Korean market to foreign products.

Internally, Korea is seeking to transform itself from a low wage/low 
technology producer to a high wage/high technology industrialized 
country. The success of this transformation hinges to a great degree on 
the political success of President Kim's programs of democratization and 
reform. Departing from a long history of government-led growth, 
President Kim favors a policy of deregulation and greater reliance on 
market mechanisms in order to ensure continued growth and prosperity in 
the future. As Korea approaches the twenty-first century, its prospects 
for continued economic success remain strong.

FOREIGN RELATIONS

In August 1991 South Korea joined the United Nations along with North 
Korea, and since then has been active in most UN specialized agencies 
and many international fora. The Republic of Korea has also hosted major 
international events, such as the 1988 Summer Olympics and the 1993 
Taejon Expo. In 1994 South Korea announced its candidacy for membership 
in the Organization for Economic Cooperation and Development (OECD) as 
well as for a non-permanent seat on the UN Security Council.

South Korea maintains diplomatic relations with over 170 countries and a 
broad network of trading relationships.  Former President Roh's policy 
of "Nordpolitik"--the pursuit of wide-ranging relations with socialist 
nations and contacts and dialogue with North Korea--has been a 
remarkable success. The ROK now has diplomatic ties with all the 
countries of Eastern and Central Europe, as well as the former Soviet 
Republics. The ROK and the People's Republic of China established full 
diplomatic relations in August 1992.

Since normalizing relations in 1965, Japan and Korea have developed an 
extensive relationship centering on mutually beneficial economic 
activity. Although historic antipathies have at times impeded 
cooperation, relations at the government level have improved steadily 
and significantly in the past several years.  Korea, Japan, and the U.S. 
consulted extraordinarily closely during U.S.-DPRK negotiations over the 
North Korean nuclear issue.

Economic considerations have a high priority in Korean foreign policy. 
South Korea is a founding member of the Asia-Pacific Economic 
Cooperation (APEC). It seeks to build on its economic accomplishments to 
increase its regional and global role, including playing an increasingly 
important part in political and economic activities in the Pacific Rim.

Negotiating Efforts with North Korea

Throughout the postwar period, both Korean governments repeatedly 
affirmed their desire for reunification of the Korean peninsula, but 
until 1971 they had no official communication or other contact. In 
August 1971 North and South Korea agreed to hold talks through their 
respective Red Cross societies with the aim of reuniting the many Korean 
families separated following the division of Korea and the Korean War. 
After a series of secret meetings, both sides announced on July 4, 1972 
an agreement to work toward peaceful reunification and an end to the 
hostile atmosphere prevailing on the peninsula. Officials exchanged 
visits, and communications were established through a South-North 
coordinating committee and the Red Cross.

These initial contacts broke down and finally ended on August 13, 1973 
following President Park Chung Hee's announcement that the South would 
seek separate entry into the United Nations, and the kidnapping of South 
Korean opposition leader Kim Dae Jung from Tokyo by the South Korean 
intelligence service. The breakdown reflected basic differences in 
approach, with Pyongyang insisting on immediate steps toward 
reunification before discussing specific issues and Seoul maintaining 
that, given the long history of mutual distrust, reunification must come 
through a gradual, step-by-step process.

Tension between North and South Korea increased dramatically in the 
aftermath of the 1983 North Korean assassination attempt on President 
Chun in Burma. The bombing in Rangoon killed six members of the ROK 
cabinet. South Korea's suspicions of the North's motives were not 
diminished when Pyongyang accepted an earlier U.S.-ROK proposal for 
"tripartite" talks on the future of the Korean peninsula. This 
initiative, made public in January 1984, called for talks with the 
United States in which "South Korean authorities" would be permitted to 
participate. North Korea proposed to replace the armistice agreement 
with a peace treaty, which would provide for withdrawal of all U.S. 
troops and set the stage for a declaration of non-aggression between 
North and South.

North Korea's provision of relief goods to victims of severe flooding in 
South Korea in September 1984 led to revived dialogue on several fronts: 
Red Cross talks to address the plight of separated families, economic 
and trade talks, and parliamentary talks. However, in January 1986, the 
North suspended all talks, arguing that annual ROK/U.S. military 
exercises were inconsistent with dialogue. The North also announced a 
moratorium on large-scale military exercises and called upon the United 
States and Republic of Korea to do the same. The U.S. and the ROK 
responded by reiterating their longstanding offer to allow DPRK 
officials to observe exercises and by proposing pre-notification of 
military exercises. These proposals were rejected by the North, and in 
1987 the North resumed large-scale exercises.

In a major initiative on July 7, 1988, South Korean President Roh Tae 
Woo called for new efforts to promote exchanges, family reunification, 
inter-Korean trade and contact in international fora. President Roh 
called on Korea's friends and allies to pursue contacts with the North 
and said that the South intended to seek better relations with the USSR 
and China.

Roh's initiative provided renewed momentum for dialogue. The two sides 
met several times at Panmunjom in an unsuccessful attempt to arrange a 
joint meeting of the two Korean parliaments. Meetings to discuss 
arrangements for prime ministerial-level talks led to a series of such 
meetings starting in 1990. In late 1991 the Agreement on Reconciliation, 
Non-aggression, Exchanges and Cooperation and the Joint Declaration on 
the Denuclearization of the Korean Peninsula. The Joint Declaration 
called for a bilateral nuclear inspection regime to verify the 
denuclearization of the peninsula. When North Korean Deputy Prime 
Minister Kim Tal-Hyon visited South Korea for economic talks in July 
1992, President Roh Tae Woo announced that full North-South Economic 
Cooperation would not be possible without resolution of the North Korean 
nuclear issue. There was little progress toward the establishment of an 
inspection regime, and dialogue between the South and North stalled in 
the fall of 1992.

The North's agreement to accept International Atomic Energy Agency 
(IAEA) safeguards in 1992 initiated a series of IAEA inspections of 
North Korea's nuclear facilities. This promising development was halted 
by the North's refusal to allow special inspections of two areas 
suspected of holding nuclear waste, and the North's threat to withdraw 
from the Nuclear Non-Proliferation Treaty (NPT), which also brought 
North-South progress to an abrupt halt.

After a period of high tension brought on by failure to resolve the 
nuclear issue, and Security Council discussion of UN sanctions against 
the DPRK, former President Carter's visit to Pyongyang in June 1994 
helped to defuse tensions and resulted in renewed South-North talks. 
However, the sudden death of North Korean leader Kim Il Sung on July 8, 
1994 halted plans for a first ever South-North presidential summit and 
led to another period of inter-Korean animosity.

The U.S.-DPRK bilateral talks begun in the spring of 1993 finally 
resulted in a framework agreement signed by representatives of both 
nations in Geneva on October 21, 1994. This agreed framework committed 
North Korea to freeze its graphite-moderated reactor program, which 
could be used to produce plutonium for nuclear weapons development. In 
return, the DPRK was to receive alternative energy, initially in the 
form of heavy oil, and eventually two proliferation-resistant light 
water reactors (LWR). The agreement also included gradual improvement of 
relations between the U.S. and the DPRK, and committed North Korea to 
engage in South-North dialogue. A few weeks after the signing of the 
Agreed Framework, President Kim loosened restrictions on South Korean 
firms desiring to pursue business opportunities with the North. Although 
North Korea continued to refuse official overtures by the South, 
economic contacts appeared to be expanding gradually.

U.S.-KOREAN RELATIONS

The United States is committed to maintaining peace and stability on the 
Korean peninsula and agreed in the 1954 U.S.-ROK Mutual Defense Treaty 
to help the Republic of Korea defend itself from external aggression. In 
support of this commitment, the United States currently maintains about 
37,000 service personnel in Korea, including the Army's Second Infantry 
Division and several Air Force tactical squadrons. To coordinate 
operations between these units and the 650,000-strong Korean armed 
forces, a Combined Forces Command (CFC) was established in 1978. The CFC 
is headed by General Gary Luck, who also serves as Commander-in-Chief of 
the United Nations Command (UNC) and the U.S. Forces in Korea (USFK).

Several aspects of the security relationship are changing as the U.S. 
moves from a leading to a supporting role. South Korea has agreed to pay 
a larger portion of USFK's stationing costs, and to promote changes in 
the CFC command structure. On December 1, 1994 peacetime operational 
control authority over all South Korean military units still under U.S. 
operational control was transferred to the South Korean Armed Forces.

The United States believes that the question of peace and security on 
the Korean peninsula is, first and foremost, a matter for the Korean 
people themselves to decide. We are prepared to assist in this process 
if the two sides desire.

As Korea's economy has developed, trade has become an increasingly 
important aspect of the U.S.-Korea relationship. Korea is currently the 
United States' eighth largest trading partner. The U.S. seeks to improve 
access to Korea's expanding market and increase investment opportunities 
for American business. Although they have met with resistance from 
within the Korean bureaucracy, President Kim's economic reform plans 
mark a dramatic endorsement of a more liberal, market-based economic 
system. Korean leaders appear determined to manage successfully the 
complex economic relationship with the United States and to take a more 
active role in international economic fora as befits Korea's status as a 
major trading nation.

Principal US Officials

Ambassador--James T. Laney
Commander in Chief, UNC--Gen. Gary E. Luck
Deputy Chief of Mission--Charles F. Kartman
Counselor for Political Affairs--Mark C. Minton
Counselor for Economic Affairs--Barbara Griffiths
Counselor for Administrative Affairs--M. Bart Flaherty
Counselor for Public Affairs--William H. Maurer, Jr.
Consul General--Kathryn Dee Robinson
Counselor for Commercial Affairs--Robert S. Connan
Counselor for Agricultural Affairs--David Schoonover
Chief, Joint US Military Advisory Group, Korea (JUSMAG-K)--Col. Keith L. 
Young
Defense Attache--Col. William McKinney, U.S. Army

The US Embassy is located at 82 Sejong-Ro, Chongro-Ku, Seoul; Unit 
15550, APO AP 96205-0001. Tel. 82-2-397-4114, Fax no. 82-2-738-8845.

The US Agricultural Trade Office is located at 146-1, Susong-dong, 
Chongro-Ku, Leema Bldg., Rm. 303, Seoul 110-140. Fax no. 82-2-720-7921.

The US Export Development Office/US Trade Center is c/o US Embassy. Fax 
no. 82-2-739-1628. Director: Robert M. Murphy.

TRAVEL NOTES

Climate and clothing: Korea's temperate, four-season climate is like 
that of the eastern U.S. Dress is more conservative than in the United 
States.

Visas: Visas are not required of tourists traveling to South Korea if 
their stay is less than 15 days or if they are simply transiting the 
country and have a ticket for an onward destination. Tourist visas, 
which should be obtained from a Korean consulate for longer stays, are 
issued for a 5-year period with multiple entries, but the length of any 
one visit should not exceed 90 days. Visas are required for all official 
and business visitors. All multiple entry visas have a $20.00 processing 
fee. No immunizations are required of travelers from the United States.

Health: Health services are fair to good in most major cities. Most 
Korean physicians have been trained in Western medicine, and hospital 
services are adequate. Outside of the major hotels, water is generally 
not potable.

Transportation: International airports serve Seoul (Kimpo), Pusan 
(Kimhae), and Cheju Island. Extensive inter-city air, rail, and bus 
service is available. There is an excellent network of local bus, taxi, 
and, in Seoul, subway services.

Telecommunications: Seoul is 14 time zones ahead of Eastern Standard 
Time (13 hrs. during daylight-saving time). International direct-dial 
service is available to Korea's major cities.

Further Information

These titles are provided as a general indication of the material 
published on this country. The Department of State does not endorse 
unofficial publications.

Amsden, Alice H. Asia's Next Giant. New York:  Oxford University Press, 
1989.
Baldwin, Frank, ed. Without Parallel:  The American-Korean Relationship 
Since 1945. New York:  Pantheon Books, 1974.
Clough, Ralph. Embattled Korea:  The Rivalry for International Support. 
Colorado:  Westview Press, 1987.
Cumings, Bruce. The Origins of the Korean War, Vol. 1. Princeton:  
Princeton University Press, 1981.
Cumings, Bruce. The Origins of the Korean War, Vol. 2. Princeton:  
Princeton University Press, 1990.
Eckert, Carter; Ki-Baik Lee, Young Ick Lew, Michael Robinson, and Edward 
W. Wagner. Korea Old and New:  A History. Seoul:  Ilchokak Publishers 
for Harvard University Press, 1990.
Foot, Rosemary. The Wrong War:  American Policy and the Dimensions of 
the Korean Conflict, 1950-53. Ithaca:  Cornell University Press, 1985.
Han, Woo-kuen. The History of Korea. Hononlulu:  East-West Center Press, 
1971.
Henderson, Gregory. Korea:  The Politics of the Vortex. Cambridge:  
Harvard University Press, 1968.
Hwang, In K. The Neutralized Unification of Korea. Cambridge:  
Schenkman, 1980.
Kihl, Young Hwan. Politics and Policies in Divided Korea. Colorado:  
Westview Press, 1984.
Kim, Hak-joon. The Unification Policy of South and North Korea, 1948-
1976:  A Comparative Study. Seoul:  Seoul National University Press, 
1977.
Kim, Joungwon Alexander. Divided Korea:  The Politics of Development 
1945-1972. Cambridge:  Harvard University Press, 1976.
Koh, Byung Chul. The Foreign Policy Systems of North and South Korea. 
Berkeley:  University of California, 1984.
Lee, Chong-sik. The Politics of Korean Nationalism. Berkeley: University 
of California Press, 1963.
Lee, Ki-baik. A New History of Korea. Cambridge:  Harvard University 
Press, 1984.
MacDonald, Donald S. The Koreans:  Contemporary Politics and Society. 
Boulder, CO:  Westview Press, 1988.
Merrill, John. Korea:  The Peninsular Origins of the War. Newark:  
University of Delaware Press, 1988.
Palais, James B. Politics and Policy in Traditional Korea. Cambridge:  
Harvard University Press, 1976.
Ridgeway, Matthew B. Korean War. New York:  Doubleday, 1964.

Available from the Superintendent of Documents, US Government Printing 
Office, Washington, D.C. 20402:

Library of Congress. South Korea:  A Country Study. 1992.
Department of State. The Record on Korean Unification 1943-1960. 1961.
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