KOREA, REPUBLIC OF (ROK)

Republic of Korea Taehan Min-guk CAPITAL: Seoul FLAG: The flag, called the T’aegukki, shows, on a white field, a central circle divided into two parts, red on top and deep blue below, in the shape of Chinese yin and yang symbols. Broken and unbroken black bars in each of the four corners are variously arranged in sets of three, representing divination diagrams. ANTHEM: Aegukka (The Song of Patriotism), officially adopted on 15 August 1948. MONETARY UNIT: The won (W) is the national currency. There are notes of 500, 1,000, 5,000, and 10,000 won. W1 = $0.00083(or $1 = W1,206) as of May 2003. WEIGHTS AND MEASURES: Both the metric system and ancient Korean units of measurement are used. HOLIDAYS: New Year’s Days, 1–3 January; Independence Movement Day, 1 March; Labor Day, 10 March; Arbor Day, 5 April; Children’s Day, 5 May; Memorial Day, 6 June; Constitution Day, 17 July; Liberation Day, 15 August; Armed Forces Day, 1 October; National Foundation Day, 3 October; Han’gul (Korean Alphabet) Day, 9 October; Christmas, 25 December. TIME: 9 PM = noon GMT. 1LOCATION, SIZE, AND EXTENT Occupying the southern 45% of the Korean Peninsula in East Asia, the Republic of Korea (ROK), also known as South Korea, has an area of 98,480 sq km (38,023 sq mi), extending 642 km (399 mi) NNE–SSW and 436 km (271 mi) ESE–WNW. Comparatively, the area occupied by South Korea is slightly larger than the state of Indiana. Bounded on the N by the Democratic People’s Republic of Korea (DPRK), on the E by the Sea of Japan (known in Korea as the East Sea), on the S by the Korea Strait, and on the W by the Yellow Sea, the ROK has a total land boundary length of 238 km (148 mi) and a coastline of 2,413 km (1,508 mi). A demilitarized zone (DMZ), 4,000 m (13,100 ft) wide, covering 1,262 sq km (487 sq mi) and located north and south of the 38th parallel, separates the ROK from the DPRK, which comprises the northern part of the Korean Peninsula. Over 3,000 islands, most of them off the southern and western coasts and belonging to the ROK, add another 8,600 km (5,350 mi) of coastline. The ROK’s capital city, Seoul, is located in the northwestern part of the country. 2TOPOGRAPHY Elevations in the southern part of the Korean Peninsula are generally lower than those in the north. Only about 30% of the ROK consists of lowlands and plains. The principal lowlands, all bordering the Yellow Sea along the west coast, include the Han River Plain, near Seoul; the Pyongtaek and Honam plains, south of the capital; and the Yongsan Plain in the southwest. Mt. Halla (1,950 m/6,398 ft), on volcanic Cheju Island, is the nation’s highest point, while Mt. Chiri, or Chii (1,915 m/6,283 ft), is the highest point on the mainland. Principal rivers of the ROK include the Han (514 km/319 mi), with Seoul near its mouth; the Kum (401 km/249 mi) and Yongsan (116 km/72 mi), which water the fertile plains areas of the southwest; and the Somjin (212 km/132 mi), in the south. The longest river in the ROK is the Naktong (521 km/324 mi), which waters the southeast. Yellow Sea tides on the west coast rise to over 9 m (30 ft) in some places, while Japan Sea tides on the east coast rise only about 1 m (3 ft). 3CLIMATE The average January temperature ranges from –5°C (23°F) at Seoul to –2°C (28°F) at Pusan and 4°C (39°F) on Cheju Island. In the hottest part of the summer, however, the regional variation in temperature is not nearly so marked, with average temperatures ranging from 25°C to 27°C (77–81°F) in most lowland areas. Average rainfall is 100 to 150 cm (40 and 50 in). Nearly all the rainfall occurs in the April–September period, especially during the rainy season, late June to early August. From one to three mild typhoons normally strike the south in the early fall, with a severe one occurring every two or three years. Days free of frost number about 240 in the southern regions. 4FLORA AND FAUNA The Korean Peninsula is rich in varieties of plant life typical of temperate regions. More than 3,000 species, some 500 of them unique to Korea, have been noted by botanists. Warm temperate vegetation, including camellias and other broad-leaved evergreens, predominate in the south and on Cheju Island. Zoologists have identified more than 130 freshwater fishes, 112 breeding birds, 49 mammals, and 14 reptiles and amphibians on the peninsula. Bear, wild boar, deer, and lynx still are found in the highlands, but the shrinking of the forested area has reduced the animal population in recent years. Migratory water fowl, cranes, herons, and other birds are visible on the plains. Noxious insects and household pests infest the warmer regions, and aquatic life is generally infected with parasites. 5ENVIRONMENT Efforts to control the detrimental effects of rapid industrialization, urbanization, and population growth focus on the Office of Environment, established in 1980 to control air, water, and land pollution and manage solid wastes. The Environmental Preservation Law, revised in 1979, covers air, Korea, Republic of (ROK) 339 water, and noise pollution, soil preservation, and disposal of solid wastes. The nation has 64.9 cu km of renewable water resources with 63% used for agriculture and 11% used for industrial purposes. The purity of the nation’s water is threatened by agricultural chemicals. In 1990, the nation dumped 10 million tons of sewage and 7 million tons of industrial chemicals into its water sources. Air pollution, associated mainly with the use of coal briquettes for home heating and the increase in automobile traffic, is also severe, with smog a common problem in Seoul. In the mid-1990s, South Korea had among the world’s highest level of industrial carbon dioxide emissions, which totaled 289.8 million metric tons per year, a per capita level of 6.56 metric tons per year. In 1996, the total rose to 408 million metric tons. The Naktong River delta, a marshland where thousands of birds spend the winter, is threatened by environmental pollution and by plans to dam the mouth of the river. The beginning of construction of the Kumgangsan hydroelectric dam by the DPRK near the DMZ in 1986 was protested by the ROK on the grounds that the central Korean Peninsula could be flooded. In response, the ROK began construction of its own Peace Dam near the DMZ in 1987. Although 28 species of birds and 8 species of mammals— chipmunk, wild boar, squirrel, raccoon dog, badger, hare, river deer, and roe deer—are still classified as game species, hunting was banned by the government from August 1972 through December 1981, except in such game preserves as that of Cheju Island. In 2001, 6 of Korea’s mammal species and 19 bird species were endangered, as were 52 plant species. Endangered species in the ROK include the Amur leopard, Oriental white stork, Japanese crested ibis, and Tristram’s woodpecker. The Japanese sea lion has become extinct. 6POPULATION The population of South Korea in 2003 was estimated by the United Nations at 47,700,000, which placed it as number 25 in population among the 193 nations of the world. In that year approximately 7% of the population was over 65 years of age, with another 22% of the population under 15 years of age. There were 101 males for every 100 females in the country in 2003. According to the UN, the annual population growth rate for 2000–2005 is 0.57%, with the projected population for the year 2015 at 49,672,000. The population density in 2002 was 487 per sq km (1,262 per sq mi). It was estimated by the Population Reference Bureau that 82% of the population lived in urban areas in 2001. The capital city, Seoul, had a population of 9,935,000 in that year. Other large urban areas were Pusan, 4,239,000; Taegu, 2,559,000; Inch’on, 2,837,000; Kwangju, 1,665,000; Taejon, 1,431,000; Pun’chon, 1,264,000; Suwon, 1,268,000; and Ulsan, 967,000. According to the United Nations, the urban population growth rate for 2000– 2005 was 1.4%. 7MIGRATION During the Japanese occupation (1910–45), some three million Koreans emigrated to Manchuria and other parts of China, 700,000 to Siberia, approximately three million to Japan, and about 7,000 to the US (mostly to Hawaii). The great majority of those who went to Japan were from the populous southern provinces, and large numbers (1.5–2 million) of them returned home following the end of hostilities in 1945. In addition, from 1945 through 1949, at least 1.2 million Koreans crossed the 38th parallel into the ROK, refugees from Communism or from the Korean War. Under the Emigration Law of 1962, the ROK government encouraged emigration to South America (especially Brazil), the Federal Republic of Germany (FRG), the Middle East, and elsewhere. Most of the emigrants are workers who remit earnings back home. A total of 409,922 Koreans emigrated during the 1962–80 period; emigration peaked at 48,270 in 1976 but had declined to 27,163 in 1990. In addition, Koreans have emigrated permanently to the US in large numbers since 1971; the population in the US of Korean origin was 798,849 as of 1990 (72.7% foreign-born). In all, more than two million South Koreans were living abroad in 1988. Migration within South Korea, mainly from the rural areas to the cities, remains substantial, despite government efforts to improve village living conditions. As of March 1997, the 1,400 boat people that were granted temporary refugee status were resettled to third countries. In 1999, the net migration rate was -0.3 per 1,000 population. 8ETHNIC GROUPS The Koreans are believed to be descended primarily from Tungusic peoples of the Mongoloid race, who originated in the cold northern regions of Central Asia. There is scant evidence of non-Mongoloid admixture. There are about 20,000 Chinese; however, the ROK has no sizable ethnic minority. 9LANGUAGES The Korean language is usually held to be a member of the Altaic family; there are only slight differences between the various dialects. Korean is written in a largely phonetic alphabet called Han’gul, created in 1443. The Korean alphabet originally consisted of 14 consonants and 10 vowels; since then, 5 consonants and 11 vowels have been added. Han’gul letters are combined into syllables by clustering, in imitation of Chinese characters. ROK governments have launched several “language beautification” drives designed to purge Korean of borrowings from Japanese and other languages, but more than half of the vocabulary consists of words derived from Chinese. English is widely taught in junior high and high school. 10RELIGIONS Most South Koreans are quite eclectic in their religious beliefs, the majority subscribing to varying mixtures of Taoism, Confucianism, Buddhism, Christianity, Ch’ondogyo (Religion of the Heavenly Way, an indigenous sect originating in 1860), and local animism. Shamanism, especially its aspect of exorcism of evil spirits, survives in some rural areas of the ROK. Geomancy is also used in matters such as the selection of auspicious building and tomb sites. In 1995 (the last government survey), 49% of the population practiced Christianity (including 8,760,336 Protestants and 2,950,730 Roman Catholics); 47% Buddhism; 3% Confucianism; and 1% folk religion (shamanism), Ch’ondogyo (Religion of the Heavenly Way), and other. Over 21 million people claimed that they did not practice any religion. Within the religious communities, there are about 38 different orders of Buddhism and 83 different Protestant denominations, including Methodists, Lutherans, Baptists, Presbyterians, Anglicans, and the Korean Gospel Church Assembly. The Catholic Church has 15 dioceses. Other religions with significant popular followings included Taejongyo, based on the worship of a trinity of ancient deities, and Soka Gakkai, a Buddhist sect of Japanese origin. There were also practicing Muslims, members of the Unification Church, Mormons, and Jehovah’s Witnesses. The constitution provides for freedom of religion, and the government reportedly respects this right in practice. There is no state religion, and the government does not subsidize or favor a particular religion. 11TRANSPORTATION The bulk of ROK railroads, totaling 3,124 km (1,941 mi) of track in 2002, are government owned. The Seoul subway system opened in 1991. Construction of Pusan’s first subway line was completed in 1985. 340 Korea, Republic of (ROK) The ROK road system carries 90% of the country’s transportation. In 2002, the ROK had 87,534 km (54,394 mi) of roadway, of which 65,388 km (40,632 mi) were paved, including 1,996 km (1,069 mi) of expressways. There were 8,084,005 passenger automobiles, and 3,975,856 commercial vehicles in 2000. Bus transportation networks of varying quality serve most of the rural towns. Maritime shipping expanded rapidly during the 1970s. By 2002, the ROK had a merchant fleet of 501 vessels, accounting for a total of 5,212,089 GRT (9,172,403 DWT). Pusan is the chief port; other major ports include Inch’on (the port for Seoul), Kunsan, and Mokp’o. There were 102 airports in 2001, 69 of which had paved runways. Major airports include Cheju International at Cheju, Kimhae International at Pusan, and Kimpo International at Seoul. Civil aviation in the ROK in 2001 amounted to 6,957 million freight ton-km (4,323 million freight ton-mi) of service and 32,638,200 passengers were carried on scheduled domestic and international flights. Korean Air Lines (KAL), privately owned since 1969, grew rapidly during the 1970s and now ranks as a major world carrier. On the morning of 1 September 1983, a KAL jetliner en route from New York to Seoul via Anchorage, Alaska, strayed over airspace of the former USSR and was shot down by Soviet interceptors, reportedly because they thought it was a military aircraft engaged in espionage; all 269 persons on board were killed, and worldwide protest followed. In November 1983, 115 people were killed when a bomb was apparently detonated aboard a KAL jet en route to Seoul. 12HISTORY [For Korean history before 1948, see Korea, Democratic People’s Republic of.] The Republic of Korea, headed by President Syngman Rhee (Rhee Syngman), was proclaimed on 15 August 1948 in the southern portion of the Korean Peninsula, which had been under US military administration since 8 September 1945. Like the Democratic People’s Republic of Korea (DPRK), established in the north on 9 September 1948 with Soviet backing, the ROK claimed to be the legitimate government of all Korea. The ROK was recognized as the legitimate government by the UN General Assembly. At dawn on 25 June 1950, following a year and a half of sporadic fighting, the well-equipped People’s Army of the DPRK struck south across the 38th parallel. Proclaiming that the war was for national liberation and unification of the peninsula, the DPRK forces advanced rapidly; Seoul fell within three days, and the destruction of the ROK seemed imminent. At US urging, the UN Security Council (with the Soviet delegate absent) branded the DPRK an aggressor and called for the withdrawal of the attacking forces. On 27 June, US president Harry S. Truman ordered US air and naval units into combat, and three days later, US ground forces were sent into battle. The United Kingdom took similar action, and a multinational UN Command was created to join with and lead the ROK in its struggle against the invasion. Meanwhile, DPRK troops had pushed into the southeast corner of the peninsula. At that juncture, however, UN lines held firm, and an amphibious landing at Inch’on (15 September 1950) in the ROK under General Douglas MacArthur brought about the complete disintegration of the DPRK army. MacArthur, commanding the UN forces, made a fateful decision to drive northward. As the UN forces approached the Yalu River, however, China warned that it would not tolerate a unification of the peninsula under US/UN auspices. After several weeks of threats and feints, “volunteers” from the Chinese People’s Liberation Army entered the fighting en masse, forcing MacArthur into a costly, pell-mell retreat back down the peninsula. Seoul was lost again (4 January 1951) and then regained before the battle line became stabilized very nearly along the 38th parallel. There it remained for two weary years, with bitter fighting but little change, while a cease-fire agreement was negotiated. On 27 July 1953, an armistice agreement finally was signed at P’anmunjom in the DPRK. The Korean War was ended, but it had brought incalculable destruction and human suffering to all of Korea (some 1,300,000 military casualties, including 415,000 combat deaths, for the ROK alone), and it left the peninsula still more implacably divided. A military demarcation line, which neither side regarded as a permanent border, was established, surrounded by the DMZ. An international conference envisioned in the armistice agreement was not held until mid-1954. This Yellow SeaEast China Sea Sea of Japan Han Kum Naktong K o r e a Strai t Chej u-ha ehyop TAEBAEK SANMAEK SOBAEK SANMAEK Chii Mt. 6,283 ft. 1915 m. Demarcation Line July 27, 1953 Halla Mt. 6,398 ft. 1950 m. Ullung Do Koje Do Chin Do Tsushima Cheju Do Paengnyongdo Ch'ongju Taejon Ch'ongju Ulsan Kwangju Masan Mokp'o Inch'on TaeguPusan Munsan Ch'unch'on Kangnung Wonju Chechon Ch'onan Andong Kunsan Kyongju Sunch'on Yosu Cheju Suwon Anyang Songnam P'ohang Chinju Seoul NORTH KOREA JAPAN South Korea W S N E SOUTH KOREA 0 100 Miles 0 50 100 Kilometers 50 . . . . . . . . . .. LOCATION: 33°7' to 38°38' N; 124°36' to 130°56' E. BOUNDARY LENGTHS: DPRK, 240 kilometers (149 miles); total coastline, 1,318 kilometers (819 miles). TERRITORIAL SEA LIMIT: 12 miles. Korea, Republic of (ROK) 341 conference and subsequent efforts failed to reach an agreement on unification of the North and South, and the armistice agreement, supervised by a token UN Command in Seoul and by the Military Armistice Commission and the Neutral Nations Supervisory Commission, both in P’anmunjom, remains in effect. In 1954, the United States and ROK signed a mutual defense treaty, under which US troops remained in the country. Financial assistance throughout the 1950s was provided by the US, averaging $270 million annually between 1953 and 1958, and by other nations under UN auspices. Syngman Rhee ran the government until 1960, when his authoritarian rule provoked the “April Revolution,” the culmination of a series of increasingly violent student demonstrations that finally brought about his ouster. The Second Korean Republic, which followed Rhee, adopted a parliamentary system to replace the previous presidential system. The new government, however, was shortlived. Premier Chang Myon and his supporters were ousted after only 10 months by a military coup in May 1961, headed by Major-General Park Chung-hee. The military junta dissolved the National Assembly, placed the nation under martial law, established the Korean Central Intelligence Agency (KCIA) as a means of detecting and suppressing potential enemies, and ruled by decree until late 1963 through the Supreme Council for National Reconstruction. General Park created a well-organized political party—the Democratic-Republican Party (DRP)— designed to serve as a vehicle for the transition from military to civilian rule, and in October 1963, under a new constitution, he easily won election as president of the Third Republic. During the summer of 1965, riots erupted all over the ROK in protest against the ROK-Japan Normalization Treaty, which established diplomatic relations and replaced Korean warreparation claims with Japanese promises to extend economic aid. The riots were met with harsh countermeasures, including another period of martial law and widespread arrests of demonstrators. Further demonstrations erupted in 1966, when the ROK’s decision to send 45,000 combat troops to Vietnam became known. Park was elected to a second term in May 1967, defeating his chief opponent, Yun Po-sun, and the DRP won a large majority in the National Assembly. In 1969, Park pushed through the National Assembly a constitutional amendment permitting him to run for a third term. He defeated Kim Dae Jung, leader of the opposition New Democratic Party (NDP), in the elections of April 1971, but Kim’s NDP made significant gains in the National Assembly elections that May. Student demonstrations against the government in the fall of 1971 prompted Park to declare a state of national emergency on 6 December. Three weeks later, in a predawn session held without the knowledge of the opposition, the Assembly granted Park extraordinary governmental powers. These failed to quell mounting opposition and unrest, and in October 1972 martial law was declared. A new constitution, promulgated at the end of the month and ratified by national referendum in November 1972, vastly increased the powers of the presidency in economic as well as political affairs. Under this new document, which inaugurated the Fourth Republic, Park was elected for a six-year term that December, with a decisive legislative majority for his DRP. Soon the economy began to expand at a rapid rate. But Park’s regime became increasingly repressive. Typical of its heavyhanded rule was the abduction by KCIA agents of Kim Dae Jung from a Japanese hotel room back to Seoul, an incident that provoked considerable friction between Japanese and Korean officials. On 15 August 1974, a Korean gunman carrying a Japanese passport and sympathetic to the DPRK attempted to assassinate the president but killed Park’s wife instead. Park responded by drafting a series of emergency measures; the harshest of these, Emergency Measure No. 9, issued in May 1975, provided for the arrest of anyone criticizing the constitution and banned all political activities by students. Park was reelected for another six-year term in July 1978, but the NDP, now led by Kim Young Sam, made major gains in the National Assembly. In October 1979, Kim was expelled from the legislature after calling for governmental reform. Riots protesting Kim’s ouster were reported in several major cities. On 26 October 1979, in what may have been an attempted coup, Park was assassinated by KCIA Director Kim Jae-gyu, who was later executed. Martial law was again imposed, and a period of relative calm followed as some of the more restrictive emergency decrees were lifted by Park’s constitutional successor, the prime minister, Choi Kyu-hah, who promised a new constitution and presidential elections. In December 1979, Maj. Gen. Chun Doo Hwan led a coup in which he and his military colleagues removed the army chief of staff and took effective control of the government. Demonstrations, led by university students, spread through the spring of 1980 and, by mid-May, the government once more declared martial law (in effect until January 1981), banned demonstrations, and arrested political leaders. In the city of Kwangju, more than 200 civilians were killed in what became known as the Kwangju massacre. Choi Kyu-hah was pressured to resign and Chun Doo Hwan, now retired from the military, was named president in September 1980. Chun Doo Hwan came to power under a new constitution inaugurating the Fifth Republic. A total of 567 political leaders, including Kim Dae Jung and Kim Young Sam, were banned from political activity. Kim Dae Jung, arrested several times after his 1973 kidnapping, was originally sentenced to death but allowed to go to the United States in 1982. All existing political parties were dissolved, and all political activity banned until three months before the 1981 elections. Twelve new parties (reduced to eight) were formed to enter the 1981 elections, in which Chun Doo Hwan was elected to a sevenyear presidential term by a new electoral college and his Democratic Justice Party (DJP) secured a majority in the reconstituted National Assembly. Despite harsh controls, opposition to Chun continued. In 1982, 1,200 political prisoners were released, and in early 1983, the ban on political activity was lifted for 250 of the banned politicians. On 9 October 1983, Chun escaped an apparent assassination attempt in Rangoon, Burma, when an explosion took the lives of 17 in his entourage, including 4 ROK cabinet ministers. Chun subsequently blamed the DPRK for the bombing. In 1984, under increasing pressure for political reforms prior to the 1985 parliamentary elections, the government lifted its ban on all but 15 of the 567 politicians banned in 1980. In 1985, the ban was lifted on 14 of the remaining 15. Kim Dae Jung was allowed to return from exile in the United States in 1984 but rearrested. He remained banned from all political activity because of his conviction for sedition in 1980. Opposition groups quickly formed the New Korea Democratic Party (NKDP) to challenge the DJP in the 1985 election; the new party became a strong minority voice in the National Assembly. The issue of constitutional reforms, particularly changes in the way in which presidents are elected and the way in which “bonus” seats in the legislature are distributed, became prominent, especially after Chun reaffirmed a commitment to step down in February 1988 and, in April 1986, dropped his long-standing opposition to any constitutional changes prior to that date. Demonstrations against Chun continued and became violent at Inch’on in May 1986 and at Konkuk University that fall. Opposition groups began collecting signatures on a petition demanding direct (instead of indirect) election of the president. In April 1987, as demonstrations became increasingly violent, Chun banned all further discussion of constitutional reform until after the 1988 Olympic Games in Seoul. The ban, which could have guaranteed the election of a handpicked DJP successor, set off violent antigovernment demonstrations throughout the nation. In June 1987, the DJP nominated its chairman, Roh Tae Woo, a 342 Korea, Republic of (ROK) former general and a close friend of Chun, as its candidate for his successor. When Roh accepted opposition demands for political reforms, Chun announced in July that the upcoming election would be held by direct popular vote. On 8 July, 100,000 people demonstrated in Seoul in the largest protest since 1960 and, on the same day, the government restored political rights to 2,000 people, including the longtime opposition leader, Kim Dae Jung. In the elections, held on 16 December 1987, Roh Tae Woo, as the DJP candidate, won a plurality of 37%, defeating the two major opposition candidates, Kim Young Sam and Kim Dae Jung, who had been unable to agree on a single opposition candidacy and split 55% of the total vote. Two minor candidates divided the remainder. A reported 89% of all eligible voters participated. The two leading opposition candidates charged massive fraud, and a series of demonstrations were held to protest the results. However, no evidence of extensive fraud was produced, and the demonstrations did not attract wide support. Roh Tae Woo was inaugurated as president in February 1988 when Chun Doo Hwan’s term expired. In the elections for the National Assembly, held on 26 April 1988, President Roh Tae Woo’s party, the DJP, won only 34% of the vote. This gave the DJP 125 seats in the assembly, while Kim Dae Jung’s Peace and Democracy Party (PDP) gained 70 seats, Kim Young Sam’s Reunification Democratic Party (RDP) won 59 seats, 35 seats went to the new Democratic Republican Party (NDRP), and 10 to independent candidates. Thus, for the first time in 36 years, the government did not have a controlling vote in the National Assembly, which quickly challenged President Roh’s choice for head of the Supreme Court and by year’s end forced the president to work with the assembly to pass the budget. In the fall of 1988, the National Assembly audited the government and held public hearings into former President Chun’s abuses of power. In November, Chun apologized to the nation in a televised address, gave his personal wealth to the nation, and retired into a Buddhist temple. Following the revision of the constitution in 1987, South Koreans enjoyed greater freedoms of expression and assembly and freedom of the press and, in 1988, several hundred political dissidents were released from prison. Unrest among students, workers, and farmers continued, however, and beginning in April 1989, the government repressed opposition. In October 1989, the government acknowledged making 1,315 political arrests so far that year. The National Assembly became less of a check on President Roh after two opposition parties (RDP, NDRP), including that of Kim Young Sam, merged with Roh’s DJP, forming a new majority party, the Democratic Liberal Party (DLP) in January 1990. Kim Dae Jung was then left as the leader of the main opposition party (PDP). There were continuing demonstrations into 1990 and 1991, calling for the resignation of President Roh and the withdrawal of United States troops. In May 1990, 50,000 demonstrators in Kwangju commemorated the tenth anniversary of the massacre, resulting in clashes with police which lasted several days. The United States agreed to withdraw its nuclear weapons from the ROK in November 1991. And, on the last day of the year, the ROK and the DPRK signed an agreement to ban nuclear weapons from the entire peninsula. In the presidential election on 19 December 1992, Kim Young Sam, now leader of the majority DLP, won with 41.9% of the vote, while Kim Dae Jung (DP) took 33.8%. Inaugurated in February 1993, Kim Young Sam began a new era as the first president in 30 years who was a civilian, without a power base in the military. President Kim granted amnesty to 41,000 prisoners and instituted a series of purges of high-ranking military officials, including four generals who had roles in the 1979 coup. Among political and economic reforms was a broad anticorruption campaign, resulting in arrests, dismissals, or reprimands for several thousands of government officials and business people. In March 1994, a former official of the National Security Planning Agency made public President Roh Tae Woo’s authorization of a covert program to develop nuclear weapons at the Daeduk Science Town through 1991. South and North Korea continue to have a rocky relationship. In April of 1996, North Korean troops on three successive days violated the 1954 armistice which had ended the Korean War by entering Panmunjom. The soldiers, who were apparently conducting training exercises, withdrew after a few hours on all three occasions. In September of the same year, a small North Korean submarine was grounded off the Eastern coast of South Korea and 26 crew members fled into the interior of South Korea. The ship appeared to be carrying a team of North Korean spies who intended to infiltrate into South Korea to carry out what remain unknown missions against South Korean targets. Twentyfour of the crewmen were killed, one escaped and one remains at large. In a surprise unusual move, the North Korean government apologized in February of 1997 for the incursion. Meanwhile recent domestic events inside South Korea have been equally tumultuous. In August of 1996, former President Chun Doo Hwan and his successor, Roh Tae Woo were tried and found guilty of treason and mutiny for the 1980 coup that brought them to power, and the subsequent Kwangju massacre, in which troops killed at least 154 pro-democracy demonstrators. The court gave Chun a death sentence (extremely rare in Korea) and sentenced Roh to 22.5 years in prison. An appellate court later reduced Chun’s sentence to life imprisonment and Roh’s sentence to 17 years. When Kim Dae Jung was inaugurated as president in 1998, both leaders were released from prison under Kim’s grant of amnesty. On 11 April 1996, legislative elections took place amid allegation of corruption that reached to the inner circle of President Kim Young Sam and his New Korea Party. During the pre-election campaigning, Kim promised to launch an anticorruption effort if his party gained power; in a major upset, the NKP captured 139 of the 299 seats, while the main opposition party (National Congress for New Politics—NCNP) or Kim Dae Jung won only 79 seats. Kim Dae Jung lost his own seat in the legislature. Several important New Korea Party officials and even Kim Young Sam’s son, were implicated on charges of taking or giving millions of dollars in bribes to arrange loans to Hanbo Steel Industry Co., which eventually went bankrupt under $6 billion of debt. Some of those officials were indicted in February of 1997 but Mr. Kim’s son, Kim Hyun Chul, was cleared. However, in May of the same year Kim Hyun Chul was arrested on bribery and tax-evasion charges unrelated to the Hanbo scandal. By 1997, many of the large chaebols (business conglomerates) reported serious problems with debt. A portion of Kia Group, a major manufacturer of automobiles, was nationalized to prevent bankruptcy. Increased domestic economic instability coupled with economic crisis sweeping through Asia, led to a severe decline in the value of the currency. The ensuing financial panic coincided with presidential elections on 18 December 1997, the month that negotiations with the International Monetary Fund (IMF) began. In the election Kim Dae Jung narrowly defeated the ruling party’s candidate Lee Hoe Chang by 40.3% to 38.7%. A third candidate Yi In Che garnered 19.2% of the votes, effectively splitting the pro-government vote. Kim Dae Jung pledged to adhere to IMF conditionality and reform government-business relations in South Korea by increasing transparency. In 1998 and 1999, the government reduced the role of government intervention in the domestic economy despite numerous strikes by workers protesting layoffs. By mid-2000, Kim Dae Jung managed to steer Korea’s economy out of the worst of the crisis. The economy started to grow in 1999 and economic estimates suggested that economic Korea, Republic of (ROK) 343 growth would top 10% for 2000. In April 2000, the legislative elections improved the position of Kim’s party, renamed the New Millennium Party (NMP) to 115 seats. However, the Grand National Party (GNP), successor to the NKP obtained 133 seats and the United Liberal Democrats, allied to the GNP, won 17. Thus, Kim’s objective to continue economic reform was imperiled. In June 2000, Kim Dae Jung traveled to P’yongyang, the capital of the Democratic People’s Republic of Korea (North Korea) for an historic meeting with his counterpart, Kim Jong Il. The two agreed to pursue further cooperation in the future. This summit meeting marked the high point of what became known as Kim Dae Jung’s “sunshine policy” of rapprochement toward the North. He was awarded the Nobel Peace Prize in 2000 for his commitment to democracy and human rights in Asia. Roh Moo Hyun was elected president in the December 2002 election, taking 49% of the vote; he was inaugurated in February 2003. While campaigning, Roh had stated he would continue with Kim Dae Jung’s “sunshine policy” toward the North, but prior to his election, it was revealed that North Korea was secretly developing a program to enrich uranium for use in nuclear weapons. Relations between North Korea and the US were tense in 2002 and 2003, as the US maintained North Korea should not be allowed to develop nuclear weapons, and the North asserted it had the right to do so to provide for its defense and security. Roh took the position that North Korea’s moves to develop nuclear weapons and export missiles could only be countered by dialogue. This put him at odds with some in the Bush Administration who held that the United States would not be “blackmailed” into negotiating with the North. In June 2003, the United States announced it would redeploy some of its 37,000 troops in South Korea to positions south of the DMZ, in an effort to create more agile and mobile forces. South Korea’s economy in 2003 was growing at 6.3%, a rate that was among the highest in the developed world. 13GOVERNMENT The Republic of Korea’s (ROK) first constitution was adopted on 17 July 1948. Through repeated revisions, power remained concentrated in the hands of the president until the most recent revision, adopted by 93.1% of the vote in a popular referendum on 28 October 1987. Under the new constitution, which took effect in February 1988, the president is elected by direct popular vote, rather than indirectly as before, for a single term of five years. There are also a prime minister and two deputy prime ministers, who head the State Council (the cabinet). Roh Moo Hyun was elected president on 19 December 2002 for a five-year term beginning on 25 February 2003. The ROK legislature is the unicameral National Assembly (Kuk Hoe). It has 273 seats; 227 are filled by direct election, while the remaining 46 are filled proportionally. During the first four decades of the ROK, the National Assembly had little authority. The 1987 constitution strengthened the National Assembly, giving it power to audit government activities and removing the president’s power to dissolve the Assembly. Suffrage is universal at age 20. In the elections of 2000, the Grand National Party won a narrow victory with 39% of the vote. 14POLITICAL PARTIES From 1948 to 1988, politics in the Republic of Korea were dominated by the executive arm of the government with military backing. Despite this, there were active opposition parties and, with the implementation of the revised 1987 constitution, political parties have had a greater governmental role. In the presidential election of December 1987, the governing Democratic Justice Party (DJP), with Roh Tae Woo as its candidate, won 37% of the vote; the Reunification Democratic Party (RDP), with Kim Young Sam, won 28%; the Peace and Democracy Party (PDP), with Kim Dae Jung, won 27%; and the New Democratic-Republic Party (NDRP), with Kim Jong Pil, won 10%. In a crucial election for the National Assembly in April 1988, the DJP gained only 34% of the popular vote, allowing the opposition parties to control the assembly. This was the first time since 1952 that the government party did not have a majority in, and hence control of, the National Assembly. In a surprise move in January 1990, the DJP merged with two of the opposition parties, the RDP and the NDRP, to form a new majority party, the Democratic Liberal Party (DLP). In July of that year, two opposition parties, the PDP and the Democratic Party (DP) merged, retaining the name DP. In September 1991, the DP agreed to merge with another opposition party, the New Democratic Party (NDP), then led by the veteran oppositionist, Kim Dae Jung, forming a new DP. The National Assembly election on 24 March 1992 saw 38.5% of the vote going to the DLP; 29.2% to the DP; 17.3% to the Unification National Party, which later changed its name to the United People’s Party (UPP); and 15% to other parties. The actual distribution of seats in the National Assembly shifts as members frequently switch among parties. In the presidential election on 18 December 1992, 41.5% of the vote went to Kim Young Sam of the DLP; 33.8% to Kim Dae Jung of the DP; 16.3% to Chung Ju Yung of the UPP; and 8% to candidates of various smaller parties. Following the 1992 elections, Korea’s largest political parties began a period of reorganization. The DLP transformed into the New Korea Party (NKP) while Kim Dae Jung formed a new opposition party, the National Congress for New Politics (NCNP). In the National Assembly election on 11 April 1996, the NKP won 139 seats; the NCNP, 79 seats; the ULD, 50 seats; and the DP, 15 seats. The remaining 16 seats were won by independents. The surprise of the election was the success of the ULD, a conservative party led by former premier Kim Jong Pil. In the presidential election of 18 December 1997, Kim Dae Jung won 40.3% and Yi Hoe Chang of the Grand National Party (GNP) won 38.7%. In January 2000, Kim reorganized his cabinet; his party, the National Congress for New Politics, assumed a new name: New Millennium Party (NMP). The 13 April 2000 election involved Kim Dae Jung’s New Millennium Party, which captured 115 seats; the former governing party—Grand National Party (formerly the New Korea Party) obtained 133 seats; and a minor party, the United Democratic Liberal Party captured 17 seats. Two seats were held by the Democratic People’s Party, one seat was held by the New Korea Party of Hope, and 5 seats went to independents. 15LOCAL GOVERNMENT The Republic of Korea (ROK) is divided into nine provinces (do), Cheju, North Cholla, South Cholla, North Ch’ungch’ong, South Ch’ungch’ong, Kangwan, Kyonggi, North Kyongsang, and South Kyongsang. There are seven provincial-level cities (jikhalsi) directly under the central government: Seoul, the capital; Inch’on; Kwangju; Pusan; Taegu; Taejon; and Ulsan. Provinces are divided into cities (si), counties (kun or gun), townships (myon), and villages (i or ri). Between 1961 and March 1990, there were no local elections. 16JUDICIAL SYSTEM The highest judicial court is the Supreme Court, under which are five intermediate appellate courts. Lower tribunals include district courts, of which there are 15, and a family and administrative court. There are 103 municipal courts in South Korea. Since 1988 constitutional challenges go to the Constitutional Court. The president, with the consent of the National Assembly, appoints the chief justice, the other 13 justices of the Supreme 344 Korea, Republic of (ROK) Court, and the Constitutional Court. The chief justice in consultation with the other justices of the court, appoints lower court justices. The constitution provides for a presumption of innocence, protection from self-incrimination, the rights to a speedy trial, protection from double jeopardy and other procedural due process safeguards. The constitution provides for an independent judiciary. There are no jury trials. The legal system combines some elements of European civil law systems, Anglo-American law, and classical Chinese philosophies. 17ARMED FORCES Of a total of 686,000 personnel on active duty, 560,000 were in the army, 63,000 in the navy and marines, and 63,000 in the air force. An additional 4.5 million were in the reserves. Paramilitary forces included 3.5 million in the Civilian Defense Corps. Equipment included over 2,000 main battle tanks, 20 submarines, and 538 combat aircraft. South Korea provided support for peacekeeping and UN missions in six regions. The US maintained a military presence of 37,140 personnel. Defense spending was $12.8 billion in 2001 or 2.8% of GDP. 18INTERNATIONAL COOPERATION ROK is a member of the UN and participates in ESCAP and all the nonregional specialized agencies. The UN Commission on the Unification and Rehabilitation of Korea was dissolved in 1973, but the UN Command originating from the Korean War continues to supervise implementation of the 1953 armistice agreement. The ROK pursues a vigorous international diplomacy, and in recent years has modified both its militant anti-Communist stance and its close alliance with the US. By 1986, the ROK was recognized by 122 nations, 67 of which also had diplomatic relations with the DPRK. The ROK participates in the African Development Bank, Asian Development Bank and G-77, is a permanent observer with the OAS, and is a signatory to the Law of the Sea and a member of the WTO. 19ECONOMY Under a centralized planning system initiated in 1962, the ROK was one of the fastest growing developing countries in the postwar period, shifting from an agrarian to an industrial economy to a high-tech “new economy” in the course of only a few decades. In 1996, the ROK was officially admitted to the 30- member Organization for Economic Cooperation and Development (OECD) of advanced industrialized countries. In 2001, industry contributed 44% of GDP compared to 16.2% in 1965, while agriculture, forestry and fishing accounted for 4%, down from 46.5%. Much of this industrialization was fueled by the government’s stimulation of heavy industry, notably steel, construction, shipbuilding, and automobile manufacture, as well as its support of technological advances in communications and information technology (CIT). To finance industrial expansion the ROK borrowed heavily up until the mid-1980s. By the end of 1986 its foreign debt equaled about 52% of GNP, making the country one of the world’s four most deeply indebted developing economies. Steady current account surpluses allowed the ROK to reduce this figure, but in 1998, in the wake of the Asian financial crisis, the external debt/GDP ratio again ballooned, reaching an average 46.9% in 1998. Financial and corporate structural reforms helped bring this ratio down to 28.4% (est.) in 2002, with a projected 25.8% in 2003. The average annual rate of GDP growth declined from an average of 9.5% between 1965–80 and 9.7% 1980 to 1990 to 6.57% 1991 to 2000 as export growth slowed, labor costs rose, and the won steadily appreciated against the US dollar. However, Korea’s economy started to grow once again at the phenomenal rate that it saw in the 1970s and 1980s in the later 1990s. The economy grew by 9.1% in 1995 and 9.1% in 1996. However, after June 1997, when Hong Kong reverted to Chinese rule, South Korea became engulfed in the Asian financial crisis. GDP growth averaged only 5% in 1997, and then turned negative (- 6.6%) in 1998, in the country’s first economic contraction since the Korean war. Export value fell 25% in 1998 despite a 19.6% increase in volume, due to depreciating currencies. Before the end of 1997, a $58 billion international support program had been arranged, anchored in a three year stand-by arrangement with the IMF running from 4 December 1997 to 3 December 2000, and a one-year arrangement under IMF’s Supplemental Reserve Facility (SRF) with an additional $14 billion line of credit. South Korea’s economy made a strong recovery in 1999 and 2000, with GDP growth rates if 10.9% and 9.3%, while inflation, which had reached 4% in 1998, was held to 1.9% in 1999 and 2.8% in 2000. The recovery was sharply interrupted, however, by the collapse of the dot.com boom in early 2001 and the decline in international investment in the aftermath of the 11 September 2001 terrorist attacks on the United States. Real GDP growth dropped to 3.3% in 2001 and is projected to have achieved only between 5.5% and 5.8% in 2002. 20INCOME The US Central Intelligence Agency (CIA) reports that in 2002 South Korea’s gross domestic product (GDP) was estimated at $931 billion. The per capita GDP was estimated at $19,400. The annual growth rate of GDP was estimated at 5.8%. The average inflation rate in 2002 was 2.8%. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange. It was estimated that agriculture accounted for 4% of GDP, industry 42%, and services 54%. According to the United Nations, in 2000 remittances from citizens working abroad totaled $63 million or about $1 per capita. Worker remittances in 2001 totaled $49.20 million. Foreign aid receipts amounted to about $2 per capita. The World Bank reports that in 2001 per capita household consumption (in constant 1995 US dollars) was $6,907. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the same period private consumption grew at an annual rate of 4%. Approximately 18% of household consumption was spent on food, 7% on fuel, 5% on health care, and 14% on education. The richest 10% of the population accounted for approximately 24.3% of household consumption and the poorest 10% approximately 2.9%. It was estimated that in 2001 about 4% of the population had incomes below the poverty line. 21LABOR The labor force numbered 22 million in 2002. In that year, 10% were engaged in agriculture, 22% in industry, and 69% in the service sector. The unemployment rate in 2002 averaged 3%. Before 1987, the labor movement was heavily controlled by the government, but since 1991, democratic reform has brought some changes. With the exception of public sector employees, workers enjoy the right to join unions even with as few as two members. All unions must register with the labor ministry. In 2002, about 12% of the workforce belonged to 5,698 registered local unions. Unions often exercise the right to strike, and collective bargaining is prevalent. Children under the age of 15 are generally prohibited from working, and those under 18 must obtain written approval from their parents. The maximum regular workweek is set at 44 hours, with overtime pay mandatory for extended hours. In 2002, the minimum wage was $1.63 per hour. Health and safety standards Korea, Republic of (ROK) 345 are regulated by the government although it is not stringently enforced due to lack of inspectors. 22AGRICULTURE Some 20% of the ROK’s land area is arable, with about 70% of it sown in grain, rice being the chief crop. In 1965, agriculture (including forestry and fishing) contributed nearly 50% to GNP, but by 2001 only accounted for 4.4%. Double-cropping is common in the southern provinces. Rice production in 2000/01 was 5,290,000 tons. Barley production in 1999 stood at 331,000 tons; potatoes, 562,000 tons; and soybeans, 145,000 tons. Despite increased yields due to mechanization, the use of hybrid seeds, and increased employment of fertilizers, the ROK runs a net deficit in food grains every year. In 2001, imports of cereals, mostly from the United States, amounted to $1,510 million, consisting almost entirely of wheat and corn. Virtual selfsufficiency has been attained in rice production, but at a cost of nearly $2 billion per year in direct producer subsidies. In 2001, the ROK’s agricultural trade deficit was $6.67 billion, fifth highest in the world. Hemp, hops, and tobacco are the leading industrial crops. The ROK was the world’s leading producer of chestnuts in 1999. The orchards in the Taegu area are renowned for their apples, the prime fruit crop; output in 1999 was 491,000 tons. Pears, peaches, persimmons, and melons also are grown in abundance. About two-thirds of vegetable production is made up of the mu (a large white radish) and Chinese cabbage, the main ingredients of the year-round staple kimchi, or “Korean pickle.” Until the Korean War, tenant farming was widespread in the ROK. The Land Reform Act of June 1949, interrupted by the war, was implemented in 1953; it limited arable land ownership to three ha (7.4 acres) per household, with all lands in excess of this limit to be purchased by the government for distribution among farmers who had little or no land. By the late 1980s, farms averaged 0.5–1 ha (1.2–2.5 acres). The New Village (Saemaul) Movement, initiated in 1972, plays a major role in raising productivity and modernizing villages and farming practices. 23ANIMAL HUSBANDRY The raising of livestock, traditionally a supplementary occupation among ROK farmers, expanded rapidly during the 1970s and 1980s. In 2001, 1.9 million head of cattle were raised; pigs totaled 8,719,000, and chickens, 102 million. Production in 2001 included (in thousands of tons): beef, 226; pork, 928; chicken, 433; eggs, 522; milk, 2,338; butter, 5.7. The silkworm industry has declined radically since the mid-1970s. Although the dairy industry has been protected by import restrictions, an incremental lifting of such trade constraints is underway, which will eventually include livestock imports. 24FISHING Korean waters comprise some of the best fishing grounds in the world. The Sea of Japan off the east coast provides deep-sea fishing with an average water depth of 1,700 m (5,600 ft). Warm and cold water alternate each season; the area is known for its Alaskan pollack, cod, squid, king crab, hairing crab, turban shell, and abalone. Off the west coast, the Yellow Sea has an average depth of 44 m (144 ft); major species include corker, hairtail, mackerel, surf clam, large clam abalone, lobster, Japanese paste shrimp, and blue crab. Off the south coast, the warm Pacific Ocean currents move towards the northeast, bringing diverse species such as anchovy, mackerel, oyster, mussels, shellfish, octopus, beka squid, laver, and sea mustard. Industrialization and urbanization have led to a dramatic reduction in the number of families directly involved with fishing; from 1980 to 2000, the number of fishing families declined from 157,000 to 82,000. The fishing fleet consisted of 94,935 vessels in 2000, of which 568 were deep-sea vessels. According to the government, the total catch in 2001 was 2,665,123 tons. Mackerel and anchovies account for about half the coastal fish landings; oysters are the principal aquacultural species; Alaskan pollack and tuna provide 80% of the deep-sea fish catch. Korean fishing bases have been established in Western Samoa and Las Palmas, and cuttlefish caught in waters off the Falkland Islands are now available. Since the declaration of 200 mi economic sea zones by many nations in the 1970s, the ROK negotiated fishing agreements with several coastal nations to secure fishing rights in their waters. Seaweed is another important aquacultural product, with 427,117 tons harvested in 2001. The ROK exports seafood to about 65 countries throughout the world. Fisheries exports typically include tuna, shellfish, frozen/canned products, and seaweed. Japan is the largest destination for exports, annually accounting for about 75% of ROK seafood exports by value. In 2001, fisheries exports were valued at $1,273,619,000. Fresh, chilled, and frozen fish accounted for 67% of the value; smoked, dried, and salted fish, 8%; canned fish, 18%; and other products, 7%. The rate of fish consumption in the ROK was 33 kg (73 lb) per person in 2001. Although domestic consumption is still largely tied to local production, the ROK imported $1,648,372,000 of fish products in 2001. Major suppliers were Russia, the United States, China, Argentina, Chile, New Zealand, and Japan. 25FORESTRY Forests covered 6,248,000 ha (15,439,000 acres) in 2000, or about 63.3% of the ROK’s total area, but wood supplies are grossly inadequate to meet the needs of the fast-growing plywood and paper industries. Most of the original forests were destroyed during the Korean War and have been transformed into pine forests under a massive government reforestation program. Conifers now account for 45% of the forest; broad-leaved species (such as oak), 28%; and mixed forests, 27%. About 21% of all forested land is nationally owned and is the focus of extensive reforestation efforts. The government is supporting local efforts to invest in forest development projects abroad. According to the FAO, estimated production of roundwood in 2000 was 4,041,000 cu m (142 million cu ft); sawnwood, 4,300,000 cu m (152 million cu ft); and plywood, 797,000 cu m (2.8 million cu ft). Softwoods (mostly red pine and larch) accounted for about 80% of the production; hardwoods (mainly oak), 20%. Because of low quality, domestic roundwood is mainly used for chopsticks, crates, match wood, and wood chips. Whereas plywood and wood pulp were once traditional export items, the role of forestry products in generating export earnings is now shrinking. The ROK now imports about 95% of its forest products. Imports of forest products amounted to nearly $3.7 billion in 2000 (primarily from Indonesia, Malaysia, and the United States). Imports have been boosted by a growing demand for single and multifamily wood frame houses. 26MINING The Republic of Korea did not have significant natural resources, and its limited supplies of iron ore, coal, copper, lead, and zinc had to be supplemented by imports. In 2000, 188,000 tons of iron ore and concentrate (metal content) was produced, down from 272,000 in 1998. The output met 1% of the country’s demands for its crude steel industry (which ranked sixth in the world) and its pig iron industry (which ranked eighth). Output of zinc was 11,474 tons (the Korea Zinc Group became one of the largest primary zinc producers in the world); lead output was 2,724 tons, down from 5,131 in 1996. No mine copper was produced in 1997, 1999, and 2000. The ROK also produced the metals bismuth, cadmium, gold, nickel, and silver. Among industrial minerals, the ROK produced barite, hydraulic cement, 346 Korea, Republic of (ROK) diatomaceous earth, feldspar, graphite, kaolin, limestone, mica, nitrogen, quartzite, salt, sand (including glass sand), soda ash (manufactured), sulfur, and talc and pyrophyllite. No barite was produced in 1997–2000, and no fluorspar in 1998–2000. The production of chemicals and steel ranked third and fifth, respectively, among the country’s leading industries in 2002, and steel ranked fourth among export commodities. After four years of prospecting, Ivanhoe Mines Ltd., of Canada, announced the discovery of two epithermal gold-silver veins near Haenam, Cholla Province, with potentially high-grade gold-silver mineralization. The government continued to support state-owned or privately owned enterprises that invested in such mineral-rich countries as Australia, Brazil, Canada, and Chile. The Korea Development Bank sold off the government equity in Pohang Iron and Steel Co. Ltd. (POSCO), which had diversified interests and holdings, including a high-grade iron ore deposit in the Pibara region of Western Australia with proven reserves of 200 million tons. Two-way trade with North Korea continued to grow. 27ENERGY AND POWER Coal is the chief fuel mined, with recoverable reserves estimated at 86 million tons in 2000 and production totaling 4.6 million tons in the same year. Most of the coal is low-quality anthracite, used mainly for home cooking and heating; imports of highergrade coal are required for industry. In 2000, crude oil provided 56% of all primary energy consumed, up from 9.4% in 1962, and coal, 20%. Nuclear energy, natural gas, and hydroelectricity provided the rest. Oil consumption totaled 2.1 million barrels per day in 2000, all of it imported. The Number 3 reactor at the Ulchin power plant went online in 1998, and the Number 4 reactor launched operations a year later. Units 5 and 6 are expected to be finished in 2004 and 2005. Since the 1960s, the ROK’s oil sector has been heavily regulated as a means of providing manufacturers with inexpensive energy. Prices are controlled and market entry is restricted. Following the Asian economic crisis of 1997–1998, the ROK began to loosen controls over oil pricing, importing, and the export of refined petroleum products. In 1998 the refining industry was fully deregulated. Plans for the future call for a deemphasis on oil and promotion of atomic energy, coal, and hydroelectricity as energy sources, together with importation of liquefied natural gas from Indonesia and crude oil from the United States. In 2001, the ROK had an installed electrical generating capacity of 52 million kW, up from 9.8 million kW in 1981. The output of electricity in 2000 totaled 273.6 billion kWh, of which 60.6% was from fossil fuels, 1.5% from hydropower, 37.9% from nuclear power, and a negligible amount from other renewable sources. Industry accounts for about two-thirds of the electricity consumed. Electricity demand is projected to rise 3.4% per year on average through 2015. 28INDUSTRY Up until the 1960s, manufacturing was chiefly confined to production for domestic consumption, and a substantial proportion of the output was produced by handicraft methods in homes and small factories. While textiles, apparel and footwear were the first modern industries to be developed, heavy industry has grown rapidly over the last four decades, promoted by a series of development plans. In the 1980s, the manufacture of metals, machinery, and electronic and other equipment overtook textile production as the country’s leading industries in terms of value, employment and export earnings. In turn, in the 1990s, high-tech electronics have become the leading sector as South Korea became the world’s leading semi-conductor manufacturer as well as the leading shipbuilder. Prosperity brought higher labor costs, and in the last decade, South Koreans have begun outsourcing production—particularly textiles and footwear but also more recently “commoditized” consumer electronics. During the past decade, increasing domestic production costs have encouraged the relocation of production plants in some industries—particularly textiles and footwear but more recently also consumer electronics— to overseas locations in Southeast Asia, Eastern Europe, China, Mexico, and Turkey. The ROK now ranks as a major Asian producer of electronics, automobiles, chemicals, ships, steel, textiles, clothing, shoes, and processed food. In 2002, industrial production grew 7.3% (although excluding the 21.4% growth in semi-conductors, only 5.8%) Other high value-added sectors showed above average growth: automobile production up 8.1%; machinery equipment up 7.9% and wearing apparel and fur articles, up 7.4%. The lower valueadded sectors of textiles and basic metals showed the strains of global over capacity and low-cost competition. Textiles declined 6.6% and basic metals increased a weak 4.6%. Long-term plans for the textiles and clothing sectors include a shift from the current mix of 5% clothing to 30% clothing by 2010 as part of the goal of doubling export value from the 2002 level of $15.7 billion. Manufacturing in the ROK is dominated by a few dozen vertically integrated industrial conglomerates, known as chaebol, which have privileged access to financing and set the standards for contracting and procurement throughout the country. In 1995, the 30 largest chaebol accounted for 16.2% of GNP (up from 13.5% in 1992), according to the Korea Economic Research Institute. In 1999, the debts of the four biggest chaebol stood at approximately $140 billion. Unfortunately, many of the country’s chaebol have racked up huge debts in order to finance industrial expansion, some more than five times their annual intake. Asset sell-offs by the four biggest chaebols, including Hyundai, Samsung, LG, and SK amounted to $15 billion in 1999. Joint venture production with major US and Japanese car companies, growing domestic demand, and successful penetration of overseas markets by Korean-owned corporations has fueled steady growth in automobile output. The production of passenger cars more than doubled from 1990 to 1995. Total vehicle production in 1995 was 2,526,400, or 5% of world output. Vehicle production in 1998 was about two billion, or eighth of all OECD countries. South Korea’s automotive industry is dominated by Hyundai, which accounted for 48% of all passenger cars, trucks, and buses domestically produced in 1995. Kia accounted for 25% of production that year; Daewoo, 18%; and others, 9%. In 1998, the ROK was the second-largest world producer of new ships; in 2002 it was the world leader. In 2002, Korean shipbuilders got orders for 230 ships (2.6 million CGT), delivered 210 ships (6.8 million CGT), and had a backlog of 496 ships (17.1 million CGT). Production of electronics has shifted from assembly of imported parts to the manufacture of competitive hightechnology products, such as office automation systems, for both the international and domestic markets. Daewoo Electronics (the second-largest chaebol, with substantial debts), LG and Samsung Electronics dominate in the production of consumer electronics; the televisions, videocassette recorders, stereos, refrigerators, washing machines, and microwave ovens produced by these companies are sold across the world. Daewoo Electronics also operates 36 overseas factories and planned to capture 10% of the world’s market in consumer electronics by 2000. Samsung Electronics was the world’s largest producer of computer memory chips by 1996. By 2002, ROK had become the world’s fifth largest steel producer, up from 10th in 1989, accounting for 4.8% of the world total. P’ohang Iron and Steel Co. (POSCO) produces about half of the nation’s total steel output, and is the world’s second- Korea, Republic of (ROK) 347 largest steel mill, producing 27.4 million tons in 2002. There are about 200 steel companies in South Korea. 29SCIENCE AND TECHNOLOGY The ROK has often been compared to its powerful neighbor, Japan, but is said to be about 10 years behind that nation in scientific and technological innovation. However, in areas such as semiconductor memory chips, cars, and steel, Korean industries provide innovation equal to that in the United States and Japan. In 1998, high technology exports were valued at $30.5 billion and accounted for 27% of all manufactured exports. Two organizations provide most of the main support for Korean science and technology. The Korean Institute of Science and Technology (KIST) was started in 1965 with the help of the United States. The Korean Advanced Institute of Science and Technology (KAIST), the leading university in scientific research, attracts researchers from all over the world, and is considered one of the top universities in the world for electrical and molecular engineering and computer science. In 1987–97, science and engineering students accounted for 32% of college and university enrollments. 30DOMESTIC TRADE The small family store, traditional in Korea, is giving way to chain stores and supermarkets. Large, modern department stores now operate in Seoul, Pusan and other major urban centers, although some trade in rural areas is still carried on by itinerant peddlers, mobile sidewalk stands, and periodic market fairs. Black markets offering all manner of foreign goods are much in use; haggling over prices is common. Seoul is the nation’s wholesaling center. Franchising has a firm ground in the restaurant and retail markets. Direct marketing, particular doorto-door sales, is still fairly popular as well. Most private offices are open from 8:30 AM to 6:00 PM weekdays and from 9:00 AM to 12:00 PM on Saturdays. Korean government offices keep similar hours, except for a 5:00 PM closing from November through February. Banking hours are 9:30 AM to 4:30 PM, Monday through Friday and 9:30 AM to 1:30 PM Saturdays. 31FOREIGN TRADE Various types of machinery are the Republic of Korea’s most important commodity exports, accounting for 58% of exported commodities. The Republic of Korea’s other major exports include woven fabrics and ships. The top 10 exports are: % OF COUNTRY TOTAL Electrical machinery 18.0 Transistors, valves 14.0 Passenger motor vehicles 6.9 Telecommunications equipment 6.1 Automatic data processing equipment 5.4 Refined petroleum products 5.3 Ships 4.8 Iron and steel 4.0 Apparel 2.9 Polymers 2.7 Oil and related products, chemicals, and raw materials are major imports, as most raw inputs for the country’s industrial sector are imported. A lack of small companies and technological research compels the ROK to import components and production machines for the cars, videocassette recorders, computer chips, and ships that it manufactures. In 2000 South Korea’s imports were distributed among the following categories: Consumer goods 4.9% Food 3.7% Fuels 23.9% Industrial supplies 27.4% Machinery 36.7% Transportation 3.1% Other 0.3% The United States, China and Japan have continued to be the ROK’s chief trading partners by far, although potential new markets in Eastern Europe and the rest of Asia are being explored. Sa‘udi Arabia and Indonesia have been major providers of oil and liquefied natural gas. Australia is a leading supplier of iron ore, coal, and grains. Principal trading partners in 2000 (in millions of US dollars) were as follows: COUNTRY EXPORTS IMPORTS BALANCE United States 37,806 29,286 8,520 China (inc. Hong Kong) 29,163 14,059 15,104 Japan 20,466 31,827 -11,361 Singapore 5,648 3,723 1,925 United Kingdom 5,380 2,576 2,804 Germany 5,154 4,625 529 Malaysia 3,515 4,878 -1,363 Indonesia 3,504 5,287 -1,783 Australia 2,606 5,958 -3,352 Sa‘udi Arabia 1,262 9,642 -8,380 32BALANCE OF PAYMENTS Robust export performance turned the ROK’s overall balance of payments deficit into a $1.7 billion surplus in 1986, which grew to $12.1 billion in 1988. Since then, the balance of payments surplus has declined; in 1990, the balance of payments had a deficit of $274 million because of declining exports, rising imports, and a current account deficit. Over the long term, growth in exports will depend on industry’s efforts to regain competitiveness lost through wage increases, labor unrest, and exchange rate changes. The deficit grew to over 4% of GDP in 1996, before subsiding in 1997 due to a shrinking currency base. At the end of 1998, South Korea had $20.2 billion in net outstanding loans, but by the end of 1999, it had become a net creditor. By the end of April 2001, $33.3 billion in outstanding loans were owed the country. The US Central Intelligence Agency (CIA) reports that in 2002 the purchasing power parity of South Korea’s exports was $159.2 billion while imports totaled $146.6 billion resulting in a trade surplus of $12.6 billion. The International Monetary Fund (IMF) reports that in 2001 South Korea had exports of goods totaling $151.4 billion and imports totaling $138 billion. The services credit totaled $29.6 billion and debit $33.1 billion. The following table summarizes South Korea’s balance of payments as reported by the IMF for 2001 in millions of US dollars. Current Account 8,617 Balance on goods 13,392 Balance on services -3,527 Balance on income -886 Current transfers -363 Capital Account -443 Financial Account 2,543 Direct investment abroad -2,600 Direct investment in South Korea 3,198 Portfolio investment assets -5,499 Portfolio investment liabilities 11,856 Other investment assets 7,458 Other investment liabilities -11,764 Net Errors and Omissions -2,698 Reserves and Related Items -13,416 348 Korea, Republic of (ROK) 33BANKING AND SECURITIES In 2000, finance, insurance, real estate, and business services accounted for over half of GDP. The Bank of Korea serves as the central bank, the bank of issue, and the depository for government funds. It was established in 12 June 1950. The banking system is regulated by the Financial Supervisory Service. Other banking services are provided by the state-run Korea Development Bank, the Export-Import Bank of Korea, and nine state-run specialized banks. Commercial banking operations in 1999 were handled by 11 nationwide commercial banks, 10 provincial banks, and 42 foreign banks. Total assets of Korea’s commercial banks at the end of 1998 were $300 billion. By 1986, as part of the government’s economic stabilization program initiated in 1980, all of the five commercial banks previously under government control were denationalized. In 1993, the Korean government began a five-year financial sector reform program, including the deregulation of interest rates, and liberalization of foreign exchange. During the financial crisis of late 1997 and 1998, non-performing loan levels skyrocketed. The credit hunger of South Korean corporations can be explained in part by the failure of the stock exchange to generate the equity capital they needed. On 25 June 1998, the Korean government ordered the takeover of five failing banks, and seven other banks were put on a warning list. Of the seven, five merged, and two continued operations. Banks directly affected by these measures included Shinhan Bank, the Housing and Commercial Bank, Kookmin Bank, KorAm Bank, Hana Bank, and Hanvit Bank, among others. In 1998, efforts continued to stabilize the banking sector by increasing the capital adequacy ratio to 8%, and the government encouraged lending to small and medium-sized companies as opposed to the large conglomorate chaebols. By 2003 the government had nationalized eight failing private banks, spending $120 billion on bailouts. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $41.4 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $362.2 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 4.7%. The Korean Stock Exchange, a share-issuing private corporation, functions as the country’s only stock exchange. Clearly, all was not well with the stock market in 1996, when the stock price index late in was lower than that of 1988, although the economy had virtually doubled in size in real terms over the same period. Direct access by foreigners to the stock market has been allowed since 1992; Seoul implemented unrestricted foreign access in 1998. Stock issues raised $32 billion in 1999, as opposed to $11 billion in 1997. International links were being forged in 2000, and the KOSDAQ was to begin stock transactions for small- and medium-sized firms. 34INSURANCE The insurance industry in Republic of Korea is overseen by the Financial Supervisory Service. In 2001, there were US$50.537 billion direct insurance premiums written, with US$35.392 billion of the total comprised of life insurance and US$14.145 billion comprised of nonlife insurance. In 2001, leading life insurance companies included Samsung Life, Korea Life, Kyobo Life, and Allianz. Leading nonlife insurance companies included Samsun, Hyundai, Dongbu, LG, and Oriental. Workers’ compensation, medical insurance, and unemployment insurance are all compulsory. 35PUBLIC FINANCE In recent years, Korea has moved away from the planned, government-controlled economy to a more liberal market based economy. Privatization of some major banks and a restructuring of the chaebols (conglomerates) contributed greatly to the opening up of the economy. The US Central Intelligence Agency (CIA) estimates that in 2000 South Korea’s central government took in revenues of approximately $118.1 billion and had expenditures of $95.7 billion including capital expenditures of $22.6 billion. Overall, the government registered a surplus of approximately $22.4 billion. External debt totaled $128.2 billion. The following table shows an itemized breakdown of government expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above. EXPENDITURES 100.0% 95,700 General public services 5.1% 4,842 Defense 16.7% 15,941 Public order and safety 6.1% 5,801 Education 20.5% 19,627 Health 0.8% 746 Social security 10.8% 10,329 Housing and community amenities 2.3% 2,159 Recreation, cultural, and religious affairs 0.9% 815 Economic affairs and services 23.7% 22,659 Other expenditures 10.5% 10,046 Interest payments 2.9% 2,735 36TAXATION The principal sources of tax revenue are customs duties, corporate taxes, a defense tax surcharge imposed on corporations, a VAT of 10%, personal income taxes, and excise taxes ranging from 5% to 20%. As of 2000, the rates for corporate taxation ranged from 16% on taxable income up to w100 million to 28% on income over w100 million. In addition, there is a resident tax surcharge of 10% and a special agriculture and fishery tax imposed on corporations having taxable income over w500 million. There is a 24.2% withholding tax on interest. The capital gains tax is set at three rates of 20%, 30%, and 40%. Tax relief for up to five years, with a 50% exemption in the ensuing two years, is offered to new industries and corporations that are foreign exchange earners. Those in electronics receive seven years of exemption, and three years at 50%. The personal income tax is graduated from 10% to 45%. 37CUSTOMS AND DUTIES In 2000, Korea had an average tariff of 7.9%. However, tariffs remain high on a number of agricultural and fishery products, at 30% to 100%. Korea plans to further reduce tariffs in the future. Other import taxes include a value-added tax of 10% and excise taxes ranging from 15% to 100%. The special excise tax on consumer electronic goods and automobiles was cut by 30% in 1998. There were 57 items subject to quotas and 29 items subject to excise tariffs in 1999. The Information Technology Agreement (ITA) dropped most IT tariffs by 2000, with the remainder to be phased out by 2004. 38FOREIGN INVESTMENT The Foreign Investment Promotion Act (FIPA) and related regulations have governed foreign investment in ROK since May 1998 when a five year liberalization plan was announced covering a total of 11 sectors including real estate, financial services, and petroleum. The policy emphasis shifted from “control and regulate” to “promote and support.” Tax benefits and incentives were provided for foreign investors in high-tech and services sectors. In December 2000, the ceiling on foreign ownership was raised from 33% to 49% when Korea Telecom— Korea, Republic of (ROK) 349 now simply KT—was offered for privatization. KT was fully privatized in May 2002, albeit with SK Telecom as its largest share holder. Japanese share of foreign investments fell from about 50% in 1987 to 5.7% in 1998, as Japanese investors have been increasingly attracted to new centers of economic growth in Southeast Asia. As of 2002, EU countries had the largest cumulative investment in South Korea ($22.8 billion) followed by the United States with $21.8 billion. To facilitate further technology transfer, the government offers particular incentives to foreign companies in 533 categories of high technology industries. Two free export zones geared towards highly technical business activities have been established at Masan (near Pusan) and Iri (near Kunsan) to provide additional incentives for investment in favored industries. There were also completed in 1996 two industrial parks, in Chonan and Kwangju. The parks are for the exclusive use of Korean firms with heavy foreign investment. In 1998 net FDI was $0.7 billion, a balance of an inflow of $5.4 billion and an outflow of $4.7 billion. Net portfolio equity investment was a positive $3.9 billion. In 1999 and 2000 FDI inflow was $9.3 billion in both years, and net FDI was $5.1 billion and $4.3 billion, respectively. Net portfolio investment was $11.8 billion in 1999 and $12.6 billion in 2000. After the 11 September 2001 terrorist attacks on the United States, FDI inflow dropped 62% to $3.5 billion, producing a net inflow of only $1.1 billion. For 2002, it is estimated that net FDI inflow turned negative (-$.7) and that net portfolio investment was a low $1.5 billion. 39ECONOMIC DEVELOPMENT The ROK has a market economy in which both private enterprise and foreign investors play an important role. From 1962 to 1997, overall economic development was guided by the Economic Planning Board and a series of five-year plans. The Korean economy was devastated by the Korean War, even requiring foreign food aid. As late as 1965, per capita income was only $88 a year. From 1965, South Korea has been transformed from an underdeveloped agricultural economy to a leading Newly Industrialized country (NIC) to a leader in the new information technology (IT) economy. Nominal GDP was $3 billion in 1965; in 2003 it is projected at $514 billion, 171 times bigger. The Seventh Five-Year Economic and Social Development Plan for 1992–96 aimed at establishing the ROK as an advanced industrialized economy by the year 2000. More specific goals included improving social and economic equity, continued liberalization, improving industrial and export competitiveness, as well as strengthening the role of the private sector while government intervention in economic management, especially in the financial sector, is reduced. The Plan targeted an annual GDP growth rate of 7% and a decline of consumer price inflation to 3%. The plan was overtaken by the Asian financial crisis. South Korea was assisted in weathering the crisis of confidence with a $58 billion international support program mobilized through the IMF, the World Bank and the Asia Development Bank (ADB). In May 1998 the government introduced a five-year liberalization program covering 11 economic sectors including previously closed petroleum, insurance and financial services sectors. The ROK’s recovery from the Asian financial crisis was remarkably strong, aided by the show of international confidence and its government’s embrace of trade and investment liberalization reforms. However, the collapse of the dot.com boom and the global slowdown in 2001, combined with the aftermath of the 11 September 2001 terrorist attacks on the United States, dealt serious blows to the economy’s forward momentum. Progress in reducing the share of non-performing loans (NPLs) in the financial sector and reducing dependency on foreign borrowing were brought to a halt. At the end of March 2001, total external liabilities were at a record $137 billion. However, the ROK continued to maintain its net creditor position as it has since September 1999. Foreign assets totaled an estimated $188 billion. In early 2003, under the shadow of increased tensions with North Korea, the ROK government announced that the four pillars of its development strategy were 1) consistently promoting technological innovation; 2) continued development of a fair and transparent market system; 3) social and cultural norms based on trust; and 4) peace and prosperity in East Asia. 40SOCIAL DEVELOPMENT Few countries have faced health and social welfare problems as acute as those caused in the ROK by the devastation of the Korean War. The war left a residue of 348,000 war widows, most of them with dependent children, and 100,000 war orphans. Some 595,260 homes were destroyed, 5,000 villages wiped out, and many large cities badly damaged. Military relief payments consist mainly of financial support to veterans and their families. Old age, disability, and survivors’ insurance is provided to all residents aged 18-59. There is a separate system for public employees, school teachers, self-employed individuals, and military personnel. Workers and employers contributed 4.5% of earnings and payroll, respectively. Medical benefits are provided to all permanent residents, and workers’ compensation is extended to employees of firms with five or more workers. Conservative Confucian tradition encourages married women to remain at home. Women continue to suffer legal and societal discrimination. Despite equal opportunity laws, very few women achieve high levels of professional success. The wage of the average female worker is roughly half of that earned by a male counterpart. Violence against women, domestic abuse, and child abuse are prevalent and appear to be increasing with the economic decline. Divorce remains socially unacceptable in most sectors of Korean society, and this leads many women to remain in abusive marriages. A new sexual harassment law went into effect in 1999. Korean citizenship is determined exclusively by genealogy, and as a result, many Chinese born and raised in Korea are deprived of citizenship rights. Human rights are generally respected by the government. Some abuses have been reported involving detainees, but these are declining. 41HEALTH The substantial improvement in health care is directly related to improvement of diet, the rise in living standards, and the development of health and medical programs. Since the late 1970s, medical security, in the form of medical insurance and medical aid, has been expanded to cover a substantial portion of the population. The national medical insurance system was expanded in 1989, covering 94% of the population. In 1985– 1995, 100% of the population had access to health care services. About 5.4% of the GDP went to health expenditures as of 1999. In the mid-1990s, there were 236 general hospitals, 351 hospitals, 6 dental hospitals, 12,629 clinics, 6,708 dental clinics, 269 maternity clinics, 53 herb doctor hospitals, and 4,062 herb doctor clinics. As of 1999, there were an estimated 1.3 physicians and 5.5 hospital beds per 1,000 people. In 2000, 92% of the population had access to safe drinking water and 63% had adequate sanitation. The fertility rate in 2000 was 1.4 children per woman surviving her childbearing years. In 1993–96, 4% of all births were low birth weight. About 79% of married women (aged 15- 49) used contraception in the years 1989–1995. In 1990-1994, immunization rates for children up to one year of age were tuberculosis, 72%; diphtheria, pertussis, and tetanus, 74%; polio, 79%; and measles, 93%. The 2000 infant mortality rate was 8 per 1,000 live births and the general mortality rate was 6 per 1,000 inhabitants. Tobacco consumption has risen substantially from 2.7 kg (6.0 lbs) to 3.2 kg (7.1 lbs) a year per adult in 1995. 350 Korea, Republic of (ROK) As of 1999 the number of people living with HIV/AIDS was estimated at 3,800 and deaths from AIDS that year were estimated at 180. HIV prevalence was 0.01 per 100 adults. In 1994, there were 68,907 deaths related to cardiovascular disease and 14,730 deaths caused by traffic motor vehicle accidents. In 1999, there were about 69 cases of tuberculosis per 100,000 people. Life expectancy was 73 years in 2000. 42HOUSING After the liberation in 1945, southern Korea faced a housing shortage greatly compounded by high population growth rates. A housing shortage continues to plague the nation, especially in Seoul, Pusan, and other large cities, where shantytowns house many recent rural arrivals. The 1985 census counted 9,588,723 households but only 6,274,462 housing units, for a deficit of 3,314,261. According to 2000 national statistics, there were 10,959,342 housing units nationwide. About 47% were apartment units, 37% were detached houses, and 4% were found in buildings not orginally intended for residential dwellings. Most units house single-family households. 43EDUCATION The Education Law of 1949 provided for a centralized system under the control of the Ministry of Education and made the sixyear elementary schools free and compulsory for children between 6 and 12 years of age. Secondary education begins at 12 years of age and lasts for up to six years, which are divided into two cycles of three years each. Children attend middle school for three years, and subsequently attend either general academic high school or vocational high school for the remaining three years. In 1998 there were 3,794,447 students in 5,721 primary schools, with 122,743 teachers. Student-to-teacher ratio stood at 31 to 1. In 1997, secondary schools enrolled 4,662,492 students and employed 192,947 teachers. Also in 1997, all post-secondary institutions had a combined enrollment of 2,541,659 students and 114,231 teachers. As of 1999, 97% of primary-school-age children were enrolled in school, while 94% of those eligible attended secondary school. The leading government university is Seoul National University. The principal private institutions, all of them in Seoul, are Korea, Sung Kyun Kwan, Yonsei, Hanyang, Chungang, and Ewha universities; the last named is one of the largest women’s universities in the world. The country had a total of 121 colleges and universities in 1996, along with 335 graduate schools with a combined 1,556,949 students enrolled. For the year 2000, UNESCO estimated the rate of adult illiteracy at 2.2% (males, 0.8%; females, 3.6%). In the latter half of the 1990s, the government allocated approximately 17.5% of its total expenditure to education. As of 1999, public expenditure on education was estimated at 4.1% of GDP. 44LIBRARIES AND MUSEUMS In 2002, the Central National Library, founded in 1923, had approximately 3.8 million volumes. Most other sizable libraries in the ROK are found at universities. The largest academic collection is at the Seoul National University Library (2.2 million volumes). The National Museum, with centers in Seoul, Kyongju, Kwangju, Puyo, Chinju, Chunju, Chongju, and Kongju contains art objects reflecting more than 5,000 years of cultural history, including statuary pieces, ceramics, and painting. A major private museum is the Ho-Am Art Museum in Seoul. The National Museum of Modern Art in Seoul presents many special exhibits as well a permanent collection. The National Science Museum of Korea, completed in 1990 in Daejon, is one of the country’s most recent cultural sites. The ROK also possesses collections of early printing, dynastic histories, and art in its palaces and Buddhist temples, and in university, college, and public libraries. 45MEDIA In 2000, the number of main telephone lines in use totaled 24 million, with an additional 28 million cellular phones in use the same year. As of 2001, there were 104 AM and 136 FM radio stations, and 121 television broadcast stations. Television broadcasting began in 1956; in 1992 there were 57 commercial television stations, plus a US Armed Forces–Korea network broadcasting in English. In 2000, there were 1,033 radios and 364 television sets for every 1,000 people. In 2001, there were 22.23 million Internet subscribers served by about 11 service providers. Most of the leading newspapers are published in Seoul. The leading Korean-language newspapers, with their estimated daily circulations (in 2002), include Dong-A Ilbo, 2,150,000; Joongang Ilbo, 2,020,000; Hankook Ilbo, 2,000,000; Choson Ilbo, 1,960,000; Kyung-hyang Shinmun, 1,478,540; and Seoul Shinmun, 700,000. Though most radio and television stations and newspapers are state-supported, the government is said to have abandoned direct control over the news media, though some journalists report aggressive government lobbying to soften criticism, using the latent threat of KX investigations against media companies. 46ORGANIZATIONS Clan and county associations are a conspicuous aspect of Korean social life. A traditional type of organization with a primarily economic function is the kye, a mutual loan association formed to provide funds for a specific and typically short-term purpose, such as to defray the expenses of a wedding or funeral. The National Agricultural Cooperative Federation comprises millions of farmers who work in cooperatives. There are a number of cultural and arts organizations including the Academy of Korean Studies, the Korea Foundation, and the National Academy of the Arts. Organizations for advancement and research in science include the Korean Medical Association and National Academy of Sciences of the Republic of Korea. National youth organizations include Boy Scouts and Girls Scouts of Korea, Free Asian Youth Alliance, Korea Young Buddhists Federation, Korean 4-H, Korean Student Christian Federation, Korean World University Service, YMCA/YWCA, Seoul Association for Youth Service, and the Young Christian Workers of Korea. There are several sports associations throughout the country. Among the most notable are the base offices of the International Judo Federation and the World Taekwondo Federation. National organizations for women include the Korean Association of University Women, Korean Institute for Women and Politics, and the Korean Women’s Institute. International organizations with active chapters within the country include Amnesty International and the Red Cross. 47TOURISM, TRAVEL, AND RECREATION Major tourist attractions are Seoul, the former royal capital of the Yi (or Li) Dynasty, and Kyongju, with its treasures from the ancient kingdom of Silla. Soccer and baseball are the most popular modern sports. Traditional sports for men are wrestling, archery, kite fighting, and t’aekwondo (a martial art). Popular games include paduk, the Korean name for Japan’s board game go; changgi, or Korean chess, with pieces different from the European form; and yut, or Korean dice, played with four wooden sticks. The tourist industry has grown rapidly, from 4,250,216 foreign visitors in 1998 to 5,321,792 visitors in 2000. The number of hotel rooms totaled 51,189 in 2000, with a 65% occupancy rate. Tourist receipts reached $6.8 billion that year. Korea, Republic of (ROK) 351 In 2002, the US Department of State estimated the cost of staying in Seoul at $264 per day; expenses in Daejon were estimated at $183 per day. 48FAMOUS KOREANS (ROK) The dominant political figures of the contemporary period in the ROK have been Syngman Rhee (1875–1965), president from 1948 to 1960, and Park Chung-hee (1917–79), president from 1963 until his assassination in 1979. Chun Doo Hwan (Chon Du-hwan, b.1931) became president in 1981. Other well-known modern figures include Kim Chong-p’il (b.1926), prime minister 1971–75; Bishop Daniel Chi (Chi Hak-sun, b.1921); and Kim Dae Jung (Kim Tae-jung, b.1925) and Kim Young Sam (Kim Yong-sam, b.1927), prominent opposition leaders during the 1970s and 1980s. The Rev. 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