Occupying the southern half of the Korean peninsula in East Asia, over 80% of South Korea is mountainous and two-thirds is forested. Rice is the major agricultural product, grown by over 85% of South Korea's three million farmers. The whole peninsula was annexed by Japan from 1910 to 1945. The split between South Korea and the communist North originated with the arrival of rival US and Soviet armies in 1945. Although the two states have discussed reunification, the legacy of hostility arising from the 1950–1953 Korean War remains a major obstacle.

The Korean peninsula is unusual in having been inhabited by one ethnic group for the last 2000 years. Family life is a central and clearly defined part of society, although the nuclear family model is becoming the norm rather than the old-style household of the extended family. Most Koreans can trace their ancestry back thousands of years. Regional origin is important in determining blood heritage, since there are only 270 Korean surnames and half the population is named Kim, Lee, Park or Choi. Chondo Kyo, a religion combining elements of Shamanism, Buddhism, and Christianity, is peculiar to Korea but has only a tiny following. Traditional values condition attitudes to women, and it is still not respectable for those who are married to have a job.

Economic growth has attracted illegal immigrants from the poorer Asian countries, who take menial jobs that South Koreans now refuse to do.

Strengths

World's most successful shipbuilder, with 45% of the market. Continuing benefits of highly valued yen, making South Korean exports more competitive than Japan's. Strong demand from China, particularly for cars.

Weaknesses

Financial sector lacking in openness. High level of indebtedness and vulnerability to international capital movements. Increasingly militant workforce since 1997. State sector a burden on the economy. Strong competition from Japan.

Profile

South Korea's economic miracle began with centralized planning. Conglomerates known as chaebol, such as Samsung, achieved impressive growth rates in strategic industries such as car manufacturing, shipbuilding, and semiconductors. A well-educated workforce and cheap state credit gave Korea a competitive edge. The government then encouraged foreign investment and an emphasis on smaller industries to maintain growth. In 1996 South Korea joined the OECD. The following year, however, a major financial crisis and the threat of a debt implosion forced the government to turn to the IMF for a huge credit agreement. By 2001 the banking system showed signs of recovery, although global slowdown continued to affect the economy.

Officially a democracy since its inception, South Korea was in practice ruled by military dictators until 1987.

Profile

South Korea's politics changed radically in 1987 with the introduction of direct presidential elections and a parliament with enhanced powers.

In 1993, the first nonmilitary leader in 30 years, Kim Young Sam, became president. He launched a popular anticorruption campaign, targeting former presidents. His New Korea Party (NKP) (formerly the Democratic Liberal Party – DLP) was returned to power with a reduced majority in 1996, but was brought down amid a steel scandal in 1997. Veteran opposition leader Kim Dae Jung was elected president later that year in the first peaceful transfer of power to an opposition politician in South Korea's history. Supporters of the new president gained ground in legislative elections in 2000, but political instability continued, with frequent changes of prime minister and byelection victories for the opposition. Chang Sang was appointed the country's first ever female prime minister in 2002, but could not get parliamentary backing.

Main Political Issues

The economy

South Korea's economy, once one of the most impressive in the world, was severely shaken by the regional crisis of late 1997. Severe financial austerity and retrenchment failed to prevent large-scale bankruptcies in 2000.

Relations with North Korea

The sudden flowering of North–South relations in 2000 soon lost popularity. Expensive cross-border projects, and promises of aid for the impoverished North, raised fears of the mounting cost for the embattled southern economy.

Since the division of Korea, relations with the North have dominated foreign policy. A historic summit meeting in 2000 in the North Korean capital, Pyongyang, opened a new phase, and cross-border diplomatic and economic cooperation briefly flourished. Reunification remains the ultimate goal of both Koreas, but with doubts about its social and economic costs. Military tensions persist, and a large detachment of US troops remains on the border – the most heavily defended in the world. Relations with China, the closest ally of North Korea, have improved. Japan is also a major trading partner, although South Koreans harbor resentment over the 1910–1945 Japanese annexation.

The main defense concern is the North Korean regime. South Korea has fewer troops, tanks, artillery, and aircraft than the North, but it claims parity through the permanent presence of 35,000 US troops on its territory and its superior technology. The manufacture of missiles capable of striking any target in North Korea was legalized in 2001. However, US computer simulations question South Korea's ability to resist an invasion by the North, since Seoul is only 55 km (35 miles) from the demilitarized zone.

In the mid-1990s, the army's standing and role in national politics was sharply downgraded, due to a vigorous government campaign to investigate corruption in the armed forces, especially pertaining to arms procurement and past military involvement in politics.

South Korea has few natural resources. It has to import all of its oil and has built a series of nuclear reactors for generating electricity. Under the terms of the 1994 agreement between North Korea and the USA, two South Korean reactors are also being built in North Korea which, in the event of reunification, will be connected to the national grid.

Agriculture remains a highly protected sector. Plans to open up the rice market have in the past provoked massive demonstrations in Seoul.

Environmental groups remain hostile to South Korea's nuclear power program. Rapid industrialization has resulted in environmental problems. In September 1998 the government agreed to sign the Kyoto Protocol, which aims to reduce carbon dioxide emissions. More recently, steps have been taken to address the severe problem of air pollution in urban areas, particularly in Seoul. Rivers in rural areas have been polluted by fertilizers and chemicals.

South Korea has an efficient and highly integrated public transportation system. A toll-based nationwide motor expressway network joins most major urban centers. Air travel has expanded rapidly as a convenient way to traverse the mountainous interior. Korean Air competes with Asiana. Buses, trains, boats, and planes are integrated in one timetable, and have a reputation for punctuality. A high-speed rail link will connect Seoul and Busan (Pusan).

Improving relations with North Korea in 2000 produced proposals for the construction of cross-border rail and road links and north–south connecting flights. Concrete projects have been slow to materialize, due to continuing political uncertainty, but the first flights since 1953 took place in mid-2002, albeit limited to specific teams of construction workers in the nuclear industry.

The health service has improved in line with economic growth. Most hospitals are equipped with modern facilities, and many offer advanced treatments comparable with those in the USA and western Europe. Health indicators such as infant mortality and longevity have likewise improved.

South Korea began a concentrated education program in the 1950s, and a well-educated workforce has been the foundation of impressive economic growth. Secondary education, which begins at 12 years of age, comprises two three-year cycles, of which one is compulsory. Tertiary enrollment is nearly 70% – one of the highest rates in the world.

Crime rates are relatively low and violent crime is uncommon. The government has begun to treat corruption as a crime. Since 1987, the internal security forces' operations have been restricted, although left-wing activists are still harassed. Striking workers and student demonstrators encounter – and prepare for – confrontational and forceful crowd control.

Most South Koreans have benefited from economic growth, but since the 1997 recession have been worse off. The Jolla (Cholla) region in the southwest remains the poorest.

Overseas tourism to South Korea has increased ten-fold since 1969. Most visitors are Japanese, who come for the golf and Seoul's nightlife; Jeju-do (Cheju-do) is a favored honeymoon destination. Whereas visiting relations of US army personnel once made up 13% of all tourists, today Los Angeles-based Korean–Americans make up the greatest proportion of US visitors. However, despite the publicity generated by the 1988 Seoul Olympics and the 2002 Soccer World Cup, South Korea is still not seen in the West as a prime tourist destination.

The Yi dynasty, founded in Seoul in 1392, ruled the kingdom of Korea until 1910. Korea became a vassal state of China in 1644.

• 1860 Korea reacts to French and British occupation of Peking (Beijing) by preventing Western influence; becomes the "Hermit Kingdom."
• 1904–1905 Russo-Japanese War. Japan conquers Korea.
• 1910 Japan annexes Korea.
• 1919 Independence protests violently suppressed.
• 1945 US and Soviet armies arrive. Korea split at 38ºN. South comes under de facto US rule.
• 1948 Republic of South Korea created; Syngman Rhee becomes president at head of an increasingly authoritarian regime.
• 1950 Hostilities between North and South, each aspiring to rule a united Korea. North invades, sparking Korean War. USA, with UN backing, enters on South's side; China unofficially assists North. In 1951 fighting stabilizes near 38th parallel.
• 1953 Armistice; de facto border at cease-fire line, close to 38th parallel.
• 1960 Syngman Rhee resigns in face of popular revolt.
• 1961 Military coup leads to authoritarian junta led by Park Chung Hee.
• 1963 Pressure for civilian government. Park reelected as president (also in 1967 and 1971). Strong manufacturing base and exports drive massive economic development program.
• 1965 Links restored with Japan.
• 1966 45,000 troops engaged in South Vietnam.
• 1972 Martial law stifles political opposition. New constitution with greater presidential powers.
• 1979 Park assassinated. Gen. Chun Doo Hwan, intelligence chief, leads coup. Kim Young Sam, opposition leader, expelled from parliament.
• 1980 Chun chosen as president. Kim Dae Jung and other opposition leaders arrested.
• 1986 Car exports start.
• 1987 Emergence of prodemocracy movement. Roh Tae Woo, Chun's chosen successor, elected president.
• 1988 Inauguration of Sixth Republic which includes genuine multiparty democracy. Restrictions on foreign travel lifted.
• 1990 Government party and two opposition parties, including Kim Young Sam's, merge to form DLP.
• 1991 South Korea joins UN.
• 1992 Diplomatic links with China established. December, Kim Young Sam elected president.
• 1996 Chun sentenced to death on charges of organizing 1979–1980 overthrow of the civilian government; Roh given a lengthy prison term. Both sentences were rescinded.
• 1997 Violent protests against new labor laws. Steel scandal brings down government. Economic crisis.
• 1998 Kim Dae Jung president.
• 2000 Historic North–South summit in Pyongyang.
• 2002 Short-lived appointment of Chang Sang as first female premier.