The Five-Year Plans of South Korea (경제사회발전 5개년계획) is a economic development project of South Korea.
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Both North and South Korea had survived the Korean War (1950–53). From the end of World War II, South Korea remained largely dependent on U.S. aid until an internal revolution occurred in 1961. In 1961, General Park Chung-hee grasped political power and decided the country should become self-reliant by utilizing five year plans.
The plans were designed to increase wealth within South Korea and strengthen political stability. A change in policy from import substitution industrialization to export-oriented growth occurred throughout these five year plans. South Korea had three five year plans under the auspices of the Economic Planning Board, a state bureaucracy pilot agency.
The first plan sought to benefit the textile industry and make South Korea self-sufficient. At the time, Korea's status was as a capital poor, inadequate saving, and predominantly U.S.-financed state, in need of independence.
The second five year plan sought to shift the South Korean state into heavy industry by making South Korea more competitive in the world market, which was incorporated into all future five year plans.
U.S.-China's opening up in 1972 led to a greater competitive marketplace for South Korean goods and services. Fears also prevailed that the U.S. would no longer provide military defense for South Korea.
Park Chung Hee implemented the third five-year plan which was referred to as the Heavy Chemical Industrialization Plan (HCI Plan) and, also, the "Big Push". To fund the HCIP, the government borrowed heavily from foreign countries (not foreign direct investment, so that it could direct its project), which led to South Korea's vulnerability in the East Asian financial crisis of 1997.
The fourth plans were carried out between 1977 and 1981.
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