I.

Introduction

South Korea, officially Republic of Korea (in Korean, Taehan Min’guk), country in north-eastern Asia that occupies the southern portion of the Korean peninsula. South Korea is bounded on the north by North Korea; on the east by the Sea of Japan (known in Korea as the East Sea); on the south-east and south by the Korea Strait, which separates it from Japan; and on the west by the Yellow Sea. In Korean the country’s name is Dachan (“Great Han”), “Han” being another traditional name for Korea. It has a total area of 99,268 sq km (38,328 sq mi), including numerous offshore islands in the south and west, the largest of which is Cheju (with an area of 1,829 sq km/706 sq mi). The state of South Korea was established in 1948 following the post-World War II partitioning of the peninsula between the occupying forces of the United States in the south and the Union of Soviet Socialist Republics (USSR) in the north. The capital and largest city of South Korea is Seoul. Arrangements are being made to move the capital to a purpose-built site in the Yeongi-Kongju area. The move is expected to be complete by 2030.

II.

Land and Resources

South Korea has a predominantly rugged, mountainous terrain. The principal range is the Taebaek-San Maek, which extends in a generally north-south direction parallel to the eastern coast. The country’s highest peak, located on the island of Cheju, is the extinct volcano Mount Halla at 1,950 m (6,398 ft). Low-lying lands constitute less than one fifth of the total area and are concentrated in the west along the coast; the coastal plains in the east and south are very narrow. Apart from the eastern coast, South Korea has a highly indented coastline characterized by high tidal ranges.

A.

Rivers and Lakes

The country’s two longest rivers, the Naktong and Han, rise in the Taebaek-San Maek, the former flowing south to the Korea Strait, the latter north-west to the Yellow Sea. Other major streams include the Kŭm, Yongsan, and Tongjin rivers.

B.

Climate

South Korea has a basically continental climate, with cold, dry winters and hot, rainy summers. At Seoul the average January temperature is -5° C (23° F), and the average July temperature is 25° C (77° F). Winter temperatures are higher along the southern coast and considerably lower in the mountainous interior. The average annual precipitation in Seoul is about 1,407 mm (56 in), and in Pusan is about 1,250 mm (50 in). Rainfall is concentrated in the summer months (June to August). The southern coast is subject to late summer typhoons that bring strong winds and heavy rains.

C.

Natural Resources

In contrast to North Korea, South Korea is relatively poor in mineral resources. The principal resources are coal (mostly anthracite), iron ore, and graphite. Other minerals include gold, silver, copper, lead, tungsten, zinc, and uranium.

D.

Plants and Animals

Mixed deciduous and coniferous forests cover about two thirds of the land area, but have been thinned for use as fuel. Principal species include pine, maple, elm, poplar, fir, and aspen. Bamboo, laurel, and evergreen oak are found in the mild southern coastal areas. Large mammals, such as tigers, leopards, bears, and lynx, used to be common throughout the Korean peninsula, but these animals have virtually disappeared from South Korea because of deforestation and poaching.

E.

Environmental Concerns

Many of the threats to the country's environment result from population pressures. The heavily industrialized country has a high rate of carbon dioxide emissions, releasing an average of 9 (1996) metric tons per capita each year. Air pollution is causing health problems in Seoul and other major cities. Protected areas make up about 6.9 per cent (1997) of South Korea, including more than a dozen national parks; forests cover 77.2 per cent (1995) of the country. Large mammals were once common throughout the Korean peninsula, but these animals have almost disappeared due to deforestation and poaching. Of the animal species inhabiting the country, 26 are threatened.

Since the end of the Korean War in 1953, South Korea has maintained a defensive buffer 10 km (6.2 mi) wide along its border with North Korea. Access to this heavily militarized zone is severely restricted. The area has become an important refuge for wildlife and includes a variety of habitats characteristic of the Korean peninsula. South Korea has ratified international treaties protecting biodiversity, endangered species, tropical forests, and the ozone layer. The country has also signed treaties limiting hazardous waste, marine pollution, and desertification.

III.

Population

South Korea, like North Korea, is one of the most ethnically homogeneous countries in the world. Aside from a resident foreign population of about 30,000 (mainly Chinese), the country has no racial or linguistic minorities. Koreans have characteristically Mongoloid features but are frequently taller than the average Mongol, with somewhat lighter skin. The dominant stock is of the Tungusic branch of the Mongol races.

A.

Population Characteristics

South Korea has a population of 48,508,972 (2009 estimate), giving a population density of 494 people per sq km (1,279 per sq mi), one of the highest in the world. The majority of the population lives in the southern and western coastal areas. Average life expectancy at birth in 2009 was 75.5 years for men and 82.2 years for women. The annual rate of population increase has dropped steadily since the 1960s to 0 per cent in 2009. Urbanization of the country has proceeded rapidly since the 1960s, with substantial rural to urban migration; approximately 81 per cent of the population is now classified as urban. Since the establishment of North Korea, some 4 million immigrants have crossed the border to South Korea. This increase has been partly offset by emigration from South Korea, especially to Japan and the United States.

B.

Political Divisions

South Korea is divided into nine provinces, with seven cities also having provincial status. Additional to these metropolitan cities is Seoul, which, as the capital, has special status. Regional divisions are strong in South Korea, and often influence politics.

C.

Principal Cities

The chief industrial centre is Seoul, which has a population of 9,714,000 (2003 estimate). Other major cities, with their populations, include Pusan, 3,657,840 (2005 estimate), the principal seaport; Taegu, 2,512,670 (2002 estimate), centre of the textiles industry; Inch’ŏn, 2,628,000 (2005 estimate), the major port on the Yellow Sea; and Kwangju, 1,408,000 (2005 estimate), an ancient commercial and administrative centre.

D.

Religion

In the mid-1990s around half of the people in South Korea declared themselves to have religious affiliation. Buddhism of the Mahayana school claimed more adherents (some 11 million) than any other religion in South Korea. Confucianism, more a moral philosophy than a religion, is a more prominent element in Korean life than its relatively small number of adherents would suggest. Christian missionaries were first permitted in Korea in 1882; by the mid-1990s the Christian population was estimated at some 10.5 million, most of whom were Protestants. Also important is the Korea-based Unification Church, which is not, however, very popular inside Korea. Other significant influences on religious life are Ch’ondogyo, an eclectic indigenous religion, Daoism, and shamanism.

E.

Language

The linguistic classification of the Korean language is uncertain. Technically, it is classed as a language isolate, with no clear affiliation to any of the language families of the world. However, current linguistic research suggests a possible link between Korean and the Altaic language family. Korean is written in a phonetic script known as Han’gul (called Choson'gul in North Korea).

F.

Education

Primary education is free and compulsory for all children between the ages of 7 and 12. Further education consists of three years of middle school and three years of high school. In 2006 about 3.93 million pupils were enrolled in primary schools and 3.86 million in secondary schools. Private schools play an important role, especially above the primary level. The country has over 200 institutions of higher education, with a total yearly enrolment of almost 1.2 million students. The principal universities are Korea University (1905), Seoul National University (1946), Ewha Women’s University (1886), The University of Seoul (1918), and Yonsei University (1885), all in Seoul; Chosun University (1946), in Kwangju; and Pusan National University (1946). About 98.4 per cent of the adult population of South Korea is literate. In 1995 around 4.2 per cent of the national budget was spent on education.

G.

Culture

Korean culture is a historical fusion of native elements with the influence of its near neighbour, China; Japan also exerted some limited influence. Korean art and architecture as well as other forms reflect both Chinese cultural traditions, such as Confucianism, and Buddhism, especially Zen. Native shamanism has also strongly influenced traditional music and theatre. The country’s strong cultural heritage is respected by the Korean people, and efforts are made by the government to encourage and preserve the traditional arts. Several museums are located in Seoul, including the National Museum (1908), with its extensive collection of Korean cultural and folklore relics; branches of the national museums are located in six other major cities.

IV.

Economy

South Korea’s economy, traditionally based on agriculture, has, since the early 1960s, undergone an extraordinarily rapid industrialization; the gross domestic product (GDP) expanded by more than 9 per cent yearly between the mid-1960s and the early 1990s, though it has since slowed. South Korea is now the world’s 12th-largest trading nation. A series of five-year economic plans begun in 1962 have concentrated on the development of manufacturing. Economic aid, especially from the United States and Japan, has been important to the economic growth of the country. The gross national product (GNP) in 2004 (World Bank figures) stood at about US$673 billion (US$19,730 per head). Agriculture contributed about 3 per cent of the 2007 figure; 28 per cent was contributed by manufacturing. In 2007 annual national budget figures showed revenue of US$257.9 billion and expenditure of US$195.4 billion.

The South Korean economy has traditionally been dominated by chaebol (conglomerates), large enterprises such as Samsung and Hyundai. These corporate giants have been the target of recent reform legislation, as they are felt to inhibit competition. The chaebol have redirected themselves towards their core business areas.

South Korea was one of the earliest and worst casualties of the financial crisis that hit the so-called “tiger” economies of East and South East Asia from 1996, as the Korean currency and Korean assets came under attack in financial markets worldwide. Markets were particularly wary of overextension among the chaebol (whom the government had often encouraged to seek penetration of new markets before profitability), corporate bad debts, and concealed insolvencies among major companies. In December 1997 South Korea was driven to accept a US$58.8 billion rescue package, with stringent economic reform conditions attached, from the International Monetary Fund (IMF), despite nationalist calls for protectionism. By mid-1998, there were signs that early adoption of the IMF conditions was allowing South Korea to recover faster than its neighbours.

A.

Agriculture, Forestry, and Fishing

Land distribution programmes were carried out in South Korea after World War II. Landholdings average only 0.89 hectares (2.2 acres); agricultural techniques have been developed and mechanized in conjunction with the country’s industrialization, while the agricultural labour force continues to shrink. About 16.6 per cent of the land is arable. The chief crops in 2007 were rice (5.96 million tonnes per year), the principal food crop; potatoes (625,000); sweet potatoes (260,000); barley (227,000); and maize (60,000). An important development has been the great expansion in the output of fruit, notably apples, melons, peaches, and pears. Other crops include soya beans, cotton, hemp, and silk. The estimated livestock population in 2007 was 9.85 million pigs, 2.58 million cattle, and 130 million poultry birds.

The South Korean forestry industry is small; roundwood removals in 2007 were about 5.15 million cu m (about 182 million cu ft) per year. Since the late 1960s South Korea has become one of the world’s leading fishing nations, with a modern fleet of more than 780 vessels. The ports of Ulsan and Masan have been developed as deep-sea fishing bases with fish-processing plants. The annual catch (which included pollack and other fish, and oysters) in 2007 was some 3.04 million tonnes.

B.

Mining

South Korea does not have extensive mineral resources. Annual output of anthracite coal was 3.30 million tonnes in 2003; zinc ore output was about 80 tonnes. Other minerals exploited were graphite, iron ore, lead, tungsten, copper, gold, silver, and kaolin.

C.

Manufacturing

Formerly, industrial development concentrated on light manufacturing, especially in labour-intensive industries such as textiles and clothing, footwear, and foodstuffs. Since 1970, however, more emphasis has been given to heavy industry in an effort to decrease imports. Increasingly important is the production of chemicals and fertilizers. Other major manufactures include cars, electric and electronic equipment, non-electric machinery, ships, iron and steel, textiles, food products, copper, tungsten, plywood, and cement. The South Korean shipbuilding and motor industries in particular are major world producers. The annual output of industrial products in 1996 included cement, 58.4 million tonnes; pig iron, 23 million tonnes; passenger cars, 2.26 million units; and television sets, 21.4 million units.

D.

Energy

About 62 per cent of South Korea’s electric power in 2006 came from conventional thermal facilities, 37 per cent from nuclear installations, and the remaining 1 per cent from hydroelectric plants. Installed electric capacity in the early 1990s was 27.7 million kW. Output of electricity in 2006 was some 379.7 billion kWh.

E.

Currency and Banking

The monetary unit of South Korea is the won of 100 ohon (1,375.62 won equalled US$1; early 2009). The Bank of Korea is the bank of issue. The value of the won suffered from speculative attacks during the 1990s economic crisis. There are 23 national and provincial commercial banks, plus several government banks and numerous agricultural cooperatives.

F.

Commerce and Trade

Following the disruption of trade during the Korean War and its aftermath, exports increased at the remarkable annual rate of 27.2 per cent from 1965 to 1980 and 14.7 per cent from 1980 to 1988. Major imports include industrial machinery, petroleum and petroleum products, chemical products, transport equipment, raw materials (such as wood and raw cotton), and electronic components. Exports include textiles and clothing, transport equipment, electrical machinery, electronic equipment, footwear, fishery products, and steel. Imports in 2007 were valued at US$357 billion and exports at about US$372 billion. South Korea’s principal trading partners include Japan, the United States, Germany, Singapore, Saudi Arabia, Australia, Malaysia, the United Kingdom, Canada, and Hong Kong S. A. R.

G.

Labour

In 2007 the total labour force was estimated at 24.3 million. In 1996, some 11.6 per cent of the labour force was engaged in agriculture, forestry, and fishing; 32.5 per cent in industry; and 55.4 per cent in services. The principal labour organization is the Federation of Korean Trade Unions, with a membership of more than 1.5 million.

H.

Transport

A well-developed road system connects the major urban centres. The country has about 100,279 km (62,310 mi) of roads, of which 87 per cent are paved. In 1996 South Korea had some 5.1 million cars and 2.26 larger vehicles, or 1 vehicle for every 6 people. The state-owned railway system consists of some 3,399 km (2,112 mi) of track. The country’s chief ports include Pusan, Inch’ŏn, Mokp’o, and Kunsan. Korean Air and Asiana Airlines provide both domestic and foreign service. Incheon International Airport was opened in 2001.

I.

Communications

In 1993 South Korea had over 16.6 million main telephone lines in use. Mass media have assumed great importance since the 1950s. The public broadcasting service is the Korean Broadcasting System (KBS) but there is also an educational service—the Education Broadcasting System (EBS)—and several commercial companies. In 1997 about 48 million radio receivers and 17 million television sets were operating in South Korea. National daily newspapers number over 20; those with the largest daily circulation are the Seoul-based Chosun Ilbo and Hankook Ilbo.

V.

Government

A new constitution was approved by referendum in 1987 and came into force in February 1988, replacing one that had been in effect since 1980 and inaugurating the Sixth Republic.

A.

Executive and Legislature

Executive power is vested in a president who is directly elected to a single five-year term. The president, whose powers are limited by the 1987 constitution, may not dissolve the legislature or suspend basic legal rights. The president appoints a Cabinet, which is led by the prime minister.

Legislative power is vested in the unicameral National Assembly. Members are elected for four-year terms. In the 2008 election, the Grand National Party won the majority of the assembly’s 299 seats. All Korean citizens of 20 years or over are entitled to vote.

B.

Political Parties

In 1990 the ruling Democratic Justice Party merged with two opposition groups, the New Democratic Republican Party and the Reunification Democratic Party, to form the Democratic Liberal Party (DLP). The DLP won a plurality in the parliamentary elections of March 1992; the Democratic Party and the Unification National Party were the main opposition groups. Both of the latter fared well in the 1995 local elections. In December 1995 the DLP changed its name to the New Korea Party (NKP). In November 1997 the NKP merged with the Democratic Party to form the Grand National Party (GNP), with the National Congress for New Politics (NCNP) as its main opponent. In January 2000 the NCNP changed its name to the New Millennium Democratic Party (MD). The 2004 election was largely fought between the newly formed Uri Party and the GNP, while four years later the GNP’s main opposition was another newly formed party, the United Democratic Party.

C.

Judiciary

The judiciary is constitutionally independent of the executive branch of government; judges may only be removed from office following impeachment or a prison sentence. The highest court in South Korea is the Supreme Court, consisting of 14 justices including the chief justice, all appointed by the president with the consent of the National Assembly. Below the Supreme Court are five appellate courts, located in Seoul, Pusan, Taegu, Taejŏn, and Kwangju. District courts, which are located in the major cities, have jurisdiction over civil and criminal cases of the first instance. One family court, in Seoul, deals with domestic matters. The Supreme Court serves as court of final appeal. A separate constitution court of nine members rules on constitutional and political questions.

D.

Local Government

South Korea is divided into nine provinces and seven cities (Seoul, Pusan, Taegu, Taejŏn, Kwangju, Inch’ŏn, and Ulsan) with provincial status. The provincial governors and mayors of the seven cities were formerly appointed by the president, but elections were introduced in 1995. Provincial and city councils are directly elected.

E.

Health and Welfare

In 1994 6.6 per cent of the annual national budget was allocated for health and social security. A medical insurance scheme covers a part of the population. In 1994 South Korea had about 54,400 doctors (1 per 817 people) and 113,000 hospital beds. The government sponsors no comprehensive social insurance programme. A programme with a limited number of subscribers, however, provides retirement pensions and workers’ compensation. There is no unemployment benefit.

F.

Defence

The president is commander-in-chief of the armed forces. In 1998 total military forces stood at 672,000. Membership was as follows: army, 560,000; navy, 60,000; and air force, 52,000. Reserve forces total 4.5 million. In 1998 almost 36,000 US troops were also stationed in the country.

G.

International Organizations

South Korea is a member of the United Nations, the Organization for Economic Cooperation and Development (OECD), the Asia-Pacific Economic Cooperation (APEC) forum, and the World Trade Organization.

VI.

History

For the history of the Korean peninsula before it was partitioned into North and South Korea, see Korea.

The Republic of Korea was proclaimed on August 15, 1948. Its first president was Syngman Rhee, who was elected by a legislature formed by popular elections conducted in May by the US occupation authorities and officially observed by UN representatives. Left-wing groups had boycotted these elections, and virtually all the legislators were firm anti-Communists, as was their chosen president.

A.

Syngman Rhee and the Second Republic

North Korea launched a full-scale military attack in June 1950, which began the Korean War. The war totally disrupted South Korean life and politics, and Rhee began to lose the support of the legislature. Rhee used troops to force the legislature to provide for popular election of the president, and he was then elected to a second term in 1952. Recovery from the war was slow. Rhee was unable to produce any significant economic development despite much US aid. He handily won re-election in 1956 and 1960, but blatant manipulation of the 1960 elections led to a nationwide protest that culminated in Rhee’s forced resignation on April 27, 1960. The moderate government of John M. Chang followed with liberalizing reforms in many areas, but economic development still lagged. Military elements, fearing growing instability and wary of student agitation for talks with the north, staged a coup on May 16, 1961, ending the Second Republic.

B.

Park Chung Hee’s Third Republic

The military ruling group, led by Park Chung Hee, governed by decree until October 1963, when Park was narrowly elected president. He launched energetic economic reforms and, despite widespread opposition from students and others, concluded a treaty with Japan in 1965, dropping Korean demands for war reparations, in return for economic aid. Japanese capital soon began to flow into Korea. The country also earned foreign exchange by sending troops and contract workers to aid the United States during the Vietnam War. The consequence was a dramatic spurt of industrialization and export growth, with GDP growth 10 per cent annually.

Little was left to chance in Park’s government. Politics were dominated by his Democratic Republican Party, which by its control of funds and patronage easily overwhelmed all opposition groups. In addition, the Korean Central Intelligence Agency (KCIA), responsible for intelligence and anti-North operations, carried out surveillance and intimidation of domestic dissidents. In 1972 Park declared martial law and introduced the new yushin (“revitalizing”) constitution, allowing him to stay in office indefinitely. In the following months, numerous emergency measures restricted civil liberties and removed political opponents. Under these controls the economy achieved spectacular growth, and South Korea’s exports flooded Western markets. Nevertheless, dissatisfaction with Park’s rule increased.

C.

Chun Doo Hwan

In 1979 demonstrations in the cities of Pusan and Masan were met with violent suppression. In the midst of this tense situation, Kim Jae Kyu, director of the KCIA (now known as the Agency for National Security Planning), assassinated Park on October 26, 1979, and plunged the country once more into traumatic political change. Premier Choi Kyu Hah succeeded Park as president, but General Chun Doo Hwan, head of the martial law investigating unit, emerged in a position of dominance. In December 1979 he ousted senior military officers, taking control of the army, and he subsequently thwarted efforts towards constitutional liberalization. In May 1980 leading opposition politicians were arrested and opposition demonstrations were suppressed with great violence. Chun then eased President Choi aside and secured his own election as president. A new constitution, providing for a single seven-year presidential term but also retaining many of the yushin-type control mechanisms, went into effect in April 1981, creating the Fifth Republic. President Chun’s regime scored a diplomatic coup when the International Olympic Committee designated Seoul as the site for the 1988 summer games. Another success for South Korea was the visit to Seoul in January 1983 of the Japanese prime minister Yasuhiro Nakasone, who pledged enormous low-interest loans to help finance South Korea’s 1982-1986 development plan.

In the early morning hours of September 1, 1983, a Korean Airjet, en route from New York to Seoul, was shot down when it strayed over Soviet territory; all 240 passengers and 29 crew members were killed. The South Korean government demanded a formal apology from the USSR and held mass demonstrations to protest against the incident; the Soviets countered that the aeroplane had been on a spy mission. (In October 1992 Russian President Boris Yeltsin released information from KGB files that tended to support South Korea’s contentions.) Relations between North and South Korea, which had been tense during the late 1960s and at times during the 1970s, continued to be troubled. For example, on October 9, 1983, President Chun’s official visit to Burma had to be cut short when 4 of his Cabinet officers and 13 other South Koreans were killed by a bomb planted in Rangoon by North Korean commandos. Relations between the two countries began to improve, however, in the mid-1980s. In 1986 the border with North Korea was opened to allow family visits for the first time since the end of the Korean War.

D.

Democratic Korea

Following a series of mass protest demonstrations in 1987, President Chun promised democratic reforms, including a direct presidential election. In November, a South Korean airliner was destroyed by a bomb planted by North Korean agents. The election, on December 16, was won by the candidate of Chun’s party, Roh Tae Woo, who had insisted on the reforms. A new constitution, approved by 93 per cent in a national referendum in 1987, took effect in February 1988, beginning the Sixth Republic. In elections held in April, opposition parties captured a majority of the National Assembly. Later that year, South Korea hosted the Summer Olympics.

In 1990 Roh’s Democratic Justice Party merged with two opposition parties, the Reunification Democratic Party and the New Democratic Republican Party, to create the Democratic Liberal Party (DLP). In March 1991 the first local elections in 30 years were held: candidates of the Democratic Liberal Party won a majority of posts. In September 1991 North and South Korea were admitted to the UN as separate countries, and three months later, the two countries signed a non-aggression pact. Japanese Premier Miyazawa Kiichi visited South Korea in January 1992 and apologized for actions against the Korean people during the Japanese occupation of the Korean peninsula between 1910 and 1945.

In 1992 Roh stepped down as the leader of the DLP amid allegations that his party had bought votes in the March 1991 elections. In the national elections of December 1992, South Korea elected its first civilian president, Kim Young Sam, a former dissident who had joined forces with the DLP in 1990; the DLP retained its majority in the National Assembly only through cooperation with independent members. President Kim began a sweeping anti-corruption reform drive that revealed widespread bribe-taking in the bureaucracy, political system, and armed forces, and effectively removed the military from politics. He also introduced widespread economic reforms to liberalize domestic regulations, encourage foreign investment, and promote competition. Tension over North Korea’s nuclear weapons programme, still unresolved when the North Korean dictator Kim Il Sung died on July 8, 1994, was defused by an agreement reached between the United States and North Korea that August. South Korea was expected to provide both equipment and finance to replace the North’s nuclear reactors with modern designs unsuitable for weapons production, but implementation was delayed in 1995 by the North’s reluctance to accept direct South Korean assistance.

Infrastructure problems created during South Korea’s dash for growth (and possibly by official corruption) were highlighted by a gas explosion in Taegu in April 1995, which killed 101 people, and a department store collapse in Seoul in July, which killed over 600. Two former presidents, Chun Doo Hwan and Roh Tae Woo, were charged in December 1995 with treason for their role in the imposition of martial law and the killing of over 200 anti-government demonstrators in Kwangju in 1980. That same month the ruling DLP changed its name to the New Korea Party (NKP), in an effort to shake off its corrupt image.

E.

Political Change and Economic Crisis

In legislative elections held in April 1996, the ruling NKP won 139 out of the 299 seats to become the largest parliamentary bloc, but was only able to form a governing majority after some opposition legislators and independents joined its ranks. Proposals for peace talks with North Korea, to replace the 1953 armistice that ended the Korean War with a more substantial agreement, became intertwined with the issue of food aid for the rapidly collapsing North Korean economy. In August 1996 former presidents Chun Doo Hwan and Roh Tae Woo were sentenced respectively to death and imprisonment after their trial on treason, murder, and corruption charges; both promptly launched appeals.

In September a North Korean submarine ran aground in South Korean waters, increasing tension between the two states, and a manhunt ensued for its crew, apparently an infiltration party. In December 1996 North Korea formally apologized to the South over the incident. Also in December, an appeals court commuted the death sentence on former president Chun Doo Hwan to life imprisonment, and reduced the prison sentence of Roh Tae Woo. Public opposition to new labour laws passed by President Kim’s government in December led to nationwide strikes and large-scale rioting in Seoul and elsewhere, forcing a partial government climbdown. In February 1997 a senior North Korean government ideologue defected to South Korea, reportedly bringing revelations of North Korea’s aggressive intentions towards the South. In the same month, the scandal surrounding the bankruptcy of the steel and construction chaebol Hanbo led to a number of indictments for fraud; government gestures of contrition over the affair included a televised apology by President Kim and the resignation of the interior minister. President Kim appointed a new prime minister and administration in March, while Sammi, another of South Korea’s top-30 chaebol, applied for receivership; in April President Kim’s son was arrested on charges of tax evasion and receiving bribes.

In November South Korea was forced to approach the IMF for emergency assistance, with many major chaebols collapsing or heavily indebted, a slump in the value of the won, and withdrawal of international credit for Korean banks. President Kim resigned from the NKP the same month, reportedly to ensure a fair presidential poll in December, while the NKP merged with the Democratic Party to form the Grand National Party (GNP). The US$58.8 billion IMF package was finalized in December, while the veteran democracy activist Kim Dae-jung narrowly won the December presidential elections; this was the first democratic victory by a clearly opposition candidate since South Korea’s creation in 1948. His victory initially worsened the economic crisis, as he had proposed renegotiating the IMF rescue package during his campaign; however, his prompt retractions soon calmed market nerves. The outgoing President Kim Young Sam officially pardoned the former presidents Chun Doo Hwan and Roh Tae Woo before leaving office. Also in December, the first session of four-party talks between the two Koreas, the United States, and China opened in Geneva, with the aim of reaching a permanent peace agreement to end the armed ceasefire on the Korean peninsula.

In January 1998 president-elect Kim Dae-jung’s determined introduction of economic reforms demanded by the IMF secured a restructuring of South Korea’s short-term debt, while citizens began donating gold to offset the nation’s foreign exchange crisis. Officially inaugurated in February 1998, the new President Kim faced a GNP boycott of his ministerial appointments, but secured agreement with South Korea’s trade unions on labour reforms. In the same month, North Korea unexpectedly proposed direct talks with South Korea. The first talks were duly held in Beijing in April, but broke down over North Korea’s linking of food-aid issues with other political priorities. The GNP ended its boycott in August 1998 and officially approved Kim Jong Pil, Kim Dae-jung's nominee, as prime minister. In September 1998 a GNP member defected to Kim's government, giving him a narrow working legislative majority. By 1999 restructuring and adherence to strict IMF conditions were bringing some economic recovery in South Korea.

In January 2000, Prime Minister Kim Jong Pil resigned to chair the United Liberal Democrats (ULD), the junior partner of the ruling coalition government. He was succeeded by Park Tae Joon. The ULD withdrew from the coalition government in February, weeks before the general election. President Kim, narrowly elected to office in 1997, had turned to the ULD to gain a majority in parliament. The general election, which took place in April, left Kim struggling to form a new coalition after the GNP, the main opposition party, increased its number of seats to fall just four short of an overall majority. Although Kim's New Millennium Democratic Party (MD) also gained seats in the election, its former coalition partner, the ULD, lost the majority of its seats.

On June 14, 2000, South Korea's Kim Dae-jung met the North Korean leader Kim Jong Il at the North Korean capital of P'yŏngyang to sign a landmark agreement to improve cooperation between the two countries and to work towards reunification. It was the first time that leaders of the two countries had met since the Korean Peninsula was divided at the 38th parallel in 1945. The five-point declaration called for both sides to work independently towards reunification, initiate governmental contacts to ease border tensions, increase economic cooperation, and begin a range of exchanges. Although the agreement did not address pressing security issues facing both countries, Kim Dae-jung pledged to resolve quickly the fate of dozens of North Korean political prisoners held in South Korea, and North Korea agreed to permit reunions of families divided between the two countries since the 1950-1953 Korean War, the first of which took place in August 2000. President Kim's continuing efforts towards reconciliation with North Korea were rewarded when he was awarded the Nobel Peace Prize in October 2000.

Improvements in relations between the two nations looked set to continue in early 2001 when the first official exchange of mail took place between people in North and South Korea—the first written communications allowed between people divided by the Korean War 50 years earlier. The reopening of the Kyongui railway line and roads connecting the two countries were also discussed. However, further advances towards reconciliation remained in question, when talks scheduled for March 2001 were cancelled by North Korea. The cancellation of the talks followed renewed criticism by US President George W. Bush’s government over North Korean security issues. President Kim visited the US in March for talks.

The Cabinet resigned in September 2001 and was followed by a Cabinet reshuffle; the Cabinet was reshuffled once more in January 2002. President Kim resigned the leadership of the ruling MD in November 2001.

South Korea, together with Japan, hosted the World Cup during the month of June 2002, the first time the tournament had been held in Asia. While the event was hailed as a great success, relations between North and South Korea were tested when, on June 29, naval boats from each country exchanged fire in an incident that resulted in the deaths of four South Korean sailors and an unknown number of North Korean casualties. The event occurred after a confrontation between the vessels in the Yellow Sea. South Korean authorities alleged that North Korean patrol boats accompanying a fleet of fishing boats entered South Korean waters after crossing the disputed sea border between the two countries. The United States declared its support for South Korea after the incident, and a visit by a US delegation to North Korea originally planned to take place on July 10 was cancelled. However, on July 4, North Korea released a conciliatory statement reaffirming its commitment to promoting dialogue and cooperation between the two countries.

In a bid to establish a neutral government prior to elections scheduled for later in the year, as well as distance himself from a series of recent political and personal scandals involving his family, President Kim again reshuffled his Cabinet on July 11, 2002. He sacked seven ministers and appointed Chang San, a university administrator, to be the country’s first female prime minister, in a move widely seen as a step towards gender equality in South Korea. However, opposition parliamentarians questioned her suitability for the role and called for a hearing and special vote on the matter. On July 31, members of the National Assembly voted overwhelmingly to reject her nomination, accusing her of perjury in respect of her credentials and previous real estate investments. In September, President Kim named Kim Suk-soo as prime minister. Talks were concluded on the reopening of road and rail links between the Koreas in September and mine-clearing of the demilitarized zone between the two nations began.

F.

Korea After Kim

In December’s presidential election the ruling Millennium Democratic Party’s candidate Roh Moo-hyun, a human rights lawyer, sealed 49 per cent of the vote. He took over from President Kim in February 2003 and nominated Goh Kun, a former mayor of Seoul, as his prime minister. President-elect Roh’s campaign was fought amid an upsurge of anti-American sentiment stemming from the continued presence of over 37,000 US troops in the country and a high-profile incident the previous June in which two Korean girls were hit and killed by a US tank. Roh advocated continuing the dialogue between North and South Korea, a policy frowned upon by the US administration.

Also in February 2003 the first of four planned border crossings with North Korea was officially opened.

During the year diplomatic work continued in an effort to further normalize relations with North Korea and to reach a solution to the dispute concerning that country’s nuclear weapons programme. In May negotiations were held on economic cooperation between the two Koreas, and Roh Moo-hyun visited the United States for talks with President Bush. In June more than 100 South Koreans travelled to the North for a reunion with family members; in the same month, the railways of both countries were linked, facilitating a more direct transport route through north-eastern Asia. These efforts were marred by alleged repeated sea border violations by North Korea. In spite of this, in August 2003 South Korea participated in six-nations talks in Beijing—together with North Korea, the United States, China, Japan, and Russia—aimed at curbing North Korea’s nuclear weapons programme. Although the first round of this debate proved inconclusive, further talks were scheduled for early 2004. In another of the series of visits, hundreds of South Koreans visited P’yŏngyang in September—the first trip of this kind since 1945.

From October 2003 public opinion in South Korea was focused on the alleged involvement of the president in financial scandals and corruption. Roh admitted a loss of credibility, and he was further undermined in November by violent clashes between workers and trade union members with the police over trade union legislation. After the visit of the US Secretary of Defense Donald Rumsfeld to Seoul in November 2003 the North and the South agreed to cooperate. Roh’s position at home was weakened even further when, in January 2004, his involvement in a financial scandal came to light.

In February 2004 parliament agreed to deploy more than 3,000 combat and non-combat troops to Iraq. In the same month the second round of six-nations talks on the future of North Korea’s nuclear programme ended in Beijing without any significant conclusions.

In March 2004 the president was suspended following voting in the parliament, which called for the Constitutional Court to commence impeachment proceedings against him; Prime Minister Goh Kun became acting head of state. Roh was charged with breaking the election law and with corruption but the case was dropped. In the same month Park Geun-hye, daughter of Park Chung Hee, president of South Korea between 1963 and 1979, became the leader of the Grand National Party (GNP) and pledged to fight sleaze and corruption.

New National Assembly elections, widely seen as a poll for or against the impeached president, were held on April 15, 2004, and saw the Uri party win 152 of the 299 seats with the GNP in second with 121. In March 2006, Prime Minister Lee Hae-chan resigned and was replaced by Han Myung-sook, the first woman to hold the position in South Korea's history. She lasted less than a year in the role before resigning in favour of Han Duck-soo. On a world stage the former foreign minister, Ban Ki-moon, became the new UN Secretary-General in January 2007.

Several moves towards the thawing of relations between the Koreas took place in late 2007, including the meeting of respective presidents in October and then a further meeting of their prime ministers in November. At the presidential election held in December, Lee Myung-bak of the Grand National Party, and a former Hyundai executive, won more than 48 per cent of the vote. In his inauguration speech he spoke of adopting a tougher policy towards North Korea but of reviving ailing relationships with both the United States and Japan. Lee visited both countries shortly after taking office. He also appointed Han Seung Soo as prime minister at the end of February 2008. Lee’s GNP won April’s legislative elections, taking 153 of the 299 seats.