Miracle from the Rhein to the Han River: Heavy Industrialisation of South Korea and Its Social Consequences Under Park Chung Hee
Total Page:16
File Type:pdf, Size:1020Kb
Youngsue Han, M. A. Miracle from the Rhein to the Han River: Heavy industrialisation of South Korea and its social consequences under Park Chung Hee Thesis submitted to Lancaster University for the degree of Doctor of Philosophy in “European and Global Studies” Dual-award PhD programme in cooperation with University of Siegen February 2016 Declaration I declare that this thesis is my own work and has not been submitted in substantially the same form for the award of a higher degree elsewhere. This thesis is being submitted simultaneously to Lancaster University (UK) and the University of Siegen (Germany) as part of the double-award PhD programme in ‘European and Global Studies’ according to the joint agreement between Lancaster University and the University of Siegen. Abstract Youngsue Han, M.A.: Miracle from the Rhein to the Han River: heavy industrialisation of South Korea and its social consequences under Park Chung Hee, PhD Thesis, Lancaster University, February 2016 This thesis deals with the influence of German philosophical doctrines on the development of heavy industry in South Korea under president Park Chung Hee in the 1970s. It argues that Park’s dictatorship in the 1970s was an archetype of ‘technocratic heavy industrialisation’ with the goal to undergo a very compressed and rapid transition to a heavy industry based economy following the post-Vietnam War détente. Park’s political economy originates from a very German strategy in overcoming ‘systemic vulnerabilities: scarce natural resources and an ominous foreign security threat’. This was to be achieved through the imposition of a military-led authoritarianism and the mobilisation of the entire population in preparation for ‘total war’. In the 1930s and 1940s, political economy of techno-fascism was introduced in Manchuria by the Japanese Army, with German counsel, which was later emulated by the postwar Japanese government and Park’s regime in the 1970s. In the 1970s, Park needed to broaden his ruling coalition, with the military on one side and business on the other, in order to launch his program of heavy industrialisation. Park was also inclined to provide ‘side payments’ to the population to placate democratic militancy opposing his dictatorship. To achieve these goals, Park introduced the term ‘Miracle on the Rhein’ to describe West Germany’s postwar economic rise from the ashes as a model to follow for South Korea. With this economic model and based on German doctrines of total war that were refracted into Korea by way of Japanese colonisation Park introduced the techno-fascist institutions that were to overcome the South Korean predicaments of scarce resources and the Northern Communist security threat. This thesis addresses Park’s dictatorship in terms of mobilisation of national human capital and financial resources, allocation of mobilised resources to those specific sectors that accounted for heavy industrialisation, and the social consequences of these policies. To overcome developmental backwardness due to the country’s very late industrialisation, Park adopted Gerschenkron’s catch-up strategy in his pursuit of rapid industrial development. Park then deployed German doctrines and ideas in his pursuit of the industrial transition, which had a substantial impact on educational reform, the socio-economic order and property distribution in South Korea. This thesis shows that Park’s heavy industrialisation had fostered a state-business alliance and a political compromise between the elites and the emergent middle through the state’s intervention into the structure of property ownership while the skill-less labour class remained marginalised. Abbreviations AES Army Engineering School AID Agency for International Development CSE Civil Service Examinations DMZ Demilitarised Zone ECA Economic Cooperation Administration EPB Economic Planning Board FKI Federation of Korean Industries HCI(P) Heavy and Chemical Industry (Policy) ISI Import-Substitution Industrialisation KCIA Korean Central Intelligence Agency KEDI Korean Educational Development Institute KHB Korea Housing Bank KIST Korea Institute of Science and Technology KMA Korean Military Academy KNSDC Korean National Student Defence Corps KNHC Korean National Housing Corporation KPG Korean Provisional Government LDP Liberal Democratic Party (of Japan) LR Land Readjustment MITI Ministry of International Trade and Industry MOC Ministry of Construction MOE Ministry of Education NSC National Security Council NHF National Housing Funds NCR National Conference for Reunification NDC National Defence College NSC National Security Council ONTA Office of National Tax Administration PFP Property Formation Politics RFT Reserve Forces Training ROK Republic of Korea SCNR Supreme Council for National Reconstruction USAMGIK United States Army Military Government in Korea VA Vermögensbildung in Arbeitnehmerhand Table of Contents I. Introduction .............................................................................................................................. 1 1. German influence on American modernisation theorists and their tacit approval of military despotism ................................................................................................................................... 4 2. Legacy of Japanese techno-fascism ................................................................................................ 7 3. Research questions, scope of research, and method ............................................................. 10 4. Data analysis ....................................................................................................................................... 14 5. Literature review of the political economy under Park’s regime ..................................... 17 6. Overview of chapters ....................................................................................................................... 20 II. Theoretical framework ..................................................................................................... 23 1. Introduction ........................................................................................................................................ 23 2. Problems of school of neo-classicalists and developmental state .................................... 23 3. Systemic vulnerability ..................................................................................................................... 35 4. Gerschenkron: capital accumulation for late comer’s industrialisation ........................ 40 5. Flying geese ......................................................................................................................................... 46 6. Concluding remarks ......................................................................................................................... 53 III. Historical background ..................................................................................................... 55 1. Pre-modern setting: Confucian transformation in South Korea ....................................... 55 2. Colonial Development (1910-1945) ........................................................................................... 60 3. Nation-making (1945 to 1960) ..................................................................................................... 64 4. Intervention of the ‘modernisation theory’ into South Korean democracy .................. 73 5. Collapse of democracy and era of a pseudo-democracy (1961-1967) ............................ 77 6. Escalation of ‘state of emergency’ of South Korea (1967-1972) ....................................... 91 7. The Yushin Dictatorship (1972-1979) ..................................................................................... 100 IV. Japanese reception of the German state model ..................................................... 106 1. Prussian tutelage and the formation of modern institutions in Meiji Japan ............... 108 2. The Wartime Economy in Manchuria ....................................................................................... 122 3. Overcoming modernity through Ranke and Hegel: a background for Asian regionalism ............................................................................................................................................ 127 4. Concluding Remarks ...................................................................................................................... 131 V. Formation of ‘Miracle on the Rhein’ ............................................................................ 133 1. German influence on South Korea through American adaptation ................................. 134 2. Military Junta’s interest in Germany ........................................................................................ 136 2. Park’s visit to West Germany in 1964 ...................................................................................... 138 3. Formation of ‘Miracle on the Rhein’ .......................................................................................... 139 4. Concluding remarks ....................................................................................................................... 144 VI. Re-orientation of education for the upgrading of technical human capital ......... 146 1. Reception of Fichte and Max Weber to South Korea through Japan .............................. 148 2. The origin to Park’s concern on education ............................................................................