The Miracle on the Han River () refers to the period of rapid economic growth in South Korea, following the Korean War (1950–1953), during which South Korea transformed from a least developed country to a developed country.
The rapid reconstruction and development of the South Korean economy during the latter half of the 20th century was accompanied by events such as the country's successful hosting of the 1988 Summer Olympics and its co-hosting of the 2002 FIFA World Cup, as well as the ascension of family-owned conglomerates known as chaebols, such as Samsung, LG, and Hyundai. This growth also encompassed declines in child mortality and increases in life expectancy. From 1961 to 1979, child mortality declined by 59%, the second fastest decrease in child mortality of any country with over 10 million inhabitants during the same period. South Korea during this period has been described as "corporatist" or as practicing state capitalism. This period of growth was overseen by the Democratic Republican Party (DRP), a conservative, broadly state capitalist and nationalist party.
The growth has been attributed to the hard work of the labor force. External factors include the enormous economic and technical assistance provided by foreign countries, particularly Japan (see: Treaty on Basic Relations Between Japan and the Republic of Korea) and the United States, access to Western and Japanese markets, and the acquisition of foreign currency by Korean migrant workers in the early stages of economic growth.
Following the Miracle on the Han River, South Korea has been held as an economic model for other developing countries and acceded to the G20 in November 2010, capping a successful sixty-some years of rebuilding and modernization.
Origin of the phrase
In the early 1960s, South Korean politicians admired what they called the "Miracle on the Rhein": the surprising postwar economic growth of Germany, which is often called the Wirtschaftswunder ("economic miracle").
In his 1961 New Year's address, Chang Myon, prime minister of the Second Republic of South Korea, used the phrase to encourage South Koreans in achieving a similar economic upturn. He said:
In June 1962, General James Van Fleet, who led US forces in Korea during part of the Korean War, gave a speech in Los Angeles entitled "The Miracle on the Han".
History
Background
Between 1910 and 1945, Korea was annexed and became a part of the Japanese Empire. Partly as a result of Japanese capital investment, especially during the 1930s–1940s, it experienced a phase of moderate industrialization and economic growth. With the start of the Pacific War of World War II, the Korean economy declined when the Japanese mainland exploited Korea economically. By the end of the Pacific War, Korea was one of the poorest regions in the world.
1948–1960: The First Republic and Korean War
The division of territory as a result of the Korean War further damaged Korean property by 25% and resulted in the establishment of the First Republic of South Korea, ruled by the Syngman Rhee administration until 1960. At this time, the economy was largely agricultural. Through the Farmland Reform Act of 1950, the United States Army Military Government in Korea redistributed previously Japanese-owned land, allowing the generation of private funds.
1960–1961: The Second Republic
The Second Republic of South Korea existed for only one year, but had a great effect on economy and history of South Korea through ideology and policy. Prime Minister Chang Myon and the Democratic Party held a stance of extreme anti-communism (as did the First Republic), but also advocated an Economic First Policy with State-led Capitalism, promoting amity and economic cooperation with Japan.
