7.23. Korean Democracy and the IMF Crisis

As per the new constitution, the first direct election since 1971 was held in December 1987. But due to the opposition parties’ failure to unite, a fellow military leader of Chun’s military faction, Roh Tae-woo, was elected. However, Korea continued along the path of democracy.

The new constitution allowed for direct elections in 1987, marking a significant step toward democracy in South Korea. Although opposition parties were fragmented and unable to come together, allowing a military candidate to win the presidency, this was still a vital transition from military rule to a democratic framework. Continued political engagement and activism drove Korea's journey toward a more democratic society.

Think of this as a relay race. The change in the constitution is like passing the baton from one runner (the military rule) to another. The second runner (a military candidate) may not represent all the spectators (the citizens), but the race toward democracy was ongoing, with others ready to take their turn.

Under the export-driven policy of the new administration, several companies grew to global prominence, which continued until the early 1990s. With governmental support, Korean conglomerates invested in capital-intensive heavy and chemical industries, as well as electronic industries, while the government continued to focus on building industrial and social infrastructure.

The South Korean administration implemented an export-driven economic strategy that significantly boosted major corporations, allowing them to become internationally recognized. The government's role was pivotal, providing the necessary support to invest in key industries, which enabled substantial economic growth during this period. This balance between government support and corporate growth created a robust industrial base, essential for South Korea's development.

Imagine a gardener (the government) cultivating a garden (the economy). The gardener provides the right soil, water, and sunlight (support and infrastructure), allowing the plants (companies) to grow strong and healthy. Together, they create a vibrant ecosystem that thrives.

Meanwhile, under increasing neoliberalist pressure to open its market, the Kim administration joined the Organisation for Economic Cooperation and Development (OECD) in 1996 and attempted to strengthen Korea’s international competitiveness. But amidst increasing trade deficits, poor management by financial institutions, reckless business operations by conglomerates, and more, Korea was met with a foreign currency crisis in 1997.

As South Korea aimed to globalize economically by joining the OECD, it faced numerous challenges, including trade deficits and mismanagement in its financial sectors. This combination of factors culminated in a foreign currency crisis in 1997, forcing the country to seek urgent financial assistance from the International Monetary Fund (IMF). The crisis highlighted the vulnerabilities of rapid economic changes without sufficient regulatory controls.

Consider a student (Korea) who joins a prestigious club (OECD) to improve their future (international competitiveness). However, if the student neglects their studies (financial management) while focusing only on the club (globalization), they might fail an important exam (currency crisis) due to poor preparation, necessitating help from a tutor (IMF).

In December 1997, long-time opposition party leader Kim Dae-jung was elected the president for the first time in Korea, marking a peaceful transfer of power. The second peaceful transfer of power came in 2008, when conservative Lee Myung-bak was elected the president, following the progressive Roh Mu-hyun administration.

The election of Kim Dae-jung in 1997 represented a pivotal moment in South Korean politics, signifying a shift from military influence to civilian leadership and an approach focused on reconciliation and reforms. The subsequent election of Lee Myung-bak in 2008 showcased the growing stability of democratic processes, with peaceful transitions in leadership becoming more common.

This transition can be likened to a family passing down the leadership of a household from one respected elder to another, ensuring that the family remains unified and continues to thrive despite challenges. Each new leader brings their vision while respecting the legacy of previous leaders.

The candlelight protests of 2016, led by citizens who peacefully demonstrated for the president’s resignation within the boundaries of democratic law and systems, show the maturity of the Korean democracy. The Korean democracy owes a debt to economic development, but it was the citizens’ elevated political awareness to encourage republicanism in the country, which played the lead role in advancing it to where it is today.

The candlelight protests in 2016 reflected a new level of public political engagement in South Korea, where citizens actively participated in advocacy for democratic principles. This demonstrated not only awareness of their rights but also how economic growth facilitated a more informed and politically active population that demanded accountability from their leaders.

Imagine a community garden where the neighbors not only tend to their plants but also engage in discussions about how to improve the garden together. When they notice weeds (corruption) choking the flowers (democracy), they unite to remove them, showing a collective commitment to nurturing a healthy garden.

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