10. The Government Organization Law (originally no. 660) as amended by Law no.1506, December 14, 1963.
11. See Chapters 2 and 3 for economic policy during the junta years.
12. Youngil Lim, Government Policy and Private Enterprise: Korean Experience in Industrialization, Korea Research Monograph no. 6 (Berkeley: Institute of East Asian Studies, University of California, 1981), 16–17.
Notes to Pages 210–221
681
13. Interview with EPB Planning Bureau director Chông Chae-sôk (1962–1963).
14. Kim Chông-ryôm, A! Park Chung Hee: Kim Chông-ryôm chôngch’ihoegorok
[Ah! Park Chung Hee: Kim Chông-ryôm’s reflections on politics] (Seoul: JoongAng M&B, 1997), 191.
15. Sin Song-sun, “Kyôngje kihoegwôn [Economic Planning Board],” in Han’guk-¤i kyôngjegwallyo [Economic Bureaucrats in Korea], ed. Yu S¤ng-sam (Seoul: Kyônghyang sinmun, 1979), 38–40, 56–57.
16. Stephan Haggard, Byung-Kook Kim, and Chung-in Moon, “The Transition to Export-led Growth in South Korea: 1954–1966,” Journal of Asian Studies 50, no. 4 (November 1991): 850–873.
17. Economic Planning Board, “Kijunhwanyul insang-gwa oehwan ch¤ngsôje ch’aet’aek” [An Increase of the Basic Exchange Rate and the Adoption of a System of Foreign Exchange Certificates, May 5, 1964], and “K¤mni hyônsilhwa taech’aek” [Policy to Make Interest Rates Realistic, September 30, 1965].
18. Chang Ki-yông, “Wae k¤mni-r¤l hyônsilhwa haetn¤n’ga?: han chônch’ôlsu-¤i paeg¤ijonggundam” [Why Were Interest Rates Rationalized? The story of a former switchman], Dong-A Ilbosa, December 1965, 84–87.
19. Interview with Yang Yun-se, who simultaneously served as ECC secretary general and EPB International Cooperation Division chief between 1962 and 1966.
20. Economic Planning Board, Kaebal yôndae-¤i kyôngje chôngch’aek: kyôngje kihoegwôn 20nyônsa [Economic Policy during the Developmental Decades: Twenty Years of the Economic Planning Board] (Seoul: Miraesa, 1982), 58–
59.
21. Consult David Cole and Yung Chul Park, Financial Development in Korea, 1945–1979 (Cambridge, Mass.: Harvard University Press, 1983), and Anne O. Krueger, The Developmental Role of the Foreign Sector and Aid (Cambridge, Mass.: Harvard University Press, 1979), for the effects of industrial and foreign capital policies on MoF’s room for maneuvering monetary policy.
22. Alice H. Amsden, Asia’s Next Giant: South Korea and Late Industrialization (New York: Oxford University Press, 1989) , 146–147.
23. Krueger, The Developmental Role of the Foreign Sector and Aid.
24. Robert Wade, “East Asian Financial Systems as a Challenge to Economics: Lessons from Taiwan,” California Management Review 27, no. 4 (Summer 1985): 293.
25. Economic Planning Board, “Mulga anjông-¤l wihan pisangdaech’aek” [An Emergency Measure to Stabilize Prices], November 3, 1969.
26. Eun Mee Kim, “From Dominance to Symbiosis: State and Chaebol in Korea,”
Pacific Focus 3, no. 2 (Fall 1988): 112–116.
27. Yung Chul Park and Dong Won Kim, “Korea: Development and Structural Change of the Banking System,” in The Financial Development of Japan, Korea, and Taiwan: Growth, Recession, and Liberalization, ed. Hugh T. Patrick and Yung Chul Park (New York: Oxford University Press, 1994), 213–
214.
28. Chae-Jin Lee and Hideo Sato, U.S. Policy toward Japan and Korea: A Changing Relationship (New York: Praeger, 1982).
Notes to Pages 223–231
682
29. O Wonch’ôl, Han’gukhyông kyôngje kônsôl [Economic Development Korean-Style], 3:179–208.
30. On South Korean industrial policy, see Larry E. Westphal, “Industrial Policy in an Export-Propelled Economy: Lessons from South Korea’s Experience,”
Journal of Economic Perspectives 4, no. 3 (Summer 1990): 44–54.
31. O, Hangukhyông kyôngje kônsôl [Economic Development Korean-Style], vol. 5.
32. Economic Planning Board, “Yuryu p’adong-e taech’ôhagi wihan mulga anjông taech’aek” [A Price Stabilization Measure to Counter the Oil Crisis], December 4, 1973; “Kungmin saenghwal anjông-¤l wihan taet’ongnyông kin’g¤pchoch’i” [A Presidential Emergency Measure to Stabilize the People’s Livelihood], January 14, 1974; and “Chonghap mulga anjông taech’aek” [A Comprehensive Measure to Stabilize Prices], February 5, 1974.
33. Presidential Order no. 6454, January 16, 1973.
34. Chunghwahak kongôp ch’ujin ch’agwanbog¤p silmu p’alch’a hoe¤i [Minutes of the Eighth Working-Level Vice Assistant Minister Meeting for Heavy and Chemical Industrialization Promotion], May 3, 1974.
35. Ministry of Finance , Chaejông k¤myung 30nyônsa [Thirty Years of Finance and Monetary Policy] (Seoul: Ministry of Finance, 1978), 259–260.
36. Ibid., 260–261.
37. Economic Planning Board, “Chungdong chinch’ul ch’okchin pangan” [A Measure to Promote the Entry into Middle East Markets], December 5, 1975.
38. Stephan Haggard and Tun-jen Cheng, “State and Foreign Capital in the East Asian NICs,” in The Political Economy of the New Asian Industrialism, ed.
Frederic C. Deyo (Ithaca: Cornell University Press, 1987), 123–125.
39. Richard M. Auty, “Creating Competitive Advantage: South Korean Steel and Petrochemicals,” Tijdschrift voor Economische en Sociale Georgrafie 82, no.
1 (1991): 19–28.
40. Economic Planning Board, “Suip chayuhwa sich’aek” [A Measure to Liberalize Imports], May 1, 1978; September 12, 1978; January 1, 1979.
41. Economic Planning Board, “Yut’ong kujo kaesôn taech’aek” [A Measure to Improve the Distribution System], February 25, 1974.
42. Interview with Sin Hyôn-hwak.
43. Stephan Haggard and Chung-in Moon, “Institutions and Economic Policy: Theory and a Korean Case Study,” World Politics 42, no. 2 (January 1990): 216–220.
44. Economic Planning Board, “Haban’gi kyôngje unyông-gwa taech’aek” [The Economic Management for the Second Half of 1979 and Policy Measures], July 13, 1979.
45. Economic Planning Board, “Chunghwahak t’uja chochông” [Coordination of Investment in Heavy and Chemical Industries], May 25, 1979.
46. Korea Development Institute, Kyônggi anjônghwa sich’aek charyojip: 79.4. 17
kyôngje anjônghwa chonghap sich’aek-¤l chungsim-¤ro 1–2 [The Collected Documents of Economic Stabilization Measures: A Focus on the April Seventeenth 1979 Integrated Measures for Economic Stabilization], vols. 1–2
(Seoul: Korea Development Institute, 1981).
47. Park and Kim, “Korea,” 214.
Notes to Pages 233–245
683
8. The Origins of the Yushin Regime: Machiavelli Unveiled 1. See Secretary Office of the President, Park Chung Hee taet’ongryông yônsôl munjib che gujip 9 [Collection of President Park Chung Hee’s Speeches, vol. 9]
(Seoul: Secretary Office of the President, 1973), 299.
2. Ibid.
3. Hyung-Baeg Im, “The Rise of Bureaucratic Authoritarianism in South Korea,” World Politics 39, no. 2 (1987).
4. Han Pae-ho, Han’guk chôngch’i pyôndongnon [Political Changes in Korea]
(Seoul: Pômmunsa, 1994), 2.
5. Park Chung Hee, Kukkawa hyôngmyônggwa na [The Nation, the Revolution, and I] (Seoul: Hyangmunsa,1963), 167.
6. Yi Sang-u, Park Chung Hee sidae [The Era of Park Chung Hee], vols. 1–3
(Seoul: Chungwonmunhwa, 1986), 198; Kim Hyông-uk, Hyôngmyông-gwa usang: Kim Hyông-uk hoegorok [Revolution and Idol: Kim Hyông-uk Memoirs] (Seoul: Chônyewôn, 1991), 203–205; and Chông Ku-yông, Chông Ku-yông hoegorok: silp’aehan tojôn [The Recollections of Chông Ku-yông: The Failed Challenge] (Seoul: JoongAng Ilbosa, 1987), 329–330.
7. Ryu K¤n-il, Kwônwiju¤ich’ejeha-¤i minjuhwa undong yôn’gu: 1960–
70nyôndae chedo’oejôk pandaeseryôk-¤i hyôngsônggwajông [A Study of the Democratization Movements under Authoritarian Regimes] (S
eoul: Nanam, 1997), 68–69.
8. Yi Sang-u, Park chônggwôn 18nyôn: k¤ kwôllyôk-¤i naemak [Eighteen years of Park Chung Hee Government] (Seoul: Dong-A Ilbosa, 1986), 198.
9. Ibid., 199.
10. Yi Kyông-jae, Yushin k’udet’a [ Yushin Coup d’État] (Seoul: Ilwôlsôgak, 1986), 203.
11. Yi Sang-u, Park chônggwôn 18nyôn: k¤ kwôllyôk-¤i naemak [Eighteen Years of Park’s Regime: Secret of the Power] (Seoul: Dong-A Ilbosa, 1986), 203.
12. Ibid.
13. Ryu
K¤n-il,
Kwônwiju¤ich’ejeha-¤i
minjuhwa
undong
yôn’gu:
1960⬃70nyôndae chedo’oejôk pandaeseryôk-¤i hyôngsônggwajông [A Study of the Democratization Movements under Authoritarian Regimes: The Formation Process of Extra-Institutional Opposition Forces in the 1960s and 1970s] (Seoul: Nanam, 1997).
14. Kim Yông-sun, “Yushinch’eje suripwônin-e kwanhan yôn’gu: chông-ch’ikyôngjehakjôk chôpg¤n” [A Study of the Establishment of the Yushin Regime: Political Economy Approach], in On¤l-¤i Han’guk chabonju¤i-wa kukka [Current Capitalism in Korea and the State], edited by Han’guk sanôp sahoe yôn’guhoe (Seoul: Han’gilsa, 1988), 62–63.
15. Ibid., 63.
16. Kim Chin, Ch’ôngwadae pisôsil 1: yuksông-¤ro t¤lôbon Park Chung Hee sidae-¤i chôngch’i kwôllyôk pisa [The Blue House Secretariat, vol. 1: The Untold Story of the Park Chung Hee Era Told by the Voices of Witnesses] (Seoul: JoongAng Ilbosa, 1995), 196.
17. Kim Dae-jung, “Dae-jung kyôngjeron 100mun 100tap” [A Theory of Mass Economics: A Hundred Questions, A Hundred Answers], Kim Dae-jung
Notes to Pages 246–253
684
chônjip p’yônch’anwiwônhoe, ed., in Kim Dae-jung chônjip 2: Dae-jung kyôngjeron [A Complete Collection of Kim Dae-jung’s Works, 2: Mass Economics] (Seoul: Han’gyônggwayôn, 1989).
18. Kim Yông-sun, “Yusinch’eje suripwônin-e kwanhan yôn’gu” [A Study of the Establishment of the Yushin Regime], 68.
19. Pae K¤ng-ch’an, “Niks¤n takt¤rin-gwa tongasia-¤i kwônwiju¤i ch’eje-¤i t¤ngjang: Han’guk, P’ilip’in k¤rigo Indonesia-¤i pigyo punsôk” [The Nixon Doctrine and the Rise of Authoritarian Regimes in East Asia: A Comparative Analysis Among Korea, Philippines, and Indonesia], Korean Political Science Review 22, no. 2 (1988), 329; Kim Yông-myông, “Yushin ch’eje-¤i surip-gwa chôn’gae” [The Establishment of the Yushin Regime and Its Development], Han’guk chôngch’i oegyosa nonch’ong 15 (1997), 208); and Son Hak-kyu, Authoritarianism and Opposition in South Korea (London: Routledge, 1989).
20. Chông Yun-hyông, “Yushin ch’eje-wa 8.3 choch’i-¤i sônggyôk” [The Yushin Regime and the Nature of the August 3 Measure] in Han’guk kyôngjeron [A Theory of the Korean Economy] (Seoul: Kkach’i, 1987).
21. Yi Sông-hyông, “Kukka, kyeg¤p mit chabon ch’ukchôk” [The State, Class, and Capital Accumulation] in Han’guk chabonju¤i-wa kukka [Capitalism and the State in Korea], ed. Ch’oe Chang-jip (Seoul: Hanul, 1985), 248.
22. Jung-en Woo, Race to the Swift: State and Finance in Korean Industrialization (New York: Columbia University Press, 1991), 124.
23. The rate of export increase slowed down steadily from 42 percent in 1968, to 34 percent in 1969, to 28 percent in 1970.
24. In 1968, the trade deficit amounted to $1 billion, by 1970, total foreign debts amounted to $2.5 billion and the repayment of principal and interest amounted to $160 million.
25. Yi Sông-hyông, “Kukka, kyeg¤p mit chabon ch’ukjôk” [The State, Class, and Capital Accumulation], 257.
26. The monthly inflation rate in April 1970 was 8.4 percent and the fiscal deficit from January to April 1970 amounted to 18.5 billion won.
27. The economic growth rate decreased from 13.8 percent in 1969, 7.6 percent in 1970, 8.8 percent in 1971, to 5.7 percent in 1972. Yi Sông-hyông, “Kukka, kyek¤p mit chabon ch’ukchôk” [The State, Class, and Capital Accumulation].
28. Kim Chông-ryôm, Han’guk kyôngje chôngch’aek samsimnyônsa: Kim Chông-ryôm hoegorok [A 30-Year History of Korea’s Economic Policy: The Recollections of Kim Chông-ryôm] (Seoul: JoongAng Ilbosa, 1990), 263.
29. Given the fact that the interest rate for private loans was 3.84 percent per month at the time of the Emergency Decree, the readjusted interest rate of 1.35 percent reduced the burden of interest payments for the concerned firms by one third. Ibid., 269.
30. Ibid., 269–271.
31. Kim Chông-ryôm, A! Park Chung Hee: Kim Chông-ryôm chôngch’ihoegorok
[Ah! Park Chung Hee: Kim Chông-ryôm’s Reflections on Politics] (Seoul: JoongAng M&B, 1997), 280.
32. Kim Chae-hong, Munminsidaee¤ kunbuwa kwôllyôk [The Military in the Age of Civilian Rule and Power] (Seoul: Nanam, 1992), 97.
33. Ibid., 97–102.
Notes to Pages 254–266
685
34. Young Whan Kihl, Politics and Policies in Divided Korea (Boulder: Westview Press, 1984), 57.
35. The testimony of the U.S. ambassador to South Korea, William Porter, before the Committee on Foreign Relations of the U.S. Senate, February 24, 1970, indicates that the United States advised South Korea to initiate talks with the North.
36. Yi Sang-u, Park Chung Hee sidae [The Era of Park Chung Hee], 239–241.
37. Yi Chông-bok, “Sanôphwa-wa chôngch’i ch’eje-ui pyônhwa” [Industrialization and Change in the Korean Political System], Korean Political Science Review 19 (1985): 67.
38. Tun-jen Cheng, “Political Regimes and Development Strategies: South Korea and Taiwan,” in Gary Gereffi and Donald L.Wyman, eds., Manufacturing Miracles: Paths of Industrialization in Latin America and East Asia (Princeton: Princeton University Press, 1990).
39. Hyug Baeg Im, “The Rise of Bureaucratic Authoritarianism in South Korea,”
254–257.
40. Park Chung Hee, Kukka-wa hyôngmyông-gwa na [The Nation, the Revolution, and I].
41. “We were not consulted about the decision and quite obviously not associated with it.” U.S. Senate Staff Report, “Korea and Philippines: November 1972,”
February 8, 1973.
42. Ibid.
43. Niccolò Machiavelli, The Prince, trans. and ed. Robert M. Adams (New York: W. W. Norton, 1977), 50.
9. The Chaebol
We gratefully acknowledge the research assistance provided by Hee Eun Kim, Bo Ram Kwon, and Kyung Mi Yoon of Ewha Womans University and Won Jun Jang and Sang Geun Lee of Korea University.
1. Consult Paul J. DiMaggio and Walter W. Powell, “The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields,” American Sociological Review 48 (1983): 147–160; Walter W. Powell and Paul J. DiMaggio, eds., The New Institutionalism in Organizational Analysis (Chicago: University of Chicago Press, 1991).
2. Eun Mee Kim, Big Business, Strong State: Collusion and Conflict in South Korean Development, 1960–1990 (Albany: State University of New York Press, 1997).
3. Stephen Haggard, “Business, Politics and Policy in East and Southeast Asia,”
in Behind East Asian Growth: The Political and Social Foundations of Prosperity, ed. H. Rowen (New York: Routledge, 1998), 82–83.
4. Less than 8 percent of the ministers and vice ministers of the Park era went on to work for leading chaebol groups. Calculated from http://db.chosun.com.
5. Amakudari, or “descent from heaven,” refers to the Japanese corporate practice of hiring retired state bureaucrats for high-ranking managerial positions.
Notes to Pages 267–284
686
6. Interview on February 5, 2001, with Yi Chun-lim, who rose to the rank of CEO of Hyundai Engineering and Construction, Hyundai Heavy Industries, and Hyundai General Trading Company.
7. Kim Byông-kuk, Pundan-gwa hyôngmyông-¤i tonghak: han’guk-kwa meksik’o-¤i chôngch’i kyôngje [The Dynamics of National Division and Revolution: The Political Economy of Korea and Mexico] (Seoul: Munhak-
kwa chisôngsa, 1994).
8. Han’guk yôn’gam [Korea Yearbook], (Seoul: Han’guk yôn’gamsa, 1961, 1962).
9. Leroy P. Jones and Il Sakong, Government Business and Entrepreneurship in Economic Development: The Korean Case (Cambridge, Mass.: Harvard University Press, 1980), 353.
10. Mark L. Clifford, Troubled Tiger: Businessmen, Bureaucrats and Generals in South Korea (New York: M. E. Sharpe, 1998), 63.
11. Kim Chin-hyôn, “Pujông ch’ukchae ch’ôri chônmalsô” [The Final Report on the Prosecution of Illicit Profiteers], Sindonga, December 1964, 174.
12. Interview with Kim Ip-sam, former executive deputy chairman of the FKI (1960–1981) conducted on February 9, 2001.
13. Pak Tong-ch’ul, “1960nyôndae kiôpchiptan-¤i hyôngsông-gwa kujo” [The Formation and Structure of Business Groups in the 1960s], in 1960nyôndae han’guk-¤i kongôphwa-wa kyôngjegujo [The Industrialization and Economic Structure of South Korea in the 1960s], ed. Han’guk chôngsin munhwa yôn’guwôn [Academy of Korean Studies] (Seoul: Paeksansôdang, 1999), 50.
14. Eun Mee Kim, Big Business, Strong State, 110.
15. Pak Tong-Ch’ul, “1960nyôndae kiôpchiptan-¤i hyôngsöng-gwa kujo” [The Formation and Structure of Business Groups in the 1960s], 52.
16. Pak Tong-ch’ul, “1960nyôndae kiôpchiptan-¤i hyôngsông-gwa kujo” [The Formation and Structure of Business Groups in the 1960s], 19.
17. Kang Ch’ ôl-gyu, Ch’oe Chông-p’yo, and Chang Chi-sang, Chaebol: sôngjang-¤i juyôk-in’ga tamyok-¤i hwasin-in’ga [ Chaebol: Are They the Main Contributor to Economic Development or the Devil of Greed] (Seoul: Pibong ch’ulp’ansa, 1991), 134.
18. Based on an interview with Yi Chun-lim on February 5, 2001, and also from Chông Chu-yông, Yi ttang-e t’aeônasô: na-¤i salaon iyagi [Born in South Korea: My Life Story] (Seoul: Sol chulp’ansa, 1998).
19. Kim Sang-gwôn, “Kiôpchiptan-¤i sôngjang-gwa tagakhwa kwajông”
[Growth and Diversification of Business Groups], in Han’guk-¤i kiôp chiptan
Park Chung Hee Era Page 98
