Korea, South

THE REPUBLIC OF KOREA occupies the southern half of the Korean peninsula and shares a border with the Democratic Republic of Korea (North Korea). Prior to 1945, the two Koreas were one entity. However, following the end of World War II, Korea was divided into two regions at the 38th parallel, with the Soviet Union controlling the northern region and the United States occupying the south. The division was intended to last only until the Koreans could hold elections and establish a national government. The plan did not come about.

In July 1950, North Korean military forces invaded the south. A protracted war ensued for the next three years between North Korea, with support from both China and the Soviet Union, and United Nations forces, primarily represented by the United States. When a cease-fire was finally reached in the summer of 1953, the line separating the opposing forces became the boundary between the two countries. Although talks have occurred between the two countries, an adversarial relationship persists and the long-held hope for reunification of the two Koreas has yet to become reality.

The division of Korea initially left both countries severely disadvantaged. North Korea held virtually all the manufacturing operations, heavy industry, and mineral resources, while South Korea had most of the agricultural land. It then became necessary for each of the countries to work steadily to develop those sectors of the economy they lacked because of the territorial split.

The United States provided South Korea with financial and technical assistance and the materials needed to initiate the building of a diversified economic base. In the north, support was forthcoming from the Soviet Union and China. Over the years, South Korea has achieved remarkable economic growth and today its per capita income is about 14 times that of North Korea.

The area of South Korea is heavily mountainous, with extensive coastal plains in the west, near the capital city of Seoul, and in the south adjacent to the important [Page 618]shipping center of Pusan. South Korea's population is 48.4 million (July 2005) and its rate of natural increase reflects the country's success in achieving complete demographic transition: 0.5 percent. In 2001 it was estimated that only four percent of the South Korean population were living below the poverty line. Not surprisingly, literacy rates in South Korea are exceptionally high. Of the total group of people age 15 and over, 98 percent can read and write (2002 estimates). The male literacy rate was estimated to be 99 percent and the female rate stood at 97 percent.

The composition of South Korea's labor force reflects its rise to economic prominence in east Asia and on the world scene. The service sector is the clear leader with nearly three-quarters of the labor force. Industry is second with 19 percent, and agriculture follows at eight percent. Agricultural products include rice, a mainstay of the Asian diet, barley, a variety of vegetables, and fruit. Animal products include cattle, chickens, dairy items, and fish. South Korea is essentially self-sufficient in food production.

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