Development - Rapid economic growth in South Korea

Reasons:

- Command capitalism
 Military rule (1964-87)
 Export processing zones ( relaxed laws, concessions on tax and pollution control)
 Improve infrastructure (Seoul to Pusan highway)
 Gross domestic savings (34% of GDP)

- Cheap labour
 Low pay ($2.90 per hour in textiles)
 Long hours (72 hours a week for textiles)
 Large, flexible workforce 
 Suppressed unions
 Poor working conditions

- Asian work ethic
 Reduced personal freedom
 Work for the common good
 Paternalism of companies

- Commercial use of modern technology
 Steel works with state of the art production methods

- Traditional education system
 Geared towards industry
 Disciplined
 Teamwork promoted
 Well educated

- Foreign investment
 Japanese investment as reparation for WW2
 Proximity to China makes it attractive

- Protectionism
 Foreign imports restricted
 Infant industries subsidies

- Domestic demand
 Increased personal wealth

- Diversification
 Products aimed at foreign markets
 Labour intensive
 Increasing value of products over time
 Firms like LG, Hyundai and Daewoo set up

-Heavy industry
 Steel
 Ship building
 Products aimed at foreign markets