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Historical Background

When the Second World War ended with Japan's defeat, all Koreans aspired for a unified independent nation but instead suffered national division resulting from the subsequent Cold War between East and West. The national division and establishment of separate governments in the South and the North eventually led to a civil war, the Korean War (1950-1953). The Korean War was a by-product of internal ideological conflicts and was viewed by many as a proxy war between the West and the Communist bloc.

The Korean War developed into a large-scale international war drawing in 16 UN countries to fight together with the south as well as China and the USSR from the Communist Bloc. The fighting ended in an armistice, which created a 155-mile truce line dividing the Korean Peninsula.

The Korean War Veterans Memorial in Washington, D.C.
The Korean War Veterans Memorial in Washington, D.C.
After the ceasefire, the Cold War confrontation on the Korean Peninsula intensified. The South Korean Government pursued a policy toward North Korea aimed at achieving unification by defeating Communism. At the same time, North Korea declared a strategy of a "revolutionary stronghold" and attempted to communize the South.

From the beginning of the 1970s, Cold War tensions began to ease, with capitalist and communist countries seeking d?ente. Against this backdrop, Seoul and Pyongyang simultaneously announced the South-North Joint Communiqu?of July 4, 1972, and initiated dialogue and exchanges on a limited scale, including the South-North Red Cross Talks and South-North Coordinating Committee Meetings. Nevertheless, it proved to be impossible to relieve the animosity and mistrust between the South and North or build mutual confidence in the political arena.

In 1979, the USSR invaded Afghanistan, which drove the world back to a new Cold War confrontation and turned inter-Korean relations sour. By the mid 1980s, reforms and openness in the USSR triggered an acceleration of reforms and opening in East European communist countries. As the Cold War began to be dismantled, inter-Korean relations reached an important turning point.

On July 7, 1988, in response to the easing of the Cold War internationally, the South Korean Government announced the Special Declaration in the Interest of National Self-Esteem, Unification and Prosperity. By 1990, inter-Korean relations had improved dramatically with the beginning of South-North High-Level Talks between the prime ministers.

The fifth round of the high-level talks in 1991
The fifth round of the high-level talks in 1991
At the fifth round of the High-Level Talks in 1991, the two prime ministers signed the Agreement on Reconciliation, Nonaggression and Exchanges and Cooperation between the South and the North, also known as the Basic Agreement. It marked one step forward toward peace and unification on the Korean Peninsula.

Due to serious economic difficulties in North Korea, however, outsiders expected the regime to collapse. Furthermore, suspicions were raised about whether North Korea had developed nuclear weapons when it withdrew from the Nuclear Nonproliferation Treaty in March 1993. Due to these developments, tension on the Korean Peninsula heightened in the mid-1990s.


* Source: Ministry of Unification

The issue of a North Korean nuclear program caused inter-Korean relations to be nearly severed, and they only began to gradually improve as the Kim Dae-jung Administration (1998-2003) carried out a policy of reconciliation and cooperation, dubbed the Sunshine Policy. These efforts culminated in the first inter-Korean summit, which was held in Pyongyang in June 2000 and resulted in the June 15 South-North Joint Declaration.


   * Source: Ministry of Unification

The inter-Korean summit served as a watershed in inter-Korean relations, ending five decades of confrontation and hostility in exchange for ties of reconciliation and cooperation.

Historic First South-North Korean Summit in 2000
Historic First South-North Korean Summit in 2000
Since June 2000, much progress has been made in inter-Korean relations. Dialogue has opened in various areas and reunions of separated relatives have commenced. In addition, there has been an increase in inter-Korean exchanges of personnel and goods.

The Roh Moo-hyun Administration (2003-2008) consistently pursued a peace and prosperity policy toward North Korea, which was based on the Kim Dae-jung Administration's Sunshine Policy. The second summit between South and North Korean leaders, which took place Oct.2-4, 2007, in Pyongyang, in particular is significant as it is the second meeting between the leaders amidst changing relations between the two Koreas and the larger Northeast Asian region. The two leaders discussed an array of pending issues such as as establishment of peace, co-prosperity, economic cooperation and reconciliation and reunification, announcing an eight-point "Declaration for Development in Inter-Korean Relations and Peace and Prosperity."

North and South Korea have stopped propaganda broadcasts against each other, taken down propaganda material at the Demilitarized Zone, and opened a military hotline.

Also, the two leaders have virtually ended the hostilities that have persisted for more than half a century and established a platform to ensure real peace and prosperity on the Korean Peninsula.


 
 

  General Information of Korea  
   Historical Background
When the Second World War ended with Japan's defeat, all Koreans aspired for a unified independent nation but instead suffered national division resulting from the subsequent Cold War between East and West. The national division and establishment of separate governments in the South and the North eventually led to a civil war, the Korean War (1950-1953). The Korean War was a by-product of internal ideological conflicts and was viewed by many as a …
   North Korean Nuclear Issue
The South Korean Government has designated making a breakthrough in the North Korean nuclear issue through the Six-Party Talks ― involving the Koreas, the United States, China, Russia and Japan ― as the core task of its security policy. It is pursuing advancements in inter-Korean relations as a catalyst for the resolution of the nuclear issue. Envoys from six nations pose for a group photo during their North Korean nuc…
   Inter-Korean Exchanges and Cooperation
Following national division, the two halves of the peninsula became increasingly heterogeneous. Consequently, the South Korean Government has strived to rebuild a national community through inter-Korean exchanges and cooperation rather than rushing to achieve unification. Gaeseong Industrial Complex North Korean workers at the Gaeseong Industrial Complex The Gaeseong Industrial Complex is an inter-Korean economic cooperative projec…
   Future Policy Directions

Based on the progress in inter-Korean relations made so far, the Lee Myung-bak Administration will focus on the successful resolution of the North Korean nuclear issue and establishment of a lasting peace. Resolving the North Korean nuclear issue is crucial to peace on the Korean Peninsula. It is a critical link in the progress toward peace and economic development. For economic exchanges and cooperation between the two Koreas to advance, peace must be wrought, and in turn, economic cooperation will advance the establishment of peace. Peace on the Korean Peninsula has rested on a cease…

   International Relations
Since its founding in 1948, the Republic of Korea has been committed to the concepts of democracy and a free-market economy, but its foreign relations have undergone significant changes since its founding. As U.S.-USSR relations divided much of the world into two antagonistic blocs following World War II, the Republic of Korea pursued its foreign relations in concert with the democratic nations of the West. In the years following the Korean War, the in…
   Economic Exchanges
In the wake of the Cold War, a distinct trend toward regionalism emerged. Countries like the Republic of Korea, which have pursued export-led growth, found themselves facing a different international economic environment than in the past. Korea's export growth mostly depended on trade with advanced countries ― the United States, Japan and the European Union. This has often caused friction over trade imbalances. Wit…
   International Peace and Cooperation
The Republic of Korea joined the United Nations in September 1991, expanding its active participation in multilateral diplomacy in tandem with its elevated global standing economically. Even before joining the UN, however, the Republic of Korea was active in such specialized UN agencies as the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), the United Nations Industrial Development Organization (UNID…
   Future Policy Directions
The Republic of Korea will take a more positive stance with a greater vision and carry out global diplomacy in active cooperation with the international community. Transcending the differences in race, religion, and wealth, Korea will befriend all nations and peoples. Respecting the universal principles of democracy and market economics, we will take part in the global movement for peace and development. The Government will work to develop and f…
   Economic Growth
Korea rapidly recovered from the economic storm that began in late 1997. This crisis, which roiled markets all across Asia, had threatened Korea's remarkable economic achievements. However, thanks to the faithful implementation of an IMF agreement, the Korean Government's strong resolve for reform, and successful negotiation of foreign debt restructuring with creditor banks, the nation rebounded and is now stronger than ever economically. Sin…
   Industrial Innovation
As the world's 13th largest economy, Korea has emerged as a success story in many ways. In 2007, Korea's trade volume amounted to US$728 billion, ranking 11th in the world. Korea also has the fourth largest foreign reserves. Despite high oil prices, the strong won and rising raw material prices, the Korean economy is growing at a healthy pace. Hyundai Motor SUVs waiting for shipping in the nation's southeastern port Ulsan S…
   Science and Technology
To reinvigorate the development of advanced science and technology, the Government established the Korea Institute of Science and Technology (KIST) and the Ministry of Science and Technology (MOST) in 1966 and 1967, respectively. Initially, Korea's national science and technology policies focused mainly on the introduction, absorption, and application of foreign technologies. In the 1980s, however, the emphasis shifted to the planning and cond…
   Information Telecommunication
Korea's stance as a powerhouse in terms of information technology is demonstrated by its vast IT-related production and exports, development of world-leading technology, and also the wide use of Internet and mobile telecommunication devices within the country. IT industry-related products, such as computer chips and mobile phones, account for over 30% of Korea's total exports, and nearly every Korean over age 12 owns at least one mobile phone…
   Economic Challenges
Wishing for record-high stock prices Over the past three decades, Korea has enjoyed an annual average economic growth rate of 8.6 percent and has emerged as the world's 11th largest trading nation. In less than two generations, the nation has established itself as one of the world's leading shipbuilders and manufacturers of electronics, semiconductors and automobiles. International financial markets positively…
   Foreign Direct Investment
In the case of Korea, foreign trade accounted for 71.5% of the national GDP in 2006, while revenue from foreign invested companies took up almost 14% of total manufacturing sales. As such, Korea is working hard to support foreign invested companies. A good example is the opening of the world's largest LCD complex in Paju, just kilometers from the Demilitarized Zone. The Government built roads and infrastructure needed to support the massive ind…
   Capital Market Liberalization
Korea's strategy for capital market development centers on two interrelated policy initiatives, namely market liberalization and market augmentation. Capital market liberalization will directly increase Korea's access to foreign capital and technology, while market augmentation will improve the operational efficiency of the capital market. Significant progress has already been realized in the implementation of measures to further open the…
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