Table of contents for South Korea in the fast lane : economic development and capital formation / Young-Iob Chung.

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Table of Contents
Preface												iii
Abbreviations:											xi
Weights and Measures:										xii
Chapter 1 Introduction										1
Chapter 2. Economic Development and Structural Change					5
 Economic Development Prior to 1945					5
 Stages of Economic Development						9
 Structual Changes								19
	 Industry							20
 Services							24
 Social Overhead Capital			25
 Domestic Trade				25
		 Foreign Trade				26
 Agriculture							32
 Mining and Others						33
 Industrial Structure and Organization					33
 Capital and Technological Intensity				33
 Scale of Businesses						34
 Rise of Jaebeol						36
 Urbanization								38
	 Factors Affecting Economic Growth and Structural Changes			38
 Summary and Conclusions							44
Chapter 3 Aggregate and Sectoral Investment							47
	 Aggregate Investment							48	
	 Nature of Investment							51
		 Fixed Capital and Inventory	 Investment			51		
		 Construction, Equipment, and Machinery 			52
		 Replacement and New Investment				53
	 Public Investment								53	
	 The Nature of Investment					57		
			 Social Overhead Capital			57
			 Manufacturing				59	
	 Organizational Structure					63
	 Private Investment								65			 Business Investment					66					 Manufacturing				66
			 Other Sectors				69
		 Nature of Business Investment				70
			 Capital and Technology Intensities		70
			 Scale of Investment				71
			 Overseas Investment			73
		 Household and Other Investment				76
	 Estimated Domestic Physical Investment					78
	 Investment in Human Capital 						78
	 		 Technology						82
	 Summary and Conclusions							85
Chapter 4. Industrial and Foreign Exchange Policies						88
 The Government Role of Investment						89 
 Industrial Policies								96			 Import Substitution						97
	 Export Promotion						99
	 Heavy and Chemical Industry Expansion			102
 Liberalization Policy					103
 Policies Affecting Private Investment					105
 Government Property Divestiture Programs					107
	 Former Japanese Assets					108
	 New Public Enterprises					109
	 Economic Impacts						112
		 The Formation of Private Capital		112
		 Property Divestiture Bounties		113
		 The Inflation Windfalls			115
		 Combined Bounties and Windfalls		119
 Beneficiaries						120
 Foreign Exchange Policy							123
 Foreign Exchange Rates					124
 The Allocation and Sale of Foreign Exchange		127
 Beneficiaries						128
 Economic Impacts						129
	 The Foreign Exchange Bounty		129		
	 Costs of Production				130
	 Sectoral and Aggregate Economies		131
	 Resource Allocation					132
 Summary and Conclusions 							135
Chapter 5 Domestic Financing of Investment							139
 Domestic Sources of Financing Investment 					140
 Private Investment						140		
 Owners¿ Equity				140			
 Domestic Borrowing			144			
		 Public Investment						144			 Domestic Lending Institutions						146	
 The Organized Financial Institutions			146		
		 Banks					148	
	 Non-bank Financial Intermediaries 		157			
		 Government						158			 Allocation of Loans								161			 Economic Sectors						161	
		 Industrial Sectors						162		
			 Social Overhead Capital 			162
		 Manufacturing				164	
 Other Sectors				169
		 Nature of Financing Industrial Investment			171
 "Entrepreneurial" Projects			171
 Capital and Technology Intensive Industries	172
 Large Businesses				173
 Subjective and Discretionary Criteria			179
 Amount and Terms of Repayment 				180
	 Monitoring of Loans					181
 Financial Resources of Lending Institutions					183		 Financial Institutions					183		
	 Government						186		
 Other Sources								187
	 Other Organized Financial Institutions			187
	 Unorganized Financial Market				188
 Interest Rate Policy								191		 Financial Repression					192	
	 Multiple Interest Rates on Loans				195
 Freely Fluctuating Interest Rates				199
 Summary and Conclusions 							200
Chapter 6. Economic Impacts of Industrial and Financial Policies					204
 The Interest Subsidy							204
	 Loans for Divestiture of Government Properties		206
	 Production Facility Expansion Loans			207
	 Foreign Exchange Loans					207
	 Variations of Interest Subsidy Within Programs		208
	 Beneficiaries						208
 Economic Impacts of Industrial and Financial Policies			209	
	 Bounties, Windfalls, and Subsidies				210
	 Costs of Production and Profits				213
	 Secotral Investment and Output				214
	 Nature of Investment					215
	 Industrial Organization					218		
	 Aggregate Investment and Output				220
 Resource Allocation: Inefficiencies						222
	 Sectoral Misallocation of Resources				222
 Economic Rent Seeking Activities				224
	 Cronyism and Corruption					225
	 Nonperforming Loans					228
 Financial Burdens, Discipline, and Reforms					234
 Financial Burdens						234
 Financial Discipline					236
	 Financial and Corporate Reforms				238
		 Financial Reforms				238
		 Corporate Reforms				240
 Financial Costs of Reforms			244
	 Personal Saving								247
	 Challenges for Future Financial Policies					249
 Summary and Conclusions 							253 
Chapter 7 Domestic Saving and Income Distribution						258
 Domestic Saving								259	 
 Private Saving								260
	. Personal/Household Saving					262
			. Landlords					269
			. Farmers					271
			. Wage Earners				275
			. High Income Earners			280
			. Channels of Personal Savings		283		
		. Business Profits and Saving				286
. Business Profits				287
			. Business Saving				301
 Government Revenues and Saving						304
. Contribution of Domestic Saving to Investment				308
. Summary and Conclusions							311
Chapter 8. Foreign Savings and Direct Investment						315
 Imported Foreign Savings							315
	 Volume							315
	 Economic Impacts of Net Import Surplus			318
		 Supplement to Consumption		318
		 Contribution to Domestic Saving		319
 Foreign Direct Investment							322
 Policy Evolution and Volume				322
 Opening for FDI, 1953-1965		323
 FDI Promotion Policy, 1966-1972		324
 Target Industrial Policy, 1973-1983		325
		 Liberalization Policy, 1984-1987		327
		 Freer and More Open Policy, 1988-1997	329
		 The Open Market Policy, 1998-2004	332
 The Fields and Nature					335
 Economic Sectors				335
			 Type of Output				337
 New Industries				338
Capital and Technology Intensive Industries	339
 Size and Ownership			342
 FDI Countries and Differences				344
 Economic Impact						345
 Effectiveness of FDI Policies				349
 Challenges for FDI Policy					353
 Summary and Conclusions	 						359
Chapter 9 Foreign Aids, Loans, and Other Sources of Savings					363
 Foreign Aids								363
 	 Relief Aid: 1945-1952					364
 	 Reconstruction Aid: 1953-1963				365
 	 Development Aid: 1963-1971				366
 Contributions of Foreign Aids						368
 	 Aggregate Impacts						369
 Relief and Economic and Political Stability			370
 Foreign Aids for Investment							373
	 Volume							373
	 Counterpart Fund						375
	 Orientation of Aids for Investments				376		
	 The Impact on Output and Korean Investment		380
 Efficacy of Foreign Aid as an Instrument of Investment	382
 Japanese Reparations and Aid 						387
 Foreign Borrowings							388
		 Foreign Loans and Debts					388
		 Term-Loans						390
		 Long-term Loans						390
			 Public Loans				391
	 Commercial Loans		 		397
		 Short-term Loans						406
 Impacts on Capital Formation and Output			406
	 Other Sources of Foreign Savings	 					409
	 Loan Repayment Guarantees						411
 Contribution of Foreign Savings to Capital Formation			413
 Summary and Conclusions							415
Chapter 10 Capital Formation 									419
 Investment									419
 Savings									420	
 Sectoral Balance between Investment and Savings				421
	 Deficit Savings Sectors					421
	 Surplus Savings Sectors					422
 Financing of Investment							422
	 Summary and Conclusions							424
Chapter 11 Summary and Conclusion								426
Appendices											514
	Appendix 2.1 Five-year Economic Development Plans				514
Appendix 3.1 Jaebeol								515
Appendix 4.1 Personal Connections						518
Appendix 5.1 Indebtedness and the Scale of Business				524
Appendix 5.2 Samsung Jaebeol							527
Appendix 6.1 The Indebtedness of Shipbuilding Companies			527
Appendix 6.2 Corruptions							528
Appendix 7.1 Jaebeol Problems							529
	Appendix 8.1 FDI of the United States and Japanese				533
	Appendix 9.1 The Value of Foreign Aid						536
Appendix 9.2 Conflict over Foreign Aid Programs 				539
			
Bibliography										 	542
										
Index												573
 
Abbreviations:										
BOK		Bank of Korea
ESY		Economic Statistical Yearbook
EU		European Union
FDI		foreign direct investment
GDP		gross domestic product
GNBFI		public nonbank financial institution
GNP		gross national product
HCI		heavy and chemical industry
ICA 		International Cooperation Administration 
IMF		International Monetary Fund
KFDI 		Korean foreign direct investment 
NBFI		nonbank financial institution
NYT 		New York Times
OFM		organized financial market
PL 		Public Law 
PNBFI		private nonbank financial institution
POSCO 	Pohang Iron and Steel Company
ROK		Republic of Korea
SERI 		Samsung Economic Research Institute
SME		small- and medium-sized enterprises
SOC		social overhead capital
TFP 		total factor productivity 
UNCTD	United Nations Conference on Trade and Development 
UOFM		unorganized financial market
WSJ		Wall Street Journal
Weights and Measures:										
jeong or jeongbo = 2.45 acres 
pyeong = 35.6 square feet or 3.3 square meters.
seok = 5.1 US bushels.
 
 

Library of Congress Subject Headings for this publication:

Korea (South) -- Economic conditions -- 1948-1960.
Korea (South) -- Economic conditions -- 1960-.
Korea (South) -- Economic policy.
Saving and investment -- Korea (South) -- History.