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Japan’s Colonial Legacy to Korea with Special Reference to Economic Institutions
Korean Studies Quarterly / Korean Studies Quarterly, (P)2671-8197; (E)2733-936X
2010, v.33 no.4, pp.359-393
https://doi.org/10.25024/ksq.33.4.201012.359
Kim,,
N.
N.
(2010). Japan’s Colonial Legacy to Korea with Special Reference to Economic Institutions. Korean Studies Quarterly, 33(4), 359-393, https://doi.org/10.25024/ksq.33.4.201012.359
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Abstract
This paper elucidates the continuity and discontinuity of economic institutions before and after liberation from Japanese colonial rule. In this case, it needs to be noted that the colonial economic regime shifted from a market economy to a command economy after the Sino-Japanese War; and after liberation, Korea divided into North and South, and the new countries each inherited a different colonial legacy. North Korea abolished the colonial legal system, including civil and commercial laws. However, the country inherited and strengthened a wartime command economy. Regardless of wartime demand or socialist ideology, restriction on or abolition of a market and private property system makes it inevitable that the economy depend on command. In spite of political differences, that is why the two economies seem similar. On the contrary, however, South Korea returned to a market economy from a wartime command economy, and inherited a legal system and market regime before the Sino-Japanese War. The country regained monetary and tariff autonomy at the price of rapid inflation and retreat from an open economy. Experiences during the wartime command economy have also affected South Korea and caused government interventions in foreign exchange and financial markets. After policy shifts in the 1960s, which made the country’s economy more open and with less government intervention, South Korea was able to head into rapid economic growth.
- keywords
- 식민지 유산, 연속과 단절, 시장경제, 통제경제, 민법, 경제적 지대, colonial legacy, continuity and discontinuity, market economy, command economy, civil law, economic rent
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