History of corruption in Korea
For the past three decades, the economic success of South Korea has had a
significant impact in Northeast Asia and served as a model of successful
economic development. It had experienced Japan’s colonial rule, American
occupation, and its own debilitating war on the Korean peninsula. Its
economic development strategy and its adoption of the American democratic
system allowed the nation to rebuild and transform itself into the
twelfth most developed nation in the world.
Three important factors serve as the backdrop for the development of
corruption in Korea. First, the economic and structural vacuum caused by
the end of Japanese colonialism caused great economic and social disarray
on the newly divided peninsula. Furthermore, the US military forces occupying
South Korea were ill-equipped and inexperienced in nation-building
efforts and were side-tracked by the commitment to rebuild Japan after
World War II. Thus, post-colonial Korea gave the middle class, who were
desperately seeking economic security, the opportunity to secure positions
of wealth, power, and influence during a period of social disorder.6
Second, the debilitating effects of the Korean conflict inflicted further
human and economic suffering. It also left South Korea in a state of insecurity.
The armistice signed in 1953 between North and South Korea did
not provide the nation with confidence that hostilities would cease. The
diplomatic talks to finalize the armistice had dragged on for two years, hindered
by issues such as the exchange of prisoners of war and the military
demarcation line. When the armistice was finally signed it was only
intended to be a ‘temporary’ measure. The document, signed by US Lieutenant
General William K. Harrison and his counterpart from the North’s
army, General Nam Il, said it was aimed at a ceasefire ‘until a final peaceful
settlement is achieved’. However, that settlement never came.7 The
Geneva talks in 1954, at which the Korean peninsula was discussed, failed
to resolve the issue.
Third, the adoption of the Nixon Doctrine during the Vietnam War
added to the fear and insecurity throughout South Korea. The central
thesis of the Nixon Doctrine was that the major effort to deter localized
wars overseas must be made by the governments and by the people of the
states affected by those wars, not by the USA. This suggested the possibility
that US forces would be withdrawn from the Korean peninsula as well.
Thus, South Korea began to give its military leaders significant power and
influence, as the nation sought to develop a contingency plan in case US
troops were ordered to leave. The threat that they would leave also forced
the leadership to produce incentives for economic development in order to
bolster its ability to protect itself from North Korea.
These three factors had a substantial effect on the Korean mind-set.
The state of insecurity, the scars of human and economic suffering, drove
Korea to devise alternative plans to secure its borders and interests.
A military-backed regime sought to increase the nation’s economic capability
to protect and preserve the nation’s interests. As a result, South Korean
military leaders working within the government acquired a significant
amount of power without an adequate power-checking mechanism. That
stimulated the development of corruption since the government now could
exercise its power without fear of repercussions. Consequently, from 1948
to 1992, the military had an immense influence on politics and the
economy, which also paved the way for the beginning of a collusive relationship
between the government and big business. Furthermore, as this
bilateral relationship matured, public and private leaders who benefited
from illegal collusion were reluctant to set limits to it.