They may have played together at the World Cup. They may be the world's foremost producer of tinny cars and adopted babies. Their rapidly changing economies may lead to a world-wide red hair dye shortage. But old wounds are not forgotten as new weapons are picked up. Fisticuffs which ended at the 38th parallel in 1953 are set to resume. And since the world (ie America) stands to benefit from losing a Communist rogue state and an industrial competitor in one hit, it's not a matter of 'if', but 'when'.
Evidence of human habitation within the Korean Peninsula dates back at least to 3000 BC with the arrival of nomads migrating south from the Asian mainland. The establishment of competing kingdoms within the peninsula, together with frequent Chinese intervention, produced a long period of instability. The kingdom of Shilla finally established its mastery in AD 668, and was succeeded in 935 by the kingdom of Koryo, from which the name Korea is derived. The Yi dynasty was founded in 1392 and ruled from Seoul for the next 518 years. Weakened by wars against invading Mongols, Chinese and Japanese, however, the territory became a vassal state of China in 1644.
Japan conquered Korea in 1904 and formally annexed it as a colony in 1910. After Japan's defeat in World War II, Korean territory north of the 38th parallel was occupied by Soviet troops while the south was occupied by US forces, as had been agreed by the Allies. Faced with widespread Korean nationalism, the superpowers each sponsored Korean leaders and embryonic administrations with a view to ensuring that the government of a reunified and independent Korea was ideologically sympathetic. Prospects for reunification dwindled. In 1948 the division was formalised by the proclamation of the Republic of Korea (south) and the Democratic People's Republic of Korea (north).
During the Korean War (1950-1953), US and other UN forces intervened to defend South Korea from North Korean attacks supported by the Chinese. An armistice was signed in 1953, splitting the Peninsula along a demilitarized zone at about the 38th parallel. Thereafter, South Korea achieved rapid economic growth with per capita income rising to roughly 20 times the level of North Korea. South Korea has maintained its commitment to democratize its political processes. In June 2000, a historic first North-South summit took place between the South's President KIM Dae-jung and the North's leader KIM Chong-il.
As one of the Four Tigers of East Asia, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. Three decades ago GDP per capita was comparable with levels in the poorer countries of Africa and Asia. Today its GDP per capita is 18 times North Korea's and equal to the lesser economies of the European Union. This success through the late 1980s was achieved by a system of close government/business ties, including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-99 exposed longstanding weaknesses in South Korea's development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. Growth plunged to a negative 6.6% in 1998, then strongly recovered to 10.8% in 1999 and 9.2% in 2000. Growth fell back to 3.3% in 2001 because of the slowing global economy, falling exports, and the perception that much-needed corporate and financial reforms had stalled. Led by consumer spending and exports, growth in 2002 was an impressive 6.2%, despite anemic global growth, followed by moderate 2.8% growth in 2003. In 2003 the six-day work week was reduced to five days.
Hard work, skill, and a little luck lead to incredible wealth in a pretty short time. But can they defend it against ...Kim Chong-Il has ruled North Korea since his father and the country's founder, president Kim Il-Song, died in 1994. After decades of mismanagement, the North relies heavily on international food aid to feed its population while continuing to expend resources to maintain an army of about 1 million. North Korea's long-range missile development and research into nuclear, chemical, and biological weapons and massive conventional armed forces are of major concern to the international community. In December 2002, North Korea repudiated a 1994 agreement that shut down its nuclear reactors and expelled UN monitors, further raising fears it would produce nuclear weapons.
North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and spare parts shortages. Industrial and power output have declined in parallel. The nation has suffered its tenth year of food shortages because of a lack of arable land; collective farming; weather-related problems, including major drought in 2000; and chronic shortages of fertilizer and fuel. Massive international food aid deliveries have allowed the regime to escape mass starvation since 1995-96, but the population remains the victim of prolonged malnutrition and deteriorating living conditions. Large-scale military spending eats up resources needed for investment and civilian consumption. Recently, the regime has placed emphasis on earning hard currency, developing information technology, addressing power shortages, and attracting foreign aid, but in no way at the expense of relinquishing central control over key national assets or undergoing widespread market-oriented reforms. In 2003, heightened political tensions with key donor countries and general donor fatigue have held down the flow of desperately needed food aid and have threatened fuel aid as well.
I could starve, or join the army. Hmmm. Tough choice... Let's get ready to rumble!| South Korea | North Korea | |
|---|---|---|
| Population | 48,289,037 | 22,466,481 |
| Fertility rate (children/woman) | 1.56 | 2.25 |
| Sex ratio (males/female) | 1.01 | 0.94 |
| Population growth | 0.66% | 1.07% |
| Life expectancy | 75.36 years | 70.79 years |
Both sides look pretty good. South Korea with its higher life expectancy, and North Korea with its lower population but higher growth. Perhaps there's some common ground after all.
Draw!
| South Korea | North Korea | |
|---|---|---|
| GDP (USD) | $941.5 billion | $22.26 billion |
| GDP growth | 6.3% | 1% |
| GDP per capita (USD) | $19,600 | $1,000 |
North Korea had no figures for unemployment or inflation, but it's safe to say that practically everyone there lives below the poverty line. South Korea is certainly not in the same boat, with an economy 42 times greater than North Korea. It would be hard to find two neighbours with such disparate fortunes.
| South Korea | North Korea | |
|---|---|---|
| Military manpower - fit for service | 8,994,941 | 3,654,223 |
| Military expenditure (USD) | $13,094.3 million | $5,217.4 million |
| Military expenditure - % of GDP | 2.8% | 33.9% |
If there's one area where the North comes close, its in its military. Funnelling a huge chunk of its economy into the armed services keeps its soldiers combat-ready and the rest of the country crippled. Either could win with a surprise attack, but heavy losses are certain on both sides of such an even match.
South Korea scrapes through on numbers alone.
Purely by economics and living standards, South Korea trumps its northern neighbour. As a tiger economy, however, its growth and prosperity are anything but stable.
North Korea on the other hand, will continue suffering until some resources are diverted away from the military towards the people. Change to both countries is inevitable, but what form it will take is uncertain. War would be most unfortunate. A real International Deathmatch would certainly be a negative-sum game.
Consider North Korea's Kim-Chee Cooked!
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