Park Chung-hee and his Five-Year Plans for South Korea

The era of Park Chung-hee (1961–1979) changed South Korea forever. He transformed the country from a poor, rural society into an industrial powerhouse. This period marks the "Miracle on the Han River". While Park’s policies boosted the economy, they came with a cost. He ruled with political repression and strictly controlled civil liberties. Despite his authoritarian rule and the violent suppression, his legacy remains divisive.

After the Korean War, South Korea was in ruins. It faced a devastated economy and political unrest. Park Chung-hee, a former military officer, saw an opportunity. In 1961, he led a coup and took control of the country.

Park’s rule was authoritarian. He cracked down on political opposition and censored the media. He believed that the country needed strong leadership to grow its economy and become self-sufficient.

Park's time in Manchuria and his respect for Japan’s Meiji Restoration shaped his vision. He wanted to copy Japan’s mix of nationalism, industrial growth, and military strength. To achieve this he adopted a state-led economic model.

He wanted the government to guide industrial growth. With the goal to transform South Korea into a nation that could compete on the global stage. He believed a powerful economy was key to securing the nation.

Park’s economic strategy centered around a series of Five-Year Plans. Each 5-year plan focused on different sectors of the economy:

First Plan (1962–1966)
Light industry, agriculture exports, and technological development. Achieved an average annual economic growth rate of 7.8%.

Second Plan (1967–1971)
Heavy industries, especially steel and chemicals. Achieved an average annual economic growth rate of 9.6%.

Third Plan (1972–1977)
Heavy chemical industry, electronics, shipbuilding, machine-building, petrochemicals and non-ferrous metals. Achieved an average annual economic growth rate of 9.7%.

Fourth Plan (1977–1981)
Self-reliance, technological innovation, and efficiency improvements. Amidst the global oil crisis and domestic unrest. Achieved an average annual economic growth rate of 7.5%.

Park Chung-hee played a key role in carrying out the first four Five-Year Plans. His efforts helped put South Korea's economy on a path to growth.

In 1979, Kim Jae-gyu, the head of the KCIA, shot and killed Park Chung-hee during a dinner. Kim opposed Park's growing authoritarian rule. He believed the act would prevent further oppression and chaos. After Park’s death, military general Chun Doo-hwan took control through another coup in 1979. Chun continued with the next set of Five-Year Plans under another authoritarian regime.

Fifth Plan (1982–1986)
Defense industry, audiovisual technologies, semiconductors

Sixth Plan (1987–1991)
Continuing the focus on high-tech sectors. Focus on small and medium-sized enterprises. Allow foreign investment into Korea.

Seventh Plan (1992–1996)
Cutting-edge technologies such as bioengineering, aerospace, and microelectronics

Korea’s industrial growth heavily relied on chaebols. Chaebols are large family-owned companies like Samsung, Hyundai, and LG. Park Chung-hee’s government worked closely with these companies. The state offered loans, tax breaks, and subsidies.

The chaebols focused on key industries that the government prioritized. They worked to meet strict export targets set by the state. And, they supported the military-industrial complex by producing weapons.

This partnership sped up industrial growth, but gave the government strong control. Disobedience wasn’t an option, as refusal to cooperate led to penalties. The chaebols thrived, but under strict state pressure.

Park Chung-hee's leadership shaped Korea’s rapid growth. But his authoritarian rule came at a high cost to freedom. A 2015 survey showed 93.3% of Koreans credited him for economic progress. In the same survey, 74% recognized his political repression.

A call for freedom led to an arguably even more remarkable chapter of Korea's history. After years of dictatorship, the people demanded change. The 1987 June Democratic Uprising led to South Korea’s shift towards freedom and democracy.

These two chapters played a crucial role in shaping what South Korea is today. A prosperous democratic nation.