Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320442 
Year of Publication: 
2025
Citation: 
[Journal:] KDI Journal of Economic Policy [ISSN:] 2586-4130 [Volume:] 47 [Issue:] 2 [Year:] 2025 [Pages:] 1-36
Publisher: 
Korea Development Institute (KDI), Sejong
Abstract: 
In 1960, South Korea's exports were about 1 percent of GDP, and its ability to import depended almost entirely on U.S. aid. After changing its foreign exchange policies in the mid-1960s, Korea's exports surged to more than 10 percent of GDP by the end of the decade. This paper explores the political and economic context (as well as the individual actors) behind the shift in policy that enabled this dramatic export growth to occur. The United States helped initiate the process by withholding financial assistance, pressuring Korea to devalue its currency and reform its foreign exchange regime. The Korean government initially resisted taking these steps but in 1964 it became firmly committed to an export promotion strategy to boost foreign exchange earnings and end its dependence on American aid.
Subjects: 
Export Promotion
Export Orientation
Devaluation
Foreign Exchange reform
JEL: 
F13
F31
N75
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

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