ABSTRACT
This chapter examines the economic relations of the two countries such as United States and Korea. It discusses the process by which these relations affected the Korean economy so as to radically transform a stagnant and underdeveloped country into one with a dynamic and industrialized economy by the middle of the 1970s. The chapter considers a number of broad criteria by which to hypothesize the impact of American economic aid, loans, and trade partnership on Korean economic development. The policies that had important, though somewhat indirect, bearings on economic relations between the United States and Korea were the normalization of relations with Japan and the implementation for the first time of a series of five-year economic development plans. Among the reformulations of policies which had direct bearing on United States-Korean economic relations were foreign-exchange rate reforms and a combination of various policies to accelerate inflow of foreign loans.
