ABSTRACT
Economic conditions throughout Korea were generally the same in both zones at the time of occupation. The advent of economic planning in North Korea was key-noted in an address by Kim Ilsung to the Assembly of People’s Committees of North Korea in February, 1947. The appearance of a second plan in 1948 for the year 1948–1949 indicated that the 1947 plan was probably only the first and most elementary of many economic plans for Korea which would succeed each other at least as long as the Soviet Union played host to a government in the country. Economic planning was a tool which had been given wide application along Soviet lines by the states of Eastern Europe having close relationships with the Union of Soviet Socialist Republics. In South Korea the Japanese defeat precipitated a run on bank deposits and bank credit with highly inflationary consequences.
