ABSTRACT
Division of Korea between United States and Soviet occupying forces in 1945 added further to Korean economic problems. The Japanese built a substantial economic infrastructure of roads, railroads, and public works; they expanded the education of the Korean people at elementary-school level. The patterns of economic development in the two halves of Korea moved rapidly in the direction of capitalism in the south and Communism in the north. South Korea's economic system is intermediate between state capitalism and free enterprise. South Korean industry began during the Japanese colonial period with textile manufacturing, food processing, and light machinery, concentrated in Seoul and a few other cities. Rice is Korea's basic crop, and south Koreas yields are impressive, although rising wage levels and land values have made it costly. Government enterprises dominate the energy field, although there are privately operated coal mines, and oil refineries are mostly in private hands.
