ABSTRACT
In the process of Korea's industrialisation, economic dependence on the Japanese economy was the prerequisite for Korean economic development. In order to continue to sustain economic development, the import of production goods as well as technology transfer from Japan were necessary for Korea's economic development. The Korean economic structure is based on the principle that the more Korea exports to world markets, the more Korea must import from Japan. Each industrial stage of Korea, Japanese economic influence has shifted from capital and direct investment to technology, and naturally Japanese loans, direct investment and technology have been gradually instilled into the Korean economy. Thus, the process of Korean economic development is closely linked with the pattern of Japans influences on Korea. Foreign capital usually supplements shortages of domestic capital in the process of industrialisation in developing countries and the need to bring in foreign capital is imperative since capital is always centred to economic analysis in any country.
