From Ruins to Riches

How poor South Korea was after the Korean War, how fast it grew, and why its story is studied as one of history's great economic transformations.

In 1953, after the Korean War, South Korea was one of the poorest countries in the world.

The starting point

Income per person was similar to many poor African and Asian countries, and in the late 1950s it was often estimated to be below that of some of them.
Little industry and few natural resources.
Heavy dependence on US aid.

The transformation

From the 1960s to the 1990s, South Korea’s economy grew at around 8 to 10 percent a year on average for long stretches.
By the 2020s, South Korea’s income per person was comparable to that of many European countries.
It joined the OECD in 1996.

From receiver to giver

South Korea became the first country to move from receiving aid to giving aid as a member of the OECD Development Assistance Committee in 2010.

Why study Korea

It shows that rapid development is possible, and raises questions about the roles of exports, education, government and big business.

Two countries compared

In 1960, South Korea and Ghana had broadly similar income levels. By 2020, South Korea's income per person was many times higher.

Thinking Korea was always rich

It was among the world's poorest countries in the 1950s.

Key takeaways

South Korea was very poor after the Korean War.
It grew around 8 to 10 percent a year for decades.
It joined the OECD in 1996.
It moved from aid receiver to aid giver.