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Renewing the South Korean Miracle

SEOUL – South Korea’s incoming president, Park Geun-hye, takes over a country that has been a global role model for economic development. But, with the economy slowing, it has become a model in need of renewal.

The so-called “Miracle on the Han River” took root with the reforms initiated by Park’s late father Park Chung-hee, the country’s ruler for much of the 1960’s and 1970’s. A measure of South Korea’s success is that it was the first country to make the transition from being a recipient of OECD aid to becoming a donor, with per capita GDP today exceeding $30,000 (in purchasing power parity terms).