On May 16, 1961, Park Chung-hee led a military coup that overthrew South Korea’s short-lived civilian government. The coup created a new military-led political order that soon prioritized rapid economic growth and stronger state control. This takeover set the conditions for the export-led development policies that followed.
On January 27, 1962, Ulsan was designated South Korea’s first industrial district, helping concentrate factories and infrastructure in a planned industrial zone. This kind of state-led industrial siting supported faster growth in manufacturing sectors tied to exports. Ulsan later became closely linked to heavy industry and major conglomerates.
On June 21, 1962, the government established the Korea Trade Promotion Agency (now KOTRA). The agency’s role was to help Korean firms find foreign buyers and expand into global markets, supporting the state’s growing focus on exports. Building trade-promotion institutions like KOTRA was a practical step toward export-led industrialization.
On October 15, 1963, Park narrowly won South Korea’s presidential election, beginning formal civilian-rule institutions under his leadership. The election marked a shift from direct military junta rule toward a controlled political system under Park’s party. His presidency then provided continuity for long-term economic planning and export promotion.
On June 22, 1965, South Korea and Japan signed the Treaty on Basic Relations, normalizing diplomatic ties. Normalization helped open pathways for economic cooperation and finance linked to industrial projects. These external links became part of the broader environment supporting rapid industrial expansion.
On September 29, 1965, the first South Korean combat units deployed to Vietnam, with additional arrivals in the following months. The deployment deepened the alliance relationship with the United States during a period when security concerns shaped economic planning. International security partnerships and economic strategy were closely linked under Park’s developmental state.
On February 10, 1966, the Korea Institute of Science and Technology (KIST) was formally registered. KIST was designed to support industrial modernization by developing and adapting technologies needed by Korean firms. Strengthening domestic research capacity helped the state push beyond simple, low-skill exports toward more complex manufacturing.
On April 14, 1967, the Republic of Korea became a member of the General Agreement on Tariffs and Trade (GATT). This membership linked South Korea more closely to global trade rules and markets. It reinforced the government’s strategy of growth through expanding exports.
On April 1, 1968, the government established Pohang Iron & Steel Company (POSCO). Building a domestic steel base mattered because steel is a core input for shipbuilding, construction, machinery, and later automobiles—key export industries. POSCO became a flagship example of state-directed heavy industrial development.
On April 22, 1970, Park launched Saemaul Undong (the “New Village Movement”) to modernize rural communities. The program sought to improve local infrastructure and boost rural productivity, partly to reduce widening rural–urban gaps during fast industrial growth. It also strengthened the state’s ability to mobilize communities around development goals.
Beginning in 1972, the Third Five-Year Economic Development Plan (1972–1976) emphasized rapid expansion of heavy and chemical industries. This policy shift aimed to move the economy from light manufacturing into higher-value sectors, raising export capacity in steel, chemicals, and machinery. The change marked a new stage in South Korea’s export-led model.
On October 17, 1972, Park suspended the constitution and dissolved the National Assembly, launching what became known as “October Yushin.” This political turn centralized power and reduced checks on the presidency. The tightened political system helped the government push large-scale industrial policies, but at the cost of greater repression.
On November 21, 1972, a referendum approved the Yushin Constitution, a new charter that greatly expanded presidential power and enabled repeated terms. This institutionalized the “Yushin” system and ushered in South Korea’s Fourth Republic. With reduced political constraints, the state pursued more aggressive industrial restructuring and export growth.
On July 3, 1973, construction was completed on Phase 1 of POSCO’s Pohang Steel Mill. Bringing integrated steel production online supported downstream export industries such as shipbuilding and heavy machinery. The project showed how state-backed industrial investment could build new industrial capabilities quickly.
From October 16 to 20, 1979, large protests in Busan and Masan demanded democratization and an end to the Yushin system. The unrest reflected rising public anger at repression and political controls that had accompanied rapid economic growth. The crackdown and internal divisions that followed helped destabilize Park’s rule in its final days.
On October 26, 1979, Park Chung-hee was assassinated during a dinner by KCIA director Kim Jae-gyu. His death abruptly ended an 18-year period of authoritarian rule closely tied to export-led industrialization and state-directed growth. The assassination created a power vacuum that soon led to renewed military domination and major political conflict.
From May 18 to 27, 1980, mass protests in Gwangju were violently suppressed by the military government that emerged after Park’s death. The uprising became a defining event in South Korea’s democratization movement, shaping public memory of the costs of authoritarian rule. It also underscored the long-term political consequences of the developmental state’s repressive governance during and after Park’s era.
Park Chung-hee presidency and export-led industrialization (1963–1979)