Why is South Korea’s rapid economic development called the miracle on the Han River?

The term "miracle on the Han River" refers to South Korea’s extraordinary transformation from a war-torn, agrarian society into a leading global industrial and technological power in just a few decades following the Korean War.12

This rapid development is characterized by several key factors:

• Strategic Industrialization: Beginning in the 1960s, the government implemented aggressive economic development plans that prioritized export-oriented industries, shifting from textiles and light manufacturing to heavy industries like steel and chemicals, and eventually to high-technology sectors such as electronics and automobiles.13
• Government and Corporate Synergy: The state provided strong support to large, family-controlled conglomerates known as chaebols, such as Samsung and Hyundai, which served as the primary engines of manufacturing growth.13
• Human Capital: The nation benefited from a highly skilled and educated labor force, fueled by a traditional cultural emphasis on education and significant government investment in schooling.132

During this period, the economy grew at an average annual rate of nearly 9 percent, resulting in a more than hundredfold increase in per capita income.2