Chung, Young-Iob. Korea Under Siege, 1876-1945: Capital Formation and Economic Transformation.

• Author: Hoff, Samuel B.
• Position: Book review

Chung, Young-Iob. Korea Under Siege, 1876-1945: Capital Formation and Economic Transformation. New York: Oxford University Press, 2006. 390 pages. Cloth, $74.00.

According to economist Young-Iob Chung, the "Korea of today is built on the Korea of yesterday" (p. 4). He endeavors to present a behavioral and analytical overview of the nation's effort at capital formation during the traditional, transitional, and occupied periods of its history in order to demonstrate the extent of its economic development. Though similar to northeastern Asian neighbors China and Japan in cultural heritage, isolationist tendencies, and religious influence, Korea's record of economic transformation from 1876 to 1945 is unique. Chung adopts a global perspective and an objective framework to investigate this topic.

Following an introduction, Chung concentrates on the economy of Korea in the period before 1876 in Chapter 2. This period is referred to as "traditional" in that it precedes foreign intervention in Korea. During much of this era, Korea had no contact with the outside world. Its economy was dominated by agriculture, with little manufacturing or mining. Most commerce was limited to open markets in small towns. The small amount of international trade hindered the advancement of transportation and communication. Due to insecurity of income and wealth and the lack of protection of private property, investment, entrepreneurship, and economic savings foundered.

Chapter 3 depicts Korean economic development between 1876 and 1904, which is labeled the "transitional" phase of its maturation. During this period, trade agreements with Japan and the United States were implemented and Western missionaries established Christian schools. The government hired foreign advisors to assist in modernization and granted concessions to certain countries in selected industries. Though relatively unsuccessful, there were at least five major attempts to reform the monetary system from 1891 to 1904. The government established Bureaus of Machinery (1893), Transportation (1894), Mining (1895), and Textiles (1895), though incompetence and lack of technical knowledge mitigated its role in public investment. Most private investment during this period was undertaken by foreigners, particularly Japan. Overall, economic growth during Korea's transitional period was minimal.

Chapters 3 through 8 detail Korea's economic advancement from 1905 to 1945. Japan, which submerged Korea into a...