Korea

During 1956 the major economic difficulties of southern Korea, confronted with the two severe tasks of defence and reconstruction, were slightly alleviated. A larger inflow of foreign aid helped to increase production and meet essential consumption needs, thus narrowing the gap between production and demand in certain sectors and slowing down the rate of rise in prices. Despite certain improvements, government revenues for the fiscal year 1955/562 did not meet government expenditures. Defence and reconstruction requirements were met largely by external aid and partly by deficit financing. Exports, which rose, paid for 7 per cent of imports (including aid imports) in the first six months of 1956. It appeared that substantial external aid would continue to be needed for some time, until the country’s economy could achieve both internal and external equilibrium.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities