Page 23 - Sphere No.7 (Oct 2002)

G eographically wedged between China and Japan,
history hasn’t always been kind to Korea. A proud
land living in the shadow of giants, it has often had
to struggle to forge its own national identity.
Admittedly, Korea itself was to blame at times. For centuries the
“Hermit Kingdom” closed its doors to the outside world, until
it was overwhelmed and annexed by Japan in 1910. After 1945,
its strategic position next to Cold War Russia led to the
1950-53 Korean War. The Korean Peninsula today remains
ideologically, culturally and economically divided between
North and South.
But times are changing.With an air of rapprochement, the
two sides recently agreed to push road and rail links through the
world’s most heavily guarded border. The move will provide
South Korea with hinterland access to China and Europe.
Just four years ago, South Korea was in financial crisis and
had to be bailed out by the International Monetary Fund. Since
then it has deregulated its markets, paid off its US$58 billion
loan, and attracted a similar amount (US$52 billion) in foreign
direct investment – more than it had seen in almost 40 combined
years prior to 1998.
This year, South Korea’s first half GDP was up 6.1% on ris-
ing exports and domestic consumption, while the main Kospi
index has been outperforming major share markets around the
world.The central Bank of Korea is sitting on the world’s fourth-
largest foreign reserves – US$116 billion as of end-August –
behind Japan, China and Taiwan and ahead of Hong Kong.
In the wake of its footballing escapades, South
Korea continues to ride a wave of economic
euphoria – and with ports operations central to
its growth plans, it’s no surprise to find
Hutchison involved in the action.
By Cortlan Bennett
FULL
STEAM
AHEAD
CORTLAN BENNETT (3)