From the end of World War II, South Korea remained largely dependent on U.S. aid until a military coup occurred in 1961.
American economic aid failed in its goal of creating an industrial base in South Korea largely thanks to corruption.
This investment resulted in the South Korean population being well-educated by the time the Park Chung Hee regime took over, with the infrastructure in place for rapid economic growth.
[2] In 1961, General Park Chung Hee seized political power and decided the country should become self-reliant by utilizing five-year plans.
The first plan sought to expand the electrical/coal energy industry, emphasizing the importance of the infrastructure for establishing a solid foundation, agricultural productivity, export, neutralizing balance of payments, and promoting technological advancements.
Faced with escalating North Korean threats, a potentially uncertain ally in the United States, and the changing security arrangements regarding Okinawa, South Korean political leaders looked to use a heavy industry drive to lessen their military dependence on the United States and build up the Republic of Korea Armed Forces.
However, in 1978, because of the price of goods, real estate speculation, lack of everyday necessities and various produce, etc., previously unaddressed problems began to arise.