The rapid reconstruction and development of the South Korean economy during the latter half of the 20th century was accompanied by events such as the country's hosting of the 1988 Summer Olympics[1] and its co-hosting of the 2002 FIFA World Cup, as well as the ascension of family-owned conglomerates known as chaebols, such as Samsung, LG, and Hyundai.

[a]In June 1962, General James Van Fleet, who led US forces in Korea during part of the Korean War, gave a speech in Los Angeles entitled "The Miracle on the Han".

[15] Through the Farmland Reform Act of 1950, the United States Army Military Government in Korea redistributed previously Japanese-owned land, allowing the generation of private funds.

It aimed to develop the nation's economy through expansion of agriculture and energy industries such as coal and electric power; development of basic industries such as chemical fertilizer, cement, oil refinery, iron, and steel; expansion of social overhead capital including roads, railways, and ports; full utilisation of idle resources including increased employment; conservation and utilisation of land; export promotion to improve the balance of payments; and promotion of science and technology.

While this first Five-Year Plan did not bring about an immediately self-reliant economy, it brought a period of growth and modernization in preparation for long-term economic success and policy reform.

[21] Park's motto of "treating employees like family" has been credited with increasing productivity within the South Korean workforce and thus as contributing to the nation's economic success.

[citation needed] In the one-party regime of the SCNR, the leading party answered to a small constituency of the ruling or military elite, and South Korea's economic restoration was prioritised at the expense of human rights as Park utilized the abundant supply of cheap labor.

The strong leadership of the government (though criticized as repressive and heavy-handed) as well as the effective use of cheap labor served as catalysts for the growth of the South Korean economy.

Around December 1996, President Kim Young-sam announced that South Korea had gained recognition for its economy by joining the Organization for Economic Cooperation and Development, consisting of top industrial nations.

The new President was openly opposed to the chaebol and the financial and governmental system of the time, and his election along with the efforts of the citizens and US$58 billion put together by the International Monetary Fund, the country paid its debts and surmounted the problem.

[citation needed] Chaebol refers to corporate groups in South Korea, mainly run by families, that exercise monopolist or oligopolist control over product lines and industries.

[citation needed] According to George E. Ogle, ten chaebol families were responsible for 60 percent of the growth of the South Korean economy during the Miracle on the Han River.

[25] With the help of government and associations, chaebols are still an enormous influence on the Korean economy, though they are also accused of inhibiting small businesses or independent entrepreneurship as unethical behavior and corrupt practices.

The Kim Young-sam government attempted to assist small businesses during its five-year term from 1993 to 1998 by providing more loans, but this did not deter the expansion of the chaebols.