Defense industry and its impacts on economic growth in Korea

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Author
Lee, Yong Hak
Date
1992-06Advisor
Gates, William R.
Second Reader
Sohn, So Young
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This thesis reviews the connection between the Korean defense industry and Korean economic progress. The defense industry has both costs and benefits. Some argue that the benefits outweigh the costs; others argue the reverse. Because of the apparent diffusion of tension between South and North Korea, the domestic pressures to reduce the national defense budget are growing stronger. Consequently, some have questioned whether the Korean defense industry should be maintained. In fact, the Korean defense industry has had both negative and positive effects on growth since the early 1970s. It is time to analyze the Korean defense industry and enter a new phase which considers both security and economic implications, the Korean defense industry is still necessary for national security. It can be more helpful for economic growth. In order to improve the Korean defense industry's structure and organization, this thesis suggests desirable future directions for the Korean defense industry based on economic analysis
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