1. V. The Koreas East Asia

2. A. North Korea: Economic Challenges • Communist country under a dictatorship • Government runs the economy • Country has kept itself closed to much of the world • This kept out new technology and fesh ideas • North Korea is rich in mineral resources. • Industrial center of the Korean Peninsula until the end of WWII

3. North Korea manufactures poor-quality goods in government owned factories Little has been done to diversify the economy. Diversify: add variety to Government briefly opened some private markets in 2004, but still controls the economy Farming methods are outdated 1955 North Korea faced a famine and starvation Famine: huge food shortage About 220,000 people died from famine b/w 1995 and 1998. Many countries provided have provided humanitarian food aid 2005, the government said that it would stop accepting humanitarian aid.

4. Reading Check • How was North Korea’s isolation affected by its Economy?

5. B. South Korea: Economic Growth • Mid 1950s South Korea (ROK—Republic of Korea) had agricultural resourced but few industries • 50 years later, ROK has become a leading economic power • ROK is a democracy with an economy based on free enterprise. • After WWII, ROK’s factories focused on making cloth and processed foods. • ROK developed heavy industry • ROK is among the world's leading shipbuilders. • Has a growing electronics industry that exports radios, tvs, and computers. • ROK is a leading producer of the silicon chips used in computers. • ROK also has a large refineries, or factories that process oil • The oil products are used to make plastics, rubber, and other goods.

6. ROK faces a number of challenges It lacks many natural resources Must import large amounts of raw materials to keep industry running Major imports are oil, iron, steel, and chemicals.

7. Reading Check • What are some products made in Korea? • The products made in Korea are…

8. C. Years of Tension • Koreans hope for the possibility of one country again. • Relations b/w the two Koreas have remained tense since the end of the Korean War. • North Korea and South Korean troops have had numerous violent clashes. • Better relations seemed possible in 2000. • Leaders of the two countries met in Pyongyang, the capital of North Korea, and agreed to work toward peace and cooperation.

9. 6. 2002, North Korea’s government made a shocking announcement. 7. 2005 North Korea said it had been developing nuclear weapons even though they said formerly that they would not do this. The weapons damaged the relationship b/w the two countries. a. Later “Six-Party Talks” among North Korea, the U.S. Russia, China, Japan, and South Korea led to a new agreement North Korea would receive increased aid and diplomatic relations. However, the agreement has not yet been carried out.

10. 2005 President George W. Bush visited several countries in Asia. We will not forget the people of North Korea. The 21st century will be freedom’s century for all Koreans—and one day every citizen of that peninsula will live in dignity and freedom and prosperity at home, and in peace with their neighbors abroad. (President George W. Bush)

11. Reading Check What happened when North Korea announced it had made nuclear weapons?

12. Questions • What kind of government and economy does South Korea have? • What are some reasons for South Korea’s economic success? • What kind of government does North Korea have? • Why has North Korea’s economy lagged behind South Korea’s? • What event seemed to point to better relations b/w North and South Korea?

13. What was the effect of North Korea’s development of nuclear weapons? What did President Bush mean when he said, “We will not forget the people of Korea.”?

14. Writing Activity • When North Korea and South Korea were divided, families were divided, too. Based on what you have read about the Koreas, write a paragraph that states your viewpoint on the issue of reunifying the two countries.