Post-conflict economic recovery and land policy in South Korea between 1948 and the early 1960 s

Abstract

A multiplicity of issues impact upon post-conflict economic recovery, one of which is land policy. Depending on the policy adopted, it could promote post-conflict economic growth, but it could also hinder the economy. This study reviews post-conflict economics and land conceptually and analyses the effect of land policy on post-conflict economic recovery in South Korea. Conceptually, post-conflict economy and land are interrelated in terms of security of land tenure, the land market, land (taxation) reform and revenue. Land tenure is secured through land reform in post-conflict situations. Security of land tenure stabilises and revitalises the land market, which leads to an increase in land tax. In addition, land taxation reform provokes an increase in land tax, and land tenure needs to be secured to maximise land tax collection through land taxation reform. The revenue collected through revitalisation of the land market and land taxation reform is utilised to stimulate post-conflict economic recovery. However, the South Korean case is not completely in line with the conceptual relationship. First, land taxation reform in South Korea resulted in an increase in public revenue, and the government was able to spend this revenue in supporting the war and partially stimulating post-conflict economic recovery. On the other hand, land tax reform could promote post-conflict economic recovery at the national level, while at the same time causing poverty at the individual level. Second, the South Korean case suggests that the foundation for the land market was laid during the post-conflict period and an increase in revenue through the revitalisation of the land market mainly contributed to economic development after the post-conflict period. In South Korea, land taxation reform had been more important than the land market for post-conflict economic recovery.