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==Third Republic (1963–1972)== {{Main|Third Republic of South Korea}} [[File:Park Chung-hee.jpg|thumb|168x168px|President [[Park Chung Hee]], who ruled South Korea from 1961 to 1979]] Park's administration started the Third Republic by announcing the [[Five-Year Plans of South Korea|Five-Year Economic Development Plan]], an [[export-oriented industrialization]] policy. Top priority was placed on the growth of a self-reliant economy and modernization; "Development First, Unification Later" became the slogan of the times and the economy grew rapidly with vast improvement in industrial structure, especially in the basic and heavy chemical industries.<ref name="lhh 595">Lee Hyun-hee (2005, pp 595–599)</ref><ref name="3rep policies">{{in lang|ko}} [http://100.naver.com/100.nhn?docid=729425 Major policies of the 3rd Republic] {{Webarchive|url=https://web.archive.org/web/20210304105301/http://100.naver.com/100.nhn?docid=729425 |date=4 March 2021 }} at [[Doosan Encyclopedia]]</ref> Capital was needed for such development, so the Park regime used the influx of foreign aid from Japan and the United States to provide loans to export businesses, with preferential treatment in obtaining low-interest bank loans and tax benefits. Cooperating with the government, these businesses would later become the ''[[chaebol]]''.<ref name="aks 192" /><ref name="lhh 595" /><ref name="sk economy">[http://countrystudies.us/south-korea/15.htm Economic development], Country studies: South Korea</ref> Relations with Japan were normalized by the [[Treaty on Basic Relations between Japan and the Republic of Korea|Korea-Japan treaty]] ratified in June 1965.<ref>Cumings (1997, p. 320).</ref><ref>{{in lang|ko}} [https://archive.today/20120701105329/http://100.naver.com/100.nhn?docid=186660 1965 Korea-Japan treaty] at [[Doosan Encyclopedia]]</ref> This treaty brought Japanese funds in the form of loans and compensation for the damages suffered during the colonial era without an official apology from the Japanese government, sparking much protest across the nation.<ref name="aks 192" /><ref name="lhh 595" /> The government also kept close ties with the United States, and continued to receive large amounts of aid. A [[status of forces agreement]] was concluded in 1966, clarifying the legal situation of the US forces stationed there.<ref>Kim Dangtaek (2002, p486)</ref><ref>[http://www.usfk.mil/usfk/Uploads/130/US-ROKStatusofForcesAgreement_1966-67.pdf US-ROK Status of Forces Agreement 1966–1967] {{webarchive|url=https://web.archive.org/web/20110722214501/http://www.usfk.mil/usfk/Uploads/130/US-ROKStatusofForcesAgreement_1966-67.pdf |date=22 July 2011 }}, United States Forces Korea</ref> Soon thereafter, Korea joined the [[Vietnam War]], eventually sending a total of 300,000 soldiers from 1964 to 1973 to fight alongside [[Military Assistance Command, Vietnam|US troops]] and [[Republic of Vietnam Military Forces|South Vietnamese Armed Forces]].<ref name="aks 192" /><ref name="3rep policies" /><ref>Nahm (1996, p. 425)</ref> Economic and technological growth during this period improved the standard of living, which expanded opportunities for education. Workers with higher education were absorbed by the rapidly growing industrial and commercial sectors, and urban population surged.<ref name="sk society">[http://countrystudies.us/south-korea/16.htm Society under Park], Country studies: South Korea</ref> Construction of the [[Gyeongbu Expressway]] was completed and linked Seoul to the nation's southeastern region and the port cities of [[Incheon]] and [[Busan]]. Despite the immense economic growth, however, the standard of living for city laborers and farmers was still low. Laborers were working with low wages to increase the price competitiveness for the export-oriented economy plan, and farmers were in near poverty as the government controlled prices.<ref name="lhh 595" /><ref>The Academy of Korean Studies (2005, pp194-197)</ref> As the [[rural economics|rural economy]] steadily lost ground and caused dissent among the farmers, however, the government decided to implement measures to increase farm productivity and income by instituting the [[Saemaul Undong|Saemaul Movement]] ("New Village Movement") in 1971. The movement's goal was to improve the quality of rural life, modernize both rural and urban societies and narrow the income gap between them.<ref name="sk society" /><ref name="lhh 604">Lee Hyun-hee (2005, pp 600–604)</ref> [[File:Card Stunt for Park Chung-hee.jpg|thumb|A card portrait of Park Chung-hee during a military parade on [[Armed Forces Day#South Korea|Armed Forces Day]], 1 October 1973]] Park ran again in the [[1967 South Korean presidential election|1967 presidential election]], taking 51.4% of the vote.<ref name="Yonhap 2004, p. 271" /> At the time the presidency was constitutionally limited to two terms, but a [[constitutional amendment]] was forced through the National Assembly in 1969 to allow him to seek a third term.<ref name="lhh 595" /><ref>The Academy of Korean Studies (2005, pp198-201)</ref><ref>Nahm (1996, p. 423); Yonhap, loc. cit.</ref> Major protests and demonstrations against the constitutional amendment broke out, with large support gaining for the opposition leader [[Kim Dae-jung]], but Park was again re-elected in the [[1971 South Korean presidential election|1971 presidential election]].<ref>Nahm (1996, p. 424);</ref> Parliamentary elections followed shortly after the presidential election where the opposition party garnered most of the seats, giving them the power to pass constitutional amendments.{{citation needed|date=April 2018}} Park, feeling threatened, declared a state of national emergency on 6 December 1971.<ref name="lhh 595" /> In the midst of this domestic insecurity, the [[Nixon Doctrine]] had eased tensions among the world superpowers on the international scene, which caused a dilemma for Park, who had justified his regime based on the state policy of anti-communism.<ref name="lhh 595" /> In a sudden gesture, the government proclaimed a joint communiqué for reunification with North Korea on 4 July 1972, and held [[International Red Cross and Red Crescent Movement|Red Cross]] talks in Seoul and [[Pyongyang]]. However, there was no change in government policy regarding reunification, and on 17 October 1972, Park declared [[martial law]], dissolving the National Assembly and suspending the constitution.<ref name="lhh 604" /><ref name="aks 201">The Academy of Korean Studies (2005, pp201-203)</ref>
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