South Korea, too, has faced a sometimes rocky path since 1948. In general, it backed the principles of democracy, open diplomacy, and free enterprise capitalism. At times, however, it was ruled by military dictators. During the 1960's, under the military dictator Park Chung Hee, South Korea achieved what has been called the miracle on the Han River. The country transformed its war-ravaged agricultural economy into an industrial giant. By the 1980's and 1990's, its automobile and electronics exports were known around the world. 

The Republic of Korea successfully hosted the 24th Summer Olympic Games in Seoul in 1988. In 1992, South Korea celebrated a return to civilian democracy when it conducted free elections. Kim Young Sam became the first civilian president in 32 years. Today, the ROK has diplomatic relations with about 150 countries, including Russia and China. With a 90 percent literacy rate, South Koreans enjoy the highest level of education in the world. About 20 percent of South Koreans hold college degrees. 

South Korea supports the arts and intellectual pursuits. Its strong commitment to preserving traditional arts and crafts has resulted in renewed interest in maedup (knot-making), traditional music, and paper crafts. it has worked to preserve historic landmarks, including royal burial mounds, palaces, fortresses, Buddhist temples, academies, and traditional villages with artisans and their crafts.

Modern art is also thriving. Corporations support artists with gallery spaces and exhibitions. Women writers have experienced commercial and critical success, and they are a significant presence in the modern art scene. Pak Kyong-ri's The Land is considered one of the most important Korean novels in this century. The Land is a historical chronicle about a traditional land-owning family before, during and after the Japanese occupation. It deals with cultural conflict between the values of old Korea and those of the modern world.

South Korea's economy experienced a severe setback in 1997. The spreading Asian financial crisis caused many South Korean banks and businesses to collapse. These economic setbacks are seen as temporary. The government undertook major reforms. Amid the economic turmoil, a new president with an impressive pro-democracy record, Kim Dae-jung, was elected. Appealing for national unity, President Kim brought together representatives of labor, business, and government to discuss the economic situation and to plan for the future. His goals are to reestablish South Korea's economic stability and continue dialogue with North Korea.

The reunification of South Korea and North Korea has remained the ultimate goal of all the Korean people since 1945, when the country was divided against its will by foreign powers. To some, the reunification of Germany and the collapse of communism in Eastern Europe are encouraging signs for Korean reunification. Talks between the two Koreas, however, have yet to make any big breakthroughs toward reunification.