In 1998 the Asian economic crisis bottomed out in South Korea. The nation began rebounding in 1999, the only sizable Asian economy to do so.
In June 2000, President Kim Dae Jung met with North Korea’s president, Kim Jong Il, in Pyongyang. The summit marked the first-ever meeting of the countries’ leaders. Kim Dae Jung won the Nobel Peace Prize in Oct. 2000 for his Sunshine Policy, which included initiating peace and reconciliation with North Korea.
Roh Moo Hyun of the ruling Millennium Democratic Party became president in February 2003 and promptly faced daunting problems. His vow to pursue his predecessor’s Sunshine Policy toward North Korea was put to the test as the North continued to taunt the world with boasts about its nuclear capabilities. In addition, many South Koreans had begun to resent U.S. influence over their country. In March 2004, the conservative national assembly voted overwhelmingly to impeach Roh, claiming he had violated election laws. More than 70% of the public, however, condemned the move; the constitutional court dismissed the impeachment in May; and Roh was reinstated as president.
Researchers led by Hwang Woo-suk stunned the world in May 2005, when they announced they had devised a new procedure to produce human stem-cell lines from a cloned human embryo. The country’s reign as the leader in the field of cloning was brief. In Jan. 2006, a Seoul National University panel reported that Hwang had fabricated evidence for his cloning research. His downfall was a blow to the entire nation. Indeed, he had become a national hero and had received millions in research money from the government.
Prime Minister Lee Hae Chan resigned under pressure in March 2006, after facing intense criticism for playing golf rather than dealing with a national railway workers’ strike. He was replaced by Han Duck Soo.
For the first time in 56 years, trains passed between North and South Korea in May 2007. While the event was mostly symbolic, it was considered an important step toward reconciliation. South Korea hopes that eventually a trans-Korean railroad will provide easier access to other parts of Asia. Given North Korea’s failing infrastructure, such a railroad, however, is years away from becoming a reality.
In July, the Taliban kidnapped 23 South Korean missionaries from a Protestant church group while they were traveling by bus in Afghanistan. Two of the hostages were killed after the Taliban’s demands for a prisoner exchange were not met with a positive response by the Afghan government.
In October 2007, President Roh Moo Hyun and North Korean leader Kim Jong Il met for their second ever inter-Korean summit. The leaders forged a deal to work together on several economic projects and agreed to move toward signing a treaty that would formally end the Korean War.
Lee Myung-bak, of the opposition Grand National Party, won December’s presidential elections, taking 48.7% of the vote. Chung Dong-yong, who was endorsed by outgoing president Roh Moo-hyun, took 26.1%. Lee had been dogged by allegations of ethical improprieties, and the National Assembly voted two days before the election to reopen an investigation into whether he manipulated the stock of an investment company. In January 2008, he named Han Seung Soo as his prime minister. A special prosecutor cleared Lee of the fraud allegations, and less than a week later he was sworn in as president. Lee said he would work to improve South Korea’s economy and forge closer ties with the United States.
In June, just months into his presidency, Lee faced massive protests in Seoul over his decision to resume imports of American beef, which was banned in 2003 after mad cow disease was diagnosed in the U.S. The protests, which took place in Seoul for about six weeks before peaking on June 10, implied overall dissatisfaction with President Lee. Prime Minister Han Seung-soo and all 15 cabinet members submitted their resignations. Three ministers were replaced, but President Lee refused to accept the other resignations. South Korea and the U.S. reached an agreement that said the U.S. would not export beef from cattle under 30 months of age.
Lee’s troubles worsened during the global financial crisis that crippled many nations in the fall of 2008. His detractors criticized his response to the turmoil as inconsistent and muddled.
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