Korea in the 1990s: Civilian Government and the IMF Crisis

Kim Young-sam's government, launched in 1993, called itself the "civilian government" to mark its break with military-led regimes and pushed reforms such as the real-name financial transaction system. South Korea joined the OECD in 1996, but major disasters followed one after another, including the collapses of Seongsu Bridge and Sampoong Department Store. The 1997 currency crisis forced the country to seek a bailout from the International Monetary Fund, bringing corporate failures and mass layoffs, and in that December's election opposition candidate Kim Dae-jung won, bringing a change of ruling party.

Year by year

Korea in 1990

In January, the merger of the Democratic Justice, Reunification Democratic and New Democratic Republican parties created a dominant ruling party, the Democratic Liberal Party. Nordpolitik advanced in September with the…

• Jan 22Three parties merged to form the Democratic Liberal Party.
• Sep 4The first inter-Korean high-level talks between the two prime ministers were held in Seoul.
• SepTorrential rains caused massive flooding along the Han River, including a levee breach at Ilsan.

Korea in 1991

Local council elections in March and June revived local self-government after some 30 years. Inter-Korean relations advanced as the two Koreas joined the UN simultaneously in September and adopted the Basic Agreement in…

• Mar 26Elections for basic-level local councils were held, reviving local assemblies after some 30 years.
• Mar 14Phenol leaked from a factory in Gumi, contaminating drinking water drawn from the Nakdong River.
• Apr 26Myongji University student Kang Kyung-dae was beaten to death by riot police during a protest, triggering mass demonstrations.

Korea in 1992

South Korea established diplomatic relations with China in August, ending its official ties with Taiwan (Republic of China), and the launch of KITSAT-1 (Uribyeol-1) gave the country its first satellite. Hwang Young-cho…

• Mar 24Elections for the 14th National Assembly were held.
• Aug 11KITSAT-1 (Uribyeol-1), South Korea's first satellite, was launched.
• Aug 24South Korea established diplomatic relations with the People's Republic of China and severed official ties with Taiwan (Republic of China).

Korea in 1993

Kim Young-sam took office, launching what was billed as the first “civilian government,” and a series of reforms followed, including the real-name financial system. Crowds poured into the Daejeon Expo, but the year was…

• Feb 25Kim Young-sam was sworn in as president, launching an administration that called itself the “civilian government.”
• Mar 28A Mugunghwa passenger train derailed and overturned near Gupo Station in Busan, causing heavy casualties.
• Jul 26Asiana Airlines Flight 733 crashed into a mountain near Haenam, South Jeolla Province.

Korea in 1994

Kim Il-sung’s death scuttled what would have been the first inter-Korean summit, unsettling the peninsula. A run of disasters, including the Seongsu Bridge collapse, heightened public concern over safety, while youth-or…

• Jul 8North Korean leader Kim Il-sung died, and the first inter-Korean summit planned for late July was called off.
• Sep 21Police arrested members of the “Jijonpa,” a gang behind a series of murders, shocking the nation.
• Oct 21A section of Seoul’s Seongsu Bridge collapsed during the morning commute, killing 32 people.

Korea in 1995

The first nationwide simultaneous local elections ushered in full-fledged local self-government, and cable television went on the air. Tragedies such as the Daegu gas explosion and the Sampoong Department Store collapse…

• Mar 1Cable television service launched in South Korea on March 1.
• Apr 28A gas explosion at a subway construction site in Sangin-dong, Daegu, killed 101 people.
• Jun 27In the first nationwide simultaneous local elections, voters directly chose their local government heads and council members.

Korea in 1996

Joining the OECD and winning co-hosting rights for the 2002 World Cup raised hopes for Korea’s international standing. Meanwhile, the Gangneung submarine infiltration heightened security fears, and a year-end vote on la…

• Apr 11The 15th National Assembly elections were held.
• May 31FIFA decided that South Korea and Japan would co-host the 2002 World Cup.
• Aug 20Students from the Hanchongryeon federation occupied buildings at Yonsei University before police broke up the sit-in.

Korea in 1997

Starting with Hanbo Group’s collapse early in the year, major conglomerates failed one after another, and in November the government requested a bailout from the IMF. In December, Kim Dae-jung won the presidential elect…

• JanHanbo Group, one of Korea’s largest conglomerates, went bankrupt.
• FebHwang Jang-yop, a senior Workers’ Party secretary in North Korea, defected via the South Korean consulate in Beijing.
• Aug 6Korean Air Flight 801 crashed on approach to Guam, killing many on board.

Korea in 1998

The financial crisis brought corporate restructuring and mass layoffs, and citizens donated gold to help the country recover. The new Kim Dae-jung administration pursued reconciliation with the North, opening Mount Kumg…

• JanA nationwide gold-collection campaign spread as citizens donated household gold to help overcome the currency crisis.
• Feb 25Kim Dae-jung was inaugurated, launching what he called the “Government of the People.”
• Jun 16Hyundai founder Chung Ju-yung crossed into North Korea through Panmunjom with 500 head of cattle.

Korea in 1999

As the economy rebounded from the financial crisis, enthusiasm for the internet and venture startups ran high. South and North Korean navies clashed in the Yellow Sea, and tragic fires in Hwaseong and Incheon claimed th…

• Jun 15South and North Korean naval vessels clashed near Yeonpyeong Island in the First Battle of Yeonpyeong.
• Jun 30A fire at the Sealand youth training center in Hwaseong, Gyeonggi Province, killed kindergarten children and others.
• Sep 7The National Basic Livelihood Security Act was enacted, guaranteeing a minimum standard of living for low-income households.

Historical photo archive

• 1990sKorea in the 1990s23 photos