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Korea once had large timber resources. In the North, reforestation and conservation programs have helped reverse the effects of excessive cutting during the Japanese occupation (1910–45). Predominant trees are larch, oak, alder, pine, spruce, and fir. Forests in the South were depleted as a result of illegal cutting after 1945 and damage during the Korean War (1950–53). However, reforestation programs have helped to remedy the loss.
Korea has great mineral wealth, most of it (80–90%) concentrated in the North. Of the peninsula's five major minerals : gold, iron ore, coal, tungsten, and graphite : only tungsten and amorphous graphite are found principally in the South. South Korea has only 10% of the peninsula's rich coal and iron deposits. Its minerals are widely scattered, and mining operations are generally small scale, although tungsten is an important export item. In the North, modern mining methods have been instituted, and minerals and metals account for a significant portion of the country's export revenue. North Korea is especially rich in iron and coal and has some 200 different kinds of minerals of economic value. Some of the other more important minerals that are produced are copper, lead, zinc, uranium, manganese, gold, silver, and tungsten.
Because of the mountainous and rocky terrain, less than 20% of Korean land is arable. Rice is the chief crop, with wet paddy fields constituting about half of the farmland. Paddies are found along the coasts, in reclaimed tidal areas, and in river valleys. Barley, wheat, corn, soybeans, and grain sorghums are also extensively cultivated, especially in the uplands; other crops include cotton, tobacco, fruits, potatoes, beans, and sweet potatoes. Before the country was divided (1945), the colder and less fertile north depended heavily upon the south for food. Agricultural self-sufficiency became a major goal of the North Korean government, and mechanized methods were introduced. Both governments expanded irrigation facilities, constructed numerous dams, and initiated land reclamation projects; however, the North has suffered severe food shortages. Livestock plays a minor role in Korean agriculture, especially in the North, where the steep and often barren hills are unsuitable for large-scale grazing. In the South, cattle are used largely as beasts of burden, and although chickens and rabbits are raised, relatively little meat is eaten.
Fish remains the chief source of protein in the Korean diet. The fishing waters off Korea are among the best in the world; the long coastline and numerous islands, inlets, and reefs provide excellent fishing grounds, and the presence of both a warm and a cold current attracts a great variety of species. Octopus and shrimp are also caught, and seaweed is valuable; agar (a seaweed product) is an important export item. Deep-sea fishing is expanding, and Korean ships now range into the Atlantic and Arctic Oceans. Almost all of the deep-sea catch (consisting largely of tuna) is canned and exported. In the 1990s, South Korea's fish catch was the seventh largest in the world.
The Korean economy was shattered by the war of 1950 to 1953. Postwar reconstruction was abetted by enormous amounts of foreign aid (in the North from Communist countries and in the South chiefly from the United States) and intensive government economic development programs. The greatest industrial advances were made during the 1960s; in that decade the South experienced an 85% increase in productivity and a 250% rise in per capita gross national product. Economic development throughout Korea has been uneven, with the South showing significantly greater gains. By the mid-1990s, the per capita gross domestic product of the South was 15 times that of the North. In the South the traditional consumer goods industries (textiles, garments, footwear, food processing) are still important, but heavy industry has been established and a great variety of products are now manufactured; these include electrical and electronic equipment, steel, automobiles, chemicals, cement, ships, and ceramic goods.
The North, too, has changed from a predominantly agricultural society (in 1946) to an industrial one; with abundant mineral resources and hydropower, 60% of its national product is now derived from mining and manufacturing. Development has been impeded, however, by the rigid economic system, and the economy severely affected by a loss of trading partners after the collapse of the Communist world. In 2002, however, the government instituted a series of economic reforms intended to revive the economy. Major North Korean products include iron, steel, and other metals; machinery; military products; textiles (synthetics, wool, cotton, silk); and chemicals.
The industrialization of both North and South has been accompanied by improved transportation. By the end of the Korean War the rail system had been destroyed, and paved highways were almost nonexistent. The railroads have been extensively rebuilt, and the South Korean government has completed a series of superhighways connecting Seoul with numerous major cities. There is domestic air service, and international airports are located at both Seoul and Pyongyang. The expansion of port facilities at Pusan and Inchon has vastly increased their capacity.
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