....South Korea, under strongman Park Chung-Hee, focused on building up large economic champions, or chaebols (business conglomerates), against American advice to focus on small- and medium-sized companies.

That policy laid the foundation for successful South Korean brands in the world market, such as Samsung and LG, although it came at a price in terms of political corruption in the close ties between business and political elites. KoFID and ReDI argue that the focus on conglomerates led to the chaebols exploiting their monopoly status, fostering increasing economic inequality.

Park took a pragmatic approach to corruption. Instead of cracking down on corrupt businessmen as urged by the US, he expropriated their bank shares and assigned them to invest in import-substitution industries, such as fertilisers, a point made in Catalysing Development, a book on aid edited by Homi Kharas, Koji Makino and Woojin Jung.

Whatever its faults, the South Korean regime did not squander the aid it received..., South Korea, as well as Vietnam provide pointers on how development should be done.

https://www.theguardian.com/global-development/poverty-matters/2011/nov/28/south-korea-development-model

South Korea: the corruption that built its economy

by Michael Rock

.... if not for the economic benefits of corruption, South Korea would not be the industrialized nation it is today.

In most places in the world, corruption tends to be growth-reducing, but this is much less true in East and Southeast Asia, where it tends to be growth-enhancing. In the 1960s, President Park Chung-hee (father of the recently deposed president) struck deals with a small number of Korean capitalists, which worked as follows: The Park government provided these capitalists promotional privileges—particularly cheap credit from state-owned banks and monopoly privileges in local markets—to grow their firms. Promoted firms were expected to meet government-mandated export targets. If the capitalists met export targets, they got more privileges. If they did not, they lost, or were threatened with the loss of, those privileges. In exchange, promoted firms kicked back a share of their profits to Park and his political entourage. Park and his government cronies used the kickbacks to finance election campaigns, buy off supporters and enrich themselves.

In this model, corruption was growth-enhancing. One of the side effects of this corruption-and-growth model in Korea was the rise and emergence of the chaebols (family-owned mega-conglomerates), such as Samsung, Lucky-Goldstar, and Daewoo.

Not surprisingly, this corruption and growth model has spread to Southeast Asia (especially Indonesia and Thailand, but also Malaysia, to a lesser degree). Governments in Southeast Asia developed very clear and similar corrupt relationships with a small number of what became large conglomerated firms, especially Indonesia's cukong entrepreneurs (Sino-Indonesian capitalists favored by General Suharto) and what became large Sino-Thai conglomerates in Thailand. Just as in Korea, Southeast Asian governments used kickbacks from favored businesses to shore up their political support and enrich themselves.

https://iias.asia/the-newsletter/article/south-korea-corruption-built-its-economy

My Opinion: In Nigeria, we have alot of corrupt people with Billion kept in Bushes, farms, foreign account etc which are just lying idle. Nigeria govt should ignore the international community like South korea did, and force this corrupt elites to invest all thier money into Nigeria manufacturing, education,health care and agriculture as an exchange for amnesty. The govt is to ensure they can only invest the money in the sectors decided by the govt.

They should be given export targets with some penalty if the targets are not met. Yes transparency international will name us the most corrupt country on earth. But by the time we succeed like South korea we will be enjoying praises.

I think this is the best approach instead of the long litigations and courts that are difficult to conclude.

Interesting.

This is good

1kingwriter:
This is good

yeah

In addition, the nigerian government should pass law that ensure that atleast 85% of all budget is spent on/in the local economy.

Eagba:
In addition, the nigerian government should pass law that ensure that atleast 85% of all budget is spent on/in the local economy.

Nice idea

You forgot that Nigeria and South Korea are different

Rucheen:
You forgot that Nigeria and South Korea are different

Yes true. But we have some that are working well.

Dangote, Adenuga,Otedola , Igbinedion etc are using corrupt politicians money to grow the economy. We already have evidence that it work in Nigeria. Instead of these politicians using the money to build hotels etc, Federal govt can intervene and forced them to invest the money in farms, manufacturing,.education and health care