New Life

From Pusan in the south to Panmunjom on the war-famed 38th parallel, fireworks lit up the sky and brass bands blared in the plazas of South Korea. It was the first anniversary of General Park Chung Hee's successful army coup, and it marked his junta's success in honoring the pledge it made when it seized power --to give South Korea "a new life."

Taxis & Dancers. For the first time in that year. South Korea seemed to be enjoying itself. Even tough, stone-faced General Park flashed an occasional smile as he moved among his guests at a cocktail party in the Blue House, Korea's presidential palace. In Seoul, flower-bedecked streetcars and freshly painted aquamarine Jeep taxis rolled smoothly over newly paved, neon-lighted roads. The city's 1,500 youthful, homeless ragpickers had been rounded up, dressed in blue fatigue uniforms and drafted into a service corps for rehabilitation.

Two dozen U.S. industrialists, shepherded by retired General James Van Fleet, hero of the Korean war, joined other foreign businessmen inspecting wares on display at a massive industrial fair, scouting investment possibilities. At night there was entertainment--an Asian film festival, folk dancing, classical concerts.

Nightclubbing was made easy by 4,000 waitresses, hostesses and taxi dancers (previously outlawed), who had just finished a cram course in English and etiquette (sample instruction: don't order drinks without the customer's O.K.).

A year ago, after decades of war and misrule, the nation had been in desperate shape. The "pernicious national heritage." declared Park then, was "indolence, profiteering, idleness, fatalism, egotism and opportunism." Park's revolution sought nothing less than to replace that heritage with a "human reformation"--and to a degree that has gratified his friends and surprised his critics, he is succeeding.

Profits & Problems. Corruption, nepotism, inefficiency have been largely eliminated by ruthless methods, and U.S. officials, who channel $250 million in annual aid, give Park's military administrators high marks. Although unemployment is still high--2,500,000 are out of work or underemployed--prices are fairly steady and the currency has been stabilized. U.S.

PX sales, once the chief source of black-marketeering, have been cut by 20% within the year under a system that requires a purchaser to fill out forms in triplicate for even a package of razor blades.

Domestic industries such as tobacco are flourishing since the regime banned the import of foreign cigarettes, and nine state-run companies that turn out such basic needs as iron, coal and heavy machinery are making a profit for the first time. Private foreign investment capital is badly needed; West Germany has granted a $27 million loan, and talks are under way with Italy and Norway.

South Korea's basic economic problem is agriculture: more than 60% of its 25 million population eke a living from land that is only 20% arable. Aggravating such poverty was a system of usurious interest rates for seed and equipment that ranged up to 60%, kept farmers in perpetual debt. The Park regime has cut interest rates to 20%, this spring distributed $77 million in farm credits.

Ballots & Blossoms. Partly on U.S. advice, Park has eased up on some of his strong-arm methods, last week pardoned 13,000 prisoners. But he still keeps the press under tight control, has won the confidence of relatively few intellectuals. For South Korea's pre-revolutionary professional politicians, Park has a general's contempt. More than 4,300 have been purged from political life for at least six years; to re-enter politics, they must be approved by a special screening board.

The junta promises to hold popular elections by next May, but the balloting 5 frankly not intended to bring about Western-style democracy. That, says Park, will have to be achieved in slow stages. Previous South Korean governments, he told a rally of 40,000 in the Seoul Stadium last week, practiced only make-believe democracy. To build the real thing, "we must improve the foundation by correcting the improper stones. It is going to be a great trial." To expect responsible democratic government to evolve from past "confusion," Park said, "is tantamount to believing that a rose could blossom in a garbage can."

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