President Kim Dae-jung was inaugurated on Feb. 25, 1998,.becoming the first chief of state from the opposition camp in the.nation’s constitutional history. A lifetime opposition leader,.President Kim was also the successor to Kim Young-sam, the first.civilian president after a series of military juntas. It is still too early to decide whether his five years in.office were a success or failure, and the interpretation of his.actions will vary depending on the perspective in years to come..However, on a personal note, he will be remembered positively as.the first Korean and the only president to receive the Nobel Peace.Prize for his work for democracy and human rights in South Korea.and East Asia in general, and for peace and reconciliation with.North Korea in particular.
From the beginning, the regime’s biggest task was overcoming.the financial crisis that shook the nation’s economy to its roots.in late 1997. “If democracy and a market economy harmonize and.develop in tandem, there will be no collusion between government.and business circles, no government-controlled finance and no.corruption and irregularities,” said the president in his.inauguration address.
President Kim added that transparent business management would.evolve from economic restructuring, and bad practices such as.cross-guarantees of debt payments would end. He promised to take.tough action against leaders of mismanagement and concentrate on.building a sound financial structure. The government’s efforts for a fast economic recovery paid off.in August 2001 when the nation completed repayment of bailout.loans, amounting to $19.5 billion, from the International Monetary.Fund (IMF) three years ahead of schedule. As of the end of January.2003, the nation’s official foreign exchange reserves stood at 122.billion dollars, a drastic improvement from the four billion at.the end of 1997.
His government also concentrated on nurturing the IT industry .and working to improve the national welfare by guaranteeing a.basic standard of living. However, its greatest achievement would.be the “Sunshine Policy” on inter-Korean relations. President Kim.adhered to three principles – blocking any North Korean aggression.against the South, promising that South Korea would not absorb the.North, and separating politics from the economy – to promote .cooperation and exchanges between Seoul and Pyongyang. As a result, Kim became the first South Korean leader to.participate in an inter-Korean summit when he traveled to.Pyongyang on June 15, 2000. Since then, there have been continuous.dialogues between the two countries, including nine minister-level.talks. Prior to the government-level exchanges, civilians began.traveling to the North’s Mount Kumgang in November 1998. This.could not have been possible without the government’s full.political support. Nonetheless, there were a few military incidents with North.Korea that startled the nation. In June 1998, the South Korean.navy captured a North Korean submarine after it became entangled.in a fishing net near Sokcho on the eastern coast. In June of the.following year, a North Korean torpedo boat was sunk and two other.northern vessels seriously damaged in a fierce battle off the West.Coast. But the most casualties occurred in June 2002. Five South.Korean sailors were killed and 19 others were wounded, with one.still missing, during another exchange of fire in the West Sea..However, cultural and economic exchanges between the two Koreas.are continuing.
In the international sports arena, Kim’s government was praised.for successfully hosting the 2002 Busan Asian Games and co-hosting.the 2002 World Cup with Japan. The South Korean team finished .fourth in the soccer tournament. Despite all these achievements, President Kim and his.government had to endure dark moments. Although the nation chose Kim Dae-jung as its leader, his party.failed to win the majority at the National Assembly, which often.resulted in gridlock with the opposition party, led by Lee.Hoi-chang.
President Kim’s government came under fierce attack when his.two sons and a right-hand man, Kwon Roh-gap, were arrested for.accepting bribes. The arrests were a serious blow to the Nobel.Peace Prize laureate and further tarnished the image of the.government, which had yet to fully recover from the “Clothes.Lobby” scandal in late 1998. The Kim administration is also accused of secretly paying North.Korea US$100 million to get Pyongyang to agree to the historic.summit in 2000. Kim has admitted to approving the transfer and.defended the action by saying it was for the sake of peace, and.history will decide whether his action was just or not.