In the mid-20th century, Turkey and South Korea represented one of the most instructive comparative experiments in development history. Both countries were fragile economies struggling to emerge from wars, political upheavals and limited industrial infrastructure. But the historical reality is clear when the starting line is analyzed: Turkey started this race with a clear advantage.
1960 Initial Equilibrium: Spent Capital of Potential
| Indicator | Turkey | South Korea |
| Per Capita Income | ~550 USD | ~160 USD |
| Industrial Infrastructure | Relatively developed | Limited |
| State Institutional Capacity | Relatively strong | Post-war weakness |
| Share of Agriculture in the Economy | High | Very high |
In 1960, Turkey's per capita income was about three times that of South Korea. Turkey had institutional memory thanks to its bureaucratic state tradition inherited from the Ottoman Empire. South Korea, on the other hand, was a country struggling to survive on the ruins of war.
But the history of development is not the history of advantages, but of how advantages are used. Turkey failed to turn this advantage into a production strategy. South Korea turned its disadvantage into a disciplined development strategy.
The basic political reality that emerges at this point is this:
Development is a matter of political mentality before economic resources.
Turkey was economically strong but strategically indecisive. South Korea was economically poor but strategically built a radical state mind.
The Political Definition of Development: Economic Policy or State Doctrine?
Post-1961 South Korea defined development not as an economic program but as a national security doctrine. The state became the manager, not the arbiter, of the market.
The concrete reflection of this preference is clearly visible in industrial policies:
| Policy Area | South Korea | Turkey |
| Industry Planning | Long-term sector selection | Plan is there, implementation is weak |
| Credit Policy | State-controlled industrial finance | Dispersed financing |
| Export Strategy | Performance-based incentives | Delayed implementation |
| Technology Transfer | Mandatory technology acquisition | No systematic policy |
This picture shows not only an economic difference but also a difference in state philosophy.
The South Korean government asked the question:
“How do we strengthen the country?”
The Turkish state, on the other hand, has often been caught in this problem:
“How do we manage the economy?”
The difference between these two questions determines the fate of development history.
In Turkey, planning remained a technical bureaucratic activity. In South Korea, planning has become the raison d'être of the state.
States that write plans can grow.
States that implement the plan develop.
Political Instability: The Silent Killer of Development
The 1960-1980 period was not only a period of political crises for Turkey; it was also a period in which the development strategy was constantly interrupted.
| Alan | Turkey | South Korea |
| Development Policy Continuity | Intermittent | Continuous |
| Industrial Planning Discipline | Limited | High |
| Export Strategy | Delayed | Implemented early |
With the interventions of 1960, 1971 and 1980, Turkey not only experienced regime debates but also lost its economic memory. Each political rupture meant a rewriting of industrial policy.
States gain continuity not only through constitutions but also through the memory of economic policy. Turkey has failed to preserve this memory.
In South Korea, authoritarian periods were democratically contested, but industrial strategies were not interrupted. This reveals an uncomfortable but inescapable truth:
Political crises do not delay development.
Institutional discontinuity kills development.
Turkey's main problem was not the coups, but the institutional ruptures created by them.
Industrialization, No Strategic Industry
In the mid-1970s, the difference between the industrial structure of the two countries began to become apparent.
| Industry Indicator (1975-1980) | Turkey | South Korea |
| Technology Intensity | Low-Medium | Medium-High conversion |
| Export Structure | Agriculture and low technology | Electronics, shipping and automotive |
| Government-Industry Coordination | Weak | Powerful |
Turkey industrialized. Factories were established. Production increased. However, industrialization did not evolve into technology transformation.
Turkey increased production but failed to change the quality of production.
South Korea changed production and shaped the world market.
This difference is not only a difference in economic policy. This difference is the nature of the state's relationship with capital.
Industry in Turkey has grown mostly through the stimulus economy.
In South Korea, industry grew with performance discipline.
Incentives expand industry.
Discipline transforms industry.
The Political Economy of Growth: Consumption or Production?
Growth models in the 1960-1980 period set the two countries on different paths.
| Growth Model | Turkey | South Korea |
| Source of Growth | Domestic demand and public expenditures | Exports and industrial production |
| Foreign Trade Balance | Open trend | Excess tendency |
| Technological Independence | Limited | Increasing |
Turkey has sustained growth through consumption and public spending. This model produces a feeling of prosperity in the short run. But in the long run it creates foreign debt and current account deficits.
South Korea built growth on production discipline. This model requires sacrifice in the short run but produces technological dominance in the long run.
The critical political reality here is this:
The consumption economy produces voter satisfaction.
The production economy generates national power.
Turkey has politically chosen the former. South Korea has historically chosen the latter.
The First Twist of Fate on the Way to 1980
By 1980, the income gap between Turkey and South Korea was not dramatic. But the direction of development was clear.
Turkey has started to get stuck in the middle technology production band.
South Korea has begun to transform into a technology-based industrial state.
This period is historically the most critical but least recognized turning point. Because countries are often left behind not by crises but by wrong strategic choices.
Turkey has entered an economic model that is growing but not transforming.
South Korea has turned growth into a development strategy.
And the first great judgment in the history of development was written here:
A country does not fall back because it loses its resources.
A country falls behind because it loses its strategic mind.
The Technological Leap, the R&D State and the Disciplining of Capitalism (1980-2000)
The 1980s were not only a period of trade liberalization in the world economy. It was the turning point in the transition from industrial capitalism to technology capitalism. Globalization, the expansion of financial markets and the rise of digital technologies radically changed the source of economic power.
Turkey and South Korea entered this historical transformation at the same time.
But their political and economic response to this transformation irreversibly separated the destinies of the two countries.
Post-1980 Economic Orientation: Adaptation or Power Building?
| Alan | Turkey | South Korea |
| Reform Priority | Financial liberalization | Industry and technology transformation |
| Export Strategy | Volume increase | Increased value added |
| Role of the State | Withdrawing from the economy | Driving the economy |
| Technology Policy | Secondary field | National security domain |
Turkey integrated into the global economy with the January 24th decisions. Exports increased, foreign trade expanded and the economy was opened to the international financial system.
However, Turkey tried to manage globalization through financial expansion, not to increase its productive power. Turkey integrated into the world economy but failed to integrate into the world production system.
South Korea used globalization for technology transfer and industrial transformation. Foreign trade became not just a means of earning foreign exchange, but a compulsory training ground for competitive discipline.
The intellectual truth that emerges here is clear:
Globalization is an opportunity for everyone.
But it only generates power for states that can strategize.
R&D Regime: The Invisible Constitution of Development
Technology production is not the result of economic growth, but of planned state intervention. The period 1980-2000 is the period when this fact is most clearly seen.
R&D Expenditures / GDP
| Year | Turkey | South Korea |
| 1985 | %0,3 | %1,5 |
| 1995 | %0,4 | %2,2 |
| 2000 | %0,5 | %2,5 |
By the end of the 1990s, South Korea's R&D investment reached about 5 times that of Turkey.
This data reveals not only the economic investment gap but also the development mentality.
South Korea saw R&D as the cause of growth, not the result of growth. Turkey, on the other hand, saw R&D as a luxury expenditure that can be made if growth is realized.
And this is where the harshest rule in the history of development comes into play:
Economies that do not produce knowledge can produce.
But manufacturing economies remain dependent if they do not produce knowledge.
Response to Crises: Development Reflex
The 1997 Asian financial crisis created a severe economic shock for South Korea. Banks failed, companies struggled, growth plummeted. But South Korea used the crisis as an opportunity for industrial restructuring, not financial contraction.
During the crises of 1994 and 2001, Turkey focused mainly on financial stabilization programs.
This difference reveals a critical mindset distinction:
| Crisis Management | Turkey | South Korea |
| Crisis Strategy | Financial stabilization | Industry transformation |
| R&D Policy | Expenditures limited | Expenditures protected |
| State Intervention | Stability priority | Prioritizing competitiveness |
Turkey comes out of crises. South Korea emerges from crises stronger.
This difference is not a difference in economic policy but in state reflexes.
Patent Generation: A Tangible Measure of Innovation Culture
Patent production shows whether countries produce technology, not just whether they manufacture.
Patent Applications
| Year | Turkey | South Korea |
| 1985 | ~1.000 | ~10.000 |
| 1995 | ~2.000 | ~80.000 |
| 2000 | ~3.000 | ~120.000 |
In 1995, South Korea's patent production was approximately the same as Turkey's. 40 times has arrived.
This difference is not a capital difference.
This difference is the difference in corporate innovation culture.
In South Korea, an organic production chain was established between the state, university and industry. In Turkey, these three areas have often been disconnected from each other.
Universities that do not produce science cannot provide technology to industry.
Universities that cannot provide technology to industry cannot create development.
Turkey failed to establish this tripartite coordination.
Disciplining Capitalism: Building Industrial Giants
The most tangible indicator of the South Korean model is the emergence of state-sponsored but performance-mandated industrial giants.
Samsung and Hyundai are not just companies. They are extensions of the state's economic mind on the ground.
The South Korean state did not protect these companies. It forced them to face global competition.
Samsung: Building Technology Sovereignty
In the 1980s, the semiconductor and electronics sectors were declared national strategic areas by South Korea.
Samsung's rise was supported by the following policies:
- Low-interest government loans
- Tax advantages
- Mandatory technology transfer
- Export performance requirement
Samsung's Economic Impact as we Approach 2000
| Indicator | Impact |
| Export Share | -20 |
| Semiconductor Production | Global leader |
| R&D Contribution | Most of the country's total |
| Employment | Hundreds of thousands of people |
Samsung's growth is not a free market miracle. It is the result of a state-designed competitive imperative.
Hyundai: From Heavy Industry to Global Industry
Hyundai's rise is the result of the state's heavy industry strategy.
State:
- Hyundai awarded major infrastructure projects
- Access to international financing
- Imposed local engineering obligation
Hyundai's Economic Impact
| Alan | Impact |
| Automotive Exports | Main export engine |
| Ship Industry | Global leadership |
| Heavy Industry | The basis for industrial transformation |
| Global Production | Multinational competition |
These companies grew not through state patronage but through state pressure.
Holdings have grown in Turkey.
Global technology empires were born in South Korea.
This is the difference between incentive capitalism and disciplinary capitalism.
Turkey's Structural Straitjacket
| Problem Area | Situation in Turkey |
| Technology Intensity | Middle technology band |
| R&D Continuity | Weak |
| University-Industry Cooperation | Partial |
| Financial Fragility | 1994 and 2001 crises |
| Industrial Policy | Continuity problem |
Turkey increased its exports after 1980, but failed to transform its production structure. Exports increased, but the depth of technology did not.
Turkey entered the global supply chain but remained at the bottom of the chain.
And the harsh reality of the global economy is this:
Countries that cannot move up the production chain cannot gain power even if they grow.
The Second Historical Break in 2000
| Indicator | Turkey | South Korea |
| Per Capita Income | ~4,300 USD | ~12,000 USD |
| R&D Expenditure | %0,5 | %2,5 |
| Patent Generation | ~3.000 | ~120.000 |
| High Technology Share | Low | Rapidly increasing |
By 2000, the difference is no longer a difference in income.
This difference is the difference in technology production capacity.
South Korea had moved to a knowledge economy.
Turkey remained in the middle rungs of the production economy.
And the second great verdict in the history of development was written here:
Countries that cannot build industry remain poor.
Countries that cannot build technology remain dependent.
Institutional Power, Democracy and the Political Infrastructure of Development (2000-2025)
The 2000s is the period when the development gap between Turkey and South Korea deepened to the extent that it cannot be explained solely by economic indicators. Beyond production capacity the capacity to generate institutional trust is the dawn of an era in which it has become a key determinant of development.
Industrial revolutions make countries richer.
Institutional revolutions make countries strong.
It is precisely at this point that the difference between Turkey and South Korea has become permanent.
The Persistence of the Income Gap: The Growth and Development Divide
Per Capita Income Comparison
| Year | Turkey | South Korea |
| 2000 | ~4,300 USD | ~12,000 USD |
| 2010 | ~10,500 USD | ~22,000 USD |
| 2024 | ~13,000 USD | ~33,000 USD |
This table shows that the gap between the two countries has not only widened but has become structural.
Turkey has experienced periods of significant growth after 2000. However, this growth has not been sufficiently reflected in productivity growth and technology transformation.
South Korea has transformed growth into production quality, innovation capacity and global brand power.
This is where the critical intellectual distinction emerges:
Growth generates numbers.
Development generates power.
For many years, Turkey considered growth synonymous with development. This approach has been one of the most important mental barriers keeping Turkey at the middle income threshold.
The Nature of Exports: The Hierarchy of Global Power
2024 Export Structure Comparison
| Indicator | Turkey | South Korea |
| Total Exports | ~255 billion USD | ~680 billion USD |
| High Technology Share | %3-4 | -30 |
| Current Account Balance | Chronic deficit | Usually too much |
Turkey has managed to increase its export volume. However, the technology intensity of exports remained limited.
Turkey is largely stuck in the middle technology production band.
South Korea has built its exports on technology, brand value and engineering strength.
This difference is not only economic but also geopolitical power.
Technology exporting countries set the global rules.
Countries importing technology follow these rules.
Turkey has remained in an economic model that produces but cannot design technology. This has led to a chronic current account deficit.
R&D and Innovation: The Foundation of the Knowledge Economy
R&D Expenditures / GDP
| Country | Ratio |
| Turkey | %1,3 |
| South Korea | %4,8 |
South Korea has reached a level in R&D investments about four times that of Turkey.
This difference is not only the size of the budget. It is the difference in the political meaning the state attributes to science and technology.
In South Korea, R&D is seen as an area of national sovereignty.
In Turkey, R&D has often been treated as a by-product of economic growth.
Patent Generation
| Country | Annual Patent |
| Turkey | ~12.000 |
| South Korea | ~200.000 |
The number of patents measures not only the production capacity of countries, but also their culture of knowledge production.
In South Korea, universities have become not only educational institutions but also technology production centers. Industry is the main carrier of R&D investments. The state is the strategic coordinator managing this system.
Turkey has failed to establish structural coordination between universities, industry and the state.
Universities that do not produce science cannot transform industry.
Countries that cannot transform industry cannot make a development leap.
Democracy, Rule of Law and Investment Confidence
The most invisible but most powerful element of economic development is institutional trust.
Corporate Trust Indicators
| Indicator | Turkey | South Korea |
| Democracy Index | Hybrid regime | Full democracy |
| Rule of Law | Middle-lower | High |
| Investment Confidence | Wavy | Powerful |
Long-term technology investments require trust, not just capital. Legal predictability determines the time horizon of investment.
South Korea pursued democratization in parallel with economic reforms. Institutional trust has become the mainstay of the innovation economy.
In Turkey, political volatility has weakened the continuity of economic strategies.
Institutional uncertainty drives capital towards short-term gains.
Short-term capital does not produce technology.
Labor Productivity and the Welfare State
Social Welfare Comparison
| Indicator | Turkey | South Korea |
| Labor Efficiency | Low | High |
| Inflation | Wavy | Low |
| Real Wage Increase | Limited | Stable |
| Income Distribution | Prone to deterioration | More balanced |
South Korea supported industrialization with educational reforms and welfare state policies, placing human capital at the heart of the production economy.
In Turkey, on the other hand, periods of growth have had a limited impact on welfare growth. Productivity growth has not been sustainable.
Development is not only about increasing national income.
Development is the capacity to create a productive society.
Social Development Consensus
South Korea has built a strong strategic alliance between the state, the private sector and society in its development process. Education, technology and manufacturing became national goals.
There were political changes. But industrial and technology policies remained intact.
In Turkey, economic policies have often become a tool of political competition. Development strategies changed direction depending on government cycles.
Long-term industrial investments cannot be sustained by short-term political calculations.
The Natural Resource Paradox
Turkey has the advantages of a young population, strategic geography and natural resources. Despite this, its sustainable development performance has been limited.
South Korea compensated for its lack of natural resources with technology production.
This confirms one of the harshest truths in the development literature:
Resources do not create wealth.
Institutional capacity creates wealth.
The Structural Picture by 2025
| Alan | Turkey | South Korea |
| Economic Model | Medium technology production | High-tech economy |
| Corporate Trust | Wavy | High |
| R&D Ecosystem | Developing | Global leader |
| Welfare State | Limited | Powerful |
Turkey still has high economic potential. But potential alone does not produce development.
Potential remains only an untapped opportunity when it is not coupled with strategic state wisdom.
And the third great verdict in the history of development is written here:
Economies grow with investment.
States grow with trust.
Why Development is a Matter of Political Choice The History Turkey Missed
The development gap between Turkey and South Korea has now gone beyond a discussion of economic performance. This difference is the result of the historical struggle between the power of the state mind and political preferences.
In the 1960s, Turkey had an economic advantage. By 2025, South Korea is ahead of Turkey in terms of technology, prosperity and institutional capacity.
This difference is neither coincidence nor fate.
This difference is the history of preferences.
Political Anatomy of the Development Model
1960-2025 Strategic Comparison
| Alan | Turkey | South Korea |
| Development Strategy | Volatile and cyclical | Long-term and disciplined |
| State Capacity | Partial | Strategic and coordinated |
| Technology Policy | Secondary field | National security policy |
| Corporate Trust | Wavy | High |
| Development Consensus | Weak | Powerful |
South Korea has made development a state doctrine, not a government policy. Turkey has often conducted development as an extension of electoral economics.
Development requires continuity.
Electoral politics disrupts continuity.
Turkey's biggest break is not economic, but strategic memory break.
Populism and Development Conflict
For many years, economic growth in Turkey has been used as a means of generating political legitimacy. This has led to a deliberate blurring of the distinction between growth and development.
Growth Dynamics
| Growth Source | Turkey | South Korea |
| Domestic Consumption | High | Controlled |
| Public Expenditures | High | Strategic |
| Export and Production | Middle | Very high |
| Technology Generation | Limited | Strategic |
Consumption-based growth produces political success.
Production-based growth generates national power.
Turkey has politically favored short-term welfare redistribution. South Korea has historically favored long-term production discipline.
Populism is not just political discourse. Populism is an economic model that erodes the development strategy for the sake of short-term interests.
Institutional Continuity: A Measure of State Wisdom
Industrial and Technology Policy Continuity
| Indicator | Turkey | South Korea |
| Policy Continuity | Depends on the change of government | State policy |
| Industrial Planning Discipline | Wavy | High |
| Education-Technology Integration | Limited | Powerful |
In South Korea, governments changed, but the development strategy did not. In Turkey, each political era has redefined the economic direction.
The greatest power of the state is not its laws, but its continuity.
Turkey has failed to build this continuity.
Middle Income Trap: The Economic Expression of Structural Stagnation
Technology Intensity Comparison
| Indicator | Turkey | South Korea |
| High Technology Exports | %3-4 | -30 |
| R&D Expenditure | %1,3 | %4,8 |
| ~12.000 | ~200.000 |
These data show that Turkey has been able to grow but has not been able to transform its production structure.
The middle income trap is not only an economic problem.
The middle income trap is the fate of states that cannot make strategic decisions.
Why Turkey has not been able to establish this model?
The answer to this question lies not only in economic policies but also in the culture of political economy.
In Turkey, the state has often focused on managing economic growth. The South Korean state designed economic transformation.
Politics in Turkey centered on short-term welfare distribution. South Korean politics centered on the discipline of national development.
In Turkey, economic institutions remained vulnerable to political fluctuations. In South Korea, economic institutions have become a state reflex.
This difference is not a difference of leadership.
This difference is a system design difference.
Missed Lessons for Turkey
Turkey still has a strong manufacturing infrastructure, a young population and a strategic geography. But these advantages alone do not produce development.
Mandatory Transformation Areas
- Absolute establishment of the rule of law
- Increasing R&D expenditures to at least %3
- Institutionalization of university-industry-government integration
- Making long-term industrial policies a supra-governmental state strategy
- Restructuring the education system according to its technology production capacity
Turkey cannot transform its production model without these reforms.
Relationship between Development and Democracy
The South Korean experience has shown that development can be sustained not only through economic planning but also through institutional trust and democratic control.
Innovation cannot flourish without scientific freedom.
There can be no investment confidence without judicial independence.
Development cannot be sustained without institutional balance.
Turkey's development problem is not only a problem of economic policy. Turkey's development problem is a problem of building institutional trust.
Final Political Outcome
The difference between Turkey and South Korea:
- Source is not different
- It is not a difference in culture
- Geography is not the difference
This is the difference;
- State of mind is the difference
- Strategic patience is the difference
- Institutional discipline is the difference
- Political courage is the difference
Turkey had an advantage in the 1960s.
In 2025, South Korea became a technology state.
This transformation is not a miracle.
This transformation is the result of planning, discipline and decisive state will.
Turkey still has potential. But potential is only a statistical possibility if it is not combined with strategic wisdom.
And the harshest truth in the history of development is this:
States fall behind not because of lack of resources, but because of lack of vision.
Turkey's main problem has never been lack of means.
Turkey's main problem has been political choices that have delayed development.
And history does not forgive states that delay development.