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An independent kingdom for much of its long history, Korea was occupied by Japan beginning in 1905 following the Russo-Japanese War. In 1910, Tokyo formally annexed the entire Peninsula. Korea regained its independence following Japan's surrender to the US in 1945. After World War II, a democratic-based government (Republic of Korea, ROK) was set up in the southern half of the Korean Peninsula while a communist-style government was installed in the north (Democratic People's Republic of Korea, DPRK).

The Korea Development Institute is an autonomous policy-oriented research organization founded in 1971. KDI was established by the Korean government as an economic think tank to provide a rigorous academic perspective on the various economic policy issues that had arisen during Korea’s rapid growth and development in the 1960s. Since then, the scope of KDI’s activities has grown, and it is now called upon to provide expert analysis and advice on all aspects of long- and short-term government policies in areas ranging from domestic economic policy to international trade and investment.

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