[Planning] ③ Construction of Highways and the Saemaeul Undong Movement

History of the Cement Industry in Korea

The scene of the 1st ACPAC (Asian Cement Producing Countries Representatives Meeting) in 1974.
[Photo by Korea Cement Association]

[Asia Economy Reporter Kim Jong-hwa]South Korea is the world's 12th largest cement producer with an annual production scale of about 60 million tons. In terms of cement technology, it has been recognized as an advanced cement country, exporting production technology overseas since the 1980s. However, the public is not fully aware of the status of Korea's cement industry. Although it played a key role as a national infrastructure industry during the economic development period of the 1960s and 1970s, it became stigmatized as a polluting industry damaging the environment in the 2000s, distancing it from public interest. Recently, the cement industry is undergoing a transition to an eco-friendly industry. This series of 10 articles reexamines the history of Korea's cement industry, which is transforming from an ugly duckling into a swan.[Editor's note]

The cement industry served as a driving force behind the expansion of social overhead capital such as highways, dams, bridges, and ports, as well as various construction projects during the first and second five-year economic development plans. It also led domestic industrial production alongside fertilizer, textile, and steel industries, and significantly contributed to the development of secondary cement products, the ready-mixed concrete industry, and concrete manufacturing technology.

While the 1960s focused on quantitative growth, the 1970s pursued balanced growth in both quantity and quality, making significant progress in technology development and environmental improvement. During this period, production capacity increased from 6.92 million tons in 1971 to 23.46 million tons in 1982, a 3.4-fold increase; production (clinker) rose from 6.64 million tons to 19.06 million tons, a 2.9-fold increase; domestic demand grew from 6.1 million tons to 14.3 million tons, a 2.3-fold increase; and exports surged from 1.09 million tons to 5.6 million tons, a 5.1-fold increase.

In terms of international standing, production climbed from 20th in the world in 1971 to 12th in 1981, and cement exports jumped from 11th in 1971 to 4th in 1981. However, it was not all glorious. Due to the end of U.S. economic aid and persistent high interest rates caused by global inflation, domestic and international conditions worsened, prompting the government to shift to a 'stabilization and austerity policy,' which also impacted the cement industry.

As a result of the economic downturn, the domestic cement consumption growth rate slowed. Policies restricting the construction of high-rise buildings continued, dampening private sector construction enthusiasm. The domestic demand growth rate, which had been 30-40% over the past two to three years, slowed to 25% in 1970 and 15% in 1971.

Feeling uneasy about the slowdown in domestic cement demand growth, each cement producer resorted to dumping sales. Due to lack of preparation for the recession, Dongyang Cement filed for court receivership, and Daehan Cement was absorbed and merged into Ssangyong Cement in 1975, causing a major shake-up in the industry.

Meanwhile, in the 1970s, domestically produced cement gained recognition overseas and received high evaluations, leading to an increase in countries wishing to import it and thus an increase in export volumes. This raised the need for active exchanges such as information sharing and forming consultative bodies to pursue mutual benefits among exporting countries.

The Korea Cement Association took the lead in international exchanges by hosting the first ACPAC (Asian Cement Producers' Conference) in Seoul in 1974 to pursue mutual benefits and strengthen cooperation among Asian cement-producing countries. Korea's active participation in such international cooperative organizations can be seen as a result of the rising international status of its cement industry.

The scene during the Saemaeul Undong movement in the 1970s.
[Photo by Korea Cement Association]

The Saemaul Undong (New Village Movement) was also a significant event characterizing Korean society in the 1970s. In 1970, President Park Chung-hee initiated the Saemaul Movement based on self-help and self-reliance to support flood victims and rural reconstruction. In 1971, 335 bags of cement were uniformly and freely supplied to 33,267 administrative villages nationwide, allowing each village to autonomously carry out projects they wished to pursue.

As a result, in 16,600 villages where residents completed their desired projects through their own efforts and funds using the government-supplied cement, an additional 500 bags of cement and 1 ton of rebar were provided free of charge to encourage voluntary cooperative efforts. This led the Saemaul Movement to expand and develop into a modernization movement for the entire Korean society, and domestic cement demand began to increase steadily.

A representative from the Korea Cement Association explained, "The 1970s can be summarized by the hosting of the first ACPAC in Seoul, which elevated the international status of Korea's cement industry, and the Saemaul Movement. The Saemaul Movement expanded into a modernization movement for Korean society as a whole, increasing domestic cement demand and becoming a driving force for industrial development."

This content was produced with the assistance of AI translation services.