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From the time they were divided in 1950 into communist North (which was originally richer) and capitalist South, the two Koreas have diverged sharply. Free markets, and the cultural modernization and democracy they eventually spawned, have transformed South Korea into a dynamo, while the North has crumbled. Although they were recently two halves of the same country, it's now difficult to conceive of two more different societies.
2004 GDP North--$30 billion South--$925 billion Military Spending as % of GDP North--33% ...