Abstract: This book examines the transformation of the independent and isolated Korean economy into a dependent colonial economy during the period between 1876 and 1945, focusing on capital formation, economic development, and structural changes. During this 70-year period, Korea underwent three distinct stages of economic transformation: the traditional economy before the opening of the country to the outside world in 1876, the transitional economy between 1876 and 1904 under its own sovereignty, and the colonial economy under Japan from 1905-1945. This book studies the combination of changing circumstances, approaches, and experiences in the country, such as the propensities to work, produce, invest, save, and entrepreneurship, as well as institutional and economic reforms that took place during the three stages of development. It also investigates the level and distribution of income and consumption (standard of living), which reveal a number of significant patterns and characteristics of capital formation, economic development, and structural changes in the Korean economy.

Keywords: capital formation, economic transformation, structural changes, traditional economy, transitional economy, colonial economy, institutional reforms, economic reforms, entrepreneurship, income distribution