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A slice of Germany in South Korea
South Korea’s famous German Village is a small coastal town on Namhae Island, at the southern tip of the peninsula. Known for its white-and-red German-style housing, this tiny community attracts over tens of thousands of visitors annually.
The town has blue-ribbon award-winning restaurants, bakeries, and beer halls, but is most famous for its annual beer festival modeled after Munich’s Oktoberfest. However, Namhae’s German Village is more than just a fun tourist hotspot. The idyllic village might frequently top the list of ‘must-visit’ locations in South Korea, but its history harkens back to a darker time in Korea’s past. The quaint European district was created as a retirement community for Koreans who were sent abroad to supply labor to West Germany in the 1960s.
Post-war Korea
After the Korean War, South Korea was in ruins. It had been decimated by three years of brutal warfare, where South Korean territory had been pushed back to Busan before regaining ground & agreeing to a ceasefire. In the late 1950s, Korea’s economy was practically non-existent, and corruption ran rampant. A military coup led by Park Chung-hee in 1962 further destabilized Korea in the eyes of the world. One British journalist famously commented on Korea’s seeming bleak future, stating, “expecting democracy to bloom in Korea was like expecting a rose to bloom in a trash can.” Democracy would come slowly, hard-earned after Korea’s unexpected economic 180.
In desperate need of funding to rebuild the nation, South Korea turned to the world for investment and found unlikely support.
West Germany agreed to lend South Korea 150 million German marks, but the deal hit a snag before it could be signed. The loan required a bank guarantee that a destitute Korea couldn’t secure. West Germany proposed an unusual solution to the dilemma. Human labor collateral.
In the 1960s, West Germany was beginning to experience a post-war economic boom, but found itself in desperate need of labor. Korea and West Germany found common ground as divided nations and devised a mutually beneficial scheme to rebuild their countries together.
The two governments forged an alliance - a bilateral agreement to trade skilled labor for foreign currency & developmental investments in Korea. Between 1963 and 1979, Korea would send 20,000 men and women to West Germany to work for an initial 3-year period, and in exchange, Korea would receive an advance on the workers’ future wages to invest in rebuilding the war-torn nation.
The labor begins
Starting in 1963, roughly 8,000 Korean men were sent to West Germany to work as miners. Just three years later, approximately 11,000 women followed suit to begin working as nurses. Despite the obvious economic benefits and excitement of starting a new life abroad. Many of the Korean youths found themselves dealing with homesickness, language barriers, and discrimination; their struggles included many physical hardships as well. Both men and women found themselves saddled with overwhelming workloads and questionable working conditions. The miners found themselves 1000 meters underground, working in hot, narrow tunnels under the constant risk of collapse. Ultimately, 27 young Korean men were lost to the mines. 2 miners and 19 nurses took their own lives during the course of the program.
Their struggles weren’t for naught. According to the memorial museum in Namhae’s German Village, remittances at one point accounted for 2% of Korea’s GDP, bringing in roughly 50 million dollars annually.
As a result, Korea was able to use the funds earned by workers it sent abroad to help build critical infrastructure and invest in its populace. This sacrifice made by the young 20,000 is an early contributing factor to the Miracle on the Han River - an apt expression for the massive economic growth that drove an impoverished nation to the highly industrialized Korea we see today.
Return to Korea
Namhae’s German Village was built as a retirement village for the youth that Korea had sent to labor abroad 40 years ago. Of the 20,000 workers sent abroad, roughly ⅓ remained in Germany, ⅓ returned to Korea after their contracts ended, and the remaining ⅓ continued living abroad but left Germany after their contracts expired. Namhae’s government offered land development and subsidies to encourage the return of Koreans who had remained in Germany. Construction began in 2001, and residents began moving into the community in 2002, importing many of their own building materials from Germany and building their homes themselves.
While the government initially promised proper infrastructure, some residents report that only basic infrastructure was provided. The promised hospital never materialized, and the community size has begun to dwindle. While most of the original residents have since moved out of Namhae, a few still remain and continue to promote German culture in the southern tip of Korea.
At Daebak, we’re passionate about sharing Korean culture with the world. Beyond the glamour and bright lights of Seoul, we’re looking to connect you with the facets of culture that make Korea truly unique. If you’re looking to learn more about Korean history, cultural insights, or want to stay up to date with the latest trends in Korea, be sure to explore our other blogs.
