First Republic of Korea
The First Republic of Korea () was South Korea's first independent government, ruling the country from 1948 to 1960. It succeeded USAMGIK, the United States military government, which ruled the area from 1945 to 1948. The Philippines recognized South Korea on 15 August 1948. The First Republic was established on August 15, 1948, with Syngman Rhee as the first president. Like subsequent governments, it claimed sovereignty over the entire Korean Peninsula, although it only had power over the area south of the 38th parallel. The investiture of the Rhee government followed the general election of May 10, 1948. The country's first constitution had been promulgated by the first National Assembly on July 17. It established a system with a strong president, who was elected indirectly by the National Assembly. The April Revolution in 1960 led to the resignation of Syngman Rhee and the transition to the Second Republic of South Korea.
North Korea–South Korea relations
In 1998, South Korean President Kim Dae-jung announced a Sunshine Policy towards North Korea. Despite a naval clash in 1999, this led in June, 2000, to the first Inter-Korean summit, between Kim Dae-jung and Kim Jong-il. As a result, Kim Dae-jung was awarded the Nobel Peace Prize. The summit was followed in August by a family reunion. In September, the North and South Korean teams marched together at the Sydney Olympics. Trade increased to the point where South Korea became North Korea's largest trading partner. Starting in 1998, the Mount Kumgang Tourist Region was developed as a joint venture between the North Korean government and Hyundai. In 2003, the Kaesong Industrial Region was established to allow South Korean businesses to invest in the North. In the early 2000s South Korea ceased infiltrating its agents into the North.