Syngman Rhee
On July 20, 1948, Rhee was elected president of the Republic of Korea in the South Korean presidential election, 1948 with 92.3% of the vote; the second candidate, Kim Gu, received 6.7% of the vote. On August 15, the Republic of Korea was formally established in South Korea and Rhee was inaugurated as the first President of the Republic of Korea. The next month, on September 9, the north also proclaimed statehood as the Democratic People's Republic of Korea. Rhee himself had been an independence activist, and his relations with the "chinilpa" Korean elites who had collaborated with the Japanese were, in the words of the South Korean historian Kyung Moon Hwang, often "contentious," but in the end an understanding was reached in which, in exchange for their support, Rhee would not purge the elites. In particular, the Koreans who had served in the colonial-era National Police, whom the Americans had retained after August 1945, were promised by Rhee that their jobs would not be threatened by him. Upon independence in 1948, 53% of South Korean police officers were men who had served in the National Police during the Japanese occupation.
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.