Since independence, the Korea government has actively promoted war reparations to overcome the economic difficulties and get the political support. War reparations, namely compensation to support the economic development of South Korea, have many side effects to obstruct the development of Korea's economy, since it is an unfair compensation and is also Japan's strategic measure to control Korean economy. Although the introduction of war reparations provided the necessary funds for the development of Korean economy to a certain extent, it made Korea economy rely on the Japanese economy for the coverage of the reparations was limited. These characteristics brought negative impact to development of Korea economy later on. Thus, the war reparations is an important case to understand the course of development of Korea economy and economic relationship between Japan and Korea, even the economy strategy of Japan in that times.