Korean reunification selected the 38th parallel as a dividing line. Japanese troops to the North of this line were to surrender to the Soviet Union and troops to the South of this line would surrender to the United States. This was not originally intended to result in a long-lasting partition, but Cold War politics resulted in the establishment of two separate governments in the two zones in 1948 and rising tensions prevented cooperation. The desire of many Koreans for a peaceful unification was dashed when the Korean War broke out in 1950. In June 1950, troops from North Korea invaded South Korea.
Impact of the Korean War on the economy of the United States tensions with the Soviet Union, the Korean War further increased it. The Korean War cost the US$30 billion in 1953, which is equivalent to US$341 billion in 2011. During the last year of the war, annual war expenditure comprised about 14.1 percent of GDP. Approximately 34,000 Americans were killed in battle and about another 2,800 died from disease or injury, with total US casualties, which includes dead, wounded, and missing in action, adding up to 139,860. The "Korean War GI Bill" was implemented in 1952, eventually covering veterans between June 27, 1950 and February 1, 1955. It offered the same