Capitalist economic relations were considered "free" because of what?

Capitalist economic relations were considered free because private individuals or businesses were given the freedom to choose what goods and services they would want to market or produce, where they would want to invest, and at what prices should they set on their goods and services, depending of course, on the supply and demand of the economic market.

Korea was permanently divided after World War II. Where in Korea did this division take place and who occupied each of the sections?