World Business | Asia | Asia Business | South Korea

Economy - overview:
Since the early 1960s, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. Four decades ago GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, it joined the trillion dollar club of world economies. Today its GDP per capita is 14 times North Korea's and equal to the lesser economies of the European Union. This success through the late 1980s was achieved by a system of close government/business ties, including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-99 exposed longstanding weaknesses in South Korea's development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. Growth plunged to a negative 6.9% in 1998, then strongly recovered to 9.5% in 1999 and 8.5% in 2000. Growth fell back to 3.3% in 2001 because of the slowing global economy, falling exports, and the perception that much-needed corporate and financial reforms had stalled. Led by consumer spending and exports, growth in 2002 was an impressive 7.0%, despite anemic global growth. Economic growth fell to 3.1% in 2003 because of a downturn in consumer spending and recovered to an estimated 4.6% in 2004 on the strength of rapid export growth. The government plans to boost infrastructure spending in 2005. Moderate inflation, low unemployment, an export surplus, and fairly equal distribution of income characterize this solid economy.
 

Agriculture - Products
rice, root crops, barley, vegetables, fruit; cattle, pigs, chickens, milk, eggs; fish

Airlines
Airlines in Asia
Airlines Worldwide

Airports
Airports in Asia
Airports Worldwide

Country Budget
revenues: $150.5 billion
expenditures: $155.8 billion, including capital expenditures of NA (2004 est.)

Currency (code): South Korean won (KRW)

Currency Exchange Rates
South Korean won per US dollar - 1,145.3 (2004), 1,191.6 (2003), 1,251.1 (2002), 1,291 (2001), 1,131 (2000)

Fiscal Year: calendar year

GDP (Gross Domestic Product)
GDP (purchasing power parity):  $925.1 billion (2004 est.)
GDP - real growth rate:  4.6% (2004 est.)
GDP - per capita:  purchasing power parity - $19,200 (2004 est.)
GDP - composition by sector:
agriculture: 3.2%
industry: 40.4%
services: 56.3% (2004 est.)

Imports / Exports
Korea Importers Association (KOIMA): (English, Chinese Versions Available)
Korea International Trade Association (KITA): International Trade. Manufacturer, Exporter, All about Korea trade
 
Exports:  $250.6 billion f.o.b. (2004 est.)
Exports - commodities:  semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships, petrochemicals
Exports - partners:  China 19.7%, US 17%, Japan 8.6%, Hong Kong 7.2% (2004)

Imports:  $214.2 billion f.o.b. (2004 est.)
Imports - commodities:  machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, plastics
Imports - partners:  Japan 20.6%, China 13.2%, US 12.9%, Saudi Arabia 5.3% (2004)

Industries
electronics, telecommunications, automobile production, chemicals, shipbuilding, steel

Institutes
Korea Economic Institute of America (KEI): (In English)
Korea Institute for International Economic Policy (KIEP): (English Version Available)
 
Investing
Forex, Foreign Exchange Market: Currency Trading

Labor Force & Unemployment Rate
Labor force:  22.9 million (2004 est.)
Labor force - by occupation:  agriculture 8%, industry 19%, services 73% (2004 est.)
Unemployment rate:  3.6% (2004 est.)