Economy

Economy—overview: As one of the Four Dragons of East Asia South Korea has achieved an incredible record of growth. Three decades ago its GDP per capita was comparable with levels in the poorer countries of Africa and Asia. Today its GDP per capita is eight times India's 15 times North Korea's and already up with 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 1997/98 exposed certain longstanding weaknesses in South Korea's development model including high debt/equity ratios massive foreign borrowing and an undisciplined financial sector. Also a number of private sector conglomerates are near bankruptcy. At yearend 1997 an international effort spearheaded by the IMF was underway to shore up reserves and stabilize the economy. Growth in 1998 will be sharply cut. Long-term growth will depend on how successfully South Korea implements planned economic reforms that would bolster the financial sector improve corporate management and open the economy further to foreign participation.

GDP: purchasing power parity $1.206 trillion (2007 est.)

GDP—real growth rate: 4.9% (2007 est.)

GDP—per capita: purchasing power parity $24,600 (2007 est.)

GDP composition by sector:

agriculture: 3.2%

industry: 39.6%

services: 57.2% (2007 est.)

Inflation rate ”consumer price index: 2.5% (2007)

Labor force:

total: 20 million

by occupation: services and other 52% mining and manufacturing 27% agriculture fishing forestry 21% (1991)

Unemployment rate: 2% (1996)

Budget:

revenues: $101 billion

expenditures: $101 billion including capital expenditures of $20 billion (1996 est.)

Industries: electronics automobile production chemicals shipbuilding steel textiles clothing footwear food processing

Industrial production growth rate: 8.2% (1996)

Electricity—capacity: 31.665 million kW (1995)

Electricity—production: 174.52 billion kWh (1995)

Electricity—consumption per capita: 3 831 kWh (1995)

Agriculture—products: rice root crops barley vegetables fruit; cattle pigs chickens milk eggs; fish catch of 2.9 million metric tons seventh largest in world

Exports:

total value: $129.8 billion (f.o.b. 1996)

commodities: electronic and electrical equipment machinery steel automobiles ships; textiles clothing footwear; fish

partners: US 17% EU 13% Japan 12% (1995)

Imports:

total value: $150.2 billion (c.i.f. 1996)

commodities: machinery electronics and electronic equipment oil steel transport equipment textiles organic chemicals grains

partners: US 22% Japan 21% EU 13% (1995)

Debt—external: $154 billion (1998 est.)

Economic aid: $NA

Currency: 1 South Korean won (W) = 100 chun (theoretical)

Exchange rates: South Korean won (W) per US$1—1 706.80 (January 1998) 951.29 (1997) 804.45 (1996) 771.27 (1995) 803.45 (1994) 802.67 (1993)

Fiscal year: calendar year