South Korea:
Economy

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Other pages in this profile of South Korea:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition Since the 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, South Korea joined the trillion dollar club of world economies. Today its GDP per capita is roughly the same as that of Greece and Spain. This success 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 longstanding weaknesses in South Korea's development model including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. GDP plunged by 6.9% in 1998, then recovered by 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%, despite anemic global growth. Between 2003 and 2007, growth moderated to about 4-5% annually. A downturn in consumer spending was offset by rapid export growth. Moderate inflation, low unemployment, and an export surplus in 2007 characterize this solid economy, but inflation and unemployment are increasing in the face of rising oil prices.
GDP (purchasing power parity)	Definition - World rank and map $1.201 trillion (2007 est.)
GDP (official exchange rate)	Definition $957.1 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 5% (2007 est.)
GDP - per capita	Definition - World rank and map $24,800 (2007 est.)
GDP - composition by sector	Definition agriculture: 3% industry: 39.4% services: 57.6% (2007 est.)
Labor force	Definition 24.22 million (2007 est.)
Labor force - by occupation	Definition agriculture: 7.5% industry: 17.3% services: 75.2% (2007)
Unemployment rate	Definition - World rank and map 3.3% (2007 est.)
Population below poverty line	Definition 15% (2003 est.)
Household income or consumption by percentage share	Definition lowest 10%: 2.9% highest 10%: 25% (2005 est.)
Distribution of family income - Gini index	Definition - World rank and map 35.1 (2006)
Inflation rate (consumer prices)	Definition - World rank and map 2.5% (2007)
Investment (gross fixed)	Definition - World rank and map 28.8% of GDP (2007 est.)
Budget	Definition revenues: $248 billion expenditures: $246.5 billion (2007 est.)
Public debt	Definition - World rank and map 33.4% of GDP (2007 est.)
Agriculture - products	Definition rice, root crops, barley, vegetables, fruit; cattle, pigs, chickens, milk, eggs; fish
Industries	Definition electronics, telecommunications, automobile production, chemicals, shipbuilding, steel
Industrial production growth rate	Definition - World rank and map 7.6% (2007 est.)
Electricity - production	Definition - World rank and map 403.2 billion kWh (2007)
Electricity - consumption	Definition - World rank and map 368.6 billion kWh (2007)
Electricity - consumption per capita	Definition - World rank and map 7,486.9 kWh (2007)
Electricity - exports	Definition 0 kWh (2005)
Electricity - imports	Definition 0 kWh (2005)
Oil - production	Definition - World rank and map 17,050 bbl/day (2005)
Oil - consumption	Definition - World rank and map 2.13 million bbl/day (2006)
Oil - consumption per 1,000 people	Definition - World rank and map 43.3 bbl/day (2006)
Oil - exports	Definition - World rank and map NA bbl/day
Oil - imports	Definition - World rank and map 2.41 million bbl/day (2006)
Oil - proved reserves	Definition - World rank and map 0 bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 1.66 billion cu m (2006)
Natural gas - consumption	Definition - World rank and map 34.2 billion cu m (2006)
Natural gas - consumption per capita	Definition - World rank and map 695 cu m (2006)
Natural gas - exports	Definition - World rank and map 2,450 cu m (2006)
Natural gas - imports	Definition - World rank and map 35.86 billion cu m (2006)
Natural gas - proved reserves	Definition - World rank and map 0 cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map $5.954 billion (2007 est.)
Exports	Definition - World rank and map $371.5 billion f.o.b. (2007)
Exports - commodities	Definition semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships, petrochemicals
Exports - partners	Definition China 25.7%, US 12.3%, Japan 6.8%, Hong Kong 4.5%, Taiwan 4.1% (2007)
Imports	Definition - World rank and map $356.8 billion f.o.b. (2007)
Imports - commodities	Definition machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, plastics
Imports - partners	Definition China 16.7%, Japan 16.4%, US 10.5%, Saudi Arabia 6.3% (2007)
Reserves of foreign exchange and gold	Definition - World rank and map $262.2 billion (31 December 2007)
Debt - external	Definition - World rank and map $220.1 billion (31 December 2007)
Stock of direct foreign investment - at home	Definition $120.7 billion (2007 est.)
Stock of direct foreign investment - abroad	Definition $82.1 billion (2006)
Market value of publicly traded shares	Definition $1.051 trillion (2007)
Economic aid - donor	Definition ODA, $455.3 million (2006)
Economic aid - recipient	Definition $68.07 million (2004)
Currency (code)	Definition South Korean won (KRW)
Exchange rates	Definition South Korean won per US dollar - 929.2 (2007), 954.8 (2006), 1,024.1 (2005), 1,145.3 (2004), 1,191.6 (2003)
Fiscal year	Definition calendar year

South Korea: Economy

South Korea:
Economy