Korea, South Economy 2008

Economy - overview:
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):
$1.206 trillion (2007 est.)

GDP (official exchange rate):
$823.8 billion (2007 est.)

GDP - real growth rate:
4.8% (2007 est.)

GDP - per capita (PPP):
$24,600 (2007 est.)

GDP - composition by sector:
agriculture: 3.2%
industry: 39.5%
services: 57.2% (2007 est.)

Labor force:
24.01 million (2007 est.)

Labor force - by occupation:
agriculture: 8.8%
industry: 18.3%
services: 72.9% (2006)

Unemployment rate:
2.9% (2007 est.)

Population below poverty line:
15% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 25% (2005 est.)

Distribution of family income - Gini index:
35.1 (2006)

Inflation rate (consumer prices):
2.5% (2007 est.)

Investment (gross fixed):
29.4% of GDP (2007 est.)

Budget:
revenues: $245.1 billion
expenditures: $241.1 billion (2007 est.)

Public debt:
23.8% of GDP (2007 est.)

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

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

Industrial production growth rate:
7.6% (2007 est.)

Electricity - production:
376 billion kWh (2007 est.)

Electricity - consumption:
352.5 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
17,050 bbl/day (2005)

Oil - consumption:
2.13 million bbl/day (2006)

Oil - exports:
NA (2004)

Oil - imports:
2.41 million bbl/day (2006)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
1.66 billion cu m (2006)

natural gas - consumption:
34.2 billion cu m (2006)

natural gas - exports:
2,450 cu m (2006)

natural gas - imports:
35.86 billion cu m (2006)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Current account balance:
$3.7 billion (2007 est.)

Exports:
$386.6 billion f.o.b. (2007 est.)

Exports - commodities:
semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships, petrochemicals

Exports - partners:
China 21.3%, US 13.3%, Japan 8.1%, Hong Kong 5.9% (2006)

Imports:
$359.5 billion f.o.b. (2007 est.)

Imports - partners:
Japan 16.8%, China 15.7%, US 11%, Saudi Arabia 6.7%, UAE 4.2% (2006)

Economic aid - donor:
ODA, $455.3 million (2006)

Economic aid - recipient:
$68.07 million (2004)

Reserves of foreign exchange and gold:
$271.1 billion (31 December 2007 est.)

Debt - external:
$311.1 billion (30 June 2007)

Stock of direct foreign investment - at home:
$118 billion (2006)

Stock of direct foreign investment - abroad:
$46.8 billion (2006)

Market value of publicly traded shares:
$907 billion (October 2007)

Currency (code):
South Korean won (KRW)

Exchange rates:
South Korean won per US dollar - 927 (2007), 954.8 (2006), 1,024.1 (2005), 1,145.3 (2004), 1,191.6 (2003)