Leading sectors of the economy of South Korea. Korea's Foreign Trade Export Dependency Index south korea
Economic - geographical position of South Korea
The Korean Peninsula closes the northeastern tip of the Asian continent, stretching from north to south for about 800 km, and from west to east - from 132 to 360 km. In the north, the Republic of Korea is separated from the DPRK by a military demarcation line running along approximately 38” north latitude. The southernmost point of the peninsula lies at 33”07”N.
On three sides, the country is washed by the Japanese, East China and Yellow Seas. This geographical position of Korea has left a noticeable imprint on the history, culture and economic development of the country, which has become a bridge for civilization between the continent and Japan.
The total area of the Republic of Korea (hereinafter the Republic of Korea) is 98,500 km2. The capital is Seoul, other large cities: Busan (3.9 million), Daegu (2.5 million), Incheon (Jemulpo) (2.4 million), Gwangju (1.4 million), Daejeon (1.3 million). The population of the Republic of Korea in 2001 is 47.6 million people.
In terms of economic development, the Republic of Korea is classified as a small Asian country with an average level of development in the category of economically developed countries with a market economy. Korea belongs to the countries of the new industrialization of the first wave, which made a big breakthrough in economic development in the last half of the 20th century.
Some indicators:
The total GDP in 2012 was $1129.6 billion.
GDP per capita in South Korea 2012 was $23,052.
State system and territorial-administrative division.
South Korea is a parliamentary republic. The head of state is the president. The constitution was adopted on July 17, 1948, last amended in 1987. Power is divided into executive, legislative and judicial. The executive branch is the government headed by the prime minister. Legislative power is the unicameral National Assembly (Assembly). Judicial - Supreme Court and Courts of Appeal.
South Korea is a unitary state, its territory is divided into provinces.
There are nine of them (Gangwang-do, Gyeonggi-do, Chungcheon-nam-do, Chungcheong-buk-do, Gyeongsang-nam-do, Jeolla-buk-do, Gyeongsang-nam-do, Jeolla-nam-do, Jeju-do), as well as six cities (Seoul, Busan, Incheon, Gwangju, Daejeon, Daegu) are independent administrative units.
Peculiarities of reproduction and distribution of the population.
In terms of population reproduction, the country is on the verge of the first type of reproduction.
The population of the Republic of Korea is one of the most ethnically and linguistically homogeneous in the world. With the exception of a small diaspora (about 20 thousand people) of the Chinese, virtually all Koreans share a common cultural and linguistic heritage.
With a population of over 47 million, Korea has one of the highest population densities in the world (484/sq km). The most densely populated areas are located in the northwest of the country and on the plains south of Seoul-Incheon.
The level of urbanization is high: the urban population makes up the majority of the inhabitants of the Republic of Korea - 81%, the rural population - only 19%.
Availability of natural resources and their distribution
Land resources
There are not many lowlands suitable for agriculture in the country; they are located mainly along sea coasts and in river basins.
The lowlands are covered with alluvial deposits, the fertility of which has made these areas the most densely populated. The Koreans take care of the land: over the millennia, the fields have not only occupied flat areas, but have also risen in terraces along the slopes of the hills.
Water resources
The rivers of Korea are mostly of insignificant length, and their basins are small (as a rule, several hundred or even tens of square kilometers). The major rivers of South Korea include the Hangang (514 km), whose sources are in the territory of the DPRK, the Kymgang (401 km), the Yongsong (713 km), which carry water into the Yellow Sea, and the Naktong (515 km), which flows into the East China Sea. In the east, in the basin of the Sea of Japan, there are practically no large rivers. The economic role of rivers is largely associated with irrigation: more than 70% of rice fields are irrigated with river water. Many rivers have been regulated, dams and dams have been built on them, the function of which is both to prevent floods and to provide irrigation and electricity generation.
forest resources
The vegetation of Korea over a long historical period was not affected by sudden climatic cataclysms and therefore remained practically unchanged from the Tertiary period. Not many forests remain in today's Republic of Korea. They are mostly broad-leaved, consisting of various types of oak, maple, linden, ash, elm, hornbeam. In the extreme south, evergreens such as Japanese camellia, magnolia, evergreen oak, benzoin, and euonymus add an exotic note. In the Republic of Korea, the state monopoly is the cultivation of ginseng.
Animal world
In the Republic of Korea today, there are about 80 species of mammals, including brown and Himalayan bears, wolves, wild boars, gorals, roe deer, martens, hares, etc. About 380 species of birds have been recorded, of which only about 50 are permanent residents of Korea, and others are migratory.
Marine resources
The seas washing the Republic of Korea are rich in plankton and algae, among which kelp, porphyra, alaria, codium, etc. are of economic importance. Some of these algae are traditionally eaten, they are a valuable source of vitamins and microelements: dried porphyry leaves are considered a delicacy. In addition, algae are used for livestock feed and serve as a valuable raw material for a number of industries, including pharmaceuticals.
The seas also abound in fish and marine resources, which have become an essential element of the diet for the ancestors of today's Koreans. The pollock is the most widespread; there is also fishing for flounder, tuna, ivasi, mackerel, and salmon. Korean cuisine delicacies include crabs, shrimps, trepangs, sea urchins, cuttlefish, squids and octopuses, edible mussels, scallops.
Numerous bays and lagoons also provide excellent opportunities for artificial breeding of these and other invertebrate marine animals.
Minerals
The Republic of Korea is rather poor in minerals, and therefore is almost completely dependent on the import of mineral raw materials from abroad.
The reserves of coal - anthracite and lignite - are of industrial importance in the basins of Samcheok - Jeongseon (Gangwon Province) and in the province of Chungcheongdo: these areas account for ¾ of the reserves, the total volume of which is estimated at 1.7 billion tons. The quality of coal is quite low, only 3.5 % of the extracted fuel have a calorific value of over 5200 kcal/kg.
Iron ore reserves are also small (128 Mt) and iron content is low. The main production centers are Yangyang (58%), as well as Chungju, Ulsan, Mulgeum. Deposits of lead-zinc ores (their reserves are 29 million tons) are being developed in the regions of Ponhwa and Sochon (province - Gyeongsangbukto), silver, and gold. They retain the importance of the tungsten deposit (Sandong), the total ore reserves of which are estimated at 34 million tons.
Large reserves of amorphous graphite are concentrated in the provinces of Gangwon-do, Chungcheongnam-do, Gyeongsangbuk-do, and crystalline graphite occurs in the province of Gyeonggi-do. It is also worth mentioning the deposits of high-quality kaolin (Hadong, Gyeongsangnam-do province), talc (Chungju, Chungcheongbuk-do province), limestone, which is available everywhere and serves as a raw material for the cement industry.
Industry of South Korea
The economy of the Republic of Korea is the twelfth economy in the world in terms of GDP. Since 1979, Korea has pursued a policy of economic openness to foreign investors, which has led to large-scale American, Japanese, and Western European investment. By the end of the 1980s, their own Korean conglomerate companies began to seriously compete with Western multinational companies. The country, like Japan, started with the borrowing of foreign technologies of not the first freshness, gradually turned into a rather strong power in scientific and technical terms, producing science-intensive products and launching satellites. The scientific and technical potential of the country is under the special patronage of the government.
In 2012, Seoul invested about $110 billion in the knowledge and technology industry and the development of high-tech industrial centers.
The main branch of material production is industry, 98% of the products of which are produced by manufacturing industries. More than half of their products are supplied by heavy industries, incl. about a third - mechanical engineering. Light industry is dominated by textile (20% of the cost), food and flavoring. The number of mining enterprises is only 5% of the total number of enterprises in the country. The main industry is coal mining, which employs about 60 thousand people.
In addition to coal, the mining industry produces tungsten concentrate, gold, silver, copper, as well as non-metallic minerals - limestone, kaolin, talc, etc.
Extraction of iron ore is concentrated in Yangyang, tungsten - at the Sandong mine (the concentrate is enriched in Daegu).
Thermal power plants have traditionally been the basis of the electric power industry. However, the concern in the country was caused by dependence on oil imports. The share of coal in the energy balance accounted for 34%. At present, active exchange with other countries in the field of science and technology has allowed South Korea to create the basis of nuclear power industry. There are 10 nuclear reactors operating in the country, producing more than half of the total electricity generation.
Ferrous metallurgy is one of the branches of industry specialization: about 40% of the metal is exported to the world market, mainly to the USA and Japan. The Republic of Kazakhstan took the eighth place in the world in steel production (22 million tons in 1989), ahead of, for example, Great Britain and France. The largest plants are located in Pohang and Gwangyang. Domestic demand for the metal is satisfied by approximately 80%. The limiting factor is the need to expand the import of raw materials (purchased 100% coking coal, 80% iron ore and coal).
The significance of non-ferrous metallurgy is not so great: aluminum, lead, zinc, copper (a plant in Chongyang and the Gyeongnam industrial zone), noble metals are smelted. The zone of non-ferrous metallurgy actually took shape in the Onsan region.
Mechanical engineering of South Korea
This industry is the most closely connected with the world economy, since mainly financial resources, technology and components come from abroad, and sales in foreign markets are an incentive for the growth of production in the main industries.
One of the important activities was the establishment of the Changwon Industrial Zone, specializing in mechanical engineering.
The automotive industry has become one of the most rapidly developing sectors of the international specialization of the Republic of Kazakhstan. More than half of the cars are exported to the international market. Cars made in South Korea are beginning to displace their national brands from the European and American markets.
Hyundai (the main production of cars) has factories in Ulsan and Namyang. Other automobile factories are located in the cities of Pupyeong, Busan, Changwon, Gwangmen, Asan, and there are many branches abroad.
The most growing branch of Korean industry specialization is electronics. In the production of electronic products, the country entered the top ten world leaders. And more than half is exported. The production of technologically sophisticated consumer electronics is growing rapidly - video recorders, laser devices, computers and peripheral devices for them, as well as microcircuits.
The location of electronic enterprises gravitates toward large cities along the Seoul-Busan axis, with their strong scientific and technological potential and skilled labor force. In terms of ship production, Kazakhstan ranks second in the world after Japan. And shipbuilding, despite the global decline in this area, still remains one of the pillars of its economy and international specialization.
Large shipyards are located in Ulsan, Busan, Changwon, Okpo, etc. Korea is one of the world's top ten textile producers, with the main part being exported. It is mainly ready-made clothes that are exported abroad, in smaller quantities - fabrics and yarn. Textile industry enterprises are located mainly in large cities: Daegu and Gyeongsangbuk-do province, Seoul and Gyeonggi-do province, Busan and Gyeongsangnam-do province.
According to estimates, the overall level of technological development of South Korea is 40% of the average level of industrialized countries in the West. At the same time, in the last decade, the share of labor costs has decreased, and the role of technology has increased. According to the above indicators, the country approached the level of Japan in the 60s. In general, in terms of the level of economic development, the social structure of the economy, South Korea caught up with the average developed capitalist countries. In 1996, it was admitted to the OECD.
Agriculture
At the beginning of the economic boom in 1963, most South Koreans were farmers. Sixty-three percent of the population lived in rural areas. Over the next twenty-five years, South Korea transformed from an agricultural nation to an urban, almost industrial nation, and the agricultural labor force in 1989 dwindled to 21%. At present, the level of agricultural workers is 19%.
Agriculture in South Korea had a number of inherent problems. South Korea is a mountainous country with only 22% arable land and receives much less rainfall than most other neighboring rice-growing countries.
Major land reform in the late 1940s and early 1950s was to transfer the land into the ownership of the peasants. The plots of land, however, were too small (averaging one hectare, making cultivation inefficient and discouraging mechanization) or too scattered for the family to be able to produce enough food. The huge growth of urban areas resulted in almost no one to work in the agricultural areas, while due to the increase in population, the demand for food products increased. The result of these events was that by the end of the 1980s. about half of the food needed by South Korea, mainly wheat and fodder, had to be purchased from abroad.
At the turn of the century, agriculture was a small percentage of GDP. It employed 1/7 of the working population. After the land reform of 1948, a significant part of the large farms was restructured; at present, small family farms predominate in the country. The main crop - rice, makes up 2/5 of the cost of all manufactured products.
The government purchases most of the crop at stable prices. In addition to rice, barley, wheat, soybeans, potatoes, and vegetables are grown. Pigs and cattle are the backbone of family farms. With government support, fisheries have recently come to the fore. This industry fully meets the needs of the population, and the surplus of fish and seafood is exported. The Republic of Korea is advancing to a leading position in the world as a deep-sea fishing country.
To give a more accurate idea of the productivity of the above sectors of the economy, I will indicate in the table the main most important indicators:
Automotive industry
In South Korea, the automotive industry accounts for 9.4% of total value added, 8.3% of all exports, and employs 7.4% of the country's workforce.
The start of production was laid in the early 1960s, when the first five-year economic plan was adopted. Since then, the South Korean automotive industry has become one of the most important sectors of the economy, showing high growth rates. Now South Korea is the world's fifth largest car manufacturer (its share is 5.4% of world production). The country has five major automotive manufacturers -- Hyundai Motor, Kia Motors, GM Daewoo Auto & Technology, SsangYong Motor Company and Renault Samsung Motors.
In 2002, more than 3.1 million cars were produced in the country, in the same year, sales in the local market amounted to 1.62 million cars, which is 11.8% more than in 2001. Exports remained at the same level (1.5 million cars).
In the long term (by 2010), the South Korean government plans to increase production to 4.25 million vehicles per year and exports to 2.1 million vehicles per year.
Transport
Transport in South Korea is a system of transport communications of the country, such as railways and roads, air and sea routes.
The total length of railways is 6,240 kilometers (of which 525 kilometers are electrified). The six largest cities in South Korea - Seoul, Busan, Daegu, Incheon, Gwangju and Daejeon - have subways. The Seoul Subway is the oldest in the country, the first line from Seoul Station to Cheongnyangni opened in 1974. The total length of highways is 97,252 km, of which 74,641 km are paved. The main ports of the country: Jinhae, Incheon, Kunsan, Masan, Mokpo, Pohang, Busan, Donghae, Ulsan, Yeosu, Sokcho. South Korea's main carriers are Korean Air and Asiana Airlines. Both provide air transportation services both domestically and internationally. Seoul is served by two airports: Incheon and Gimpo Airport. International flights are handled mainly by Incheon Airport, while Gimpo handles mostly domestic flights. Other major airports are located in Busan and Jeju. There are 108 airports in the country.
Key Features of Korea's Financial System
When analyzing the state of the Korean financial system, it is necessary to highlight a number of features: the general underdevelopment of the financial system, and in institutional terms, its special emphasis on the banking sector. In this country, there are practically no such elements of ensuring the stability of the financial system as national deposit insurance, centralized allocation of "problem" financial institutions and supervision over them, etc. A relatively small role is played by the so-called stable conservative investors (national), primarily non-state pension funds and insurance companies.
The instability of the system was also facilitated by numerous barriers widespread in the country, which limited the access of foreign capital to direct control over local firms; under such conditions, most of the investments of foreign investors were of a portfolio nature.
The main state body dealing with the regulation of the financial system is the Ministry of Finance and Economy of Korea, which is actively involved in the development of economic strategy, distributes financial resources between industries and firms, and determines tax and tariff benefits.
The Ministry of Finance and Economy develops new laws and carefully reviews existing ones, and takes many measures to strengthen the national currency, increase savings, expand exports, promote the investment of both domestic and foreign private capital, attract investments and technologies from abroad. The Ministry of Finance and Economy is often asked to take on the risk associated with the investment activities of private entrepreneurs, providing guarantees for external loans used to cover the costs of large-scale projects.
The experience of organizing the financial system of South Korea is very instructive, primarily in connection with the successfully found combination of a strict hierarchy of credit and banking institutions and non-banking financial institutions, clear control over all aspects of money circulation and financial markets.
At the heart of the state credit is the Bank of Korea, whose positions are very large, and its authority is indisputable. The Bank exercises control over the issue of money in circulation, monitors the activities of private banks, issues permits for opening branches of foreign banks, and performs statistical and analytical functions. The system of state banks also includes 7 specialized banks (initially they were state property, since more than half of their capital was paid from public funds). State banks hold about 37% of the country's deposits. Deposit banks include 10 nationwide commercial banks, 10 local banks and 66 foreign bank branches. 5 The concentration of financial and monetary resources in the hands of the state influenced the formation of the basic proportions of social production. At the same time, the main stake was placed on the comprehensive promotion of exports. The state used subsidies for national exporters, who were provided with banking benefits.
The coordinating capabilities of the state are also determined by its control over foreign trade, prices, and the banking and loan system. The distribution of borrowed capital coming from abroad passes through state bodies, which greatly enhances the influence of the state on the process of the effective use of foreign capital.
Obviously, in modern conditions of a highly developed division of labor, money circulation is the basis of any regulatory measures. In Korea, the achievement of financial and monetary balance was given top priority. Even in years of significant economic difficulties, money circulation, inflation, and the deficit of the state budget did not get out of state control.
State debt
The public debt of the Republic of Korea (RK) increased 8 times from 1998 to 2013 and amounted to $432 billion. Such data are contained in the report of the Ministry of Finance distributed today.
According to experts' forecasts, in 2014 the national debt of the Republic of Kazakhstan will grow to $478.4 billion. Thus, the public debt per capita in South Korea for the first time will exceed $9,000. In Russia, this figure is 3.6 thousand dollars, in the US - more than 53 thousand dollars.
South Korea is one of the most densely populated countries on the planet, with a population of just over 51 million people. The vast majority of the population of South Korea are Koreans, one of the oldest nations. Previously, most of the population of South Korea lived in rural areas, now the Republic of Korea is characterized by high rates of urbanization, and this factor has significantly affected the country's economy. It is important to note that the majority of the population is made up of young people and middle-aged people, that is, the employed population.
The capital of South Korea is rightfully considered one of the world's major metropolitan areas. And the education system in terms of quality is in third place in the world, this fact confirms the correct segmentation of the South Korean industry.
Industry of South Korea
Modern South Korea is a developed industrial country, mainly due to government support for entrepreneurs and manufacturers. Initially, a weak raw material base made it impossible to develop the proper industrial potential of the country, based on high-tech production and processing of raw materials. At present, everything has changed and the main major industries are: automotive, electronics, metallurgy, shipbuilding and light industry.
(Assembly of electronic components)
South Korea, thanks to the support of high-tech production, in particular the electronics industry, ranks 1st in the world in the production of electrical appliances. The main companies in this industry are the global giants Samsung Group, LG (LG Electronics and LG Display), the export of electrical appliances is approximately 20 billion dollars a year and accounts for a large share of the total output.
Telecommunications equipment ranks second in the export of electrical goods and Samsung Electronis products occupy a leading position in the global market.
The most potentially important area of high-tech production in South Korea is considered to be the semiconductor industry.
The next priority industry is the petrochemical industry, the country has three largest oil refineries. The state provides significant support to this industry, as the demand for the products of this industry is increasing every year.
As for the automotive industry, South Korea ranks first not only in Asia, but also among the world's industrial giants. The largest automaker in the country, Hyundai ranks 4th in the world in auto production, Kia Motors is 7th in the world, and Ssang Young is also gaining momentum.
In the global shipbuilding industry, South Korea has monopolized the production of high-value ships.
A great influence on the development of the automobile and shipbuilding was also due to the development of the metallurgical industry. South Korea is one of the world's largest steel producers.
The export of textile products occupies a stable place in the country's exports. Among the world's textile exporting countries, South Korea follows China, Italy and the United States.
Agriculture in South Korea
The share of agriculture in the country's GDP is only 3%. Therefore, we can say that South Korea has turned from an agricultural country into an industrial one.
(Rice fields in the rainy season)
As before, the main crop grown in the country and exported is rice. Despite the small amount of land suitable for agriculture, rice is produced in the country constantly - almost 85% of all farms in South Korea produce this crop. The current global market environment has made it difficult to export rice, and the rice is now grown primarily for the South Korean consumer. The farms also grow other export crops: potatoes, soybeans, apples and tangerines.
(Sea port)
Fishing is considered another important component of agriculture. Since the country produces a large number of complex large-sized vessels, South Korea constantly catches fish both for the local market and for export (this is mainly flounder, mackerel, sardine). Nurseries for growing mollusks and squids are also widespread.
During 1970-2018 imports of South Korea at current prices increased by $635.2 billion (334.4 times) to $637.1 billion; the change was $1.1 billion due to a population growth of $19.0 million, and $634.1 billion due to a $12,392.7 increase in per capita imports. The average annual increase in imports of South Korea was at the level of 13.2 billion dollars or 12.9%. The average annual increase in South Korea's imports at constant prices is 10.0%. The share in the world increased by 2.1%. The share in Asia increased by 3.6%. The minimum of imports was in 1970 ($1.9 billion). The maximum import was in 2012 (656.7 billion dollars).
During 1970-2018. per capita imports in South Korea increased by $12,392.7 (210.3 times) to $12,451.9. The average annual increase in imports per capita in current prices was at the level of 258.2 dollars or 11.8%.
The change in South Korea's imports is described by a linear correlation-regression model: y=14.1x-27 930.5 , where y is the estimated value of South Korea's imports, x is the year. Correlation coefficient = 0.905. Coefficient of determination = 0.82.
South Korean imports, 1970-2012 (growth)
For 1970-2012 imports of South Korea at current prices increased by $654.8 billion (344.7 times) to $656.7 billion; the change was $1.1 billion due to a population growth of $17.8 million, and $653.7 billion due to a $13,086.4 increase in per capita imports. The average annual increase in South Korea's imports is $15.6 billion, or 14.9%. The average annual increase in imports of South Korea in constant prices was at the level of 11.0%. The share in the world increased by 2.5%. The share in Asia increased by 4.7%.
For 1970-2012 per capita imports in South Korea increased by $13,086.4 (222.0 times) to $13,145.7. The average annual increase in imports per capita in current prices was $311.6 or 13.7%.
Imports of South Korea, 2012-2018 (drop)
During 2012-2018 imports of South Korea at current prices decreased by $19.6 billion (by 3%) to $637.1 billion; the change was $15.9 billion due to population growth of $1.2 million, and $35.5 billion due to a $693.8 drop in per capita imports. The average annual increase in imports of South Korea amounted to -3.3 billion dollars or -0.50%. The average annual increase in imports of South Korea at constant prices was at the level of 3.3%. The share in the world decreased by 0.35%. The share in Asia decreased by 1.1%.
For 2012-2018 per capita imports in South Korea increased by $693.8 (up 5.3%) to $12,451.9. The average annual increase in imports per capita in current prices was -115.6 dollars or -0.90%.
South Korean import, 1970
South Korea import in 1970 was equal to 1.9 billion dollars, ranked 37th in the world and was at the level of imports of the Congo (2.0 billion dollars), imports of Argentina (2.0 billion dollars), imports of Greece (2.0 billion dollars), imports of Portugal (2.0 billion dollars), imports of Ireland (1.8 billion dollars). South Korea's imports were $0.88 billion more than South Korea's exports, with a trade surplus of 9.5% of South Korea's GDP. The share of South Korean imports in the world was 0.49%.
In 1970, it was $59.2, ranked 134th in the world, and was on par with imports per capita in the Central African Republic ($62.8), imports per capita in Ecuador ($61.3), imports per capita in Morocco ($60.8 ), imports per capita in Syria ($57.7), imports per capita in Bolivia ($56.0), imports per capita in Sierra Leone ($55.5). South Korea's per capita imports were less than the world's per capita imports ($104.3) by $45.1.
Comparison of imports of South Korea and neighbors in 1970. South Korea's imports were 4.7 times larger than those of North Korea ($0.4 billion), but were less than Japan's imports ($19.6 billion) by 90.3%. South Korea's per capita import was greater than North Korea's per capita import ($32.0) by 84.9%, but was less than Japan's per capita import ($186.5) by 68.2%.
Comparison of South Korean imports and leaders in 1970. South Korean imports were less than US imports ($55.8 billion) by 96.6%, German imports ($35.8 billion) by 94.7%, UK imports ($27.4 billion) by 93.1%, French imports (22.9 billion dollars) by 91.7%, Japanese imports (19.6 billion dollars) by 90.3%. Per capita imports in South Korea were less than UK imports per capita ($492.7) by 88%, German per capita imports ($455.5) by 87%, France per capita imports ($440.4) by 88%. 86.6%, US per capita imports ($266.0) by 77.7%, Japan per capita imports ($186.5) by 68.2%.
South Korea's import potential in 1970. With imports per capita at the same level as UK imports per capita ($492.7), South Korea's imports would be $15.9 billion, 8.3 times the actual level. With per capita imports at the same level as those of Japan ($186.5), the best neighbor, South Korea's imports would be $6.0 billion, 3.1 times the actual level. With per capita imports at the same level as the world's per capita imports ($104.3), South Korea's imports would be $3.4 billion, 76.2% more than the actual level.
Import of South Korea, 2012
South Korea import in 2012 amounted to 656.7 billion dollars, ranked 7th in the world. South Korea's imports were less than South Korea's exports by $34.9 billion, and the trade deficit was equal to 2.7% of South Korea's GDP. The share of South Korean imports in the world was 3.0%.
Import per capita in South Korea in 2012 was $13,145.7, ranked 42nd in the world, and was on par with imports per capita in Kuwait ($13,470.2), imports per capita in the Bahamas ($13,291.0), imports per capita in the Turks and Caicos ($13,141.5), UK imports per capita ($13,112.7), Anguilla imports per capita ($13,082.6), Seychelles imports per capita ($12,726.9), France per capita imports ($12 $440.9). South Korea's per capita imports were more than the world's per capita imports ($3,112.9) by $10,032.7.
Comparison of imports of South Korea and neighbors in 2012. South Korea's imports were 370.4 times larger than those of North Korea ($1.8 billion), but were less than Japan's imports ($998.2 billion) by 34.2%. South Korea's per capita import was more than Japan's per capita import ($7,772.5) by 69.1%, North Korea's per capita import ($71.7) by 183.4 times.
Comparison of South Korean imports and leaders in 2012. South Korean imports were less than US imports ($2,759.9 billion) by 76.2%, Chinese imports ($1,943.2 billion) by 66.2%, German imports ($1,418.2 billion) by 53.7%, imports of Japan (998.2 billion dollars) by 34.2%, UK imports (842.5 billion dollars) by 22.1%. South Korea's per capita imports were 0.25% larger than the UK's ($13,112.7) per capita imports, 49.2% more than the US per capita imports ($8,807.9) and Japan's per capita imports ($7,772.5 dollars) by 69.1%, import per capita in China ($1,413.0) by 9.3 times, but was less than import per capita in Germany ($17,494.8) by 24.9%.
Import potential of South Korea in 2012. With per capita imports at the same level as Germany's per capita imports of $17,494.8, South Korea's imports would be $873.9 billion, 33.1% more than the actual level.
Imports of South Korea, 2018
South Korea import in 2018, it was equal to 637.1 billion dollars, ranked 10th in the world and was at the level of the imports of the Netherlands (670.3 billion dollars), imports of India (657.0 billion dollars), imports of Italy (603.7 billion dollars). South Korea's imports were $79.2 billion less than South Korea's exports, and the trade deficit was 4.6% of South Korea's GDP. The share of South Korean imports in the world was 2.6%.
Import per capita in South Korea in 2018 was $12,451.9, ranked 51st in the world and was on par with imports per capita in France ($13,219.8), imports per capita in Hungary ($13,128.1), imports per capita in Brunei (13 $116.1), Bahamas import per capita ($12,842.0), Anguilla import per capita ($12,773.3), Israel per capita import ($12,722.3), Cook Islands per capita import ($12,621.0) dollars), imports per capita in Australia (12 596.8 dollars), imports per capita in New Zealand (12 240.1 dollars), imports per capita in Nauru (11 791.8 dollars). South Korea's per capita import was more than the world's per capita import ($3,201.3) by $9,250.6.
Comparison of imports of South Korea and neighbors in 2018. South Korea's imports were 327.0 times larger than those of North Korea ($1.9 billion), but were less than Japan's imports ($904.4 billion) by 29.6%. South Korea's per capita import was more than Japan's per capita import ($7,111.0) by 75.1%, North Korea's per capita import ($76.4) by 162.9 times.
Comparison of South Korea imports and leaders in 2018. South Korean imports were less than US imports ($3,148.5 billion) by 79.8%, Chinese imports ($2,543.8 billion) by 75%, German imports ($1,629.4 billion) by 60.9%, imports of Great Britain (907.1 billion dollars) by 29.8%, imports of Japan (904.4 billion dollars) by 29.6%. South Korea's per capita imports were 29.2% larger than US per capita imports ($9,635.1), Japan's per capita imports ($7,111.0) by 75.1%, and China's per capita imports ($1,797.7) dollars) by 6.9 times, but was less than imports per capita in Germany (19 799.4 dollars) by 37.1%, imports per capita in the UK (13 625.7 dollars) by 8.6%.
Import potential of South Korea in 2018. With per capita imports at the same level as Germany's per capita imports of $19,799.4, South Korea's imports would be $1,013.0 billion, 59% more than the actual level.
| year | import, billion dollars | import per capita, dollars | import, billion dollars | import growth, % | share of imports in GDP, % | share of South Korea, % | ||
|---|---|---|---|---|---|---|---|---|
| current prices | constant prices 1970 | in the world | in Asia | in East Asia | ||||
| 1970 | 1.9 | 59.2 | 1.9 | 20.6 | 0.49 | 3.4 | 6.4 | |
| 1971 | 2.3 | 69.5 | 2.3 | 20.1 | 22.5 | 0.53 | 3.7 | 7.0 |
| 1972 | 2.3 | 69.6 | 2.3 | 0.086 | 21.0 | 0.46 | 3.2 | 5.9 |
| 1973 | 3.8 | 112.5 | 3.1 | 34.0 | 27.0 | 0.56 | 3.4 | 6.0 |
| 1974 | 6.5 | 186.9 | 3.7 | 19.5 | 32.6 | 0.68 | 3.7 | 6.6 |
| 1975 | 6.8 | 192.7 | 3.8 | 4.1 | 30.6 | 0.67 | 3.5 | 7.1 |
| 1976 | 8.5 | 235.6 | 4.8 | 24.4 | 27.7 | 0.74 | 3.8 | 7.8 |
| 1977 | 10.7 | 293.2 | 5.8 | 22.0 | 27.3 | 0.82 | 4.1 | 8.8 |
| 1978 | 15.1 | 409.5 | 7.6 | 30.3 | 28.6 | 1.00 | 5.0 | 10.2 |
| 1979 | 20.6 | 549.3 | 8.6 | 13.6 | 30.2 | 1.1 | 5.3 | 10.1 |
| 1980 | 24.2 | 635.0 | 8.3 | -3.4 | 36.2 | 1.0 | 4.9 | 9.6 |
| 1981 | 27.0 | 699.2 | 8.7 | 4.5 | 36.3 | 1.2 | 4.9 | 10.0 |
| 1982 | 25.6 | 654.0 | 8.8 | 1.5 | 32.1 | 1.2 | 4.8 | 10.3 |
| 1983 | 26.2 | 659.0 | 9.4 | 6.8 | 29.3 | 1.2 | 4.7 | 10.6 |
| 1984 | 27.6 | 684.9 | 9.8 | 4.4 | 27.9 | 1.2 | 4.9 | 10.0 |
| 1985 | 26.0 | 637.2 | 9.6 | -1.9 | 25.3 | 1.1 | 5.0 | 9.3 |
| 1986 | 32.7 | 792.4 | 12.8 | 33.1 | 27.6 | 1.3 | 6.2 | 11.2 |
| 1987 | 41.5 | 995.1 | 15.1 | 18.1 | 27.7 | 1.4 | 6.7 | 11.6 |
| 1988 | 52.0 | 1 235.4 | 17.1 | 13.1 | 25.7 | 1.5 | 6.7 | 11.1 |
| 1989 | 62.7 | 1 474.7 | 19.8 | 15.7 | 25.1 | 1.7 | 7.3 | 11.9 |
| 1990 | 72.5 | 1 689.6 | 22.4 | 13.5 | 25.3 | 1.6 | 7.3 | 12.7 |
| 1991 | 85.6 | 1 973.3 | 26.9 | 20.0 | 25.6 | 1.9 | 7.8 | 13.8 |
| 1992 | 87.2 | 1 987.6 | 28.2 | 4.8 | 24.3 | 1.7 | 7.3 | 12.9 |
| 1993 | 90.7 | 2 046.5 | 30.1 | 6.8 | 22.9 | 1.9 | 7.1 | 12.4 |
| 1994 | 112.4 | 2 506.7 | 37.0 | 22.8 | 24.0 | 2.1 | 7.9 | 13.4 |
| 1995 | 149.6 | 3 301.6 | 45.3 | 22.5 | 26.2 | 2.4 | 8.6 | 14.7 |
| 1996 | 169.0 | 3 694.4 | 52.1 | 15.0 | 27.5 | 2.6 | 9.1 | 15.6 |
| 1997 | 165.6 | 3 583.9 | 53.4 | 2.5 | 29.0 | 2.4 | 8.7 | 15.0 |
| 1998 | 110.9 | 2 379.3 | 40.6 | -24.0 | 28.9 | 1.6 | 6.8 | 11.7 |
| 1999 | 135.5 | 2 880.5 | 50.7 | 24.9 | 27.2 | 1.9 | 7.7 | 13.2 |
| 2000 | 185.3 | 3 909.8 | 61.8 | 21.8 | 32.2 | 2.3 | 8.7 | 14.6 |
| 2001 | 166.7 | 3 493.5 | 59.6 | -3.5 | 30.4 | 2.2 | 8.3 | 14.0 |
| 2002 | 179.3 | 3 734.3 | 68.5 | 14.9 | 28.6 | 2.2 | 8.3 | 14.2 |
| 2003 | 209.2 | 4 335.5 | 75.7 | 10.5 | 29.8 | 2.2 | 8.3 | 14.0 |
| 2004 | 263.8 | 5 439.9 | 84.9 | 12.1 | 33.3 | 2.3 | 8.4 | 14.4 |
| 2005 | 308.9 | 6 342.0 | 91.4 | 7.8 | 33.0 | 2.4 | 8.5 | 14.8 |
| 2006 | 368.9 | 7 544.5 | 102.8 | 12.5 | 35.0 | 2.5 | 8.7 | 15.3 |
| 2007 | 427.8 | 8 719.3 | 114.5 | 11.4 | 36.5 | 2.5 | 8.7 | 15.6 |
| 2008 | 501.4 | 10 187.2 | 118.3 | 3.3 | 47.9 | 2.6 | 8.5 | 15.6 |
| 2009 | 386.5 | 7 827.7 | 110.1 | -6.9 | 40.9 | 2.5 | 7.9 | 14.6 |
| 2010 | 506.8 | 10 227.0 | 129.4 | 17.5 | 44.3 | 2.7 | 8.1 | 14.7 |
| 2011 | 654.5 | 13 157.9 | 148.2 | 14.5 | 52.2 | 3.0 | 8.5 | 15.1 |
| 2012 | 656.7 | 13 145.7 | 152.0 | 2.6 | 51.4 | 3.0 | 8.1 | 14.5 |
| 2013 | 639.6 | 12 748.9 | 154.5 | 1.6 | 46.7 | 2.8 | 7.7 | 13.6 |
| 2014 | 635.0 | 12 603.5 | 156.4 | 1.3 | 42.8 | 2.7 | 7.5 | 13.0 |
| 2015 | 529.8 | 10 471.0 | 159.7 | 2.1 | 36.1 | 2.5 | 7.0 | 12.3 |
| 2016 | 502.1 | 9 885.4 | 168.0 | 5.2 | 33.5 | 2.5 | 6.8 | 12.2 |
| 2017 | 587.6 | 11 526.2 | 182.9 | 8.9 | 36.2 | 2.6 | 7.1 | 12.8 |
| 2018 | 637.1 | 12 451.9 | 184.3 | 0.77 | 37.0 | 2.6 | 7.0 | 12.4 |
For 1970-2018 exports of South Korea in current prices increased by $715.2 billion (699.1 times) to $716.3 billion; the change was $0.60 billion due to a population growth of $19.0 million, and $714.6 billion due to an increase in per capita exports of $13,967.4. The average annual increase in South Korea's exports amounted to $14.9 billion, or 14.6%. The average annual increase in exports of South Korea in constant prices was at the level of 12.7%. The share in the world increased by 2.6%. The share in Asia increased by 5.7%. The minimum export was in 1970 ($1.0 billion). The maximum export was in 2018 (716.3 billion dollars).
For the period 1970-2018. per capita exports in South Korea increased by $13,967.4 (439.6 times) to $13,999.2. The average annual increase in exports per capita in current prices was at the level of 291.0 dollars or 13.5%.
The change in exports of South Korea is described by a linear correlation-regression model: y=15.6x-30 802.4 , where y is the estimated value of exports of South Korea, x is the year. Correlation coefficient = 0.908. Coefficient of determination = 0.824.
Export of South Korea, 1970
Export of South Korea in 1970 it was 1.0 billion dollars, ranked 56th in the world and was at the level of exports of Thailand (1.1 billion dollars), exports of Greece (1.0 billion dollars). South Korea's exports were $0.88 billion less than South Korea's imports, and the trade deficit was 9.5% of South Korea's GDP. The share of exports of South Korea in the world amounted to 0.27%.
In 1970, it was $31.8, ranked 140th in the world and was on par with Egypt's per capita exports ($32.9), Nigeria's per capita exports ($30.7), and Bhutan's per capita exports ($29.7). South Korea's per capita export was less than the world's per capita export ($104.0) by $72.2.
Comparison of exports of South Korea and neighbors in 1970. The export of South Korea was 3.9 times greater than the export of North Korea (0.3 billion dollars), but was less than the export of Japan (22.0 billion dollars) by 95.3%. South Korea's per capita export was greater than North Korea's per capita export ($20.8) by 53.4%, but was less than Japan's per capita export ($209.9) by 84.8%.
Comparison of South Korea's exports and leaders in 1970. South Korean exports were less than US exports ($59.7 billion) by 98.3%, German exports ($32.7 billion) by 96.9%, UK exports ($28.5 billion) by 96.4%, French exports (23.7 billion dollars) by 95.7%, Japanese exports (22.0 billion dollars) by 95.3%. Exports per capita in South Korea were less than exports per capita in the UK ($511.9) by 93.8%, exports per capita in France ($455.9) by 93%, exports per capita in Germany ($415.6) by 92.3%, per capita exports to the US ($284.9) by 88.8%, per capita exports to Japan ($209.9) by 84.8%.
Export potential of South Korea in 1970. With per capita exports at the same level as UK per capita exports ($511.9), South Korea's exports would be $16.5 billion, 16.1 times the actual level. With exports per capita at the same level as those of Japan ($209.9), the best neighbor, South Korea's exports would be $6.8 billion, 6.6 times the actual level. With per capita exports at the same level as world per capita exports ($104.0), South Korea's exports would be $3.3 billion, 3.3 times the actual level.
Export of South Korea, 2018
Export of South Korea in 2018 was equal to 716.3 billion dollars, ranked 8th in the world and was at the level of exports of Hong Kong (682.9 billion dollars). South Korea's exports exceeded South Korea's imports by $79.2 billion, with a trade surplus of 4.6% of South Korea's GDP. The share of exports of South Korea in the world was 2.9%.
Export per capita in South Korea in 2018 was equal to 13 999.2 dollars, ranked 43rd in the world and was at the level of exports per capita in Andorra (14 777.5 dollars), exports per capita in Canada (14 744.8 dollars), exports per capita in the Seychelles (14 533.1 dollars), exports per capita in Australia (14 070.2 dollars), exports per capita in Lithuania (14 053.4 dollars), exports per capita in Hungary (13 840.8 dollars). South Korea's per capita export was more than the world's per capita export ($3,280.7) by $10,718.5.
Comparison of exports of South Korea and neighbors in 2018. The export of South Korea was 697.3 times greater than the export of North Korea ($1.0 billion), but was less than the export of Japan ($917.1 billion) by 21.9%. South Korea's per capita export was more than Japan's per capita export ($7,210.9) by 94.1%, North Korea's per capita export ($40.3) by 347.4 times.
Comparison of South Korea's exports and leaders in 2018. South Korea's exports were less than those of China ($2,647.0 billion) by 72.9%, US exports ($2,510.3 billion) by 71.5%, German exports ($1,872.7 billion) by 61.8%, exports of Japan (917.1 billion dollars) by 21.9%, exports of France (870.8 billion dollars) by 17.8%. South Korea's per capita exports were greater than France's per capita exports ($12,901.3) by 8.5%, per capita exports to the US ($7,682.0) by 82.2%, and Japan's per capita exports ($7,210.9) dollars) by 94.1%, export per capita in China ($1,870.7) by 7.5 times, but was less than export per capita in Germany ($22,756.4) by 38.5%.
Export potential of South Korea in 2018. With per capita exports at the same level as Germany's per capita exports of $22,756.4, South Korea's exports would be $1,164.3 billion, 62.6% more than the actual level.
| year | export, billion dollars | exports per capita, dollars | export, billion dollars | export growth, % | share of exports in GDP, % | share of South Korea, % | ||
|---|---|---|---|---|---|---|---|---|
| current prices | constant prices 1970 | in the world | in Asia | in East Asia | ||||
| 1970 | 1.0 | 31.8 | 1.0 | 11.1 | 0.27 | 1.7 | 3.3 | |
| 1971 | 1.2 | 38.0 | 1.3 | 24.1 | 12.3 | 0.29 | 1.8 | 3.3 |
| 1972 | 1.8 | 53.5 | 1.8 | 42.9 | 16.1 | 0.35 | 2.1 | 3.8 |
| 1973 | 3.3 | 96.6 | 2.7 | 50.7 | 23.2 | 0.47 | 2.5 | 5.1 |
| 1974 | 4.3 | 123.9 | 2.9 | 4.3 | 21.6 | 0.45 | 2.0 | 4.8 |
| 1975 | 4.9 | 138.4 | 3.5 | 21.3 | 22.0 | 0.48 | 2.2 | 5.2 |
| 1976 | 7.6 | 210.6 | 4.8 | 38.9 | 24.8 | 0.67 | 2.9 | 6.7 |
| 1977 | 9.9 | 271.5 | 5.9 | 21.6 | 25.2 | 0.77 | 3.3 | 7.4 |
| 1978 | 12.8 | 346.3 | 6.8 | 16.5 | 24.2 | 0.86 | 3.8 | 7.8 |
| 1979 | 15.5 | 414.1 | 7.0 | 2.5 | 22.8 | 0.83 | 3.6 | 8.3 |
| 1980 | 18.4 | 483.3 | 7.7 | 9.5 | 27.6 | 0.81 | 3.4 | 7.9 |
| 1981 | 21.6 | 559.0 | 8.7 | 13.8 | 29.0 | 0.95 | 3.6 | 7.9 |
| 1982 | 21.2 | 540.2 | 8.9 | 2.0 | 26.5 | 0.99 | 3.9 | 8.2 |
| 1983 | 24.2 | 609.4 | 10.4 | 16.7 | 27.1 | 1.1 | 4.4 | 8.9 |
| 1984 | 28.3 | 701.4 | 11.8 | 14.1 | 28.5 | 1.3 | 4.8 | 8.9 |
| 1985 | 27.3 | 668.0 | 11.9 | 1.1 | 26.5 | 1.2 | 4.9 | 8.4 |
| 1986 | 37.3 | 904.2 | 16.1 | 34.7 | 31.5 | 1.5 | 6.2 | 9.7 |
| 1987 | 50.7 | 1 216.0 | 19.7 | 22.6 | 33.8 | 1.7 | 7.0 | 11.0 |
| 1988 | 64.7 | 1 537.2 | 22.1 | 12.2 | 32.0 | 1.9 | 7.6 | 11.7 |
| 1989 | 67.5 | 1 587.7 | 21.4 | -3.6 | 27.0 | 1.9 | 7.3 | 11.6 |
| 1990 | 70.4 | 1 640.2 | 22.3 | 4.6 | 24.6 | 1.6 | 6.8 | 11.4 |
| 1991 | 78.2 | 1 803.9 | 25.1 | 12.4 | 23.4 | 1.7 | 7.0 | 11.4 |
| 1992 | 85.7 | 1 955.1 | 28.3 | 12.8 | 23.9 | 1.7 | 6.8 | 11.2 |
| 1993 | 92.7 | 2 091.1 | 31.0 | 9.6 | 23.4 | 1.9 | 6.8 | 11.2 |
| 1994 | 109.9 | 2 451.3 | 36.2 | 16.6 | 23.5 | 2.0 | 7.1 | 11.7 |
| 1995 | 143.4 | 3 166.5 | 44.5 | 23.1 | 25.1 | 2.2 | 8.0 | 13.1 |
| 1996 | 150.4 | 3 287.1 | 49.6 | 11.3 | 24.5 | 2.2 | 7.9 | 13.6 |
| 1997 | 160.7 | 3 477.5 | 58.9 | 18.8 | 28.1 | 2.3 | 8.0 | 13.5 |
| 1998 | 150.3 | 3 224.0 | 67.3 | 14.3 | 39.2 | 2.2 | 8.2 | 13.6 |
| 1999 | 162.0 | 3 444.5 | 76.1 | 13.1 | 32.5 | 2.3 | 8.2 | 13.8 |
| 2000 | 195.6 | 4 126.7 | 89.2 | 17.2 | 33.9 | 2.5 | 8.2 | 14.0 |
| 2001 | 174.1 | 3 648.6 | 87.6 | -1.8 | 31.8 | 2.3 | 7.9 | 13.6 |
| 2002 | 186.7 | 3 890.1 | 98.8 | 12.8 | 29.8 | 2.3 | 7.8 | 13.4 |
| 2003 | 220.6 | 4 571.5 | 112.2 | 13.6 | 31.4 | 2.3 | 7.9 | 13.3 |
| 2004 | 291.5 | 6 011.2 | 135.8 | 21.0 | 36.8 | 2.6 | 8.4 | 14.3 |
| 2005 | 329.9 | 6 772.2 | 146.5 | 7.9 | 35.3 | 2.5 | 8.0 | 14.1 |
| 2006 | 375.2 | 7 673.9 | 164.2 | 12.0 | 35.6 | 2.5 | 7.7 | 13.7 |
| 2007 | 438.5 | 8 936.7 | 184.9 | 12.6 | 37.4 | 2.5 | 7.7 | 13.7 |
| 2008 | 499.0 | 10 137.7 | 198.9 | 7.6 | 47.6 | 2.5 | 7.5 | 13.7 |
| 2009 | 426.5 | 8 637.6 | 198.0 | -0.46 | 45.2 | 2.7 | 7.9 | 14.2 |
| 2010 | 538.9 | 10 875.3 | 223.8 | 13.0 | 47.1 | 2.8 | 7.8 | 14.0 |
| 2011 | 668.4 | 13 437.4 | 258.3 | 15.4 | 53.3 | 3.0 | 8.0 | 14.7 |
| 2012 | 691.6 | 13 844.3 | 273.3 | 5.8 | 54.1 | 3.0 | 7.8 | 14.5 |
| 2013 | 703.1 | 14 014.5 | 283.7 | 3.8 | 51.3 | 3.0 | 7.8 | 14.2 |
| 2014 | 710.0 | 14 090.7 | 289.6 | 2.1 | 47.8 | 3.0 | 7.7 | 13.7 |
| 2015 | 630.1 | 12 454.5 | 290.3 | 0.23 | 43.0 | 3.0 | 7.6 | 13.0 |
| 2016 | 602.0 | 11 852.8 | 297.2 | 2.4 | 40.1 | 2.9 | 7.6 | 13.1 |
| 2017 | 664.7 | 13 038.4 | 304.6 | 2.5 | 40.9 | 2.9 | 7.5 | 13.2 |
| 2018 | 716.3 | 13 999.2 | 315.2 | 3.5 | 41.6 | 2.9 | 7.4 | 13.2 |
picture. Exports of South Korea, 1970-2018
picture. Exports per capita in South Korea, 1970-2018
picture. Export growth in South Korea, 1970-2018
South Korea, or the Republic of Korea (official name), is an East Asian state with a free market economy. The national economy of this country has been constantly developing over the past decades. South Korea is one of the so-called "East Asian Tigers" - the states of East Asia (Hong Kong, the Republic of Korea, Singapore and Taiwan), which managed to make an economic breakthrough and catch up with the industrial countries of the West in terms of development.
Despite poor starting conditions for such a jump, the Republic of Korea managed to achieve high rates of economic growth, which was facilitated, among other things, by the economic policy of the government of the country, carried out since the 1960s. While the Asian crisis of the 1990s exposed weaknesses South Korean economy, she recovered remarkably quickly from its effects. At present, the republic is one of the largest economic powers in the world and is included in the G20 (English: G20). The country's economy is based on the high-tech industry and the automotive industry. But back in the 1960s, South Korea was one of the poorest countries in the world. By the end of almost 35 years, including Japanese colonial rule (from 1920 to 1945) and the Korean War (from 1950 to 1953), an industrial center had formed in the north of the once unified Korea, while a popular economy of the expressed agricultural orientation. However, under strong government leadership and through its export-oriented industrialization strategy, South Korea has grown into a dynamic industrial nation in less than a generation.
The Republic of Korea owes its new rise after the Asian crisis of 1997-1998, as well as the extremely mild consequences of the global financial and economic crisis of 2008-2009, to the consistent policy of reforms pursued by its government. The country is a member of the G20 and has been a member of the OECD (Organization for Economic Cooperation and Development) since 1996. With a total gross domestic product of 1.129 billion US dollars (according to the results of 2012), South Korea ranks 15th in the world. per capita was US$22,708 in 2012. At the end of 2013, the country rose to 7th place in the world in terms of foreign exchange reserves, which reached a record amount of US$346.5 billion.
In 2013, consumer price inflation was 1.3% (2012: 2.2%). Since May 2013, the base interest rate of the Central Bank of South Korea has been set at 2.5%. The total amount of public debt as of the end of June 2013 amounted to 36.5% of GDP, that is, it remained at a relatively low level. In 2013, the country achieved economic growth of 2.8%. Growth expected in 2014 economy of South Korea by about 3.9%. The unemployment rate in 2013 was 3.1%. At the same time, this indicator was the highest (8.0%) among young people (aged 15 to 29).
In recent years, along with a general commitment to multilateral negotiations in the field of world trade, the South Korean government has consistently pursued a policy aimed at concluding free trade agreements. Such agreements are currently in place with Singapore, the European Free Trade Association, Chile, the countries of the Association of Southeast Asian Nations (ASEAN), India, Peru and Turkey.
On July 1, 2011, the Preliminary Free Trade Agreement between the Republic of Korea and the EU came into force, and on March 15, 2012, the Free Trade Agreement with the United States, signed back in June 2007. In addition, on February 21, 2013, a Free Trade Agreement was signed with Colombia, and at the end of 2013, relevant negotiations with Australia were completed. In addition, negotiations are ongoing with Vietnam, Canada, Mexico, the Gulf Cooperation Council, New Zealand, Indonesia, Japan and China, as well as negotiations on a trilateral agreement between South Korea, Japan and China.
The total volume of foreign trade turnover (import and export) in 2013 amounted to 1,075 billion US dollars, that is, it increased by 0.7% compared to the previous year. The country's largest trading partners are China (excluding Hong Kong), the EU, the US and Japan.
The volume of exports in 2013 increased by 2.1% compared to the previous year. At the same time, the main export items were oil products, cars, chemical products, electronics, ships and their components. In 2013, the export of electrical products increased by 9.8%, while the export of petroleum products decreased by 6.0%. The volume of imports decreased in 2013 by 0.8% compared to the previous year. At the same time, South Korea's main imports were oil, natural gas, semiconductors, cars, and circuit/control engineering.
In 2013, the volume of actually carried out foreign direct investment decreased by 9.4% compared to the previous year and amounted to 9.7 billion US dollars. The total number of foreign companies operating in the Republic of Korea reached approximately 7,500. In 2013, the largest investors in the economy of the country were the EU (about 3.53 billion US dollars), Japan (about 2.87 billion US dollars), the United States (1.53 billion US dollars) and the Netherlands (about 0.76 billion US dollars).
South Korea (unlike North) has very limited deposits of raw materials and is therefore heavily dependent on imported industrial raw materials and almost entirely on imported fossil raw materials. To improve self-sufficiency, the country is placing increased emphasis not only on the use of renewable energy, as well as nuclear energy, but also on the development of sources of raw materials abroad.
Between January and October 2013, 96.0% of the energy consumed in the Republic of Korea was produced from imported energy sources. In the same period, the following structure of energy consumption was formed in the country: 38.2% - oil energy, 29.5% - coal energy, 18.2% - natural gas energy, 10.6% - nuclear energy, 0.7% - hydraulic energy and 2.8% - other renewable energy sources.
