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Economy of South Korea PDF Print E-mail
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Wednesday, 15 June 2011 16:13

South KoreaSouth Korea has a market economy which ranks 14th in the world by nominal GDP and 12th by purchasing power parity (PPP), identifying it as one of the G-20 major economies. It is a high-income developed country and is a member of OECD. South Korea is one of the Asian Tigers, and is the only developed country so far to have been included in the group of Next Eleven countries. South Korea had one of the world's fastest growing economies from the early 1960s to the late 1990s, and South Korea is still one of the fastest growing developed countries in the 2000s, along with Hong Kong, Singapore, and Taiwan, the other three members of Asian Tigers.

 South Koreans refer to this growth as the Miracle on the Han River. The South Korean economy is heavily dependent on international trade, and in 2010, South Korea was the sixth largest exporter and tenth largest importer in the world.

In 2010, S. Korea had a population of 48,875,000 and a nominal GDP of $1.007 trillion (i.e. $1.459 trillion by PPP), which means that Koreans enjoyed a nominal GDP per capita of $20,590 (this is $29,835 by PPP).

Despite the South Korean economy's high growth potential and apparent structural stability, South Korea suffers perpetual damage to its credit rating in the stock market due to the belligerence of North Korea in times of deep military crises, which has an adverse effect on the financial markets of the South Korean economy. However, renowned financial organizations, such as the International Monetary Fund, also compliment the resilience of the South Korean economy against various economic crises, citing low state debt, and high fiscal reserves that can quickly be mobilized to address any expected financial emergencies. South Korea was one of the few developed countries that were able to avoid a recession during the global financial crisis, and its economic growth rate reached 6.2 percent in 2010 (the fastest growth for eight years after significant growth by 7.2 percent in 2002), a sharp recovery from economic growth rates of 2.3% in 2008 and 0.2% in 2009 when the global financial crisis hit. The unemployment rate in South Korea also remained low in 2009 at 3.6%

Shipbuilding, automobile industry and High-tech industries dominated the Korean economy, but other sectors are growing rapidly too.Korean robot

Last Updated on Wednesday, 15 June 2011 16:49