Economy - overview:
Since the early 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 equal to the lesser economies of the EU. 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 1997-99 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 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 2005, growth moderated to about 4%. A downturn in consumer spending was offset by rapid export growth. In 2005, the government proposed labor reform legislation and a corporate pension scheme to help make the labor market more flexible, and new real estate policies to cool property speculation. Moderate inflation, low unemployment, an export surplus, and fairly equal distribution of income characterize this solid economy.
GDP (purchasing power parity):
$965.3 billion (2005 est.)
GDP (official exchange rate):
$801.2 billion (2005 est.)
GDP - real growth rate:
3.9% (2005 est.)
GDP - per capita (PPP):
$20,400 (2005 est.)
GDP - composition by sector:
agriculture: 3.7%
industry: 40.1%
services: 56.3% (2005 est.)
Labor force:
23.53 million (2005 est.)
Labor force - by occupation:
agriculture: 6.4%
industry: 26.4%
services: 67.2% (2005 est.)
Unemployment rate:
3.7% (2005 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:
35.8 (2000)
Inflation rate (consumer prices):
2.6% (2005 est.)
Investment (gross fixed):
28.9% of GDP (2005 est.)
Budget:
revenues: $195 billion
expenditures: $189 billion; including capital expenditures of $NA (2005 est.)
Public debt:
30.1% of GDP (2005 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:
7.3% (2005 est.)
Electricity - production:
342.1 billion kWh (2004)
Electricity - consumption:
321.1 billion kWh (2004)
Electricity - exports:
0 kWh (2004)
Electricity - imports:
0 kWh (2004)
Oil - production:
0 bbl/day (2004)
Oil - consumption:
2.061 million bbl/day (2004)
Oil - exports:
645,200 bbl/day (2004)
Oil - imports:
2.263 million bbl/day (2004)
Natural gas - production:
0 cu m (2003 est.)
Natural gas - consumption:
24.09 billion cu m (2003 est.)
Natural gas - exports:
0 cu m (2003 est.)
Natural gas - imports:
21.11 billion cu m (2003 est.)
Current account balance:
$14.32 billion (2005 est.)
Exports:
$288.2 billion f.o.b. (2005 est.)
Exports - commodities:
semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships, petrochemicals
Exports - partners:
China 19.6%, US 17%, Japan 8.6%, Hong Kong 7.1% (2004)
Imports:
$256 billion f.o.b. (2005 est.)
Imports - commodities:
machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, plastics
Imports - partners:
Japan 20.6%, China 13.2%, US 12.9%, Saudi Arabia 5.3% (2004)
Reserves of foreign exchange and gold:
$210.4 billion (2005 est.)
Debt - external:
$188.4 billion (30 June 2005 est.)
Economic aid - donor:
ODA, $423.3 million (2004)
Currency (code):
South Korean won (KRW)
Exchange rates:
South Korean won per US dollar - 1,024.1 (2005), 1,145.3 (2004), 1,191.6 (2003), 1,251.1 (2002), 1,291 (2001)
Fiscal year:
calendar year
