South Korea

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

South Korea - In Short.

Overview of South Korea

The first recorded kingdom (Choson) on the Korean Peninsula dates from approximately 2300 B.C. Over the subsequent centuries, three main kingdoms – Kogoryo, Paekche, and Silla – were established on the Peninsula.  By the 5th century A.D., Kogoryo emerged as the most powerful, with control over much of the Peninsula, as well as part of Manchuria (modern-day northeast China).  However, Silla allied with the Chinese to create the first unified Korean state in the late 7th century (688).  Following the collapse of Silla in the 9th century, Korea was unified under the Koryo (Goryeo; 918-1392) and the Chosen (Joseon; 1392-1910) dynasties. Korea became the object of intense imperialistic rivalry between the Chinese (its traditional benefactor), Japanese, and Russian empires in the latter half of the 19th and early 20th centuries. Following the Sino-Japanese War (1894-95) and the Russo-Japanese War (1904-1905), Korea was occupied by Imperial Japan. In 1910, Tokyo formally annexed the entire Peninsula. Korea regained its independence following Japan’s surrender to the US and its allies in 1945. After World War II, a democratic government (Republic of Korea, ROK) was set up in the southern half of the Korean Peninsula while a communist-style government was installed in the north (North Korea; aka Democratic People’s Republic of Korea, DPRK). During the Korean War (1950-53), US troops and UN forces fought alongside ROK soldiers to defend South Korea from a North Korea invasion supported by communist China and the Soviet Union. A 1953 armistice split the Peninsula along a demilitarized zone at about the 38th parallel. PARK Chung-hee took over leadership of the country in a 1961 coup. During his regime from 1961 to 1979, South Korea achieved rapid economic growth, with per capita income rising to roughly 17 times the level of North Korea in 1979. Park was assassinated in 1979, and subsequent years were marked by political turmoil and continued authoritarian rule as the country’s pro-democracy movement grew. South Korea held its first free presidential election under a revised democratic constitution in 1987, with former South Korean Army general ROH Tae-woo winning a close race. In 1993, KIM Young-sam (1993-98) became the first civilian president of South Korea’s new democratic era. President KIM Dae-jung (1998-2003) won the Nobel Peace Prize in 2000 for his contributions to South Korean democracy and his “Sunshine Policy” of engagement with North Korea. President PARK Geun-hye, daughter of former South Korean President PARK Chung-hee, took office in February 2013 as South Korea’s first female leader. In December 2016, the National Assembly passed an impeachment motion against President PARK over her alleged involvement in a corruption and influence-peddling scandal, immediately suspending her presidential authorities. The impeachment was upheld in March 2017, triggering an early presidential election in May 2017 won by MOON Jae-in. South Korea hosted the Winter Olympic and Paralympic Games in February 2018, in which North Korea also participated. Discord with North Korea has permeated inter-Korean relations for much of the past decade, highlighted by North Korea’s attacks on a South Korean ship and island in 2010, the exchange of artillery fire across the DMZ in 2015, and multiple nuclear and missile tests in 2016 and 2017. North Korea’s participation in the Winter Olympics, dispatch of a senior delegation to Seoul, and three inter-Korean summits in 2018 appear to have ushered in a temporary period of respite, buoyed by the historic US-North Korea summits in 2018 and 2019. Nevertheless, relations were stagnant in 2020 and 2021.  
Value
Country Full Name
South Korea
Country Code
KOR
Region
East Asia & Pacific
Income Group
High income
Currency Unit
GDP
1.64E+12
Population
51836239
Land Area
97520
Net National Income Per Capita
25288.45329
GDP per Capita (PPP)
45225.84454

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

South Korea - Economic

Economy of South Korea

After emerging from the 1950-53 war with North Korea, South Korea emerged as one of the 20th century’s most remarkable economic success stories, becoming a developed, globally connected, high-technology society within decades. In the 1960s, GDP per capita was comparable with levels in the poorest countries in the world. In 2004, South Korea’s GDP surpassed one trillion dollars.Beginning in the 1960s under President PARK Chung-hee, the government promoted the import of raw materials and technology, encouraged saving and investment over consumption, kept wages low, and directed resources to export-oriented industries that remain important to the economy to this day. Growth surged under these policies, and frequently reached double-digits in the 1960s and 1970s. Growth gradually moderated in the 1990s as the economy matured, but remained strong enough to propel South Korea into the ranks of the advanced economies of the OECD by 1997. These policies also led to the emergence of family-owned chaebol conglomerates such as Daewoo, Hyundai, and Samsung, which retained their dominant positions even as the government loosened its grip on the economy amid the political changes of the 1980s and 1990s.The Asian financial crisis of 1997-98 hit South Korea’s companies hard because of their excessive reliance on short-term borrowing, and GDP ultimately plunged by 7% in 1998. South Korea tackled difficult economic reforms following the crisis, including restructuring some chaebols, increasing labor market flexibility, and opening up to more foreign investment and imports. These steps lead to a relatively rapid economic recovery. South Korea also began expanding its network of free trade agreements to help bolster exports, and has since implemented 16 free trade agreements covering 58 countries—including the United State and China—that collectively cover more than three-quarters of global GDP.In 2017, the election of President MOON Jae-in brought a surge in consumer confidence, in part, because of his successful efforts to increase wages and government spending. These factors combined with an uptick in export growth to drive real GDP growth to more than 3%, despite disruptions in South Korea’s trade with China over the deployment of a US missile defense system in South Korea.In 2018 and beyond, South Korea will contend with gradually slowing economic growth – in the 2-3% range – not uncommon for advanced economies. This could be partially offset by efforts to address challenges arising from its rapidly aging population, inflexible labor market, continued dominance of the chaebols, and heavy reliance on exports rather than domestic consumption. Socioeconomic problems also persist, and include rising inequality, poverty among the elderly, high youth unemployment, long working hours, low worker productivity, and corruption.

Unemployment Rate

Inflation Rate

South Korea - GDP Composition

GDP Composiiton & Value Added of South Korea

Last Updated: Jan, 2021, Updated For 2020.

South Korea - GDP, Value Added

Demographics of South Korea

with approximately 70% of the country considered mountainous, the country’s population is primarily concentrated in the lowland areas, where density is quite high; Gyeonggi Province in the northwest, which surrounds the capital of Seoul and contains the port of Incheon, is the most densely populated province; Gangwon in the northeast is the least populated
Geographic Location

Eastern Asia, southern half of the Korean Peninsula bordering the Sea of Japan and the Yellow Sea

Races

homogeneous

Languages

Korean, English (widely taught in elementary, junior high, and high school)major-language

Religion

Protestant 19.7%, Buddhist 15.5%, Catholic 7.9%, none 56.9% (2015 est.)note: many people also carry on at least some Confucian traditions and practices

Dependency & Expectancy of South Korea

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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South Korea - Social Media Briefing

South Korea - Social Media & Social Commerce

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Politics & Policies of South Korea

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB, AfDB (nonregional member), APEC, Arctic Council (observer), ARF, ASEAN (dialogue partner), Australia Group, BIS, CD, CICA, CP, EAS, EBRD, FAO, FATF, G-20, IADB, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), LAIA (observer), MIGA, MINURSO, MINUSTAH, NEA, NSG, OAS (observer), OECD, OPCW, OSCE (partner), Pacific Alliance (observer), Paris Club (associate), PCA, PIF (partner), SAARC (observer), SICA (observer), UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNMIL, UNMISS, UNMOGIP, UNOCI, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO, ZC

Import of South Korea

Export of South Korea

Import Destination

Export Destination