South Korea's Economic Situation
Show me the money...

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Economic Statistics - Dry, Boring, Necessary Facts

GDP: $625.7 billion, estimated 1999

GDP real growth rate: 10%, estimated 1999

GDP per capita: $13,300, estimated 1999

GDP consumption by sector: Agriculture 5%, Industry 45%, Services 50%, estimated 1998

Money Spent on Imports: $116 billion, estimated 1999

Types of Imports: Machinery, Electronics and electronic equipment, Oil, Steel, Transport equipment, Textiles, Organic chemicals, Grains

Import Partners: United States 22%, Japan 18%, China 7%, Australia 5%, Saudi Arabia 5%, estimated 1998

Money Gained from Exports: $144 billion, estimated 1999

Types of Exports: Electronic products, Machinery and equipment, Motor vehicles, Steel, Ships, Textiles, Clothing, Footwear, Fish

Export Partners: United States 17%, Japan 9%, China 9%, Hong Kong 7%, Taiwan 4%, estimated 1998

External Debt: $142 billion, estimated 1999

Korea's Economic Situation - A Gross Oversimplification
    After Korea's economy was ravaged by the effects of World War II and the Korean War, the nation could easily have settled into its role as an impoverished agricultural nation with no major industries or exports.  Even massive foreign aid efforts could do little more than maintain Korea's low standard of living, much less stimulate Korea's economic growth.
    In order to get the nation back on its feet, the South Korean government opened its markets to free trade.  It also tried to encourage the development of labor-intensive industries by offering incentives to businesses that would cooperate with the government's strategy.  The South Korean government's approach to building the nation's economy allowed the people of South Korea to gain experience producing and exporting goods for the world markets by focusing on developing just a few industries to launch their economy.
    The first goods to come out of South Korea were inexpensive toys, party favors, and other consumer goods for the world market.  Once the nation had built a firm base, it moved on to producing clothing, encouraging further economic expansion.

    South Korea then invested its resouces in heavy industries like shipbuilding and steel manufacturing, building one of the largest, most modern steel refineries in Asia.  In Korea's rapidly growing economy, companies such as Samsung, Daewoo, and Goldstar began producing and exporting consumer and electronic goods including radios, television sets, microwave ovens, home computers, and other appliances.  In recent years, South Korea has become a leading producer of automobiles with Hyundai, Daewoo, and Kia entering the market to compete with Japanese Hondas, Toyotas, and Mitsubishis.