Korea Business Guide

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

37 00 N, 127 30 E

Asia

2,413 km

temperate, with rainfall heavier in summer than winter

mostly hills and mountains; wide coastal plains in west and south

coal, tungsten, graphite, molybdenum, lead, hydropower potential

8,780 sq km (2003)

69.7 cu km (1999)

occasional typhoons bring high winds and floods; low-level seismic activity common in southwest

air pollution in large cities; acid rain; water pollution from the discharge of sewage and industrial effluents; drift net fishing

strategic location on Korea Strait

48,508,972 (July 2009 est.)

0.266% (2009 est.)

8.93 births/1,000 population (2009 est.)

5.94 deaths/1,000 population (July 2009 est.)

-0.33 migrant(s)/1,000 population (2009 est.)

1.21 children born/woman (2009 est.)

homogeneous (except for about 20,000 Chinese)

Christian 26.3% (Protestant 19.7%, Roman Catholic 6.6%), Buddhist 23.2%, other or unknown 1.3%, none 49.3% (1995 census)

Korean, English widely taught in junior high and high school

4.6% of GDP (2004)

Since the 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. In 2008, its GDP per capita was roughly the same as that of the Czech Republic and New Zealand. Initially, this success 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 1997-98 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 by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. 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 2007, growth moderated to about 4-5% annually. A downturn in consumer spending was offset by rapid export growth. In 2008, inflation increased in the face of rising oil and food prices before easing in the fourth quarter. Korea was hit hard by the global financial turmoil that began in September 2008. Stock prices fell by more than 40% for the year and the value of the won fell by approximately 26%. Korean GDP shrank in the fourth quarter and GDP growth for the year was just 2.2%. The Korean government adopted several measures to combat the credit crunch and stimulate the economy.

$1.338 trillion (2008 est.)

$1.309 trillion (2007 est.)

$1.245 trillion (2006 est.)

$929.1 billion (2008 est.)

2.2% (2008 est.)

5.1% (2007 est.)

5.2% (2006 est.)

$27,700 (2008 est.)

$27,100 (2007 est.)

$25,900 (2006 est.)

24.35 million (2008 est.)

3.2% (2008 est.)

3.3% (2007 est.)

15% (2003 est.)

31.3 (2007)

35.8 (2000)

27.1% of GDP (2008 est.)

24.4% of GDP (2008 est.)

21.3% of GDP (2004 est.)

4.7% (2008 est.)

2.5% (2007 est.)

1.75% (31 December 2008)

3.25% (31 December 2007)

7.17% (31 December 2008)

$80.66 billion (31 December 2008)

$92.59 billion (31 December 2007)

$478 billion (31 December 2008)

$541.7 billion (31 December 2007)

$937 billion (31 December 2008)

$1.061 trillion (31 December 2007)

$494.6 billion (31 December 2008)

$1.124 trillion (31 December 2007)

$835.2 billion (31 December 2006)

rice, root crops, barley, vegetables, fruit; cattle, pigs, chickens, milk, eggs; fish

electronics, telecommunications, automobile production, chemicals, shipbuilding, steel

2.2% (2008 est.)

440 billion kWh (2008 est.)

385.1 billion kWh (2008 est.)

0 kWh (2008 est.)

0 kWh (2008 est.)

30,440 bbl/day (2008 est.)

2.175 million bbl/day (2008 est.)

800,000 bbl/day

2.982 million bbl/day (2008 est.)

0 bbl

443 million cu m (2008 est.)

34.76 billion cu m (2008 est.)

0 cu m (2008)

36.21 billion cu m (2008 est.)

50 billion cu m (1 January 2008 est.)

-$6.349 billion (2008 est.)

$5.954 billion (2007 est.)

$433.5 billion (2008 est.)

$379 billion (2007 est.)

semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships, petrochemicals

China 21.4%, US 10.9%, Japan 6.6%, Hong Kong 4.6% (2008)

$427.4 billion (2008 est.)

$349.6 billion (2007 est.)

machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, plastics

China 17.7%, Japan 14%, US 8.9%, Saudi Arabia 7.8%, UAE 4.4%, Australia 4.1% (2008)

$201.2 billion (31 December 2008 est.)

$262.2 billion (31 December 2007 est.)

$124.2 billion (31 December 2008 est.)

$122 billion (31 December 2007 est.)

$74.6 billion (30 June 2008)

$82.1 billion (2006)

21.325 million (2008)

45.607 million (2008)

AM 96, FM 322, shortwave 1 (2008)

57 (plus 103 cable operators and 119 relay cable operators) (2008)

.kr

301,270 (2009)

37.476 million (2008)

116 (2009)

516 (2009)

gas 1,423 km; refined products 827 km (2008)

1,608 km (most navigable only by small craft) (2008)

Inch'on, P'ohang, Pusan, Ulsan