The purpose of this page is to explain the Korean market to overseas manufacturers, so we are focusing mainly on the economic situation. Korea is one of the rapidly developing countries, and very close to both the Chinese & Japanese markets. Especially, IT(Information technology) products from SAMSUNG, LG etc. such as semiconductors, cellular phones and display materials etc. are famous all over international market.

Economic 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 capital was comparable with levels in the poorer countries of Africa and Asia.
In 2004, it joined the trillion dollar club of world economies. Today its GDP per capital is 14 times North Korea's and equal to the lesser economies of the European Union. 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.
Growth plunged to a negative 6.9% in 1998, then strongly recovered to 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 7.0%, despite anemic global growth. Economic growth fell to 3.1% in 2003 because of a downturn in consumer spending and recovered to an estimated 4.6% in 2004 on the strength of rapid export growth.
The government plans to boost infrastructure spending in 2005. Moderate inflation, low unemployment, an export surplus, and fairly equal distribution of income characterize this solid economy.

GDP (purchasing power parity) : $925.1 billion (2004 est.)

GDP - Real growth rate : 4.6% (2004 est.)

GDP - Per capita: Purchasing power parity - $19,200 (2004 est.)

GDP - Composition by sector : Aagriculture : 3.2% industry: 40.4% services: 56.3% (2004 est.)

Inflation rate (consumer prices) : 3.6% (2004 est.)

Investment (gross fixed) : 28.7% of GDP (2004 est.)

Budget : Revenues: $150.5 billion

Expenditures : $155.8 billion, including capital expenditures of NA (2004 est.)

Industries : Electronics, telecommunications, automobile production, chemicals, shipbuilding, steel

Industrial production growth rate : 10.1% (2004 est.)

Export

Exports : $250.6 billion f.o.b. (2004 est.)

Exports – Commodities: Semiconductors, wireless
telecommunications equipment, motor vehicles, computers, steel, ships, petrochemicals

Exports – Partners : China 19.7%, US 17%, Japan 8.6%, Hong Kong 7.2% (2004)

Import

Imports : $214.2 billion F.O.B. (2004 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)

Currency Code : KRW

Exchange Rates : South Korean won per US dollar - 1,145.3 (2004), 1,191.6 (2003), 1,251.1 (2002), 1,291 (2001), 1,131 (2000)

Fiscal Year : Calendar year

Population : 48,422,644 (July 2005 est.)

Religions : No affiliation 46%, Christian 26%, Buddhist 26%,  

Confucianist 1%, other 1%

Country Name : Republic of Korea

Government Type : Republic

Capital : Seoul

Administrative Divisions : 9 provinces and 7 metropolitan cities