Economic Security of South Korea

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ECONOMIC SECURITY OF SOUTH KOREA

Introduction

The economy of South Korea is ranked at fifteenth place in the world. In terms of its relation with the United States, South Korea is the seventh largest trading partner. South Korea is well known for its high level of growth in economic field. Before 1960, South Korea was just another poor third world country and hardly known regionally as well as internationally. Its economic booming has elevated South Korea in the eyes of international cooperation especially the Organisation for Cooperation and Development (OECD).

Factors Affecting The Economic Security

Life span

Primary health care has improved tremendously for past decades. Consequently, good quality of life has contributed to longer life span among the population of South Korea citizens. Therefore the median of age of working population has shifted towards older generation.The aging population seems to be of major concern among the economic community because they might affect the economic growth of the nation. In order to sustain rapid economic growth South Korea would require constant support from the young and dynamic generations.

Education

The economy needs continuous supply of skill labours to sustain growth. Even though the government preach for the need of educated society, the financial allocation is low compare to the needs of parents in educating their children. Hence, the parents end up paying high price for additional classes in school as well as high tuition cost in tertiery education for securing good career. The cost of education is so high that each family restricted the number of children in order to provide excellent education for the child. Even then, the competition is stiff and demands for the need of furthering studies to a higher degree.

North and South Relation

The relationship between North and South Korea remains an enigma in the sense that their economic status is wide apart where the south enjoys the booming of industry while the north deteriorating. Without the humanitarian aid, the people of North Korea would continue to suffer from food shortage. Having consider the hunger situation of people of North Korea, there is always a military threat towards South Korea. However, South Korea remains hopeful that its volatile neighbour would open its barrier to economic aids thus playing the role of good neighbour.

Even though North and South Korea still under conflict, the economic relationship between the two countries remain strong. Being a communist country, China is the largest trading partner for North Korea. However, South Korea has risen to be the second largest partner in terms of economic trade with North Korea. These economic ties is constantly under pressure due to the high possibility of incidences under volatile North Korea foreign policy as well as influences from the communist bloc. For instance, in March 2010, North Korea had torpedoed South Korean warship resulted in 46 soldiers were killed. Despite all the evidence pointing towards her, North Korea deny the responsibility. However, South Korea suspended its trade relationship with North Korea. In another incidence, North Korea fired artillery shell onto Yeonpyeong Island killing two civilians and wounding another 13. These incidences even though had not escalated to full blown war project serious economic security for the South Korea.

Globalisation
Another factor which affects the economic security of a nation is globalisation. By virtue of globalisation, it increases the interconnectedness of nation and people of the world as the communication and transportation becomes cheaper, faster and readily available. Globalisation reduces the artificial barrier of national border, hence allowing the flow of goods, capitals, services, people and knowledge across the world faster than before. Rapid globalisation allows nation to trade with other nation thereby creating mutual economic...
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