MIRCALE ON THE HAN RIVER
12BSP1240 12BSP1322 12BSP1356 12BSP1364
Sonam Hemdev Abhijeet Tare Nipun Vaidya Varun Nair
Submitted to: Prof. Swaha Shome.
The South Korean Economy TABLE OF CONTENTS
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Content Project Abstract Introduction to South Korea Government Spending Consumption Investment Exports Imports Fiscal Policies & Deficits Monetary Policies Foreign Exchange Trade Policies Unemployment Conclusion Bibliography Page Numbers 2 3 6 7 9 10 12 13 17 21 22 24 26 27
The South Korean Economy ABSTRACT
The purpose of this project is to study the various facets of the South Korean Economy and thereby analyse through various indicators the current economic condition. Also the project aims at understanding how monetary policy, fiscal policy and trade policy have been used to control various macroeconomic parameters and how they have impacted the economy and played a crucial role in the development and performance of the economy of South Korea as a whole. The stress of this project would however remain on better understanding of Macroeconomic concepts and thereby linking them as and when necessary to support a claim or point out the flaws in the policies if any.
The South Korean Economy Introduction to South Korea
South Korea, also called the Republic of Korea is surrounded by China in the west, Japan in the east, the Korea Strait in the south and North Korea in the north. The total land area of South Korea is 99,392 square km. and has a population of 50 million. The capital and largest city of the country is Seoul. South Korea is a Presidential Republic and one of the developed countries with a very high standard of living. The national currency is South Korean Won (KRW) issued by The Bank of Korea since June 12, 1950. The South Korean Won is not regulated by any governing body, but determined by the demand and supply dynamics in the market. It is Asia's fourth largest economy and the world's 15th (nominal GDP) or 12th (GDP PPP) largest economy which puts it in the elite G-20 major economies. South Korea is a member of the United Nations, WTO, and OECD. It is also a founding member of APEC and the East Asia Summit. Owing to its rapid and consistent growth given the scarce nature of natural resources allotted post the liberation of the country, it is often referred to as, “The Miracle on the Han River.”
We have observed from the above graph that the GDP of South Korea from 1961-2011 has been growing at a good pace. Especially during 19601980, the country experienced a rapid growth. In 1998 the GDP data however shows a slump which mainly accounts due to the Asian Financial Crisis.
The South Korean Economy
South Korea’s economic profile has won a string of plaudits, including: World’s 8th largest exporter: Ahead of the UK, Russia and Canada. World’s Trading Partner: 3rd largest trader with China and Japan, 7th with the US and 8th with the EU. World’s largest shipbuilder: including world’s largest shipyard run by Hyundai Heavy Industries. World’s 5th largest automobile manufacturer: including world’s largest automobile assembly plant (Hyundai Motors). World’s largest electronics manufacturing firm: Samsung electronics. World’s largest producer of computer memory chips.
South Korea’s Export structure has changed over the period of time. We observe, it has shifted from Agriculture products to Light Industry products to HCI products over the period of time. The next page shows the major economic indicators for South Korea. It also includes a few forecasts made by IMF for the year 2012 earlier in 2011.
The South Korean Economy
The South Korean Economy Government Spending
Of the 20 largest economies, only six spent less per citizen. South Korea spending $4,557 per citizen is one of them. The General government consumption expenditure (% of GDP) in South Korea was last reported...