lecture iv south korean economy todayswan.ewha.ac.kr/lecture_4_s_korean_eco_today.pdf ·...

Lecture IVSouth Korean Economy today

Korean Economy with Numbers

• GDP (PPP based)

S. Korea $ 1.85 Trillion (2015 est)

N. Korea $ 40 Billion (2014 est)

Germany $ 3.84 Trillion (2015 est)

France $ 2.64 Trillion (2015 est)

UK $ 2.66 Trillion (2015 est)

Japan $ 4.66 Trillion (2015 est)

China $ 19.51 Trillion (2015 est)

U.S. $ 17.97 Trillion (2015 est)

India $ 8.02 Trillion (2015 est)

Korean Economy with Numbers

• GDP/person

S. Korea $ 36,700 (2015 est)

N. Korea $ 1,800 (2014 est)

Germany $ 47,400 (2015 est)

France $ 41,400 (2015 est)

UK $ 41,200 (2015 est)

Japan $ 38,200 (2015 est)

China $ 14,300 (2015 est)

U.S. $ 56,300 (2015 est)

India $ 6,300 (2015 est)

Korean Economy with Numbers

• GDP Growth Rate

S. Korea 2.7% (2015 est) ← 3.3% (2014)

N. Korea 1% (2014 est) ← 1.1% (2013)

Germany 1.5% (2015 est) ← 1.6% (2014)

France 1.2% (2015 est) ← 0.2% (2014)

UK 2.5% (2015 est) ← 2.8% (2014)

Japan 0.6% (2015 est) ← 1.6% (2014)

China 6.8% (2015 est) ← 7.4% (2014)

U.S. 2.6% (2015 est) ← 2.4% (2014)

India 7.3% (2015 est) ← 7.3% (2014)

Korean Economy with Numbers

• Unemployment Rate

S. Korea 3.5% (2015)

N. Korea 25.6% (2013)

Germany 4.8% (2015)

France 9.9% (2015)

UK 5.4% (2015)

Japan 3.3% (2015)

China 4.2% (2015)

U.S. 5.2% (2015)

India 7.1% (2015)

Korean Economy with Numbers

• Inflation Rate

S. Korea 0.7% (2015 est)

N. Korea N.A.

Germany 0.2% (2015 est)

France 0.1% (2015 est)

UK 0.1% (2015 est)

Japan 0.7% (2015 est)

China 1.5% (2015 est)

U.S. 0.2% (2015 est)

India 5.6% (2015 est)

Korean Economy with More Numbers

• GDP by Industrial Sector

2.4%

38.7%

58.9%

Agriculture and Fisheries

Manufacturing

Service

Korean Economy with More Numbers

• Labor Force by Industrial Sector

6.90%

23.60%

69.50%

Agriculture and Fisheries

Manufacturing

Service

Korean Economy with More Numbers

• Income Distribution (2011)

6.40%

37.70%

Lowest 10%

Highest 10%

Korean Economy with More Numbers

• Gini Index

S. Korea 30.2 (2014)

N. Korea N.A.

Germany 27 (2006)

France 30.1 (2013)

U.K. 32.4 (2012)

Japan 37.9 (2011)

China 46.9 (2014)

U.S. 45 (2007)

Hong Kong 53.7 (2011)+

India 33.6 (2012)

Korean Economy with More Numbers

• Export: $ 535.5 Billion (2015)

- China (26%), U.S. (11%), Japan (6%), HK (5%)

• Import: $ 430.8 Billion (2015)

- China (16%), Japan (12%), US (8.7%), Saudi Arabia (7%)

Korean Economy with More Numbers

• Foreign Reserve:

- $ 369 Billion (end of 2015)

• Exchange Rate:

- 1186.00 Won/$ (as of today)

- 1129.7 Won/$ (end of 2015)

1094.9 1041.5 1084.3

2013 2014 today

The Shape of Korean Economy with Numbers

• Foreign reserves

Souce: HaverAnalytics*Estonia, Slovenia, China, Taiwan, Vietnam,

Saudi Arabia and Israel excluding gold

including gold*, $bn, latest

Aregentina 45.3Oct China 3,305.3Sep

Brazil 377.8Oct Hong Kong 302.4Oct

Chile 38.9Oct India 295.3Oct

Colombia 36.4Oct Indonesia 110.3Oct

Mexico 162.4Oct Malaysia 138.3Oct

Peru 62Oct Pakistan 15.2Jun

Venezuela 25.9Oct Philippines 82.1Oct

Czech Republic 44.1Oct Singapore 254.2Oct

Estonia 0.3Sep South Korea 323.5Oct

Hungary 45.5Oct Taiwan 398Q3

Latvia 6.9Oct Thailand 181.4Oct

Lithuania 8.3Oct Vietnam 20.4Jul

Poland 105.9Oct Egypt 15.5Oct

Russia 526.8Oct Israel 75.9Oct

Slovakia nilSep Saudi Arabia 621.5Sep

Slovenia 0.9Oct South Africa 50.7Oct

Turkey 117.7Jul

Ukraine 26.8Oct

Current Problems in S. Korean Economy

• Continuing Recession

• N. Korea’s Threat with Atomic Bomb

• Slowing Chinese Economy

• High Unemployment for Young Generation

• Income gap between the Rich and the Nots

Philippines and Argentina

The Polarization of Income Distribution

The Polarization of Income Distribution

The Best Economy in the World

LuxembourgBest per person income2012 reading: $106,958

The Best Economy in the World

LuxembourgBest per person income2012 reading: $106,958

The Best Economy in the World

MadagascarLowest government debt2012 reading: 5%

The Best Economy in the World

MadagascarLowest government debt2012 reading: 5%

The Best Economy in the World

United StatesLargest economy2012 reading: $15.6 Trillion

The Best Economy in the World

LibyaFastest economic growth2012 reading: 76%

The Best Economy in the World

LibyaFastest economic growth2012 reading: 76%

The Best Economy in the World

MongoliaLargest Investment 64% of GDP

The Best Economy in the World

MongoliaLargest Investment 64% of GDP

Issues in the future of Korean economy

• Aging Economy

• Female workers’ more participation in labor mkt

Aging Economy

• Reasons?

- Low Fertility Rate (4.5 → 0.9)

- Increase in Avg Life Expectancy (63 → 76)

• Entering the Aging Economy in 10 years

- Unprecedented in other countries

- U.S. 71 yrs, France 115 yrs, Sweden 85 yrs, Japan 24 yrs

The Fastest Progress to Aged Economy

Source:Statistics Korea

1960 2050

Male MaleFemale Female

Aging Economy

• Results?

- decreasing labor force

- decreasing savings

- low economic growth

- government budget worsens

- pension worsens

Female Workers

• Without Increasing Female Workers Labor Force Participation,

there will not be Economic Growth?

• If S. Korea want to be a member of the riches countries, the

female labor force participation rate should be doubled!

Korean Female Workers’ Labor Force Participation Rate by Edu Level (%)

year totalBelowEle S

Below Mid S

BelowHigh S

BelowCollege

Above College

2006 48.8 44.8 42.3 49.7 60.9 58.3

2007 49.3 43.7 43.0 50.7 61.5 58.5

2008 49.8 43.0 43.4 51.5 62.1 59.2

2009 49.0 40.1 40.9 51.5 61.7 58.3

2010 49.9 39.5 41.1 53.1 62.7 60.1

2011 50.1 38.9 40.9 63.4 63.1 60.3

Korea’s place in OECD countries in terms of women’s labor activities

Segment Rate Korea’s ranking

Female unemployment rate

2.8 28th

Female employment-to-population ratio

53.2 24th

Percentage of femalesworking or seeking work

54.7 28th

Percentage of femalesamong part-time workers

59.0 30th

Wage gap betweenmale and female workers

38.0 1st

Source: Organization for Economic Cooperation and Development