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Lecture IVSouth Korean Economy today
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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)
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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)
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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)
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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)
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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)
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Korean Economy with More Numbers
• GDP by Industrial Sector
2.4%
38.7%
58.9%
Agriculture and Fisheries
Manufacturing
Service
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Korean Economy with More Numbers
• Labor Force by Industrial Sector
6.90%
23.60%
69.50%
Agriculture and Fisheries
Manufacturing
Service
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Korean Economy with More Numbers
• Income Distribution (2011)
6.40%
37.70%
Lowest 10%
Highest 10%
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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)
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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%)
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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
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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
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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
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Philippines and Argentina
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The Polarization of Income Distribution
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The Polarization of Income Distribution
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The Best Economy in the World
LuxembourgBest per person income2012 reading: $106,958
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The Best Economy in the World
LuxembourgBest per person income2012 reading: $106,958
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The Best Economy in the World
MadagascarLowest government debt2012 reading: 5%
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The Best Economy in the World
MadagascarLowest government debt2012 reading: 5%
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The Best Economy in the World
United StatesLargest economy2012 reading: $15.6 Trillion
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The Best Economy in the World
LibyaFastest economic growth2012 reading: 76%
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The Best Economy in the World
LibyaFastest economic growth2012 reading: 76%
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The Best Economy in the World
MongoliaLargest Investment 64% of GDP
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The Best Economy in the World
MongoliaLargest Investment 64% of GDP
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Issues in the future of Korean economy
• Aging Economy
• Female workers’ more participation in labor mkt
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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
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The Fastest Progress to Aged Economy
Source:Statistics Korea
1960 2050
Male MaleFemale Female
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Aging Economy
• Results?
- decreasing labor force
- decreasing savings
- low economic growth
- government budget worsens
- pension worsens
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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!
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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
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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