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A northbound and a southbound
call at Busan is provided by the North Asia Service
to minimize transit-times in both directions. In
addition our monthly call at Inchon offers traders
regular and direct access to this large industrial
area.
Economic Indicator
| Population |
48.22 million as at 2003 |
| GDP |
US$605 billion (2003) |
| GDP Growth Rate
|
3.1% (2003) |
| GDP Per Capita
|
US$12,646 (2003) |
| Inflation |
3.5% (2003 CPI) |
| Total Imports |
US$187.189 billion (y/e March 2004) |
| Total Exports |
US$210.152 billion (y/e March 2004) |
| Currency |
South Korean Won (W) |
Source: The Bank of Korea, The Korea National Statistical Office and World Trade Atlas
Overview
The Republic of Korea (South Korea) is located in the southern part of the Korean peninsula. The northern half of the peninsula is called North Korea or the Democratic Republic of Korea (communist). The two Koreas were divided along the 38th parallel in 1945 into two military zones as a provisional arrangement pending a resolution of the political conflict in the country.
Through a programme of modernisation and industrialisation, which started in the 1960s, South Korea ranks as the world's 11th largest trading nation. The country has progressed from basic industries such as cement, fertilisers and industrial chemicals, to producing automobiles, electronics, iron and steel and shipbuilding, and then to computer and other technology products.
In 1997, a large number of corporates (chaebols) began running into financial difficulty and several were forced into bankruptcy. This signalled the beginning of a series of economic problems which culminated in the Korean government requesting a US$57 billion bail out from the IMF to avoid default on payment of short-term foreign debts. The IMF agreed to the loan on the condition that Korea undertakes major economic reform, particularly restructuring the financial sector and chaebols.
While the success of Korea is widely acknowledged to have hinged on the chaebol system, these large companies were largely held responsible for the economic crisis. The chaebols are involved in a wide range of activities - from textiles and footwear to high-tech semiconductors and microelectronics. The chaebols have held a privileged position over the last three decades with strong government assistance and preferential access to capital, which has made it difficult for smaller Korean firms to grow.
In signing up for the financial aid package on December 3 of 1997, the Korean government agreed with the IMF that it would pursue macroeconomic stabilisation and structural reform in the financial sector, the corporate sector, and the labour market, and accelerate trade and capital account liberalisation. Today, South Korea is acknowledged as being one of the better-reformed countries in Asia. However, there is still much that remains to be done on financial reform, and the country is busy seeking and promoting new driving-engine industries to pick up the pace of growth and reform that have slackened since the end of 2000.
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South
Korea's Top Ten Exports for year ending March 2004
(US$ million)
| Electrical Machinery
|
59,714 |
| Machinery |
34,706 |
| Vehicles (excl
Railway) |
25,167 |
| Ships and Boats
|
12,755 |
| Plastic |
9,532 |
| Iron and steel |
7,912 |
| Mineral fuel and oil etc |
7,000 |
| Organic Chemicals |
6,258 |
| Precious stones, metals |
4,585 |
| Optical and medical instruments |
3,950 |
Source: World Trade Atlas
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South Korea's
Top Ten Imports for year ending March 2004
(US$ million)
| Electrical machinery |
40,443 |
| Mineral fuel, oil etc |
38,804 |
| Machinery |
21,308 |
| Iron and steel |
9,245 |
| Optical and medical instruments |
8,654 |
| Organic Chemicals |
5,785 |
| Precious stones and metals |
4,756 |
| Plastics |
3,695 |
| Vehicles, not railway |
3,187 |
| Ores, slag and ash |
2,699 |
Source: World Trade Atlas
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New Zealand's
Top Ten Exports to South Korea for y/e Mar 2004
(NZ$ millions)
| Wood |
361.28 |
| Meat |
143.47 |
| Raw hides and skins |
84.95 |
| Dairy |
73.23 |
| Aluminium |
57.50 |
| Wood pulp |
51.45 |
| Fish |
32.72 |
| Albumin, casein |
30.53 |
| Methanol |
29.14 |
| Fruit |
27.78 |
| Total NZ Exports to Korea |
1003.00 |
The above information is an excerpt from the New Zealand Trade & Enterprise Country Briefs. For a more comprehensive
account visit:
http://www.nzte.govt.nz
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