A small country in Northeast Asia with the most innovative economy continues to develop successfully. Despite its geographical size, South Korea and Russia are neighbors in the world ranking in terms of GDP. Moreover, a smaller country has a stronger economy.
Economic review
A country with a developed capitalist economy occupies a leading position in the world in many respects, including ease of doing business (5th place) and innovativeness (1st place). In 2017, South Korea ranked 11th in the world in terms of GDP with an indicator of $ 1.53 trillion. In terms of GDP per capita ($ 27023.24), the country is in 31st place in the world ranking.
The leading sectors of the country are the automotive industry, petrochemicals, semiconductor and steel industry. The country has long entered the post-industrial phase, with the predominance of the intangible sector of the economy. In the structure of South Korea’s GDP, 59% falls on the services sector, 39% on production and 2% on agriculture. The government is stimulating business to develop and implement technologies of the fourth industrial revolution, especially in terms of artificial intelligence, robots, and telecommunications equipment.
International trade
The country owes its economic success primarily to international trade. The country's enterprises are focused on the production of products that have good export potential in recent years, especially with high added value. South Korea is in the top 5 countries - exporters of high-tech products. The country is also in fifth place in terms of total exports, in 2017 its volumes amounted to 577.4 billion US dollars.
The best Korean products for sale on the foreign market are: integrated circuits ($ 68.3 billion), automobiles ($ 38.4 billion), oil products ($ 24.8 billion), and passenger and cargo ships ($ 20.1 billion). Best export destinations: China, USA and Vietnam. Import volumes in 2017 amounted to $ 457.5 billion. Most of the country buys crude oil ($ 40.9 billion), followed by integrated circuits ($ 29.3 billion) and natural gas ($ 14.4 billion). Most products are purchased in China, Japan and the United States.
Volumes of the economy
In the 1950s, the main share of South Korea’s GDP was in agriculture and light industry, in the 70-80s - in light industry and consumer goods, in the 90s - in the services sector. Between 1970 and 2016, the volume of services provided in the country increased by $ 516.5 billion (297 times).
South Korea’s GDP for the first time exceeded $ 1 trillion in the United States in 2010. Over the next seven years, the indicator grew by more than 50%, reaching $ 1,530 billion in 2017.
The table below shows the GDP of South Korea by year.
| Year | Value, billion dollars |
| 2007 | 1049.2 |
| 2008 | 931.4 |
| 2009 | 834.1 |
| 2010 | 1014.5 |
| 2011 | 1164.0 |
| 2012 | 1151.0 |
| 2013 | 1198.0 |
| 2014 | 1449.0 |
| 2015 | 1393.0 |
| 2016 | 1404.0 |
| 2017 | 1530.0 |
These statistics perfectly show how successfully the country is developing in the economic sphere.
Economic growth rate
After the global economic crisis of 2008, South Korea’s GDP growth rate in 2009 fell to 0.3%. In 2011, the country has already reached a good level - 3.7%, which is a fairly high indicator for a developed economy. This was facilitated by good conditions for the country's main export products, including shipbuilding, automotive, engineering products and household appliances. From 2012 to 2016, South Korea’s GDP growth slowed due to problems in the foreign market. The intensification of competition in the electronics and automobile markets, the decline in revenues in the markets of metallurgical products and in shipbuilding had a negative impact on the country's economy.
In 2017, for the first time since 2014, the country's economy managed to overcome the 3 percent barrier, reaching a level of 3.1%. In a three-year perspective, the South Korean government intends to achieve a 4% GDP. The breakthrough occurred primarily due to the excellent market conditions for semiconductor elements and memory cards.