48422644
Korean, English (widely taught in junior high and high school)
SEOUL (capital) 9.774 million; Busan (Pusan) 3.216 million; Incheon (Inch'on) 2.685 million; Daegu (Taegu) 2.244 million; Daejon (Taejon) 1.564 million; Gwangju (Kwangju) 1.536 million (2015)
- Conventional long form
- Republic of Korea
- Conventional short form
- South Korea
- Local long form
- Taehan-min'guk
- Local short form
- Han'guk
presidential republic
- Name
- Seoul
- Geographic coordinates
- 37 33 N, 126 59 E
- Time difference
- UTC+9 (14 hours ahead of Washington, DC, during Standard Time)
has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction
South Korea over the past four decades has demonstrated incredible economic growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies.
- Inflation
- 0.971%
- Total tax rate (% of commercial profits)
- 33.1%
- Real Interest Rate
- 1.532%
- Manufacturing, value added (% of GDP)
- 29.338%
- Current Account Balance
- US$ 98,677,400,000
- Labor Force, Total
- 26,918,413
- Employment in Agriculture
- 4.90%
- Employment in Industry
- 24.89%
- Employment in Services
- 70.21%
- Unemployment Rate
- 3.65%
- Imports of goods and services
- US$ 500,171,955,550
- Exports of goods and services
- US$ 596,084,155,310
- Total Merchandise Trade
- 63.89%
- FDI, net inflows
- US$ 10,826,600,000
- Commercial Service Exports
- US$ 91,800,500,000
rice, root crops, barley, vegetables, fruit, cattle, pigs, chickens, milk, eggs, fish
electronics, telecommunications, automobile production, chemicals, shipbuilding, steel
- Commodities
- semiconductors, petrochemicals, automobile/auto parts, ships, wireless communication equipment, flat displays, steel, electronics, plastics, computers
- Partners
- China 26%, US 13.3%, Hong Kong 5.8%, Vietnam 5.3%, Japan 4.9% (2015)
- Commodities
- crude oil/petroleum products, semiconductors, natural gas, coal, steel, computers, wireless communication equipment, automobiles, fine chemicals, textiles
- Partners
- China 20.7%, Japan 10.5%, US 10.1%, Germany 4.8%, Saudi Arabia 4.5% (2015)
- Country Risk Rating
- A3
- Changes in generally good but somewhat volatile political and economic environment can affect corporate payment behavior. A basically secure business environment can nonetheless give rise to occasional difficulties for companies. Corporate default probability is quite acceptable on average.
- Business Climate Rating
- A2
- The business environment is good. When available, corporate financial information is reliable. Debt collection is reasonably efficient. Institutions generally perform efficiently. Intercompany transactions usually run smoothly in the relatively stable environment rated A2.
- Diversified industrial base
- Leader in high-quality electronics
- Excellent education system
- High level of public R&D spending
- Growing Korean investments in China, Vietnam and India
- Healthy public finances
- Steel, textile and naval industry affected by Chinese competition
- High volume of commodities imports
- High level of indebtedness of households and small companies
- Aging population
- Unpredictability of the North Korean regime
In 2016, growth edged up, but in 2017 activity is expected to slow, still hampered by sluggish external demand and the country's structural weaknesses (ageing population and inefficient SME sector). Nonetheless, household consumption is expected to rebound in response to stimulus measures introduced by the government, such as tax incentives on car purchases, despite higher inflation. Household debt remains high (163% of disposable income in 2015) and will continue to dampen activity. Finally, we could see unemployment rising in connection with the restructuring of the naval industry, despite the setting up of a Support Fund.
The implementation of the various stimulus packages has not aversely affected the public finances. This is because most of the extra budget is allocated to national priorities: increasing the economically active population, stimulating the economy and strengthening security. The growth in expenditure is offset by tax increases such as that on cigarettes. Moreover, the government intends to widen the tax base by taxing the informal sector, which is estimated to be equal to a quarter of the formal economy. As a result, the budget surplus is expected to continue to grow. The public debt will remain sustainable and below the levels observed in most other OECD countries. Nonetheless, contingent liabilities and debt of public-sector companies represent 10% and 30% of GDP respectively.
While presidential elections are scheduled for December 2017 and the Constitution forbids President Park Geun-hue from standing for a second term, on 9 December 2016 the National Assembly voted to impeach Ms Park on grounds of corruption, abuse of power and breach of her constitutional obligations. She has also been strongly criticised for her management of the Sewol ferry disaster and the Coronavirus epidemic. The constitutional Court now has 6 months to confirm the impeachment motion. In the meantime, power has been entrusted to the prime minister. If the Court confirms the impeachment, presidential elections will be organised within 60 days.