Economy - overview:
Since the 1960s, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. Four decades ago, 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. Today its GDP per capita is equal to the lesser economies of the EU. This success was achieved by a system of close government/business ties, including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-99 exposed longstanding weaknesses in South Korea's development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. GDP plunged by 6.9% in 1998, then recovered 9.5% in 1999 and 8.5% in 2000. Growth fell back to 3.3% in 2001 because of the slowing global economy, falling exports, and the perception that much-needed corporate and financial reforms had stalled. Led by consumer spending and exports, growth in 2002 was an impressive 7%, despite anemic global growth. Between 2003 and 2006, growth moderated to about 4-5%. A downturn in consumer spending was offset by rapid export growth. Moderate inflation, low unemployment, an export surplus, and fairly equal distribution of income characterize this solid economy.

GDP (purchasing power parity):
$1.18 trillion (2006 est.)

GDP (official exchange rate):
$768.5 billion (2006 est.)

GDP - real growth rate:
5.1% (2006 est.)

GDP - per capita (PPP):
$24,200 (2006 est.)

GDP - composition by sector:
agriculture: 3.3%
industry: 40.7%
services: 56% (2006 est.)

Labor force:
23.88 million (2006 est.)

Labor force - by occupation:
agriculture: 6.4%
industry: 26.4%
services: 67.2% (2005 est.)

Unemployment rate:
3.6% (2006 est.)

Population below poverty line:
15% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 25% (2005 est.)

Distribution of family income - Gini index:
35.8 (2000)

Inflation rate (consumer prices):
3% (2006 est.)

Investment (gross fixed):
29.1% of GDP (2006 est.)

Budget:
revenues: $218 billion
expenditures: $209.5 billion; including capital expenditures of $NA (2006 est.)

Public debt:
21.4% of GDP (2006 est.)

Agriculture - products:
rice, root crops, barley, vegetables, fruit; cattle, pigs, chickens, milk, eggs; fish

Industries:
electronics, telecommunications, automobile production, chemicals, shipbuilding, steel

Industrial production growth rate:
10% (2006 est.)

Electricity - production:
345.2 billion kWh (2004)

Electricity - consumption:
321 billion kWh (2004)

Electricity - exports:
0 kWh (2004)

Electricity - imports:
0 kWh (2004)

Oil - production:
7,378 bbl/day (2004)

Oil - consumption:
2.149 million bbl/day (2004)

Oil - exports:
645,200 bbl/day (2004)

Oil - imports:
2.263 million bbl/day (2004)

Natural gas - production:
0 cu m (2004 est.)

Natural gas - consumption:
27.84 billion cu m (2004 est.)

Natural gas - exports:
0 cu m (2004 est.)

Natural gas - imports:
28.93 billion cu m (2004 est.)

Current account balance:
$6.741 billion (2006 est.)

Exports:
$327.9 billion f.o.b. (2006 est.)

Exports - commodities:
semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships, petrochemicals

Exports - partners:
China 21.8%, US 14.6%, Japan 8.5%, Hong Kong 5.5% (2005)

Imports:
$300.4 billion f.o.b. (2006 est.)

Imports - commodities:
machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, plastics

Imports - partners:
Japan 18.5%, China 14.8%, US 11.8%, Saudi Arabia 6.2% (2005)

Reserves of foreign exchange and gold:
$235 billion (2006 est.)

Debt - external:
$229.3 billion (30 June 2006 est.)

Economic aid - donor:
ODA, $423.3 million (2004)

Currency (code):
South Korean won (KRW)

Exchange rates:
South Korean won per US dollar - 952 (2006), 1,024.1 (2005), 1,145.3 (2004), 1,191.6 (2003), 1,251.1 (2002)