South Korea - Economy

Economy

South Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity (PPP), identifying it as one of the G-20 major economies. It is a high-income developed country and is a member of OECD. It is the most industrialised member country of the OECD. South Korea is the only developed country so far to have been included in the group of Next Eleven countries. South Korea had one of the world's fastest-growing economies from the early 1960s to the late 1990s, and South Korea is still one of the fastest-growing developed countries in the 2000s, along with Hong Kong, Singapore, and Taiwan, the other three Asian Tigers. South Koreans refer to this growth as the Miracle on the Han River. The South Korean economy is heavily dependent on international trade, and in 2010 South Korea was the sixth largest exporter and tenth largest importer in the world.

Korea hosted the fifth G20 summit in its capital city, Seoul, in November 2010. The two-day summit was expected to boost Korea's economy by 31 trillion won, or 4% of Korea's 2010 GDP, in economic effects, and create over 160,000 jobs in Korea. It may also help improve the country's sovereign credit rating.

Despite the South Korean economy's high growth potential and apparent structural stability, the country suffers damage to its credit rating in the stock market due to the belligerence of North Korea in times of deep military crises, which has an adverse effect on South Korean financial markets. The International Monetary Fund compliments the resilience of the South Korean economy against various economic crises, citing low state debt, and high fiscal reserves that can quickly be mobilized to address financial emergencies. South Korea was one of the few developed countries that were able to avoid a recession during the global financial crisis, and its economic growth rate reached 6.2 percent in 2010 (the fastest growth for eight years after significant growth by 7.2 percent in 2002), a sharp recovery from economic growth rates of 2.3% in 2008 and 0.2% in 2009 when the global financial crisis hit. The unemployment rate in South Korea also remained low in 2009 at 3.6%

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