South Korea

In 2004, South Korea joined the trillion dollar club of world economies. Today its GDP per capita is roughly the same as that of Greece and Spain. 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.

GDP plunged by 6.9% in 1998, then recovered by 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 2007, growth moderated to about 4-5% annually.

South Korea is a major producer of electronic goods and components accounting for 4% of global output. Components, and in particular semiconductors, is the major segment accounting for 41% of the total. The company is also a leading producer of radio communications, including mobile phones, the sector accounting for around 25% of domestic output.

Industrial production growth rate is 7.6% (2007 est,) and South Korea has gained its recognition in the industries such as electronics, telecommunications, automobile production, chemicals, shipbuilding, steel.