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Writer's pictureAndreea Columban

The economy in South Korea



South Korea is a global economic power. It has the twelfth-largest economy worldwide and the third-largest in Asia, after Japan and China. South Korea's largest trade and export partner, today is China. Within the import, the main components are clothing, natural gas and gasoline, electrical appliances, and coal, with the first five being sourced from China, South Korea, and Indonesia. South Korea has achieved economic growth at an unprecedented speed. Most of the country’s industrial facilities were destroyed during the three-year-long Korean War, and the country was devoid of capital and natural resources.


The most expensive city in South Korea is the capital Seoul, which is ranked 16th, followed by the city of Busan, which is ranked 68th.Seoul has been the capital of South Korea for over 600 years and is the largest South Korean metropolis. It is the political, cultural, and economic centre of South Korea, but also a global pole of technology and innovation. Companies such as Samsung, LG, and Hyundai have their headquarters here.


The most important branches of industry are the construction of automobiles, semiconductors, electronics, ships, and the steel industry. Companies like Samsung and LG have played big roles in shaping the global technology landscape, and South Korea has become a major exporter of smartphones, semiconductors, and displays.


Oil extracted from Jeju Island is a very important factor in the economy and is processed in refineries in Yosu and Ulsan. The largest steel centres are Inchon and Jeju Island. In the field of automobile construction, the country ranks fifth in the world, with the largest manufacturers being Hyundai and Kia Motors.


Agriculture plays a role in the country’s economy, too. Agriculture employs 12% of the active population, but although it is very productive, it does not provide domestic needs. Rice is grown on half of the agricultural area and sweet potatoes, tobacco, and soybeans are grown on the rest. Fishing is, in turn, another important branch, placing South Korea in 9th place in the world.


One of the most important factors in the economy is the foreign trade. It increased greatly in the 1960s, leading to the economic development of this state. South Korea exports its products to the USA, the People's Republic of China, Japan, and the Republic of China. South Korea exports: textiles, machinery, ships, electrical products, automobiles, rubber goods, canned fish, and porcelain.


Tourism in South Korea has developed significantly in recent decades, attracting visitors from all over the world thanks to a unique combination of rich history, vibrant culture, and modern technology. In 2012, 11.1 million foreign tourists visited South Korea, making it the 20th most visited country in the world and the 6th most visited in Asia. Most non-Korean tourists come from other parts of East Asia, such as Japan, China, Taiwan, and Hong Kong. Seoul is the main tourist destination for visitors; popular tourist destinations outside of Seoul include Seorak-san National Park, the historic city of Gyeongju, and the subtropical island of Jeju.


In conclusion, South Korea's economic journey is a testament to its ability to adapt, innovate, and thrive on the global stage. From technological prowess to resilience in the face of challenges, the country continues to play a crucial role in shaping the world economy.





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