South Korean economy is the 11th largest economy in the
world and the third largest in Asia. South Korea’s
economical growth in the last 60 years has been incredible;
its GDP has grown from USD 100 in 1963 to over 20,000
in 2007. However, many challenges lie ahead for the South
Korean economy, as some reforms are needed, in order to
solve some problems and make South Korean market more
liberalised. Also, the South Korean government is worried
by the increasing diversion of corporate investments to
China and other countries with lower wages. Below we look
at trade and business in South Korea,
and the opportunities.
South Korean economy and trade – a brief history
In 1945, South Korean economy was mainly agricultural.
In the following decades South Korea developed light industry,
consumer products and heavy industry. South Korean 
economy
was further boosted in 1988, thanks to the Summer Olympics
and in 2002 because of the Football World Cup, hosted
in South Korea and Japan. At the same time the service
industry grew immensely.
At the beginning of the 21st century, South Korea is
leader in the IT sector thanks to the aids received by
its government. Leading firms in this sector are Samsung
Electronics and LG Electronics. As for exports, South
Korea has established itself as a main provider of semiconductors
in addition to exporting various IT products. For the
future, the South Korean government is beginning to invest
in the robotic industry.
The main sectors of South Korean economy and trade
The biggest part of South Korean GDP is made up by the
service industry (about 55%), especially department stores,
store chains and supermarkets. The second most important
South Korean trade sector, for which this country is now
famous all over the world, is the manufacturing sector
(more than 40% of the country’s GDP). South Korean
industries include: the textile and steel sectors; shipbuilding;
car manufacturing and electronics (especially semiconductors,
of which South Korea is the world’s largest producer).
Lastly, agriculture contributes only to a small part of
South Korean GDP (about 4%). The main crop is rice, followed
by other cereals, like barley, wheat, corn, soybeans and
by other products such as chilli peppers, sweet potatoes,
Chinese cabbage, apples and pears.
South Korean international trade – import and
export
Import – South Korea imports mainly
mineral fuels, electric and mechanical equipment, iron
and steel. South Korea’s main trade partners for
imports are China, Japan, the European Union and the USA.
Export – South Korea’s most
important export partners are again China, Japan, the
European Union and the USA, and the products that South
Korea exports are: electric and electronic goods, machinery,
vehicles, ship and boats.
North and South Korea trade
Recently, in spite of the political disagreements, trade
between North and South Korea has increased and big South
Korean companies, such as Hyundai, started ventures in
North Korea.
