Travel Reference
In-Depth Information
Korea didn't face adversity on its meteoric rise—in 1997 the Asian economic crisis sparked
a mass capital exodus that devastated the country's currency and foreign reserves, forcing
it to turn to the IMF and embark on a restructuring program that is still the source of some
resentment toward foreign business interests. The country is now grappling with slowing
global growth as well as increased competition from lower-cost producers, especially Ch-
ina. But given its past achievements, it is clearly not a nation to count out.
Exports have been at the center of the government's economic strategy since the 1960s and
now account for around half of the economy. The country's companies have shed their col-
lective image as “copycat” makers of relatively low-end vehicles and electronic products
and are widely recognized as leaders in their fields.
Major exporters include Hyundai Motor Group, the world's fifth-largest carmaker; Sam-
sung Electronics, the number one producer of memory chips and arguably the only serious
contender with Apple in the global smartphone market; and LG, a manufacturer of house-
hold appliances and flat-panel TVs.
South Korea has also been the global leader in the shipbuilding sector since wresting
that title from Japan a few years ago, and it is now home to the world's top three shipyards.
Other key industries include steel, dominated by producer POSCO, and construction, with
companies such as Hyundai Engineering and Construction regularly competing for major
building projects elsewhere in Asia and the Middle East.
Once the main form of economic activity, agriculture's share of the economy has waned,
and it now accounts for a mere 3 percent or so of gross domestic product. That said, the
industry still carries enormous symbolic significance, and the government has erected bar-
riers to some food imports and has subsidized farms heavily to keep them alive as more
young people flee the land for life in the cities.
South Korea is virtually self-sufficient in terms of rice production. It also raises and
even exports a limited amount of domestic produce, including cattle, apples, pears, chilies,
cabbages, and ginseng. The country additionally exports some prepared foodstuffs for sale
abroad, such as instant noodles, snacks, teas and wines.