Overview: The driving force behind the economy's phenomenal growth has been the planned development of an export-oriented economy. South Korea is now one of the fastest growing and most dynamic of the industrializing countries in the world. GNP increased 13% in both 1986 and 1987 and 12% in 1988. Such a rapid rate of growth was achieved with an inflation rate of only 3% in the period 1986-87, rising to 7% in 1988. Unemployment is also low, and some labor bottlenecks have appeared in several processing industries. A booming economy and soaring export earnings have enabled the nation to make early repayment of some of its large foreign debt.

GNP: $171 billion, per capita $4,045; real growth rate 12% (1988)

Inflation rate (consumer prices): 7% (1988)

Unemployment rate: 3% (1988)

Budget: revenues $28.7 billion; expenditures $28.7 billion, including capital expenditures of NA (FY89)

Exports: $60.7 billion (f.o.b., 1988); @m5commodities--textiles, clothing, electrical machinery, footwear, steel, automobiles, ships, fish; @m5partners--US 35%, Japan 20%

Imports: $51.8 billion (c.i.f., 1988); @m5commodities--machinery, oil, steel, transport equipment, textiles, organic chemicals, grains; @m5partners--Japan 31%, US 25% (1988)

External debt: $31.4 billion (December 1988)

Industrial production: growth rate 16.8% (1987)

Electricity: 19,100,000 kW capacity; 74,000 million kWh produced, 1,730 kWh per capita (1988)

Industries: textiles, clothing, footwear, food processing, chemicals, steel, electronics, automobile production, ship building

Agriculture: 9 million people (21% of the population) live in farm households, but agriculture, forestry, and fishing constitute only 15% of GNP; main crops--rice, barley, vegetables, and legumes

Aid: US commitments, including Ex-Im (FY70-85), $3.9 billion

Currency: South Korean won (plural--won); 1 South Korean won (W) = 100 chon (theoretical)

Exchange rates: South Korean won (W) per US$1--682.42 (January 1989); 731.47 (1988), 822.57 (1987), 881.45 (1986), 870.02 (1985)

Fiscal year: calendar year

NOTE: The information regarding Korea, South on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Korea, South Economy 1989 information contained here. All suggestions for corrections of any errors about Korea, South Economy 1989 should be addressed to the CIA.