Some Public Information about Korea:Economy in a Nut Shell

Korea recently pulled through an economic storm that began in late-1997. This crisis, which roiled markets all across asia, had threatened Korea's remarkable economic achievements. However, thanks to the faithful implementation of an agreement with IMF, the Korean government's b resolve for reform, and successful negotiation of foreign debt restructuring with creditor banks, the nation is currently on

• track to resume economic growth. Since the onset of the crisis, Korea has been rapidly integrating itself into the world economy. The goal of the nation is to overcome problems rooted in the past by creating an economic structure suitable for an advanced economy.

• Korea, once known to be one of the world's poorest agrarian societies, has undertaken economic development in earnest since 1962. In less than four decades, it achieved what has become known as the "economic miracle on the Han River", a reference to the river that runs through Seoul - an incredible process that dramatically transformed the Korean economy while marking a turning point in Korea's history.

• an outward-oriented economic development strategy, which used exports as the engine of growth, contributed greatly to the radical economic transformation of Korea. Based on such a strategy, many successful development programs were implemented. as a result, from 1962 to 2003, Korea's Gross National Income (GNI) increased from US$2.3 billion to US$608 billion, with its per capita GNI soaring from US$87 to about US$12,720. These impressive figures clearly indicate the magnitude of success that these economic programs have brought about.

• GNI and per capita GNI drastically dropped to US$312 billion and US$6,744 in 1998 due to the fluctuation in foreign exchange rates but returned to the pre-economic crisis level in 2002.

• Korean imports have steadily increased thanks to the nation's liberalization policy and increasing per capita income levels. as one of the largest import markets in the world, the volume of Korea's imports exceeded those of China in 1995, and were comparable to the imports of Malaysia, Indonesia, and the Philippines combined.

• Major import items included industrial raw materials such as crude oil and natural minerals, general consumer products, foodstuffs and goods such as machinery, electronic equipment and transportation equipment.

• Korea developed rapidly from the 1960s, fueled by high savings and investment rates, and a b emphasis on education. The nation became the 29th member country of the Organization for Economic Cooperation and Development (OECD) in 1996.

• With a history as one of the fastest growing economies in the-world, Korea is working to become the focal point of a powerful asian economic bloc during the 21st century. The Northeast asian region commands a superior pool of essential resources that are the necessary ingredients for economic development. These include a population of 1.5 billion people, abundant natural resources, and large-scale consumer markets.

• Major Economic Indicators

• 	GDP		GNI		GNI per capita		Growth Rate(%)		GDP deflator(%)
  	KRW100mil	$0.1bil	KRW100mil	$0.1bil	1,000 won	$	GDP	GNI	index	Growth rate
  1997	4,911,348	5,164	4,884,574	5,136	10,629	11,176	4.7	2.7	93.7	4.6
  1998	4,841,028	3,461	4,762,454	3,404	10,289	7,355	9	3	99.4	5.8
  1999	5,294,996	4,452	5,233,553	4,400	11,227	9,438	9.5	9.4	99.3	1
  2000	5,786,645	5,118	5,761,600	5,096	12,257	10,841	8.5	5.5	100.0	0.7
  2001	6,221,227	4,820	6,210,279	4,811	13,115	10,160	3.8	2.8	103.5	3.5
  2002	6,842,635	5,469	6,850,690	5,475	14,388	11,499	7.0	7.0	106.5	2.8
  2003	7,245,749	6,080	7,254,203	6,086	15,161	12,720	3.1	1.9	109.4	2.7
  2004	7,784,446	6,801	7,794,678	6,807	16,211	14,162	4.6	3.8	112.3	2.7

• The share of agriculture and forestry among the entire industries gradually decreased to 3.1 percent of GNI as of 2003; farming population numbered 3.5 million, or 7.4 percent of the total population. although the share of agriculture itself is very meager, that of agriculture- related industries, such as the input industry - mainly fertilizers and agricultural chemicals - distribution and transportation industry, food-processing industry and food service industry reaches 14 percent.

• The launch of the WTO in 1995 has quickly transformed the farming environment by rapidly liberalizing the agricultural market and constantly dragging down the price of agricultural products. Farmers thus became anxious and the past agricultural policy which focused on production increase seemed to have reached its limits. So today, Korea's agricultural policy focuses on strengthening the competitiveness through economy of scale and producing safe and high quality products. On top of that, Korea plans to transform rural villages into a space where people can engage in diverse industrial activities and enjoy lives.

• GDP of agriculture & Forestry

  (Unit: KRW 100mil.%)

• 	'00		'01		'02		'03
  	Production	%	Production	%	Production	%	Production	%
  agriculture, forestry	330,007	100	336,327	100	334,445	100	330,163	100
  griculture	318,290	96.4	324,475	96.5	321,637	96.2	318,087	96.3
  Cultivation	237,465	72.0	241,355	71.8	231,118	69.1	229,391	69.5
  -Crop	114,355	34.7	117,748	35.0	104,755	31.3	97,552	29.6
  -Vegetable	67,242	20.4	72,736	21.6	67,694	20.3	76,189	23.1
  -Fruit	25,805	7.8	20,767	6.2	25,827	7.7	23,485	7.1
  -Others	30,063	9.1	30,104	8.9	32,742	9.8	32,165	9.7
  Livestock	80,825	24.5	83,120	24.7	90,519	27.1	88,696	26.9
  orestry	11,717	11.852	11,852	3.5	12,808	3.8	12,076	3.7