Economy of South Korea

1940s-1950s: Post-colonization and Korean War

Japan industrialized Korea during its colonization for use as a supply base during its invasion of other countries.^[43]: 22 Heavy industry, however, was concentrated in northern Korea.^[44]: 29 So when the Republic of Korea was established in 1948, the country had a surplus of light industry facilities but lacked in others, such as power plants.^{[43]: 22–23} Although some were nationalized and collectivized at first, almost all industries vested by Japanese colonialists were "gradually distributed to private entities until 1962."^{[43]: 26–27}

After North Korea's "aggressive agricultural land reform,"^[43]: 32 the Rhee administration followed by enacting the Act on Agricultural Land Reform to reduce ownership inequality. The South's plan was more conservative, expropriating through compensation and sales. By 1951, most agricultural land was redistributed and became self-cultivated.^[43]: 31

The US started providing South Korea with aid in 1945, which was used to import "consumer goods and basic industrial products."^[43]: 30 The US forced Korea to use aid money to purchase Japanese products in order to help reconstruct the Japanese economy.^[43]: 31 Much of the aid was corruptly appropriated, some by future chaebol founders.^[45]: 13 Park Chung Hee would later use this fact to force the cooperation of the wealthy.^{[45]: 18–19}

Rhee made "common" (elementary) education compulsory in 1949. But as the government lacked funds, schools were largely established and funded privately.^[43]: 47

Mining and manufacturing production increased until the beginning of the Korean War, in which millions died^[43]: 24 and most production facilities were destroyed.^[44]: 36

After the Korean War, the Rhee administration regulated imports to encourage import substitution industrialization.^{[43]: 36–38} A recession began in the late 1950s as reconstruction and US aid slowed.^[43]: 39

1960s-1980s: Industrial expansion under military rule

Having taken power in a military coup in 1961, the Park Chung Hee regime created the Economic Planning Board (EPB).^{[45]: 14–16} South Korea's economic growth strategy in the early 1960s relied on "labor-intensive manufactured exports" due to the country's "poor natural resource endowment, low savings rate, and tiny domestic market."^[44]: 137 Government initiatives (such as encouraging foreign capital inflows) accelerated industrialization, export growth, and associated rises in income.^[44]: 137 Through the model of export-led industrialization, the South Korean government incentivized corporations to develop new technology and upgrade productive efficiency to compete in the global market.^[46] By adhering to state regulations and demands, firms were awarded subsidization and investment support to develop their export markets in the evolving international arena.^[46] Although Park was more interested in heavy industries, the EPB emphasized the development of light industries early on. Hence, the government encouraged textile firms with incentives to export. Textiles grew to 41 percent of total exports by 1965.^{[45]: 21–22} In 1965, the Park government normalized diplomatic relations with Japan, creating an avenue for exports, supplier relationships, and technology transfer.^[45]: 24 The move was unpopular domestically, but it provided hundreds of millions of US dollars in loans and colonization compensation that the Park administration needed for its economic development plan.^{[43]: 68–69} Although the south was initially the poorer state,^[45]: 12 South Korea's rate of growth exceeded North Korea's rate of growth in most industrial areas in the early 1960s.^[47]

Seoul's strategic emphasis on industry and exports led income disparities to grow between the industrial and agricultural sectors by the 1970s, although the government attempted to mitigate rural underdevelopment.^[44]: 137 In 1971, high grain prices were introduced alongside the Saemaul Undong.^[44]: 44 By 1970, South Korea had become a major exporter of light manufactured goods such as textile and apparel products, footwear, women's accessories, and electronics products.^[45]: 25 But due to "increasing competition and protectionism from other developing countries," the government began to change its focus from "low value-added and labor-intensive products."^[44]: 138 Beginning in 1973, South Korea's government used its National Investment Fund and the Korea Development Bank to invest large amounts of money into what Park Chung Hee's government viewed as the six strategic industries: steel, non-ferrous metals, shipbuilding, industrial machinery, electronics, and petrochemicals.^[48]: 136 This developmental approach was frequently criticized at the time from outside Korea, including by the World Bank.^[48]: 136 The strategy helped develop companies like Samsung and POSCO and reduced input costs for production in downstream industries as well.^[48]: 136 The steel and shipbuilding industries, in particular, played key roles in developing South Korea's economy during this time.^[49] The industrial transition, however, occurred amidst an oil shock, a recession, and increased foreign protectionism.^[44]: 138 And although South Korea's average income had risen, "increasingly inequitable income distribution" fed "popular dissatisfaction" throughout the decade.^[45]: 42 Amidst such conditions, Park's assassination in 1979 would be followed by a period of political upheaval.^{[45]: 44–45}

In 1980, the Korea Fair Trade Commission was created alongside new antitrust law.^[50]: 56 South Korea's economy would temporarily decline into negative growth in 1980, unseen since 1962. Seoul controlled inflation in the 1980s through "conservative monetary policy and tight fiscal measures."^[44]: 138 Money supply was halved to 15 percent and the government budget was briefly frozen. Competition was promoted through the liberalization of import and foreign investment policies. Seoul invested in public projects and farm mechanization to address inequality.^[44]: 138 In 1985, the Plaza Accord led to the increased international price competitiveness or Korean goods compared to Japan's.^[43]: 161 By the late 1980s, South Korea's growth was increasing, inflation returned below double digits, and its balance of payments recorded surpluses.^[44]: 138 At the end of the 1980s, South Korea began to plan a shift to high-technology industries.^[44]: 156

1990s-2000s: International stage and crises

South Korea joined the World Trade Organization in 1995.^[51] However, the country's rice import system was permitted to receive special treatment until 2014. After that point, South Korea would switch to a tariff-rate quota.^[52][53] South Korea joined the OECD in 1996.^{[54]: 98 [55]: 182} The resulting financial liberalization measures led to domestic firms and banks issuing "large amounts of short-term debt denominated in US$ to finance long-term domestic projects."^[55]: 187 Expanding aggressively, many South Korean companies became highly leveraged. Multiple chaebol began going bankrupt in early 1997.^{[54]: 101 [56]: 25}

The 1997 Asian financial crisis began after several other Asian currencies were attacked by speculators.^[56] The Korean won started to depreciate in August 1997.^[57]: 107 The problem was exacerbated due to non-performing loans at many of Korea's merchant banks. By December 1997, the IMF had approved a US$21 billion loan, which would be part of a US$58.4 billion bailout plan.^[56] The conditions of the bailout's structural adjustment program led the financial crisis to be called the 'IMF crisis' in South Korea.^{[55]: 187 [58][59]} The Kim Dae-jung government, elected at the end of 1997, actively coordinated economic structural reforms.^[60]: 119 By January 1998, the government had shut down a third of Korea's merchant banks.^[56] More corporate groups went into bankruptcy as the economy went into recession in 1998.^[57]: 109 Daewoo, which triggered "the collapse of the commercial paper markets"^[56]: 30 with its default, was dismantled by the government in 1999 due to debt problems.^[56]: 33

Much of South Korea's recovery from the 1997 Asian financial crisis can be attributed to labor adjustments (i.e. a dynamic and productive labor market with flexible wage rates) and alternative funding sources.^[56] By the first quarter of 1999, GDP growth had risen to 5.4%, and strong growth thereafter combined with deflationary pressure on the currency led to a yearly growth of 10.5%.^[56] In December 1999, President Kim Dae-jung declared the currency crisis over.^[56]

After the bounce back from the 1997 Asian financial crisis, the economy continued strong growth in 2000 with a GDP growth of 9.08%.^[56] In 2001, South Korea repaid its loan to the IMF.^[43]: 227 South Korea's economic growth slowed in 2001, worsened by global economic conditions partially attributable to the September 11 attacks in the United States. By 2002, rating agencies "steadily upgraded Korea's sovereign debt ratings" in recognition of the country's progress in financial and corporate reform.^[61] Led by industry and construction, growth in 2002 was 5.8%.^[62] The economy stabilized and maintained a growth rate of between 4–5% from 2003 onwards.^[63]

South Korea's first free trade agreement was signed in 2003 with Chile, despite protests from local farmers.^[64]

Like most industrialized economies, South Korea experienced setbacks during the Great Recession. Growth fell by 3.4% in the fourth quarter of 2008 from the previous quarter, the first negative quarterly growth in 10 years, with year on year quarterly growth continuing to be negative into 2009.^[65] Many sectors of the economy at the time reported declines, with manufacturing dropping 25.6% as of January 2009, and consumer goods sales dropping 3.1%.^[65] Exports in autos and semiconductors, two pillars of the economy, shrank 55.9% and 46.9% respectively, while exports overall fell by a record 33.8% in January, and 18.3% in February 2009 year on year.^[66] As in the 1997 Asian financial crisis, Korean currency also experienced massive fluctuations, declining by 34% against the US dollar.^[66] Annual growth in the economy slowed to 2.3% in 2008, and was expected to drop to as low as −4.5% by Goldman Sachs,^[67] but South Korea was able to limit the downturn to a standstill at 0.2% in 2009.^[68] Despite the Great Recession, the South Korean economy was able to avoid a recession in the first quarter of 2009 "thanks to pump-priming and rate cuts."^[69]

2010s-2020s: Diplomatic disputes and pandemic

In 2010, South Korea made an economic rebound with a growth rate of 6.1%.^[70]

The government cut the work week from six days to five in phases, from 2004 to 2011, depending on the size of the firm.^[71] The number of public holidays was expanded to 16 by 2013.^[72]

In the late 2010s, the South Korean economy was impacted by conflicts in foreign relations, such as China's response to THAAD deployment by South Korea^[73][74] and the Japan–South Korea trade dispute.^[75]

In 2016, Hyundai Merchant Marine was put under state control after its bailout.^[76] Hanjin Shipping, one of the world's largest container shippers, was declared bankrupt in February 2017.^[77] The bankruptcy left HMM as the country's only major shipping line.^[78]

In 2018, President Moon Jae-in capped working hours^[79] and raised the minimum wage rapidly.^[80]

South Korean economy decreased in the first quarter of 2019, which happened to be its worst drop since the Great Recession. GDP declined a seasonally adjusted 0.3 percent from the previous quarter.^[81]

Due to the sudden evolution of COVID-19, private consumption decreased, and a bottleneck in the supply sector occurred. With this situation, the Bank of Korea indicated that the consumer inflation rate rose about three percent after COVID-19 evolved. Assuming that South Korea's interest rate was low compared to other countries, raising house prices and household debt became one of the problems in South Korea's economy.^[82]

As part of its response to the COVID-19 pandemic, the government introduced sizeable fiscal and liquidity support, including expanded employment-retention subsidies, emergency cash transfers, and loan-payment deferrals and guarantees for firms; measures the OECD later noted helped preserve jobs and limit household income losses.^[83]

In April 2020, the government introduced two relief programmes: ₩40 trillion Key Industry Stabilization Fund, via the Korea Development Bank, to temporarily provide financing to sectors affected by the COVID-19 shock,^[84] and a temporary increase in the existing Employment Retention Subsidy (고용유지지원금) paid to employers who put workers on furlough instead of laying them off.^[85] To reach workers outside employment insurance, a temporary emergency employment stabilization allowance was introduced for "special-type" workers - which includes the self-employed and contractors - with pandemic-related income declines, with payments totalling ₩1.5 million over three months.^[86][87]

The government had to incur a massive fiscal spending in 2020, leading to a rise in the fiscal deficit as projected in their budget.^[88] Moreover, their forecasted debt-to-GDP ratio jumped to 41.2% of GDP in 2020 from 37.1% of GDP in 2019. In 2021, the government unveiled a $29 billion extra budget to aid small businesses and boost employment.^[89]

In July 2022, South Korea's consumer price index rose 6.3 percent, the highest rate since November 1998.^[90]

Policy announcements in 2022–2023 included continued financial forbearance for small businesses and SMEs through extensions of loan maturities and repayment deferrals, alongside targeted relief for high energy costs via expanded energy vouchers for low-income households.^[91][92]

The government also convened strategy meetings aimed at strengthening competitiveness in semiconductors and rechargeable batteries,^[93] and in March 2023, the government expanded tax incentives and other support intended to strengthen competitiveness in high-tech manufacturing, including semiconductors and rechargeable batteries.^[94]

In April 2025, the incorporation of Korean government bonds into the "World Government Bond Index" was postponed from November 2025 to April 2026. After being listed as a prospective candidate for incorporation in September 2022, it was successfully included in the regular market classification report in the second half of October 2024.^[95]

Agriculture and fishing

This section is an excerpt from Agriculture in South Korea.[edit]

Agriculture in South Korea is a sector of the economy of South Korea. Korean agriculture is the basic industry of the Korean economy, consisting of farming, animal husbandry, forestry and fishing. At the time of its founding, Korea was a typical agricultural country, with more than 80% of the population engaged in agricultural production. After land reform under the Syngman Rhee administration, economic revitalization under the Park Chung-hee military government and the wave of world trade liberalization that began in the 1980s, Korean agriculture has undergone dramatic changes. Through the Green Revolution, Korea became self-sufficient in rice, the staple food, in 1978, and in 1996, Korea became the first Asian country after Japan to mechanize its agriculture with fine-grained cultivation. The development of Korean agriculture has also led to the development of agriculture-related industries such as fertilizer, agricultural machinery and seed.^[96][97]

The natural resources required for agriculture in South Korea are not abundant. Two thirds of the country are mountain and hill. Arable land only accounts for 22 percent of the country's land. It is one of the countries with the least arable land per capita in the world.^[98][99] Korea has a very low self-sufficiency rate for agricultural products, except for rice and potatoes, which are largely self-sufficient, while 85% of other foodstuffs need to be imported. In addition, Korea imports more than 60% of its beef, fish and shellfish, 20% of its fruit, poultry and milk from abroad, and only sugar and eggs are self-sufficient. Since the 1980s, with the restructuring of Korean agriculture, the area of food crops has tended to decrease, while the area of high value-added crops, vegetables and fruits has increased in proportion to the plantation industry. The most important crop in South Korea is rice, accounting for about 90 percent of the country's total grain production and over 40 percent of farm income. Other grain products heavily rely on imports from other countries. Farms range in size from small, family-owned farms to large corporations, but most are small-scale and rely heavily on government support and services in order to survive.^{[100][101][102][103]}

In the 1960s, Korea's economy began to grow at a rapid pace, creating the "Han River Miracle". In 2005, the share of agriculture in Korea's GDP fell to 2.9 percent from 50 percent at the start of the country's history. With urbanization and industrialization, Korea's agricultural population has been lost and is aging, with the proportion of people employed in agriculture falling from 50% to 8.5% between 1970 and 2000, and to 7% in 2008.^{[96][99][101][104]}

Manufacturing

The South Korean government began boosting light industries in the 1960s. Government focus shifted to heavy and chemical industries in the mid-1970s.^[107] In the late 1980s, manufacturing wages saw "dramatic increases" due to labor stoppages and a scarcity of labor.^[44]: 176 Investment transitioned to high-tech industries in the 1990s. The country's growth in manufacturing began to stagnate in the mid-2000s.^[107]

Arms

Main article: Defense industry of South Korea

South Korea depended on the United States for supplying its armed forces in the 1960s. In the 1970s, South Korea started to manufacture weapons due to Richard Nixon's Vietnamization policy.^[44]: 160 South Korea began to co-produce arms and military vehicles with the United States and other countries.^[44]: 296 Ammunition, naval vessels and aerospace components were South Korea's main arms exports until the mid-2010s.^[108] By the 2020s, South Korean arms manufacturers could produce weapons quickly and at relatively low costs.^[106][109] South Korea has sold aircraft, warships, submarines, and military ground vehicles to nations on various continents.^[110] The number of countries importing South Korean arms increased from four in 2022 to twelve in 2023.^[109]

Automobile

Main article: Automotive industry in South Korea

See also: List of automobile manufacturers of South Korea and Plug-in electric vehicles in South Korea

When Hyundai was building the Gyeongbu Highway (connecting Seoul to Busan) in the mid-1960s, President Park is said to have asked Chung Ju- yung, the founder of Hyundai: “Do you know anything about cars?” Chung answered that he had run an auto repair shop in Seoul during and after the Second World War. Then the president urged him to start producing passenger cars: “You’re building the road. Now we need cars.”^{[111]: 50–51}

In the 1960s, South Korean companies began assembling vehicles for foreign automakers.^[112]: 417 The first car designed and manufactured in South Korea was made by Kia in 1974.^{[45]: 37–38} South Korea's first automobile exports occurred in 1976.^[112]: 414

Kia acquired Asia Motors in 1976 and Shinjin Motors was acquired by Daewoo in 1978.^{[45]: 37–38} The ownership of SsangYong Motor, which also once operated under Daewoo, changed hands multiple times.^[113]

During the 1980s, the South Korean government restricted automotive companies' product categories to reduce overlap and overinvestment.^{[43]: 155–160}

More acquisitions occurred amidst the 1997 Asian financial crisis. After Kia went bankrupt,^[114] Hyundai Motor Company acquired 51% of the company in 1998.^[115] In 2000, Renault acquired Samsung Motors.^[116][117] General Motors, a shareholder in Daewoo Motors, acquired the company in 2002.^[45]: 38 In the following decades, Hyundai Motor Group rose to become one of the largest automakers in the world.^[118][119]

Shipbuilding

South Korea's companies have engaged in both warship and commercial shipbuilding, which are "typically separate endeavours."^[153]

As the ROK is surrounded by water, the development of the shipbuilding industry is a very important project… The enlargement of ship size is an immediate task for us to minimise the outflow of foreign currency…^[153]

— President Park Chung-hee (1967)

Under the "Shipbuilding Industry Promotion Law" of 1967, the government provided both state-owned and private companies funding. With government support, South Korea's shipbuliding industry transitioned from wooden ships to steel. South Korea initially focused on commercial shipbuilding but began building warships amidst North Korea's naval superiority in the late 1960s and doubts about U.S. commitment after maritime provocations. The government's focus in the early 1970s was small multi-purpose gunboats for use along the Northern Limit Line.^[153] Hyundai Engineering and Construction created a shipbuilding division in 1970, which was incorporated in 1972 as Hyundai Shipbuilding and Heavy Industries (later renamed Hyundai Heavy Industries).^{[45]: 31–32}

Between 1977 and 1978, Samsung and Daewoo entered the shipbuilding business through acquisitions.^{[45]: 21–38} The government subsidized Hyundai Heavy Industries to build the first domestic destroyers from 1978 to 1980.^[153] The "oil glut" and global recession led to an industry decline in the mid-1980s.^[44]: 158 Labor unrest, a lack of government support, and Japanese competition decreased orders in the late 1980s.^[44]: 158 Although many Western countries discontinued shipbuilding when the Soviet Union collapsed, North Korean threats sustained South Korea's demand for warship development.^[153]

From 2003 to 2011, South Korea ranked first in the world for shipbuilding.^[154] Orders declined amid the 2008 global economic crisis and competition from China.^[155] South Korea regained the top spot in global shipbuilding orders in 2018, mainly driven by LNG carriers.^[156] In January 2022, the European Commission blocked the acquisition of Daewoo Shipbuilding Marine Engineering by Hyundai Heavy Industries. The commission stated that the combined firm would have a majority share of the market for large LNG carrier construction.^[157] After a failed acquisition attempt in 2009, Hanhwa Group became the largest shareholder in DSME in May 2023, renaming it to Hanwha Ocean.^[158]

Mining

Iron ore was the country's top export in the early 1960s.^[172] The decreasing profitability of domestic mining led to the closure of various mines.^[173][174] South Korea's graphite production declined significantly after the 1960s.^[173] In 2010, the country had one active molybdenum mine as it reoponed NMC to increase mineral self-sufficiency.^[174] In 2014, almost all mining production in the country was for non-metallic minerals by small companies. These minerals included kaolin, limestone, and silica.^[175]

Construction

Korean companies learned construction and civil engineering skills through contracts from South Korea's 1965 agreement with the United States to dispatch troops in Vietnam.^{[43]: 70–73} By 1981, the majority of construction work by South Korean companies took place overseas, particularly in the Middle East.^[44]: 160 By the end of the decade, focus shifted to a "rapidly growing domestic market."^[44]: 161

South Korea's largest construction companies include Samsung C&T Corporation, which built some of the tallest buildings in the world such as Taipei 101,^[181] Petronas Towers, and the Burj Khalifa.^[182]

Education

Energy

This section is an excerpt from Energy in South Korea.[edit]

South Korea is a major energy importer, importing nearly all of its oil needs and ranking as the third-largest importer of liquefied natural gas in the world in 2024.^[191] Electricity generation in the country mainly comes from conventional thermal power, which accounts for more than two thirds of production, and from nuclear power.^[192]

Energy producers were dominated by government enterprises, although privately operated coal mines and oil refineries also existed. The National Assembly enacted a broad electricity sector restructuring program in 2000, but the restructuring process was halted amid political controversy in 2004 and remains a topic of intense political debate.^[193]

South Korea has no proven oil reserves.^[192] Exploration until the 1980s in the Yellow Sea and on the continental shelf between Korea and Japan did not find any offshore oil. The Donghae-1 gas field produced natural gas between 2004 and 2021, and natural gas exploration off the east coast was started in 2024.^[194]

Coal supply in the country is insufficient and of low quality. The potential for hydroelectric power is limited because of high seasonal variations in the weather and the concentration of most of the rainfall in the summer. As of 2017, South Korean President Moon Jae-in has vowed to end the country’s reliance on coal and also said the nation would move away from nuclear energy. He has taken a major step in that direction in June, saying his country would not try to extend the life of its nuclear plants, would close existing coal-fired plants, and would not build any new coal plants.^[195]

In recent years, South Korea has set a new direction for its energy sector, with significant decarbonization goals, aiming to raise the share of electricity from renewable sources from 6% in 2019 to 35% by 2030.^[196][197]

Finance and banking

In 1950, the "Bank of Korea was established as the central bank."^[44]: 172 In 1954, South Korea began to privatize banks due to issues created by the Banking Act.^[43]: 44 The Park Chung Hee government later re-nationalized^[43]: 51 most banks.^[45]: 23 As chaebols could not control banks, they began to use nonbank financial subsidiaries for funding. This made measures in the 1970s and 1980s tightening credit to chaebols that had risky debt levels "inadequate."^[50]: 62 The government denationalized several banks in the mid-1980s.^[44]: 172 After the 1997 Asian financial crisis, the Financial Supervisory Board shut down and consolidated numerous merchant banks .^[57]: 114 In 1997, the Kim Dae-jung government deregulated credit cards to stimulate consumer spending. By 2003, millions of South Koreans "had defaulted on credit card debt."^[198] LG Card was bailed out after running out of cash.^[198]

Healthcare

This section is an excerpt from Healthcare in South Korea.[edit]

Healthcare in South Korea is universal, although a significant portion of healthcare is privately funded. South Korea's healthcare system is based on the National Health Insurance Service, a public health insurance program run by the Ministry of Health and Welfare to which South Koreans of sufficient income must pay contributions in order to insure themselves and their dependants, and the Medical Aid Program, a social welfare program run by the central government and local governments to insure those unable to pay National Health Insurance contributions. In 2015, South Korea ranked first in the OECD for healthcare access.^[199]

Satisfaction of healthcare has been consistently among the highest in the world; South Korea was rated as the second most efficient healthcare system by Bloomberg.^[200][201] Health insurance in South Korea is single-payer system.^[202] The introduction of health insurance resulted in a significant surge in the utilization of healthcare services.

Healthcare providers are overburdened by the government relying on their workforce.^{[203][204][205]} Healthcare providers are prosecuted for criminal malpractice at a much higher rate than expected for a country like South Korea, probably due to low legal protections.^[206] Patients too often cannot get treatment.^[206]

Housing

This section is an excerpt from Housing in South Korea.[edit]

Housing in South Korea (Korean: 하우징 인 사우스 코리아) includes detached houses, apartment (unit of apartment, row houses, and private houses), studio apartments, and dormitories in non-residential buildings such as shopping malls and factories. While the occupancy rate of apartment houses is steadily rising, the occupancy rate of detached houses is steadily falling.^[207]

Retailing

Mass media and entertainment

This section is an excerpt from Korean Wave.[edit]

The Korean Wave, or hallyu (Korean: 한류; IPA: [ˈha(ː)ʎʎu] ^ⓘ), refers to the rise in global interest in South Korean popular culture that has spread rapidly since the 1990s. It is led by the spread of K-pop, K-dramas, K-beauty, K-food, and films, with key successes including K-pop groups 2NE1,^[208][209] BTS and Blackpink, the Oscar-winning film Parasite (2019) and the Netflix television series Squid Game (2021–2025).^[210][211] The Korean Wave has been recognized as a form of soft power and a significant economic asset for South Korea, generating revenue through cultural exports and tourism.^[212]

Following the 1997 Asian financial crisis and the end of military censorship over the South Korean entertainment industry, the country emerged as a major exporter of popular culture.^{[213][page needed]} The growth of satellite media in the late 1990s helped spread K-dramas and Korean cinema across East Asia and parts of Southeast Asia. Chinese journalists coined the term "Korean Wave" (Chinese: 韩流; pinyin: hánliú) in 1999 to describe the growing popularity of South Korean cultural products. During the 2000s, hallyu expanded into Southeast Asia, South Asia, the Middle East, and Eastern Europe. By 2008, South Korea's cultural exports surpassed its cultural imports for the first time.^[214] The rise of social media and global internet platforms helped the Korean entertainment industry reach overseas audiences and gain support from the South Korean government.

Telecommunications

Tourism

In 2012, 11.1 million foreign tourists visited South Korea, making it one of the most visited countries in the world,^[215] up from 8.5 million in 2010.^[216] Many tourists from all around Asia visit South Korea which has been due to the rise of the Korean Wave (Hallyu).

Seoul is the principal tourist destination for visitors; popular tourist destinations outside of Seoul include the major coastal city of Busan, the Seorak-san national park, the historic city of Gyeongju, and subtropical Jeju Island.

Transportation

Water supply and sanitation

South Korea's primary water source is river basins. Although South Korea's annual precipitation (1973-2007) was above the global average, precipitation per capita was relatively low. South Korea's water management policy has been revised since 1961 under the "River Basin Law." Industrialization, urbanization, population growth, and agricultural intensification in the 1970s caused a water shortage. Hundreds of reservoirs and multi-purpose dams were built to meet demand.^[220] After major drinking water contamination incidents in the early 1990s,^[221][222] water quality improved through the construction of treatment facilities.^[220] The 2007 revision of the River Basin Law accounted for climate change. Floods and droughts have become more intense and frequent over time, creating water quality issues.^[220] In 2018, South Korea's national water management system was integrated under the Ministry of Environment.^[223]

Economic inequality

Foreign trade

South Korea has more than 20 free trade agreements.^[239]

More information Country/Region, Export (M$) ...

2018 Top 10 export partners[241] Country/Region Export (M$) Percentage China 162,125 26.8% United States 72,720 12.0% Vietnam 48,622 8.0% Hong Kong 45,996 7.6% Japan 30,529 5.1% Russia 20,872 3.4% Taiwan 20,784 3.2% India 15,606 2.6% Philippines 12,037 2.0% Singapore 11,782 2.0% Mexico 11,458 1.9% Others 173,201 28.6% Total 604,860 100.0%

2018 Top 10 import partners[241] Country/Region Import (M$) Percentage China 106,489 19.9% United States 58,868 11.0% Japan 54,604 10.2% Saudi Arabia 26,336 4.9% Germany 20,854 3.9% Australia 20,719 3.9% Vietnam 19,643 3.7% Russia 17,504 3.4% Taiwan 16,738 3.1% Qatar 16,294 3.0% Singapore 12,762 2.0% Others 177,153 33.1% Total 535,202 100.0%

Close

More information Country/Region, Balance (M$) ...

2018 Top 10 positive balance (surplus) countries for South Korea[241] Country/Region Balance (M$) China 55,636 Hong Kong 43,999 Vietnam 28,979 United States 13,852 India 9,722 Philippines 8,468 Mexico 6,368 Turkey 4,791 Taiwan 4,045 Singapore 3,808 Others −110,011 Total 69,657

2018 Top 10 negative balance (deficit) countries for South Korea[241] Country Balance (M$) Japan −24,075 Saudi Arabia −22,384 Qatar −15,768 Kuwait −11,541 Germany −11,481 Australia −11,108 Russia −10,183 Iraq −7,658 United Arab Emirates −4,699 Chile −2,667 Others 191,221 Total 69,657

Close

Mergers and acquisitions

Since 1991, there has been a steady upward trend in South Korean M&A until 2018 with only a short break around 2004. Since 1991, around 18,300 deals in, into or out of South Korea have been announced, which sum up to a total value of over 941 bil. USD. 2016 has been the year with the largest deal value (1,818 in bil. USD) and the most deals (82,3).^[242]