A small country in Northeast Asia with the most innovative economy continues to develop successfully. Despite its geographical size, South Korea and Russia are neighbors in the world ranking in terms of GDP. Moreover, a smaller country has a stronger economy.
Economics overview
A country with a developed capitalist economy occupies a leading position in the world in many respects, including ease of doing business (5th place) and innovativeness (1st place). In 2017, South Korea ranked 11th in the world in terms of GDP with an indicator of $ 1.53 trillion. In terms of GDP per capita ($ 27023.24), the country is in 31st place in the world ranking.
The leading sectors of the country are the automotive industry, petrochemicals, semiconductor and steel industry. The country has long entered the post-industrial phase, with the predominance of the intangible sector of the economy. In the structure of South Korea’s GDP, 59% falls on the services sector, 39% on production and 2% on agriculture. The government is stimulating business to develop and implement the technologies of the fourth industrial revolution, especially in terms of artificial intelligence, robots and telecommunication equipment.
International trade
The country owes its economic success, first of all, to international trade. The country's enterprises are focused on the production of products that have good export potential in recent years, especially with high added value. South Korea is among the top 5 countries that export high-tech products. The country is also in 5th place in terms of total exports, in 2017 its volumes amounted to 577.4 billion US dollars.
The best Korean products for sale on the foreign market are: integrated circuits ($ 68.3 billion), automobiles ($ 38.4 billion), oil products ($ 24.8 billion), and passenger and cargo ships ($ 20.1 billion). Best export destinations: China, USA and Vietnam. Import volumes in 2017 amounted to $ 457.5 billion. Most of the country buys crude oil ($ 40.9 billion), followed by integrated circuits ($ 29.3 billion) and natural gas ($ 14.4 billion). Most products are purchased in China, Japan and the United States.
Volumes of the economy
In the 50s, the main share of South Korea's GDP was in agriculture and light industry, in the 70-80s - in light industry and consumer goods, in the 90s - in the services sector. Between 1970 and 2016, the volume of services provided in the country increased by $ 516.5 billion (297 times).
South Korea’s GDP for the first time exceeded $ 1 trillion in the United States in 2010. Over the next seven years, the indicator grew by more than 50%, reaching $ 1, 530 billion in 2017.
The table below shows the GDP of South Korea by year.
| Year | Value, billion dollars |
| 2007 | 1049.2 |
| 2008 | 931.4 |
| 2009 | 834.1 |
| 2010 | 1014.5 |
| 2011 | 1164.0 |
| 2012 | 1151.0 |
| 2013 | 1198.0 |
| 2014 | 1449.0 |
| 2015 | 1393.0 |
| 2016 | 1404.0 |
| 2017 | 1530.0 |
These statistics perfectly show how successfully the country is developing in the economic sphere.
