South Korea’s economic development
Often we see South Korea as the heart of technology, but how has this country changed since?
di Stella Tortora, 5I
Home to one of the world’s largest technological capitals, South Korea is known for its history dating back more than 2,000 years. This country’s economy is characterized by a series of remarkable transformations. Originally a war-torn country (1950s), South Korea has, since then, emerged incredibly as one of the world’s largest and dynamic economies, often referred to as the “Miracle on the Han River.” Its Gross Domestic Product (GDP) of over $2 trillion, ranks it as the 10th largest economy in the world.
At the heart of South Korea’s unbelievable growth are its export abilities. The country is home to some of the world’s largest and most fundamental companies, such as Samsung, Hyundai, and LG. These international manufacturing companies lead a range of industries starting from electronics all the way to automobiles. Can you believe that most of the technological parts in your phone are often manufactured completely, or partially, in South Korea? This led to a rapid breakthrough in the country’s exports, and consequently in its economy. Today, South Korea is supplying a major share of the world’s demand for memory chips, making it a global leader in the production.
A strong focus on education and innovation has allowed the country to launch itself into the front row of the world’s technological advancements. South Korea consistently ranks in the top places when it comes to internet speed and connectivity. This was possible mainly because of the investments, in research and development, that the government made. The emphasis on innovation has enabled South Korea to transition from a manufacturing-based economy to one driven by technology in a relatively short time.
On the other hand, South Korea’s economic success has had its challenges. The economy faces structural issues, as it relies greatly on exports, which makes it extremely vulnerable to global trade tensions. Economic slowdowns in fundamental markets, such as China and the U.S, could have unwanted negative effects directly on South Korea. Moreover, South Korea’s population is aging and birth rates are decreasing rapidly. This phenomenon, in the long run, could lead to an insufficient working class and, therefore, putting at risk the economic growth.
Additionally, South Korea faces yet another issue concerning its economy: youth unemployment. Sadly, this country’s job market is incredibly competitive and the young population often has troubles for years. This has led to a rapid growth in demand for a reform, especially in order to reduce the dominance of the multinationals, while on the contrary, encouraging medium-sized enterprises.
All considered, South Korea’s resilience and adaptability continue to drive its economy forward. Its strengths in technology, and its solid cultural base allow the country to remain in a leading position in the world’s economy and ready to face the future.
