Official website of the Republic of Korea

Korea has achieved unprecedented economic growth. Observers call what it accomplished the “miracle of the Hangang River” because most of its industrial facilities were destroyed during the three-year Korean War, and it was deprived of capital and natural resources.

In the early 1960s, South Korea introduced export-oriented economic development plans. Initially, the main export of the country was products of light industry, made in small factories, or raw materials. However, in the 1970s, Korea shifted its focus to investing in powerful chemical enterprises, which became the basis for heavy industry exports.

The 1988 Summer Olympics, also known as Seoul 1988, provided the impetus for South Korea to become a semi-developed country. As a result, the international media recognized Korea along with Taiwan, Singapore and Hong Kong as one of the “four Asian tigers”. In December 1996, Korea joined the OECD as its 29th member, which is mainly made up of developed countries. This confirmed Korea’s rise from an Asian tiger to a major economic power.

Korea’s exports, which were only US$32.82 million in 1960, exceeded US$10 billion in 1977 and will grow to US$644.5 billion in 2021. The country’s GNI per capita was a paltry US$67 in 1953, when the government was installed, but has risen rapidly to US$35,373 in 2021. In response to the scarcity of capital and resources, Korea created an export-oriented economic structure centered around large conglomerates. However, such a strong dependence on exports and imports made the country vulnerable to external economic conditions.

In November 1997, a currency crisis hit the country, forcing it to turn to the IMF for help. The country took decisive measures, such as driving insolvent enterprises out of the market and restructuring the industry. In just two years, Korea recovered its previous growth rate and price level and even achieved a current account surplus. In the process, about 3.5 million people joined the campaign to collect gold to help the government pay back funds borrowed from the IMF. A total of 227 tons of gold was collected. The world marveled at the voluntary participation of the Korean people in a determined effort to pay off their national debts. In addition, the country has also benefited from certain additional effects, such as the adoption of globalized economic and financial systems.

After overcoming the economic crisis, the Korean economy continued to grow steadily. Its GDP has more than tripled from US$504.6 billion in 2001 to US$1,664.3 billion in 2022. By 2010, Korea had become the 7th largest exporter in the world. From 2011 to 2014, the country’s trade totaled more than $1 trillion for four consecutive years. Trade fell slightly in 2015 and 2016, but recovered to US$1 trillion in 2017, reaching a record high of US$1,810.2 billion in 2021. In addition, in 2021, Korea’s foreign exchange reserves stood at US$463.1 billion, which is considered a solid hedge against external influences. blows This economic success has also been recognized by the international community, reflected in Korea’s stable sovereign credit rating.