South Korea’s economy is the 4th and 11th
largest in Asia and the world respectively. It is a mixed economy
which is mostly led by family-owned corporations
called chaebols. Nonetheless, the control
of the chaebol is not likely to last and it
creates the risk of slowing down the revolution of Korean
economy into something more beneficial for the
future generations. South Korea’s economy is
the global front-runner of Consumer electronics, Mobile
Broadband and Smartphone. South Korea is acknowledged
for its remarkable growth from one of the
most deprived countries in the world to a
developed, high-earning country in just a small
number of generations. The period of rapid economic
development in South Korea after the Korean
War, which converted South Korea from a developing
country to a developed country is termed as the
Miracle on the Han River. Following this rapid
development, South Korea joined the ranks of elite countries
in the OECD and the G-20. It has also been incorporated in
the group of Next Eleven countries that will lead the worldwide economy
in the middle of the 21st century. Regardless of the high-growth potential
and structural solidity, South Korea’s economy is facing lasting damage to
its credit rating in the stock market because of the hostility of North Korea
in times of military predicaments, which is having a harmful effect on
the financial markets of South Korea. On the other hand, prominent financial
establishments, such as the IMF have admired the strength of the South Korean economy
against numerous economic crises. Economic Freedom South Korea’s economic
freedom score is 73.8 which makes it the 27th freest
economy in the 2018 list. Overall, its score has
gone down by 0.5 point due to a sharp decline
in the score for the government integrity indicator which outweighed
the improvement in investment freedom. South Korea has been
placed at 7th position among 43 nations in the
Asia–Pacific region. Rule of Law South Korea completely acknowledges property
rights and has a well-established set of laws managing and administering the
establishing of profitmaking enterprises. The judiciary system is usually considered
an independent establishment and it safeguards private property rights
and interests quite competently. The officials who get elected
execute the policies and strategies without
unnecessary intervention. However, in spite of the
government’s anticorruption determinations, bribery,
using influence, and pressure and blackmail
continue to exist in politics, commerce,
and day-to-day life. GDP, Trade, and Taxes The upper rate of personal
income tax is 38 percent. The upper rate of corporate
tax is 24.2 percent. Both incomes tax and corporate tax are
subject to a 10 percent of the surtax. The total tax burden is 25.3 percent
of total domestic proceeds. In the past three years, the
government expenditures have reached to 32.3
percent of total GDP. Budget surpluses have shown an
average of 0.4 percent of GDP. Public debt is 38.6 percent of GDP. The combined worth of exports and
imports forms 78 percent of GDP. The applied tariff rate on
an average is 4.8 percent. Merger and Acquisition (M & A) Ever since 1991, there has been a
stable upward movement in South Korean M&A up until 2018 with only
a small disruption around 2004. From 1991 about 18,300
deals have been announced, summing up to
over 941 billion USD. Target industries are
spread very uniformly with no industry taking
more than 10% of share. The leading three target industries
are Electronics with 9.7%, Semiconductors with 9.1%, and
Metals and Mining with 7.7%.

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3 thoughts on “Inside Economy of South Korea Crash Courses”

  1. 0:17–0:26 it's not the footage of Korea..It looks like China. Definitely not Korea. Please use the correct footage.

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