e is a different black trigram from the ancient I
Ching (Book of Changes) in each corner of the white field

Economy

Economy--overview: As one of the Four Dragons of East Asia, South
Korea has achieved an incredible record of growth. Three decades ago
its GDP per capita was comparable with levels in the poorer
countries of Africa and Asia. Today its GDP per capita is seven
times India's, 13 times North Korea's, and already near the lesser
economies of the European Union. This success through the late 1980s
was achieved by a system of close government business ties,
including directed credit, import restrictions, sponsorship of
specific industries, and a strong labor effort. The government
promoted the import of raw materials and technology at the expense
of consumer goods and encouraged savings and investment over
consumption. The Asian financial crisis of 1997-98 exposed certain
longstanding weaknesses in South Korea's development model,
including high debt/equity ratios, massive foreign borrowing, and an
undisciplined financial sector. By the end of 1998 it had recovered
financial stability, rebuilding foreign exchange reserves to record
levels by running a current account surplus of $40 billion. As of
December 1998, the first tentative signs of a rebound in the economy
emerged, and most forecasters expect GDP growth to turn positive at
least in the second half of 1999. Seoul has also made a positive
start on a program to get the country's largest business groups to
swap subsidiaries to promote specialization, and the administration
has directed many of the mid-sized conglomerates into debt-workout
programs with creditor banks. Challenges for the future include
cutting redundant staff, which reaches 20%-30% at most firms and
maintaining the impetus for structural reform.

GDP: purchasing power parity--$584.7 billion (1998 est.)

GDP--real growth rate: -6.8% (1998 est.)

GDP--per capita: purchasing power parity?$12,600 (1998 est.)

GDP--composition by sector:
agriculture: 6%
industry: 43%
services: 51% (1997 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 7.5% (1998)

Labor force: 20 million

Labor force--by occupation: services and other 52%, mining and
manufacturing 27%, agriculture, fishing, forestry 21% (1991)