SOUTH KOREA

Economic structure to remain sound despite rising global headwinds

A1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Last updated in January 2024.

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GDP USD 1665bn (World ranking 13, World Bank 2022)
Population 51.6mn (World ranking 29, World Bank 2022)
Form of state Democratic Republic
Head of government Yoon Suk-Yeol (President)
Next elections April 2024, legislative
  • Advanced economy with high per capita income
  • Sound financial sector
  • Solid external position (low external debt, ample foreign exchange reserves, etc.)
  • Strong business environment
  • Firmly established democracy
  • Geopolitical risk stemming from North Korea
  • Economic vulnerabilities due to dependency on external demand
  • Elevated household debt
  • Slowly improving but still weak corporate governance
  • Aging population

Trade structure by destination/origin

(% of total, 2022)

Exports Rank Imports
China 22.8%
1
21.3% China
United States 16.1%
2
11.3% United States
Vietnam 8.9%
3
7.5% Japan
Japan 4.5%
4
6.2% Australia
China, Hong Kong SAR 4.0%
5
5.7% Saudi Arabia

Trade structure by product

(% of total, 2022)

Exports Rank Imports
Electrical machinery, apparatus and appliances, n.e.s. 21%
1
18% Petroleum, petroleum products and related materials
Petroleum, petroleum products and related materials 10.6%
2
12.1% Electrical machinery, apparatus and appliances, n.e.s.
Road vehicles 10.5%
3
11.2% Gas, natural and manufactured
Office machines and automatic data processing machines 5.9%
4
4.0% Metalliferous ores and metal scrap
Organic chemicals 5.6%
5
3.9% Coal, coke and briquettes
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