South Korea Political & Economic Risk Rating

Efficient policies support the (mild) recovery

A1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD1642.383bn (World ranking 12, World Bank 2019)
Population 51.7mn (World ranking 28, World Bank 2019)
Form of state Democratic Republic
Head of government Moon Jae-in (President)
Next elections 2022, presidential
  • 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
  • Slowly improving but still weak corporate governance
  • Aging population

Trade structure by destination/origin

(% of total)

Exports Rank Imports
China 25%
1
21% China
United States 13%
2
12% Japan
Hong Kong 7%
3
11% United States
Vietnam 7%
4
5% Germany
Japan 5%
5
4% Taïwan (PRC)

Trade structure by product

(% of total)

Exports Rank Imports
Electrical machinery, apparatus and appliances, n.e.s. 19%
1
14% Petroleum, petroleum products and related materials
Road vehicles 13%
2
13% Electrical machinery, apparatus and appliances, n.e.s.
Telecommunication and sound recording apparatus 7%
3
4% Telecommunication and sound recording apparatus
Other transport equipment 7%
4
4% Specialised machinery
Petroleum, petroleum products and related materials 5%
5
4% Metalliferous ores and metal scrap

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Contact Françoise Huang

Senior Economist for Asia

francoise.huang@eulerhermes.com

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