South Korean Exports
South Korea exported US $371.8 billion in 2007 making it one of the world's largest exporters. Its main export partners are China, the US, Japan, and Hong Kong. Some of the country's key export products are automobiles and trucks, computers and related components, microprocessors, ships, wireless telecommunications equipment, petrochemicals, and steel.
South Korea's formidable exports can be attributed to its tremendous economic prosperity in recent years. The north-Asian nation was once relatively poor with an unremarkable GDP after World War II. But its quick industrialization, most notably since the 1960s, led to its huge exports. This level of export succes, in turn, led to it being the fourth largest economy in Asia and the 13th in the world.
Its export-driven growth in many ways followed West Germany and Japan after the 1960s. All were well rebuilt after WWII and all have healthy automotive and heavy manufacturing industries.
Major Exporters of South Korea
South Korea is home to a multitude of international firms which produce a wide array of goods - from electronics and consumer household goods to machinery, ships, and chemicals. Such huge conglomerates are called chaebols in Korea.
These firms include:
Samsung - $174.2 billion in revenue (2007)
Huyandai-Kia - Produces vehicles, railroad and defence products, IT services, advertising services, travel, construction, more
LG - revenue of $94.8 billion (2007)
SK - 92 brands and companies, with $26 billion of its $88 billion in revenues from exports (2007)
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History of South Korea's Export Economy
Much of South Korea's large industry and conglomerates can thank the national strategy of looking outward to other nations for economic advancement, which was implemented in the 1960s.
This approach was necessary due to the country's limited natural reserves, small domestic market, and low domestic savings at that time.
South Korea leveraged its cost-effective manufacturing abilities by making export-driven products in the 60s.
The government supported this stratey by encouraging foreign direct investment in the growing nation. This foreign investment brought much-needed capital into the country, further fueling manufacturing and more exports.
One of the negative repurcussions this export strategy had was a near-isolation of the agrarian sector, which remained underdeveloped and impoverished. These conditions grew worse into the 1970s.
Current Conditions of South Korea's Export Economy
The financial crisis of 2008 and 2009 seriously hurt South Korea's exports. Much of the world cut back on spending and had limited access to credit, and subsequently exports from South Korea dropped sharply.
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