COUNTRY ANALYSIS

The Republic of Korea

49 million (UN, 2011)

Seoul
99,313 sq km (38,345 sq miles)

: Korean
Buddhism, Christianity

76 years (men), 83 years (women) (UN)

won

Electronic products, machinery and transport equipment

US $19,830 (World Bank, 2009)

.kr
+82

NATIONAL

OF SOUTH KOREA

South Korea

()

Seoul-National Assembly, south korea

The Government of South Korea is divided into executive, judicial, and legislative branches. The executive and judicial branches operate primarily at the national level, although various ministries in the executive branch also carry out local functions. Local governments are semi-autonomous, and contain executive and legislative bodies of their own. The judicial branch operates at both the national and local levels. The South Korean government's structure is determined by the Constitution of the Republic of Korea. This document has been revised several times since its first promulgation in 1948.

Republic of South Korea, the country has always had a presidential system with a relatively independent chief executive. The current structure is a semi-presidential system. The executive branch is headed by the president. The president is elected directly by the people, and is the only elected member of the national executive. The president serves for one five-year term; additional terms are not permitted. The president is head of government, head of state, and commander in chief of the South Korean armed forces.. However, the president does not have the power to dissolve the National Assembly. This safeguard reflects the experience of totalitarian governments under the First, Third, and Fourth Republics.

The State Council is made up of the president, the Prime Minister, and 16 cabinet-level ministers. The Council is charged with deliberating on major policy decisions. Its meetings are chaired by the president and officiated by the Prime Minister (the Prime Minister chairs the meetings if the President is not present). Although the Council has no power to make final decisions, the Constitution requires that certain matters be brought to it before final decisions are made. These include bestowals of state honors, drafts of constitutional amendments, declarations of war, budget proposals, government restructurings, and emergency orders.

The ministers are appointed by the president and report to the Prime Minister. Also, some ministries have affiliated agencies , which reports both to the Prime Minister and to the minister of the affiliated ministry. Each affiliated agency is headed by a vice-minister-level commissioner.

Democratic Labor Party or DLP Democratic Party or DP Grand National Party or GNP People-First Party Uri Party

The South Korean constitution guarantees freedom of speech, press, petition and assembly. However, behaviors or speeches in favor of the North Korean regime or communism can be punished by the National Security Law, though in recent years prosecutions under this law have been rare. There is a strict election law that takes effect a few months before elections which prohibits most speech that either supports or criticizes a particular candidate or party.

The UN Human Rights Commission expressed concerns about South Korea's deterioration of online free speech Press freedom in South Korea deteriorated in 2010 compared to a year earlier due to increased state censorship, an international media freedom advocacy group. ``

The legal system of South Korea is a civil law system that has its basis in the Constitution of the Republic of Korea

The judicial system of South Korea is composed of the Supreme Court of South Korea, the Constitutional Court of South Korea, six High Courts, 13 District Courts, and several courts of specialized jurisdiction, such as the Family Court and Administrative Court. In addition, branches of District Courts may be established, as well as Municipal Courts

The Municipal Courts only exercise original jurisdiction over minor cases, such as small claims cases where the amount in controversy does not exceed 20 million won or misdemeanor trials in which the maximum possible sentence is 30 days in jail or a fine not exceeding 200,000 won. There are currently 103 municipal courts in South Korea.

The 18 District Courts have original jurisdiction over most civil and criminal cases. Additionally, the District Court appellate panel may exercise appellate jurisdiction over cases in which a single District Court or Branch Court judge has rendered the decision. The six High Courts have appellate jurisdiction over cases decided by a trial panel of three judges in a District Court or Family Court, decisions of the Administrative Court, and civil cases heard before the District Court in which one judge decided and where the amount in controversy exceeds 50,000,000 won. Appeals to the High Court are heard by a panel of three High Court judges. High Courts are located in Seoul, Busan, Daegu, Daejon, and Gwangju.

The law provides criminal penalties for official corruption, and the government generally implemented these laws effectively. According to the Transparency International Global Corruption Barometer 2010, only two percent of South Koreans had paid a bribe to receive attention from at least one nine different service providers (in customs, education, the judiciary, land related services, medical services, the police, registry & permit services, tax authorities, and utilities) in the past 12 months.

Korea Ranks 43th in Global Corruption Index(2011)

South Korea made moderate strides on the Corruption Perceptions Index (CPI), Transparency International (TI) said. This year, Korea earned a score of 5.4 out of 10 in the 2011 CPI, ranking 43th among 180 countries in the world and 22nd among the 30 member nations of the Organization for Economic Cooperation and Development (OECD), the world's anti-corruption watcher said in its 2011 Global Corruption Report Last year, Korea ranked 39th among 180 contenders and 22nd among OECD members. Korea earned a score of 5.5 out of 10 in the 2010 CPI

Rules of employment (ROE), commonly known as 'employee handbook' by foreign-invested companies, state basic working conditions of employees Under the LSA, any company with 10 or more employees in Korea is required to prepare a ROE that provides information on working hours, wages, severance payments, etc An employer is required to obtain the comments of the majority of employees or the majority union, then must file the ROE (including comments) to the Ministry of Labour or face an administration fine of 5 million KRW

The Korean tax system is comprised of both national and local taxes, the latter of which are imposed by provinces, countries and municipalities. Examples of local taxes include property tax, automobile tax, license tax and registration tax. National taxes, on the other hand, are currently made up of internet tax, custom duties, and education tax, international tax, which consists of direct tax and indirect tax, is thus the most significant type of tax payable in Korea.

Corporation tax: A corporation having its head office or its main office in Korea is liable to the corporation tax. The corporation tax is assessed on the income accruing in each business year, the liquidation income, and the capital gains. The amount of corporation tax on the income of a domestic corporation for each business year shall be an amount calculated by applying tax rates to the amount of tax base.

 An unlisted large-scale corporation (paid-in capital of over five million won or shareholders equity of 10 million won), which was accumulated 40% or more of its distributable income within the corporation shall be liable to pay the accumulated earnings tax at the rate of 25%.

Tax incentives to promote R & D - Increase of the deductible reserve for development of technology and manpower from 1.5-2% to 3-4% of revenue. - Operational expenses of an in-house technical collage shall be eligible for a 10% tax credit.

 South Korea is an export-orientated country, with a total trade volume of 884.2 billion in 2010. This figure also makes them the 7th largest exporter and 10th largest importer in the world. Since 2003, South Korea has established its network of free trade agreements to boost trade and economic ties with other countries. With a lack in natural resources, South Korea has a high dependence on import of capital goods, raw materials and industrial supplies. The country is also the 5th largest importer of oil in the world, with 3.074 million barrels imported per day.

South Korea exports were worth 47 Billion USD in November of 2011. South Korea relies largely upon exports to fuel the growth of its economy. The most important exports are finished products such electronics, semiconductors, LCD panel, mobile phone, computers related, television, motor vehicle, steel, ships and petrochemicals. Main export partners are China, European Union, U.S. and Japan. This page includes: South Korea Exports chart, historical data and news.

South Korea imports were worth 43.1 Billion USD in November of 2011. South Korea imports mainly machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals and plastics. Its principal import partners are: China, Japan, United States, European Union and Saudi Arabia. This page includes: South Korea Imports chart, historical data and news.

: US$ 47 billion
: semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel ships, petrochemicals : China (23.2 percent of total exports), US (10.1 percent), Japan (5.8 percent), Hong Kong (5.3 percent) : US$ 43.1 billion : machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, plastics : China(16.8 percent of total imports), Japan (15.3 percent), US (9 percent), Saudi Arabia (6.1 percent), Australia (4.6 percent)

The Ministry of Environment is the South Korean branch of government charged with environmental protection. The current minister is Lee Man Ee. In addition to enforcing regulations and sponsoring ecological research, the Ministry manages the national parks. The mission of Ministry of Environment is to protect the national territory from threats of environmental pollution and improve the quality of life for the public so that the people can enjoy ambient natural environment, clean water and clear skies. Furthermore, we aim to contribute to the global efforts to protect our one and only Earth. In February, 2008, Korea Meteorological Administration became an affiliate of the Ministry to facilitate countermeasures against climate change.

Driven by aggressive manufacturing oriented towards exports, South Korea economy rose to become the worlds eighth biggest exporter of goods. Clearly considered an advanced economy by international bodies such as the IMF, CIA and World Bank, South Koreas economic profile has won a string of plaudits, including: : Ahead of the UK, Russia and Canada. : 3rd largest trader with China and Japan, 7th with the US and 8th with the EU. : including worlds largest shipyard run by Hyundai Heavy Industries

: including worlds largest automobile

assembly plant (Hyundai Motors) .

Good education High literacy rates Strong scientific and technological base Free market economy National commitment

year 01-Jan-06
01-Jan-07 01-Jan-08 01-Jan-09 01-Jan-10

GDP 4.8
5 2.2 0.2 6.1

GNP 2.45
2.5 2.76 2.81 3

unemployment 3.3
3.3 3.2 3.7 3.3

7 6 5 4 3 2 GDP GNP

unemployment

1 0

Business cycle indicators are important and useful economic tools that are used for the purpose of giving a preview of future economic trends. They are primarily used to either forecast or confirm troughs and peaks of a particular business cycle and are used primarily in the following countries:The United States of America Japan Mexico Germany France Australia The United Kingdom Spain

South Korea (ROK)

South Korea
The Gross Domestic Product (GDP) in South Korea expanded 0.7 percent in the third quarter of 2011 over the previous quarter. Historically, from 1970 until 2011, South Korea's average quarterly GDP Growth was 1.78 percent reaching an historical high of 6.80 percent in March of 1988 and a record low of -7.00 percent in March of 1998. In recent years, Korea's economy moved away from the centrally planned, government-directed investment model toward a more market-oriented one. Economists are concerned that South Korea's economic growth potential has fallen because of a rapidly aging population and structural problems that are becoming increasingly apparent.

South Korea GDP Growth Rate chart, historical data, forecasts and news. Data is also available for South Korea GDP Annual Growth Rate, which measures growth over a full economic year.

The inflation rate in South Korea was last reported at 3.9 percent in October of 2011. From 1966 until 2010, the average inflation rate in South Korea was 8.35 percent reaching an historical high of 32.51 percent in October of 1980 and a record low of 0.17 percent in February of 1999. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy.

The benchmark interest rate in South Korea was last reported at 3.25 percent. In South Korea the interest rates decisions are taken by the Bank of Koreas (BOK) Monetary Policy Committee. The official interest rate is the Bank of Korea Base Rate which was changed from overnight call rate on March 2008. From 2008 until 2010, South Korea's average interest rate was 2.99 percent reaching an historical high of 5.25 percent in August of 2008 and a record low of 2.00 percent in February of 2009.

The unemployment rate in South Korea was last reported at 3.1 percent in October of 2011. From 1999 until 2010, South Korea's Unemployment Rate averaged 3.75 percent reaching an historical high of 7.10 percent in June of 1999 and a record low of 3.00 percent in September of 2002. The labour force is defined as the number of people employed plus the number unemployed but seeking work. The non-labour force includes those who are not looking for work, those who are institutionalised and those serving in the military.

Labour supply of south korea

Labour supply
25,000,000

24,500,000

24,000,000

23,500,000

Labour supply

23,000,000

22,500,000

22,000,000

01/Jan/04

01/Jan/05

01/Jan/06

01/Jan/07

01/Jan/08

01/Jan/09

 Despite significant increases in wages in the 1980s, labour unions in the late 1980s continued their wave of strikes demanding better working conditions and wages. South Korea was known for having the world's longest working hours. In 1986 the Korean worker averaged about 54.7 hours a week. . Emboldened by the political reforms of 1987 and by reports that the rate of South Korea's economic growth was greater than the improvements in their own incomes and life-styles, many workers agitated for a greater share of the nation's prosperity and sought more freedom and responsibility at the workplace and an end to the traditional paternalism of management.

The ferocity and sheer size of the labour movement caught management and the government by surprise. During his first year or so in office, President Roh Tae Woo was confronted with considerable labour unrest; there were more than 300 strikes in the first three months of 1989. Lost production was estimated to have climbed to US$6 billion in 1989 from US$4.4 billion in 1988.

Labour cost
Measures hourly wage cost (index) in major agglomerations

Index, hourly wage cost (South Korea = 100.0)

labour cost
100 90 80 70 60 50 40 30 20 10 0 India China Taiwan South Africa Hong Kong Philippines Singapore Indonesia Thailand Romania Turkey Russia Malaysia labour cost

Czech Rep

Argentina

Hungary

Slovenia 21

Slovakia

Mexico

Poland

Brazil

10

11

12

13

14

15

16

17

18

19

20

22

RANK

South Korea

The income distribution of South Korea is quite average as compared to other developed nations. This idea is based on the relative Gini indexes, top 10 to bottom 10 ratios, and income and consumption percentages of different nations. The Gini Index is an economic measurement of a nation income inequality; the higher the score the more inequality. Along with this economic growth came an enlarging middle class, which in 1960 amounted to only 19.6% of the population but by 1995 grew to 57.7%. The new larger middle class that appears in South Korea creates new business markets to be sought after. As of 2007 services made up 75.2% of occupations in the labor force, while industry made up 17.3% and agriculture the remaining 7.5%. Like other large middle class countries the service industry has grown considerably. A strong service industry denotes a population that has enough disposable income to support a relatively high marginal propensity to consume.

 Nobody in the world had imagined that the Republic of Korea, in other words South Korea, which is located in East Asia between China and Japan, would grow so quickly after the country was destroyed by the Korean War (19501953). The country was divided into two, the North and the South. It did not have any infrastructure, and there were no natural resources at all. The fact that the GNI of South Korea in 1950s was less than that of Ghana is often quoted in many books, such as Culture Matters by Samuel Huntington and The Shackled Continent by Robert Guest. (In 1953, South Koreas GNI per capita was only $67.)

Now, South Korea is well-known for its rapid economic growth, based on its centrally planned and trade-oriented economic policies. Even though its economy has suffered because of the recent financial crisis and the rise of new developing countries, such as the BRIC nations (Brazil, Russia, India, and China), South Korea has the 15th biggest economy in the world in 2009, according to IMF.

South Korea has become well-recognized in recent years as a global technology hub, and its leading technology companies have successfully developed and exported a wide range of innovative products.
Now the Korean government, in partnership with private industry, is spearheading a new Smart Grid strategy to transform the ways in which electricity is generated, distributed, and consumed in the country, driven by a desire for greater energy security, sustained economic growth, and reduced environmental impact. According to a new report from Pike Research, these efforts will result in Smart Grid infrastructure investments totaling $15.8 billion within Korea itself during the period from 2009 to 2016, and will serve as the foundation for a significant global export market as well.

Korean technology companies have been at the forefront of innovation in information and communications technology, says industry analyst Andy Bae. They are now poised to take a significant leadership role in the Smart Grid market, both within Korea and on a global level.

The South Korean government wants to establish a system compatible with international standards that would facilitate clinical and licensing procedures and rectify policies that impede commercialization of stem cell-related research developments. In addition, the government will also create a national stem cell bank for use to produce, preserve and supply stem cells to various researchers in the country on a stable basis, said Lee. Stem cell research is said to be an extremely rewarding industry both clinically and in business terms. In July, the Korean Food and Drug Administration approved stem cell medication in the form of a treatment for heart attack victims for the world's first clinical use. President Lee added, this field is new and offers infinite room for advancement, and how well we manage at this initial stage will make an enormous difference down the road. The country should now set its eyes on emerging as a stem cell powerhouse."

South Koreas President Lee Myung-bak has promised to invest 100 billion won (US$90 million) into stem cell research next year, in order to revitalise an industry that was severely affected after a cloning scandal nearly five years ago.

The total population in South Korea was last reported at 49.0 million people in 2010 from 25.0 million in 1960, changing 96 percent during the last 50 years. South Korea has 0.71 percent of the worlds total population which means that one person in every 141 people on the planet is a resident of South Korea. This page includes a chart with historical data for South Korea's Total Population.

0-14 years: 15.7% (male 3,980,541/female 3,650,631) 15-64 years: 72.9% (male 18,151,023/female 17,400,809) 65 years and over: 11.4% (male 2,259,621/female 3,312,032) (2011 est.)

Age profile
11% 16% 0-14years

15-64 years
65 year & over 73%

South Korea places in the top 10 for both net primary enrolment and gross tertiary enrolment, and, an above average, 97%, of the population are enrolled in secondary education. There is near gender equality in primary and secondary education in the country, but primary school classes are large with only one teacher for every 24 children. South Koreans have mixed perceptions about education.

According to a 2010 survey, only 58% of respondents were content with the quality of their local educational facilities, placing South Korea 87th on this variable; however an above average 80% believed that children have sufficient opportunities to learn and grow everyday in their country.

Overall, the high levels of enrolment support the countrys economy, as the average worker will have completed 2.5 years of high school and 2.4 years of university, placing the country 42nd and first, respectively.

South Korea's education system is technologically advanced and it is the world's first country to bring high-speed fibre-optic broadband internet access to every primary and secondary school nation-wide. Using this infrastructure, the country has developed the first Digital Textbooks in the world, which will be distributed for free to every primary and secondary school nation-wide by 2013.

The Finance Ministry said June 24 that South Koreas economy may add 300,000 jobs this year, more than its previous forecast of 250,000 jobs, after shedding 72,000 last year. The annual jobless rate will be 3.7 percent, it said. The won closed 0.9 percent lower at 1,212.30 per dollar in Seoul yesterday, the biggest decline since June 29, according to data compiled by Bloomberg. It has retreated 3.9 percent so far this year, Asias worst performance. The number of people self-employed or working in the public-service sector rose 2.3 percent and hiring in the manufacturing sector climbed 4.7 percent, todays report showed. People employed in the construction industry increased 3.8 percent from a year earlier, while jobs in the agricultural, fishery and forestry sectors declined 2.1 percent.

Traditional Korean houses can be structured into an inner wing ( anchae) and an outer wing (sarangchae). The individual layout largely depends on the region and the wealth of the family.

Whereas aristocrats used the outer wing for receptions, poorer people kept cattle in the outer wing (sarangchae). The wealthier a family, the larger the house.
However, it was forbidden to any family except for the king to have a residence of more than 99 kan. A kan is the distance between two pillars used in traditional houses. The inner wing normally consisted of a living room, a kitchen and a wooden-floored central hall.

Homes- Korean Architecture

Traditional farmer's house; Folk Village, Seoul

The traditional dress known as hanbok has been worn since ancient times. The hanbok consists of a shirt (jeogori) and a skirt (baji). The traditional hat is called gwanmo and special meaning is attached to this piece of clothing.

Rice is the staple food of Korea. The main crops in Korea are rice, barley, and beans, but many supplementary crops are used. Fish and other seafood are also important because Korea is a peninsula.

Tea in Korea dates back over 2000 years and was imported from China. It was part of a number of worship recipes, hoping that the good scents would reach the heavenly gods. Originally tea was used for ceremonial purposes or as part of traditional herbal medicine.Some of teas made of fruits, leaves, seeds or roots are enjoyed. Five tastes of tea are distinguished in Korea: sweet, sour, salty, bitter, and pungent.

The original religion of the Korean people was Shamanism, which though not as widespread as in ancient times, still survives to this day. Female shamans or mudang are called upon to enlist the help of various spirits to achieve various means Even today, Confucianism still plays a major role in Korean society, and respect for elders is still a major part of Korean family life.

Banpo Bridge Han River seoul

Korea has the potential to develop its wind energy sector due to its advanced applications in heavy industry such as shipbuilding. However, with a wind resource potential of around 27,000MW, the country's geographical conditions are not suited for wind power projects due to limited land availability and limited wind in certain regions. South Korea's cumulative wind installed capacity was 364MW in 2009. South Korea is the world's fifth largest nuclear power producer and the second-largest in Asia as of 2010

South Korea has sought the assistance of foreign countries such as Russia through MTCR commitments to supplement its restricted domestic rocket technology. The two failed KSLV-I launch vehicles were based on the Universal Rocket Module, the first stage of the Russian Angara rocket, combined with a solid-fueled second stage built by South Korea.

south Korea Advanced Institute of Science and Technology (KAIST) developed the world's second walking humanoid robot, HUBO. A team in the Korea Institute of Industrial Technology developed the first Korean android, EveR-1 in May 2006.

Since the 1980s, the Korean government has actively invested in the development of a domestic biotechnology industry, and the sector is projected to grow to $6.5 billion by 2010. The medical sector accounts for a large part of the production, including production of hepatitis vaccines and antibiotics.

South Korea has a market-oriented economy with technologically advanced transportation network consisting of high-speed railways, highways, bus routes, ferry services, and air routes that criss-cross the country.

As Asia's third-largest economy, South Korea has now become more knowledgeintensive than ever before. Consequently, the market is open to a lot of foreign investments and MNC ventures.

is one of the largest companies in the world

is one of the largest steel makers in the world

LG Corp. (Korean: LG ) is the largest South Korean conglomerate company and it is headquartered in the LG Twin Towers in Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display, LG Telecom and LG Chem in over 80 countries. : including worlds largest automobile assembly plant (Hyundai Motors)

Recent surveys indicate that the rapid rate of Internet use in South Korea is one of the highest in the world. Indeed, as the one of leading nations for high-speed broadband access.

South Korean Internet users virtually dominate the entire gamut of Internet activitieseverything from web searches.
Even popular social movements have gone "on-line" in South Korea with civil organizations effectively mobilizing their resources through Internet networking.

South Korea is one of the most connected nations in the world with high
broadband penetration rates and a tech savvy population. She has the worlds fastest average Internet connection speed at 2,202 KBps. This is almost four times the world's average and is faster than Great Britain, Turkey, Spain and Australia combined! It is therefore not surprising that she has approximately 39 million internet users and boasts one the Asias highest internet penetration rates of 80.9%.

South Korea's high internet penetration rate can be attributed to the government's strong infrastructural support. The rapid increase of internet users over the past ten years is evidence for that. The government is constantly looking to upgrade the wireless network and have put plans in place to increase the speed of internet connection of every household in South Korea to 1 gigabit per second by 2012.

E-commerce is majorly popular in South Korea and according to a study of visitor traffic by the Korea Chamber of Commerce and Industry, user traffic for mobile phone-related shopping malls increased by 192.3 percent between July and October compared 2010 compared to in 2009. In terms of traffic volume, comprehensive online malls that sold a wide range of products such as GMarket and Auction and the online arms of brick-and-mortar retailers such as Lotte and Shinsegae Mall, were found to host the largest share with an average of 21.85 million visitors per month.

South Korea spent about 34.5 trillion won (US$28 billion) last year on research and development, up 10.2% from the previous year, government data showed last week, reports The Korea Herald. R&D spending now accounts for 3.37% of gross domestic product, placing South Korea sixth among 30 OECD member states. The United States spent $368.8 billion, 11.8 times more than Korea, while Japan spent $150.7 billion, 4.8 times more. The money spent by government and the public sector accounted for 26.8% of the total amount Korea spent on R&D while money from the private sector and abroad accounted for 72.9% and 0.3% respectively. Private companies led the country's R&D activities as they spent 75.4% of the total while public research institutions and universities consumed 13.5% and 11.1% respectively.

The amount the country spent on the basic research accounted for 16.1 percent of the total while the amounts spent on the applied research and the development research accounted for 19.6 percent and 64.3 percent, respectively. By research areas, the country spent 95.9 percent of its R&D cost on science and technology sectors while 4.1 percent was spent on humanities and social science sectors. By type of technologies, 33.8 percent of the total was invested in information technology while the investments in nanotechnology, biotechnology and environment technology accounted for 12.3 percent, 7.6 percent and 8.5 percent, respectively.

"
," Lee Sang-moK director of the ministry`s science and technology policy division, told reporters