Economy of South Korea and Economy of China assignment from International Development Studies
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This document is an assignment comparing the economies of South Korea and China. It includes sections providing detailed information on key economic indicators and statistics of both countries. South Korea has a highly developed market economy that is currently the 15th largest in the world by GDP. China has the second largest economy and has experienced extremely rapid economic growth in recent decades under its socialist market system. Both countries rely heavily on international trade and exports, with China now the largest exporter and South Korea the 7th largest.
![Economic aid
recipient: $1.12 per capita (2008)
Credit rating
AA - (Domestic)
AA - (Foreign)
AA - (T&C Assessment) (Standard & Poor's)
Foreign reserves
$3.44 trillion (1st; end-March 2013)
The socialist market economy of China is the world's second largest economy by nominal GDP
and by purchasing power parity after the United States. It is the world's fastest-growing major
economy, with growth rates averaging 10% over the past 30 years.
China is also the largest exporter and second largest importer of goods in the world. China is the
largest manufacturing economy in the world, outpacing its world rival in this category, the
service-driven economy of the United States of America. ASEAN–China Free Trade Area came
into effect on 1 January 2010. China-Switzerland FTA [18] is China's first FTA with a major
European economy. The economy of China is the fastest growing consumer market in the
world.
On a per capita income basis, China ranked 87th by nominal GDP and 92nd by GDP (PPP) in
2012, according to the International Monetary Fund (IMF). The provinces in the coastal regions
of China tend to be more industrialized, while regions in the hinterland are less developed. As
China's economic importance has grown, so has attention to the structure and health of the
economy. Xi Jinping’s Chinese Dream is described as achieving the “Two 100s”: the material
goal of China becoming a “moderately well-off society” by 2021, the 100th anniversary of the
Chinese Communist Party, and the modernization goal of China becoming a fully developed
nation by 2049, the 100th anniversary of the founding of the People’s Republic.
The internationalization of the Chinese economy continues to affect the standardized economic
forecast officially launched in China by the Purchasing Managers Index in 2005. At the start of
2010s, China remained as the sole Asian nation to have an economy above the $10-trillion mark
(along with the United States and the European Union). Most of China's economic growth is
created from Special Economic Zones of the People's Republic of China that spread successful
economic experiences to other areas. The development progress of China's infrastructure is
documented in a 2009 report by KPMG.
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Economy of South Korea and Economy of China assignment from International Development Studies
- 1. GREEN UNIVERSITY of BANGLADESH Assignment On International Development Studies (MGT – 311) ASSAIGNMENT TOPIC: COMPARISON BETWEEN ECONOMY of SOUTH KOREA and ECONOMY of CHINA SEMESTER: FALL SEMESTER – 2013 (1303) PREPARED FOR: Samirah Mustafa Lecturer, International Development Studies Department of Business Administration (DBA) Green University of Bangladesh (GUB) PREPARED BY: Md. Moazzem Hossain ID: 110106034 DBA, BBA, Green University of Bangladesh 1
- 2. Letter of Transmittal January 07, 2014 Samirah Mustafa Lecturer, International Development Studies Department of Business Administration (DBA) Green University of Bangladesh (GUB) Subject: Submission of an assignment. Dear Madam I gladly present to you the assignment titled “Comparison between economy of South Korea and economy of China.” I have made the assignment individually as you give us to do by help of your suggestion and internet. I believe the knowledge and experience I gathered during the assignment will be extremely helpful in our future professional life. I will be grateful to you if you accept the assignment. Your support in this regard will be highly appreciated. Thanking you. ___________________ Md. Moazzem Hossain ID. 110106034 2
- 3. Economy of South Korea Economy of South Korea Position Rank 15th (nominal) / 12th (PPP) Currency South Korean Won (KRW) Fiscal year calendar year Trade organisations APEC, WTO, OECD, G-20 Statistics GDP Nominal: $1.130 trillion (2012), PPP: $1.554 trillion (2012) GDP growth 2.1% (2012) GDP per capita $32,020 (PPP, 2012 est.) GDP by sector Agriculture: 2.6%, industry: 39.2%, services: 58.2% (2010) Inflation (CPI) 4.2% (2011 est.) Population poverty line below 15% (2006 est.) Gini coefficient 31.0 (2010) Labour force 25.18 million (2012 est.) Labour force occupation by Agriculture: 6.4%, industry: 24.2%, services: 69.4% (2011 est.) Unemployment 3.8% (2012 est.) Main industries Electronics, Telecommunications, Automobile Production, Chemicals, Shipbuilding, Steel Ease of doing business 8th rank 3
- 4. External Exports $548.2 billion (7th; 2012 est.) Export goods Semiconductors, Wireless Telecommunications equipment, Motor Vehicles, Computers, Steel, Ships, Petrochemicals Main export partners China 24.4% United States 10.1% Japan 7.1% (2011 est.) Imports $520.5 billion (8th; 2012 est.) Import goods Machinery, Electronics and Electronic equipment, Oil, Steel, Transport equipment, Organic Chemicals, Plastics Main import partners China 16.5% Japan 13.0% United States 8.5% Saudi Arabia 7.1% Australia 5.0% (2011 est.) FDI stock abroad: $190.4 billion (31 December 2011) Gross external debt $397.3 billion (31 December 2011 est.) Public finances Public debt 33.7% of GDP (2012 est.) Revenues $271.9 billion (2012 est.) Expenses $249.2 billion (2012 est.) Foreign reserves $306.4 billion (31 December 2011 est.) 4
- 5. South Korea has a market economy that ranks 15th in the world by nominal GDP and 12th by purchasing power parity (PPP), identifying it as one of the G-20 major economies. It is a developed country, with a developed market and high-income economy, and is a member of OECD. South Korea is one of the Asian Tigers, and is the only developed country so far to have been included in the group of Next Eleven countries. South Korea had one of the world's fastest growing economies from the early 1960s to the late 1990s, and South Korea is still one of the fastest growing developed countries in the 2000s, along with Hong Kong, Singapore, and Taiwan, the other three Asian Tigers. South Koreans refer to this growth as the Miracle on the Han River. Having almost no natural resources and always suffering from overpopulation in its small territory, which deterred continued population growth and the formation of a large internal consumer market, South Korea adapted an export-oriented economic strategy to fuel its economy, and in 2012, South Korea was the sixth largest exporter and seventh largest importer in the world. Bank of Korea and Korea Development Institute periodically release major economic indicators and economic trends of the economy of South Korea. In the 1997 Asian Financial Crisis, the South Korean economy suffered a liquidity crisis and relied on the bailout by the IMF that re-structured and modernized the South Korean economy with successive DJnomics policy by President Kim Dae Jung, including the resultant of the national development of the ICT industry. Despite the South Korean economy's high growth potential and apparent structural stability, South Korea suffers perpetual damage to its credit rating in the stock market due to the belligerence of North Korea in times of deep military crises, which has an adverse effect on the financial markets of the South Korean economy. However, renowned financial organizations, such as the International Monetary Fund, also compliment the resilience of the South Korean economy against various economic crises, citing low state debt, and high fiscal reserves that can quickly be mobilized to address any expected financial emergencies. Other financial organizations like the World Bank describe Korea as one of the fastest-growing major economies of the next generation along with BRIC and Indonesia. South Korea was one of the few developed countries that was able to avoid a recession during the global financial crisis, and its economic growth rate will reach 6.1% in 2010, a sharp recovery from economic growth rates of 2.3% in 2008 and 0.2% in 2009 when the global financial crisis hit. South Korea was a historical recipient of official development assistance (ODA) from OECD. Throughout the 1980s until the mid-1990s, South Korea's economic prosperity as measured in GDP by PPP per capita was still only a fraction of industrialized nations. In 1980, the South Korean GDP per capita was $2,300, about one-third of nearby developed Asian economies such as Singapore, Hong Kong, and Japan. Since then, South Korea has advanced into a developed economy to eventually attain a GDP per capita of $30,000 in 2010, almost thirteen times the figure thirty years ago. The whole country's GDP increased from $88 billion to $1,460 billion in the same time frame. In 2009, South Korea officially became the first major recipient of ODA to have ascended to the status of a major donor of ODA. Between 2008 and 2009, South Korea donated economic aid of $1.7 billion to countries other than North Korea. South Korea's separate annual economic aid to North Korea has historically been more than twice its ODA. On June 23, 2012, South Korea is landmarked to become the 7th member of the 20-50 club (with the 5
- 6. population surpassing 50 million and maintaining per capita income of US$20,000), chronologically, after Japan, United States of America, France, Italy, Germany and United Kingdom. Free trade agreement between the United States of America and the Republic of Korea was concluded on April 1, 2007. European Union–South Korea Free Trade Agreement was signed on 15 October 2009. South Korean economy is heavily dependent on the energy imports and the related refinery technologies in association with Ministry of Knowledge Economy of Republic of Korea and in cooperation with the South Korea - Australia Free Trade Agreement. The economy of South Korea has the largest indoor Amusement park in the world, the Lotte World, adding the notable export-oriented music industry guided by the Ministry of Culture, Sports and Tourism of the Republic of Korea (for more, see Korea K-Pop Hot 100). Current Economy Growth rate of South Korea GDP Last Previous Highest Lowest Forecast Unit Trend GDP GROWTH RATE 1.10 2013-09-30 1.10 6.80 -7.00 1.26 2013-12-31 Percent GDP ANNUAL GROWTH RATE 3.30 2013-09-30 2.30 18.20 -7.30 3.52 2013-12-31 Percent GDP PER CAPITA 21562.45 2012-12-31 21226.03 21562.45 1467.10 21599.65 2013-12-31 USD GDP PER CAPITA PPP 27990.83 2012-12-31 27554.12 27990.83 5543.57 28039.06 2013-12-31 USD GDP CONSTANT PRICES 285348.50 2013-08-15 282344.90 285348.50 14934.60 284142.22 2013-11-30 KRW Billion GROSS FIXED CAPITAL FORMATION 70686.00 2013-08-15 69112.82 2013-11-30 KRW Billion GROSS NATIONAL PRODUCT 272550.50 2013-08-15 274333.70 275332.90 14696.60 271597.15 2013-11-30 KRW Billion GDP 1129.60 2012-12-31 69168.10 1114.47 70686.00 1129.60 2402.10 2.36 1159.86 2013-12-31 USD Billion 6
- 7. Economy of China Economy of China Position Rank 2nd (nominal) / 2nd (PPP) Currency Renminbi (RMB); Unit: Yuan (CNY) Fixed exchange rates USD = 6.312333 RMB (average in 2012) Fiscal year Calendar year (1 January to 31 December) Trade organisations WTO, APEC, G-20 and others Statistics $8.939 trillion (nominal by Expenditure approach: 2nd; 2013) GDP $8.227 trillion (nominal by +-Production approach: 2nd; 2012) $13.374 trillion (PPP: 2nd; 2013) GDP growth 7.8% (2013) $6,569 (nominal: 87th; 2012) GDP per capita $9,828 (PPP: 92nd; 2012) GDP by sector Agriculture: 10.1%, Industry: 45.3%, Services: 44.6%% (2012 est.) CIA - The World Factbook Inflation (CPI) 2.5% (December 2012) Population below poverty line Less than $1.25 / 13.1% (2008) Less than $2 / 29.8% (2008) Gini coefficient 0.48 Labour force 795.5 million (1st; 2010) 7
- 8. Labour force occupation by Agriculture: 36.7%, Industry: 28.7%, Services: 34.6% (2008 est.) Unemployment 4.1% (Q4 2012) Average gross salary $457 monthly (2010) Ease of doing business 91st rank External Exports $2.021 trillion (2012 est.) Export goods Electrical and other Machinery, Including data processing equipment, Apparel, Textiles, Iron and Steel, Optical and Medical equipment Main export partners United States 17.2% HongKong 15.8% Japan 7.4% South Korea 4.3% (2012 est.) Imports $1.78 trillion (2012 est.) Import goods Electrical and other Machinery, Oil and Mineral Fuels, Optical and Medical equipment, Metal, Plastics, Organic Chemicals Main import partners Japan9.8% SouthKorea9.2% UnitedStates7.1% Germany5.1% Australia 4.3% (2012 est.) FDI stock $116 billion (2011) Gross external debt $697.2 billion (30 September 2011 est.) Public finances Public debt 22.15% of GDP (2012) Revenues $1.838 trillion (2012 est.) Expenses $2.031 trillion (2012 est.) 8
- 9. Economic aid recipient: $1.12 per capita (2008) Credit rating AA - (Domestic) AA - (Foreign) AA - (T&C Assessment) (Standard & Poor's) Foreign reserves $3.44 trillion (1st; end-March 2013) The socialist market economy of China is the world's second largest economy by nominal GDP and by purchasing power parity after the United States. It is the world's fastest-growing major economy, with growth rates averaging 10% over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. China is the largest manufacturing economy in the world, outpacing its world rival in this category, the service-driven economy of the United States of America. ASEAN–China Free Trade Area came into effect on 1 January 2010. China-Switzerland FTA [18] is China's first FTA with a major European economy. The economy of China is the fastest growing consumer market in the world. On a per capita income basis, China ranked 87th by nominal GDP and 92nd by GDP (PPP) in 2012, according to the International Monetary Fund (IMF). The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. As China's economic importance has grown, so has attention to the structure and health of the economy. Xi Jinping’s Chinese Dream is described as achieving the “Two 100s”: the material goal of China becoming a “moderately well-off society” by 2021, the 100th anniversary of the Chinese Communist Party, and the modernization goal of China becoming a fully developed nation by 2049, the 100th anniversary of the founding of the People’s Republic. The internationalization of the Chinese economy continues to affect the standardized economic forecast officially launched in China by the Purchasing Managers Index in 2005. At the start of 2010s, China remained as the sole Asian nation to have an economy above the $10-trillion mark (along with the United States and the European Union). Most of China's economic growth is created from Special Economic Zones of the People's Republic of China that spread successful economic experiences to other areas. The development progress of China's infrastructure is documented in a 2009 report by KPMG. 9
- 10. Current Economy Growth rate of China GDP Last Previous Highest Lowest Forecast Unit GROSS FIXED CAPITAL FORMATION 241756.80 2012-06-29 215682.00 241756.80 80.70 243897.01 2012-12-31 CNY HML GROSS NATIONAL PRODUCT 516282.10 2012-06-29 468562.40 516282.10 679.00 520393.33 2012-12-31 CNY HML GDP PER CAPITA 3348.01 2012-12-31 3120.93 3348.01 85.52 3366.57 2013-12-31 USD GDP PER CAPITA PPP 7957.62 2012-12-31 7417.89 7957.62 523.95 8002.04 2013-12-31 USD GDP GROWTH RATE 2.20 2013-09-30 1.70 2.50 1.50 2.24 2013-12-31 Percent GDP ANNUAL GROWTH RATE 7.80 2013-09-30 7.50 14.20 3.80 7.50 2013-12-31 Percent 8230.00 2012-12-31 7320.00 8230.00 46.50 9272.35 2013-12-31 USD Billion GDP Bibliography: http://www.tradingeconomics.com/china/gdp-growth-annual http://en.wikipedia.org/wiki/Economy_of_China http://en.wikipedia.org/wiki/Economy_of_South_Korea http://www.tradingeconomics.com/south-korea/gdp-growth-annual 10 Trend