Monday, April 21, 2014

Greatful Economy of South Korea

   Why this little country and located in northeast of Asia could be the one of strongest economy in the world? As we know about South Korea today, it was fast growing in economy after Korean Wars in 1953. The most curiosity is there was no resource that South Korea had but the growth of economy so fast in 1960 to 1980 and now. Many questions lay on its business in domestic even international market, is it true that South Korea has potential in trade or the great policy that reformed South Korea economy or is it because of growth of globalization as we know about South Korea lifestyle? The answers are yes for those questions.

      The key point lays on free trade. The fast growing economy was helpfully because the free trade is exist. The raw materials in South Korea were minim but South Korea is the sixth largest exporter and seventh largest importer in the world. So, what goods that South Korea use for trading? After the Korean Wars, South Korea helped by foreign aids to developed its economy with industrial sectors. South Korea most exports semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel ships, petrochemicals,  and industrial machinery to other country mostly China. Any materials such as machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, and plastics are import from China and Japan. Those are big number of exchange trade in imports and exports and beneficially hit South Korea to be the 15th largest market economy. As industrial country, domestically the market also lays on industrial goods mostly automobiles and parts and also its citizen lifestyle.

     It also supported by a great policy after Korean Wars in evolving economy. South Korean’s leader at that time was wisely to determined comparative advantage that would increased the profits. When South Korea faced crisis of inflation in late 1980s, the government intervened with reduced the imbalance between city and rural sectors, it expanded investments in public projects, such as roads and communications and other facilities. South Korea also made cooperation with trade organizations such as APEC, WTO, G-20, and OECD. Those were examples of South Korea’s great policy to got stability of its country’s economy.
      The lifestyle of South Korea has its particular influence in global economy. Its fashion, entertainment world, foods, known as hallyu wave, already involved in South Korea global market. The demands of hallyu wave were reached in big number in the world these recent years. So many albums, dramas, fashion stuffs, even South Korea’s traditional food are greatfully come worldwide. Because of this influence, South Korea could make more than thousands billion Won (South Korea currency) as the data from Korea Creative Contents Agency, a body that is a part of the Ministry of Culture, Sports, and Tourism. In this globalization era, there is no impossible way to get what is unbelievable.

      South Korea surprisingly developed its economy in fast and great structures. To growth economy, it should be wise in making decisions as South Korea did to characterized what could be take advantage more. In this point, every country should wisely compare the advantages then a great policy should be made to concrete the increase and stability of economy. As the globalization growth and the liberal world occurs where is freedom in economic activity, it opens the opportunities of free trade. Not just South Korea, it is probably could happen in developing country.

Posted by,
Safira Damayanti


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