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Textiles and the Move towards industrialisation
After spending decades as a backwards country reliant on farming, South Korea's government began to focus on an export orientated, consumer goods based economy which would become global by the 1970s. Starting with the relatively simple industry of textiles, South Korea would become the World's leading textile exporter in the 1960s. However as the textile industry became less profitable, South Korea began to develop heavy industries. -
Founding of the Economic Planning Board
The Economic Planning Board was created in 1961 and given unprecedented power. By 1962 they had drawn up the first 5 year plan. -
GDP
US $2.7 billion -
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1970s Seoul Industrial Focus
Factories in Seoul area, Gyeonggi province, produce 46% of nation's industrial goods and employ 48% of secondary indurty workers, 1 million out of 2.1 million. This led the government to try and decentralise the then very focused industry. -
Ulsan Dockyard becomes operational
In 1972, Hyundai Heavy Industries start construction of ships at 1-million-ton capacity dry dock at Ulsan shipyard. Ulsan would grow to 1,780 acres and is the world's biggest -
POSCO start production of steel
POSCO, now the world's 146th largest corporations and set up by the South Korean government in 1968, began producing steel and iron plate in its high efficiency integrated steel mill in Pohang. Originally focused on the domestic market, it helped establish the Korean steel industry as the first of the new heavy industries. POSCO is now the 4th largest steel producer in the world. -
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South Korean shipbuilding decline
Due to a worldwide recession, labour unrest and less financial assistance from the government; ship orders decreased. In 1988 the tonnage of ships built decreased by 17.8%. -
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South Korean construction industry expands
By 1981, overseas construction, mainly located in the Middle East, was responsible for 60% of South Korean construction. Contracts that year were worth US $13.7 billion. Even though international contracts decreased to US $2.6 billion in 1988, the domestic sector was worth US $13.8 billion. Although the sector temporary stalled it bounced back. Samsung C&T Corporation has built such buildings as Taipei 101, the Burg Khalifa and The Petronas Towers. -
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Korean Military Industry
Originally reliant on the United States for weapons by the 1980s South Korea was producing advanced military equipment by itself. It began to shift its focus from internal armament to exports, some key exports include: T-155 Firtina self-propelled artillery for Turkey, K11 rifle for the UAE and others for Bangladesh, Australia and New Zealand. Korea also outsources its industry to provide components for other militaries like Singapore or Russia. By 2010 their exports stood at US $1.5 billion. -
Samsung releases first cell phone
The SH-100 was Samsung's first serious foray into the world of telecommunication equipment but was severely behind the competition. However their latest smartphone, the S8, has been lauded as one of the best phones available. -
GDP
US $230 billion -
Motor Industry Emerges
Since 1984, the South Korean automobile industry had increased five-fold. In 1988 it exceeded the mark of 1 million units produced at 1.1 million, in 1989 investment totalled US $3 billion. Production in 1988 was a 10.6% increase from 1987 at 800,000 passenger cars. 83% of exports were sent to the US. -
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Rise of Korean high-tech
Starting in 1990, Korean manufacturing drifted away from heavy industries that had been so profitable in the 1980s, like shipbuilding and automotive, and moved towards high-tech manufacturing, like mechatronics, bioengineering, microelectronics and aerospace. Still relying on exports to fuel the economic growth of the country, electronics have become an important export. This is because R&D is an important part of the Korean business ethos. -
Asian Finacial Crisis
In October 1997, the Korean Won began to depreciate and by December the IMF issued a US $21 billion loan as part of a US $58.4 billion bailout. By January 1998, a third of Korea's merchant banks had been shut down and throughout the year the economy continued to shrink. In 1999, Daewoo was dismantled by the government. By December 1999 the crisis was declared over. -
GDP
US $1 trillion -
South Korean Tourism
By 2007, 6.4 million tourists visited South Korea every year, the 36th most visited country in the world. The Korean Wave (hallyu) is the increase in global popularity of Korean culture like K-pop and Korean films. It has led to an increase of visitors, especially from China, Southeast Asia and the nearby countries. Popular culture is another marge export of Korea. -
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South Korea and the Global Recession
Despite the global financial crisis, which started in 2007, Korea has now recovered. By January 2009, exports in automobiles and semiconductors fell by 55.9% and 46.9% respectively. By 2010 Korea was able to rebound due to the thriving domestic business, which helped compensate for the enormous losses in exports. South Korea recorded US $424 billion in the first 11 months of 2010, higher than the whole of 2008. A Next Eleven Country, South Korea is expected to grow by 4% annually until 2030. -
South Korea becomes world's dominant shipbuilder
South Korea gains a 50.6% share of the global shipbuilding market, making it the dominant producer of ships -
GDP
US $1.55 trillion -
Current Exports
South Korea's main export partners are China (24.4%), the US (10.1%) and Japan (7.1%). Korea's exports are worth US $548.2 billion, 7th in the world. Their exports include semiconductors, telecommunications, motor vehicles and ships.
