South Korea

G

Culture

Korean culture is a historical fusion of native elements with the influence of its near neighbour, China; Japan also exerted some limited influence. Korean art and architecture as well as other forms reflect both Chinese cultural traditions, such as Confucianism, and Buddhism, especially Zen. Native shamanism has also strongly influenced traditional music and theatre. The country’s strong cultural heritage is respected by the Korean people, and efforts are made by the government to encourage and preserve the traditional arts. Several museums are located in Seoul, including the National Museum (1908), with its extensive collection of Korean cultural and folklore relics; branches of the national museums are located in six other major cities.

IV

Economy

South Korea’s economy, traditionally based on agriculture, has, since the early 1960s, undergone an extraordinarily rapid industrialization; the gross domestic product (GDP) expanded by more than 9 per cent yearly between the mid-1960s and the early 1990s, though it has since slowed. South Korea is now the world’s 12th-largest trading nation. A series of five-year economic plans begun in 1962 have concentrated on the development of manufacturing. Economic aid, especially from the United States and Japan, has been important to the economic growth of the country. The gross national product (GNP) in 2004 (World Bank figures) stood at about US$673 billion (US$19,730 per head). Agriculture contributed about 3 per cent of the 2007 figure; 28 per cent was contributed by manufacturing. In 2007 annual national budget figures showed revenue of US$257.9 billion and expenditure of US$195.4 billion.

The South Korean economy has traditionally been dominated by chaebol (conglomerates), large enterprises such as Samsung and Hyundai. These corporate giants have been the target of recent reform legislation, as they are felt to inhibit competition. The chaebol have redirected themselves towards their core business areas.

South Korea was one of the earliest and worst casualties of the financial crisis that hit the so-called “tiger” economies of East and South East Asia from 1996, as the Korean currency and Korean assets came under attack in financial markets worldwide. Markets were particularly wary of overextension among the chaebol (whom the government had often encouraged to seek penetration of new markets before profitability), corporate bad debts, and concealed insolvencies among major companies. In December 1997 South Korea was driven to accept a US$58.8 billion rescue package, with stringent economic reform conditions attached, from the International Monetary Fund (IMF), despite nationalist calls for protectionism. By mid-1998, there were signs that early adoption of the IMF conditions was allowing South Korea to recover faster than its neighbours.

A

Agriculture, Forestry, and Fishing

Land distribution programmes were carried out in South Korea after World War II. Landholdings average only 0.89 hectares (2.2 acres); agricultural techniques have been developed and mechanized in conjunction with the country’s industrialization, while the agricultural labour force continues to shrink. About 16.6 per cent of the land is arable. The chief crops in 2007 were rice (5.96 million tonnes per year), the principal food crop; potatoes (625,000); sweet potatoes (260,000); barley (227,000); and maize (60,000). An important development has been the great expansion in the output of fruit, notably apples, melons, peaches, and pears. Other crops include soya beans, cotton, hemp, and silk. The estimated livestock population in 2007 was 9.85 million pigs, 2.58 million cattle, and 130 million poultry birds.

The South Korean forestry industry is small; roundwood removals in 2007 were about 5.15 million cu m (about 182 million cu ft) per year. Since the late 1960s South Korea has become one of the world’s leading fishing nations, with a modern fleet of more than 780 vessels. The ports of Ulsan and Masan have been developed as deep-sea fishing bases with fish-processing plants. The annual catch (which included pollack and other fish, and oysters) in 2007 was some 3.04 million tonnes.

B

Mining

South Korea does not have extensive mineral resources. Annual output of anthracite coal was 3.30 million tonnes in 2003; zinc ore output was about 80 tonnes. Other minerals exploited were graphite, iron ore, lead, tungsten, copper, gold, silver, and kaolin.

C

Manufacturing

Formerly, industrial development concentrated on light manufacturing, especially in labour-intensive industries such as textiles and clothing, footwear, and foodstuffs. Since 1970, however, more emphasis has been given to heavy industry in an effort to decrease imports. Increasingly important is the production of chemicals and fertilizers. Other major manufactures include cars, electric and electronic equipment, non-electric machinery, ships, iron and steel, textiles, food products, copper, tungsten, plywood, and cement. The South Korean shipbuilding and motor industries in particular are major world producers. The annual output of industrial products in 1996 included cement, 58.4 million tonnes; pig iron, 23 million tonnes; passenger cars, 2.26 million units; and television sets, 21.4 million units.