Korea has achieved rapid economic growth with its export-oriented industrialization policy since the 60's. The average annual growth rate of Korea's real Gross National Product(GNP) during the 1962-1992period was almost 8%, and the average annual growth rate of Korea's real GNP in the late 80's was above 10%. In 1992, Korea's per capita GNP became US$ 6,749, which is more than 77times of that in 1962.
Unfortunately, Korea could not maintain its trade surplus. which was attributed to the considerably weakened competitiveness of Korean products. The trade surplus in the late 80's resulted in the appreciation of the Korean won and severe labor disputes caused wage increases. The Korean won appreciated by as much as 24% in the late 80's, and wages doubled during the same period.
Recently, economic recession in developed countries is working against Korean exports. Protectionist sentiments are prevailing in major countries as well, because of the high unemployment rate in these countries. Korea is also experiencing difficulties in acquiring high technology and in attracting foreign direct investments. Accordingly, the growth rate of Korea's exports, especially to developped countries, dropped recently. The average annual growth rate of exports during the 1989-1992 period recorded 6.0%, which is considerably lower than the 80's. The average annual growth rate of imports, on the other hand, recorded 12.3% during the same period.

Contents

I. Introduction

II. Changing patterns in Korea's merchandise trade
1. Exports and imports by commodity
2. Exports and imports by country

III. Changing patterns in Korea's trade in services
1. Trade in services
2. Technology trade

IV. Prospects

Reference