400-fold Increase

 

The Bank of Korea announced on Dec. 15 that Korea’s per-capita GNI increased 394-fold from US$67 to US$26,205, the eighth-highest in the world, and its nominal GNI increased 29,833-fold from 48.3 billion won (US$44.1 million) to 1.441 quadrillion won (US$1.314 trillion) between 1953 and last year.

During the period, Korea recorded an annual average real GDP growth rate of 7.4 percent and real GDI growth rate of 7.1 percent. The former jumped from 5.8 percent to 10.4 percent between the 1950s and the 1970s, but dropped to 3.9 percent in the 2010s. The total savings ratio reached 41.7 percent in 1988, but has declined all the way since then to stand at 34.4 percent last year. The household savings ratio plummeted from 24.3 percent to 4.5 percent during the same period. Likewise, the total investment ratio fell from 41.4 percent to 28.8 percent between 1991 and 2013.

In the meantime, the ratio of the primary industry to national GDP dropped from 48.2 percent to 2.3 percent between 1953 and 2013, while those of the manufacturing and service sectors went up from 7.8 percent to 31.1 percent and from 40.3 percent to 59.1 percent, respectively. Wireless communication devices, automobile, semiconductor, and petrochemical products have positioned themselves as the country’s main export items since 2000, to take the place of clothes and shoes.

According to the Korea International Trade Association, Korea’s semiconductor exports amounted to US$34.1 billion during the first seven months of this year, followed by petroleum products (US$30.6 billion), automobiles (US$20.7 billion), marine vessels (US$22.2 billion), and wireless communication devices (US$17.1 billion). Compared to four years ago, semiconductors and automobiles maintained their positions, but marine vessel exports were more than halved. Wireless communication devices and petroleum products climbed up from sixth and fifth each.

Apparel, meanwhile, has not been found on the top 10 list since 2010. Export amounts reached US$2.7 billion, 16 percent of the country’s total exports, in 1980, and increased to US$4.6 billion two decades later to rank ninth. Shoes exports totaled US$900 million and US$4.3 billion in 1980 and 1990, respectively. However, the placing has dropped from as high as third to behind 10th.

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