Attractiveness Of South Korea

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Country Attractiveness of South Korea: Economic Review
The economic growth of the South Korea is often seen as a miracle. Korea has ascended from the annihilation and fiasco of Korean War in the 1950s to currently being 12th largest in GDP. The data from the Statistics Korea show that from 1960 to 2013, GDP per capita jumped from mere $1,417 to $21,562 (Central Intelligence Agency, 2014). This remarkable economic growth contributed to the substantial reduction in Korea’s labour income inequality. The Korean economy experienced improved consumer spending and increased facilities investment.
However, Korea’s outwardly robust economy did not improve the financial condition of the ordinary people and SME which represented Korea’s thriving middle class. Lying beneath the economic success in the nation, Korean households are now facing record level of debts. (Central Intelligence Agency, 2014).
Inflation fell from 4.7% in 2008 to 1.3% in 2013, owing to subdued domestic demand and falling food prices. During 2008-2013 government finances were managed well with the general government net budget surplus increasing from 1.6% of total GDP in 2008 to 2.5% in 2013. Nevertheless, low public debt increased from 30.1% of total GDP in 2008 to 35.9% in 2013, as the government approved a larger budget to increase spending, in order to make up for government revenue shortfalls resulting from a weaker economic landscape. (Euromonitor International, 2014)
During the last decade following the Asian crisis, many Koreans in their mid 30’s, encouraged by government policies and generous credits, have taken loans to buy their homes. Many of them have been struggling to make their mortgage payments, falling into the category of “House Poor” (Kim, 2013).
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Cheese consumption trend of South Korean people
Euromonitor International, 2014. Business Environment: South Korea, s.l.: Euromonitor International.
Inflation and household debt
Kim, J., 2013. The Dynamics of Income Inequality in Korea, Smithfield: Bryant University.
Trend of increasing house loans after Asian financial crisis
Pingali, P., 2004. Westernization of Asian Diets and the transformation of food systems:Implications for research and policy , s.l.: The Food and Agriculture Organization of the United Nations .
Westernization of diet with increasing income of countries
Statistics Korea, 2014. Household Income & Expenditure Trends, Seoul: Statistics Korea.
Income Distribution (GINI coefficient)
Youngsook, 2012. Dairy and Products Annual Update - Republic of Korea, s.l.: USDA Foreign Agriculture Service.
Estimated forecast of trend in dairy industry

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