Question

• What do you think were the reasons why Korea’s economy did not develop in the past?
• What challenges did Korea face?
• How could South Korea overcome these challenges?
• What were some of South Korea’s first exports?

Answer 1

*What do you think were the reasons why Korea’s economy did not develop in the past?*

Korea faces a lot of challenges and problems in their economy development. The main problems are:

1) Inflation in neighboring countries-
• Korean economy is mainly dependent on exports.
•The exports is the main part of their GDP. •Therefore, the exchange rates in the near countries are very important to Korea.
• When there is a change in other it will leads to cheaper in the imports of product and services and expensive in exports may resulting into end of markets.

2. Tracking US rate hikes-
•The Korean finance ministers were started capital flows relative to US to ensure Korean companies can still comfortably access global capital market because the US Federal reserve raised the interest rates to 0.25% in December 2015.

3.Structural issues-
• Korea mainly exports automobiles, electronic equipments etc and all these items have faced price issues, across the world.
• Pricing pressure decreases the total revenue of the country.

4. Exposure to China- •China is the largest importer of Korean goods.
• Therefore the aggregate demand in China is the great indicator of Korea’s economic growth.

*What challenges did Korea face?*

•During the past two decades Korea was face many problems since it become democratic country.
•Korea is faced lots of problems such as :
1) poor governance
2) lack of leadership
3) high level corruption
4) political conflict
5) lack of leadership
6) fail public opinions

•This will leads to lack in economic growth.
• Poor leadership is the main challenge that faced by the country. People behave as they feel due to absence of leader. They traded themselves as they wished.
• These all are led Korea in a pathetic situation since it become a democratic country.
How could South Korea overcome these challenges?*

• Korea was created a game plan for their country.
• According to the words of Mr. Moon they lead their nation in peace and prosperity.
• Building peace is also related to keep good relations to the neighbor countries.
• Trust is to be built with small steps toward peace for recognition.
• The growth of the country has slowed. It concerns over employment security and the cost of housing abound.
• They hoped that new administration would change their economy.
• South Korea is now experiencing the same problems that have caused an economic imbalance in a number of advanced countries.

What were some of South Korea’s first exports?*

•Machinery
• Electronic equipment
•Motor vehicles
•Clothing
• Textile
• Steel
• Ships