Question

Korean Organizations Management

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

What challenges did Korea face?

How could South Korea overcome these challenges?

What were some of South Korea’s first exports?

Answer 1

Korean Organization Management

1. Korea faces a lot of challenges and problems in their economy development. The main problems are inflation in neighboring countries, exposure to china, navigating US rate hikes and structural issues.

a) Inflation in neighboring countries: Korea’s economy has heavily dependent on international trade, mainly on export. Their export is the main indicator of 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 in consideration with the end markets.

b) Exposure to China: China being the largest importer of Korean goods, therefor the aggregate demand in China is the great indicator of Korea’s economic growth.

c) Navigating US rate hikes: The US Federal reserve raised the interest rates to 0.25% in December 2015. The Korean finance ministers were started capital flows relative to US to ensure Korean companies can still comfortably access global capital market.

d) Structural issues: Korea’s exports are mainly concentrated in electronic equipment, automobiles etc. and all of these categories are faced significant pricing issues globally. Pricing pressure decreases the total revenue of the country.

2. During the past two decades Korea was face many problems since it become democratic country. Korea is faced lots of problems such as poor governance, high level corruption, lack of leadership, political conflict, violate public opinion etc. This will leads to lack in economic growth. Poor leadership is the main challenge that faced by the country. People were lived as their wish. And they trade their products also according their wish. These all are led Korea in a pathetic situation since it become a democratic country.

3. 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. It will help them in future. Building trust in this context requires a steady flow of small steps that focus on peace through mutual recognition. Prosperity comes from sound economic policy. The South Korean economy has not fallen in to recession, but growth has slowed and 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 dislocation in a number of advanced countries.

4. South Korea’s main exports are includes electronic equipments, machinery, motor vehicles, steel, ship, textile and clothing.

Now there is also dealing with the products such as;

· Beef, pork and poultry

· Seafood

· Processed vegetables

· Fresh and processed fruits

· Nuts

· Dairy products

· Juices

· Alcoholic beverages etc.