Question

Explain the economic growth of South Korea

Answer 1

During the past few decades the country South Korea experienced a largest economy transformation ever. It resulted in the sudden growth in the GDP of the nation. The country has 10 the rank in the world with relation to the growth rate. The innovation as well as technology is considered to be the key factors that lead to the economic success in Korea. The country made huge investments in the innovation sector. Korean government implemented many new projects to attract the foreign direct investment to the country. It resulted in the i9ncrease in the foreign reserve. The high accumulation of human capital as well as physical capital, state intervention in the ecno9my, high saving rate and export led development strategy etc are the key factors which resulted in the economic growth of Korea.

The transformation of South Korea into the industrial powerhouse made drastic changes in the economy. The country was filled with high skilled labor force. The south Korea supported the industrial sector and gave more job opportunities to the poor labors. Thus the overall standard of living of the Korean people increased. They prioritized the educational sector. They expanded their investments to the transportation and infrastructure development. It helped to increase the contribution of individual towards the GDP of the country.

The South Korea achieved the overall ecno9mic growth by making notable changes in each and every sector in the economy. They utilized all the available resources efficiently and effectively to achieve the same. There was a rapid growth in the Korean economy from 1960 to 1980. Industrialization was he main reason for this change. It increased the export income of the country. The economy relies largely on the exports. The key export products where steel, textiles, automobiles etc.