South Korea’s economy, which relies on exporting high-value-added manufactured goods, has experienced slowed growth as a result of the ongoing global exporters’ crisis. This report examines the current status of the South Korean economy. It identifies both external threats and internal challenges, and it also discusses the government’s attempts to address them.
Slowing economic growth and consistently declining exports have put strain on South Korea’s economy, and this strain has manifested as political pressure to act. The South Korean government has attempted to make long-term changes to reorient the country’s economy, and it has also introduced short-term efforts to prevent industry collapse.
The largest external threats to the South Korean economy are twofold: over-reliance on exports (particularly to China) and decreased global demand for some of its largest export industries, including refined petroleum and shipbuilding.