Korea, Детальна інформація

Second, greater price stability should prevail as balance is maintained between the more steadily rising demand and the more briskly expanding supply, while wage increases are linked to rises in productivity. the stabilization of the value of the won currency should help stabilize the prices of imported goods and services. The net effect should be to hold down the rise in consumer prices to an annual average of 3.7 percent, the increase in producer prices to an annual average of 1.6 percent and the rise in the GNP deflator to an annual average of 4.6 percent.

Targets of the 5-Year Plan for the New Economy

‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘93-’98

GNP growth, % 8.4 4.7 6.0 7.1 7.2 7.1 7.0 7.0 6.9

Per capita GNP, US$ 6,518 6,749 7,306 8,196 9,339 10,716 12,305 14,076 14,0762)

Rise in producer prices, % 4.7 2.2 1.8 1.8 1.7 1.6 1.5 1.4 1.6

Rise in consumer prices, % 9.3 6.2 4.9 4.3 3.7 3.6 3.2 2.9 3.7

Rise in GNP deflator, % 11.2 6.3 5.3 5.3 4.8 4.5 4.1 3.8 4.6

Balance on curren account, 8.7 4.6 1.4 0 0.9 2.1 3.7 5.3 5.32)

US$ billion









Exports 1) ,US$ billion 69.6 75.1 82.3 82.3 99.3 110.1 122.6 136.3 136.32)

Rate of increase, % (10.2) (7.9) (9.5) (9.5) (10.2) (10.9) (11.3) (11.2) (10.4)

Imports, US$ billion 76.6 77.3 81.3 81.3 95.8 105.3 116.1 128.1 128.12)

Rate of increase, % (17.5) (1.0) (5.1) (5.1) (9.3) (9.9) (10.2) (10.3) (8.8)

Note: 1) On a balance-of-payments basis

2) In terms of 1998 current market prices

The Real name Financial Transaction System



On August 12, 1993, the president took a decisive step toward revitalizing the economy and eliminating corruption by announcing the inplementation of the long-anticipated real-name financial transaction system. In the past, it had been possible to open accounts and conduct business transactions under false names, directly and indirectly fostering institutionalized-corruption and illegal financial dealings.deeming this reform as the most important in the creation of a New Korea, the President announced this action in a Presidential Emergency Decree, stating that the real-name system was essential for cutting the dark link between politics and business.

With the introduction of the real-name financial rtansaction system, it appears that financial dalings are becoming fully transparent and underground economic dealings and nonproductive land speculation are diminishing. It is hoped the funds that had been channeled into political circles in the past as a result of government-business collusion are now available for more productive activities.

Encouraging Signs

The implementation of a real-name financial transaction system, the easing of administrative controls, expanded capital investment by major enterprises, and increased financial and administrative support for small-and medium-sized enterprises all combined to lay a solid foundation for anothereconomic take-off. Exports rose 7.6 percent in 1993 to US$82.4 billion, while imports grew just 2.5 percent. Korea was thus able to register a US$600 million trade surplus last year for the first time in four years. The current account also yielded a surplus of US$200-300 million. Industrial production has been growing at about a 10 percent rate during the first half of 1994. Furthermore, labor disputes decreased markedly last year, while the compositestock index of the Seoul Stock Exchange climbed markedly. In view of these indications, the Korean economy seems to be well on the way to revitalization.

External Policies for Greater International Cooperation

Import Liberalization

Korea is committed to fulfilling its international responsibilities. It positively supports the trend toward openness and utilizes it as a catalyst for further enhancing the international competitiveness of industry and thus speeding the advancement of the economy, so that it can jopin the group of advancedcountries.

Since 1980, Korea has made continuous efforts toward import liberalization. The import liberalization rate increased from 68.6 percent in 1980 to 98.1 percent in 1993. The average tariff rate decreased from 24.9 percent to 8.9 percent during the same period and is expected to be only 7.9 percent by the end of 1994, the same average level of tariffs found in OECD member countries.