1. GREEN UNIVERSITY of BANGLADESH
Assignment
On
International Development Studies (MGT – 311)
ASSAIGNMENT TOPIC:
COMPARISON BETWEEN ECONOMY of SOUTH KOREA and
ECONOMY of CHINA
SEMESTER:
FALL SEMESTER – 2013 (1303)
PREPARED FOR:
Samirah Mustafa
Lecturer,
International Development Studies
Department of Business Administration (DBA)
Green University of Bangladesh (GUB)
PREPARED BY:
Md. Moazzem Hossain
ID: 110106034
DBA, BBA,
Green University of Bangladesh
1

2. Letter of Transmittal
January 07, 2014
Samirah Mustafa
Lecturer,
International Development Studies
Department of Business Administration (DBA)
Green University of Bangladesh (GUB)
Subject: Submission of an assignment.
Dear Madam
I gladly present to you the assignment titled “Comparison between economy of South Korea and
economy of China.” I have made the assignment individually as you give us to do by help of
your suggestion and internet.
I believe the knowledge and experience I gathered during the assignment will be extremely
helpful in our future professional life. I will be grateful to you if you accept the assignment.
Your support in this regard will be highly appreciated.
Thanking you.
___________________
Md. Moazzem Hossain
ID. 110106034
2

3. Economy of South Korea
Economy of South Korea
Position
Rank
15th (nominal) / 12th (PPP)
Currency
South Korean Won (KRW)
Fiscal year
calendar year
Trade organisations
APEC, WTO, OECD, G-20
Statistics
GDP
Nominal: $1.130 trillion (2012),
PPP: $1.554 trillion (2012)
GDP growth
2.1% (2012)
GDP per capita
$32,020 (PPP, 2012 est.)
GDP by sector
Agriculture: 2.6%, industry: 39.2%, services: 58.2% (2010)
Inflation (CPI)
4.2% (2011 est.)
Population
poverty line
below
15% (2006 est.)
Gini coefficient
31.0 (2010)
Labour force
25.18 million (2012 est.)
Labour
force
occupation
by
Agriculture: 6.4%, industry: 24.2%, services: 69.4% (2011 est.)
Unemployment
3.8% (2012 est.)
Main industries
Electronics, Telecommunications, Automobile Production, Chemicals,
Shipbuilding, Steel
Ease of doing business
8th
rank
3

4. External
Exports
$548.2 billion (7th; 2012 est.)
Export goods
Semiconductors, Wireless Telecommunications equipment, Motor
Vehicles, Computers, Steel, Ships, Petrochemicals
Main export partners
China 24.4%
United States 10.1%
Japan 7.1% (2011 est.)
Imports
$520.5 billion (8th; 2012 est.)
Import goods
Machinery, Electronics and Electronic equipment, Oil, Steel, Transport
equipment, Organic Chemicals, Plastics
Main import partners
China 16.5%
Japan 13.0%
United States 8.5%
Saudi Arabia 7.1%
Australia 5.0% (2011 est.)
FDI stock
abroad: $190.4 billion (31 December 2011)
Gross external debt
$397.3 billion (31 December 2011 est.)
Public finances
Public debt
33.7% of GDP (2012 est.)
Revenues
$271.9 billion (2012 est.)
Expenses
$249.2 billion (2012 est.)
Foreign reserves
$306.4 billion (31 December 2011 est.)
4

5. South Korea has a market economy that ranks 15th in the world by nominal GDP and 12th by
purchasing power parity (PPP), identifying it as one of the G-20 major economies. It is a
developed country, with a developed market and high-income economy, and is a member of
OECD. South Korea is one of the Asian Tigers, and is the only developed country so far to have
been included in the group of Next Eleven countries. South Korea had one of the world's fastest
growing economies from the early 1960s to the late 1990s, and South Korea is still one of the
fastest growing developed countries in the 2000s, along with Hong Kong, Singapore, and
Taiwan, the other three Asian Tigers. South Koreans refer to this growth as the Miracle on the
Han River.
Having almost no natural resources and always suffering from overpopulation in its small
territory, which deterred continued population growth and the formation of a large internal
consumer market, South Korea adapted an export-oriented economic strategy to fuel its
economy, and in 2012, South Korea was the sixth largest exporter and seventh largest importer
in the world. Bank of Korea and Korea Development Institute periodically release major
economic indicators and economic trends of the economy of South Korea.
In the 1997 Asian Financial Crisis, the South Korean economy suffered a liquidity crisis and
relied on the bailout by the IMF that re-structured and modernized the South Korean economy
with successive DJnomics policy by President Kim Dae Jung, including the resultant of the
national development of the ICT industry. Despite the South Korean economy's high growth
potential and apparent structural stability, South Korea suffers perpetual damage to its credit
rating in the stock market due to the belligerence of North Korea in times of deep military crises,
which has an adverse effect on the financial markets of the South Korean economy. However,
renowned financial organizations, such as the International Monetary Fund, also compliment the
resilience of the South Korean economy against various economic crises, citing low state debt,
and high fiscal reserves that can quickly be mobilized to address any expected financial
emergencies. Other financial organizations like the World Bank describe Korea as one of the
fastest-growing major economies of the next generation along with BRIC and Indonesia. South
Korea was one of the few developed countries that was able to avoid a recession during the
global financial crisis, and its economic growth rate will reach 6.1% in 2010, a sharp recovery
from economic growth rates of 2.3% in 2008 and 0.2% in 2009 when the global financial crisis
hit.
South Korea was a historical recipient of official development assistance (ODA) from OECD.
Throughout the 1980s until the mid-1990s, South Korea's economic prosperity as measured in
GDP by PPP per capita was still only a fraction of industrialized nations. In 1980, the South
Korean GDP per capita was $2,300, about one-third of nearby developed Asian economies such
as Singapore, Hong Kong, and Japan. Since then, South Korea has advanced into a developed
economy to eventually attain a GDP per capita of $30,000 in 2010, almost thirteen times the
figure thirty years ago. The whole country's GDP increased from $88 billion to $1,460 billion in
the same time frame. In 2009, South Korea officially became the first major recipient of ODA to
have ascended to the status of a major donor of ODA. Between 2008 and 2009, South Korea
donated economic aid of $1.7 billion to countries other than North Korea. South Korea's separate
annual economic aid to North Korea has historically been more than twice its ODA. On June 23,
2012, South Korea is landmarked to become the 7th member of the 20-50 club (with the
5

6. population surpassing 50 million and maintaining per capita income of US$20,000),
chronologically, after Japan, United States of America, France, Italy, Germany and United
Kingdom. Free trade agreement between the United States of America and the Republic of Korea
was concluded on April 1, 2007. European Union–South Korea Free Trade Agreement was
signed on 15 October 2009. South Korean economy is heavily dependent on the energy imports
and the related refinery technologies in association with Ministry of Knowledge Economy of
Republic of Korea and in cooperation with the South Korea - Australia Free Trade Agreement.
The economy of South Korea has the largest indoor Amusement park in the world, the Lotte
World, adding the notable export-oriented music industry guided by the Ministry of Culture,
Sports and Tourism of the Republic of Korea (for more, see Korea K-Pop Hot 100).
Current Economy Growth rate of South Korea
GDP
Last
Previous Highest
Lowest Forecast
Unit
Trend
GDP GROWTH RATE
1.10
2013-09-30
1.10
6.80
-7.00
1.26
2013-12-31
Percent
GDP ANNUAL GROWTH RATE
3.30
2013-09-30
2.30
18.20
-7.30
3.52
2013-12-31
Percent
GDP PER CAPITA
21562.45 2012-12-31
21226.03
21562.45
1467.10
21599.65 2013-12-31
USD
GDP PER CAPITA PPP
27990.83 2012-12-31
27554.12
27990.83
5543.57
28039.06 2013-12-31
USD
GDP CONSTANT PRICES
285348.50 2013-08-15 282344.90 285348.50 14934.60 284142.22 2013-11-30
KRW Billion
GROSS FIXED CAPITAL
FORMATION
70686.00 2013-08-15
69112.82 2013-11-30
KRW Billion
GROSS NATIONAL PRODUCT
272550.50 2013-08-15 274333.70 275332.90 14696.60 271597.15 2013-11-30
KRW Billion
GDP
1129.60
2012-12-31
69168.10
1114.47
70686.00
1129.60
2402.10
2.36
1159.86
2013-12-31
USD Billion
6

7. Economy of China
Economy of China
Position
Rank
2nd (nominal) / 2nd (PPP)
Currency
Renminbi (RMB); Unit: Yuan (CNY)
Fixed exchange rates
USD = 6.312333 RMB (average in 2012)
Fiscal year
Calendar year (1 January to 31 December)
Trade organisations
WTO, APEC, G-20 and others
Statistics
$8.939 trillion (nominal by Expenditure approach: 2nd; 2013)
GDP
$8.227 trillion (nominal by +-Production approach: 2nd; 2012)
$13.374 trillion (PPP: 2nd; 2013)
GDP growth
7.8% (2013)
$6,569 (nominal: 87th; 2012)
GDP per capita
$9,828 (PPP: 92nd; 2012)
GDP by sector
Agriculture: 10.1%,
Industry: 45.3%,
Services: 44.6%% (2012 est.) CIA - The World Factbook
Inflation (CPI)
2.5% (December 2012)
Population below
poverty line
Less than $1.25 / 13.1% (2008) Less than $2 / 29.8% (2008)
Gini coefficient
0.48
Labour force
795.5 million (1st; 2010)
7

8. Labour
force
occupation
by
Agriculture: 36.7%, Industry: 28.7%, Services: 34.6% (2008 est.)
Unemployment
4.1% (Q4 2012)
Average gross salary
$457 monthly (2010)
Ease of doing business
91st
rank
External
Exports
$2.021 trillion (2012 est.)
Export goods
Electrical and other Machinery, Including data processing equipment,
Apparel, Textiles, Iron and Steel, Optical and Medical equipment
Main export partners
United States 17.2%
HongKong 15.8%
Japan 7.4%
South Korea 4.3% (2012 est.)
Imports
$1.78 trillion (2012 est.)
Import goods
Electrical and other Machinery, Oil and Mineral Fuels, Optical and
Medical equipment, Metal, Plastics, Organic Chemicals
Main import partners
Japan9.8%
SouthKorea9.2%
UnitedStates7.1%
Germany5.1%
Australia 4.3% (2012 est.)
FDI stock
$116 billion (2011)
Gross external debt
$697.2 billion (30 September 2011 est.)
Public finances
Public debt
22.15% of GDP (2012)
Revenues
$1.838 trillion (2012 est.)
Expenses
$2.031 trillion (2012 est.)
8

9. Economic aid
recipient: $1.12 per capita (2008)
Credit rating
AA - (Domestic)
AA - (Foreign)
AA - (T&C Assessment) (Standard & Poor's)
Foreign reserves
$3.44 trillion (1st; end-March 2013)
The socialist market economy of China is the world's second largest economy by nominal GDP
and by purchasing power parity after the United States. It is the world's fastest-growing major
economy, with growth rates averaging 10% over the past 30 years.
China is also the largest exporter and second largest importer of goods in the world. China is the
largest manufacturing economy in the world, outpacing its world rival in this category, the
service-driven economy of the United States of America. ASEAN–China Free Trade Area came
into effect on 1 January 2010. China-Switzerland FTA [18] is China's first FTA with a major
European economy. The economy of China is the fastest growing consumer market in the
world.
On a per capita income basis, China ranked 87th by nominal GDP and 92nd by GDP (PPP) in
2012, according to the International Monetary Fund (IMF). The provinces in the coastal regions
of China tend to be more industrialized, while regions in the hinterland are less developed. As
China's economic importance has grown, so has attention to the structure and health of the
economy. Xi Jinping’s Chinese Dream is described as achieving the “Two 100s”: the material
goal of China becoming a “moderately well-off society” by 2021, the 100th anniversary of the
Chinese Communist Party, and the modernization goal of China becoming a fully developed
nation by 2049, the 100th anniversary of the founding of the People’s Republic.
The internationalization of the Chinese economy continues to affect the standardized economic
forecast officially launched in China by the Purchasing Managers Index in 2005. At the start of
2010s, China remained as the sole Asian nation to have an economy above the $10-trillion mark
(along with the United States and the European Union). Most of China's economic growth is
created from Special Economic Zones of the People's Republic of China that spread successful
economic experiences to other areas. The development progress of China's infrastructure is
documented in a 2009 report by KPMG.
9

10. Current Economy Growth rate of China
GDP
Last
Previous Highest Lowest Forecast
Unit
GROSS FIXED CAPITAL
FORMATION
241756.80 2012-06-29 215682.00 241756.80
80.70
243897.01 2012-12-31
CNY HML
GROSS NATIONAL PRODUCT
516282.10 2012-06-29 468562.40 516282.10
679.00
520393.33 2012-12-31
CNY HML
GDP PER CAPITA
3348.01
2012-12-31
3120.93
3348.01
85.52
3366.57
2013-12-31
USD
GDP PER CAPITA PPP
7957.62
2012-12-31
7417.89
7957.62
523.95
8002.04
2013-12-31
USD
GDP GROWTH RATE
2.20
2013-09-30
1.70
2.50
1.50
2.24
2013-12-31
Percent
GDP ANNUAL GROWTH RATE
7.80
2013-09-30
7.50
14.20
3.80
7.50
2013-12-31
Percent
8230.00
2012-12-31
7320.00
8230.00
46.50
9272.35
2013-12-31
USD Billion
GDP
Bibliography:
http://www.tradingeconomics.com/china/gdp-growth-annual
http://en.wikipedia.org/wiki/Economy_of_China
http://en.wikipedia.org/wiki/Economy_of_South_Korea
http://www.tradingeconomics.com/south-korea/gdp-growth-annual
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