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Republic of Korea profile
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| Capital city: |
Seoul |
| Surface area: |
99,000 sq km |
| Population: |
48.5 million |
| Official language(s): |
Korean |
| Head of State & Head of Government: |
H.E. Mr Lee Myung-Bak |
| Australian exports to the Republic of Korea: |
A$14,250 million |
| Australian imports from the Republic of Korea: |
A$6,165 million |
| The Republic of Korea's principal export destinations: |
China, USA, Japan |
| The Republic of Korea's principal import sources: |
China, Japan, USA | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Economic climate
The Korean Government has placed substantial effort in creating an improved trade and investment climate in which a great deal of opportunity exists for Australian products, services and investment.
Korea has also significantly opened up its economy to foreign investment over the last few years, which is modernising the economy and creating many opportunities for new products and services.
The majority of Australian exports to Korea consist of primary produce; yet there is extensive room for export market expansion in areas including automotive, biotechnology, building and construction, dairy, defence, fruit and vegetables, information and communications technology, seafood, textiles and clothing and wine.
The Korean President was elected amidst pledges of economic reform including further deregulation of the economy and a tightening on illegal labour activities by unions. The President is expected to lower corporate taxes and reduce unnecessary administrative restrictions on investment and business operations.
President Lee has pledged to increase Korea’s GDP by seven per cent, raise GDP per capita to US$40,000 and lead Korea into position as the world's seventh largest economy within 10 years from his inauguration. Local media reports that President Lee is a strong supporter of free trade agreements with foreign countries. It is hoped these reforms will make Korea more attractive to foreign investors.
Key industry sectors including building and construction and IT sectors are rebounding strongly, which is positively driving the ROK economy. The IMF bank has recently upgraded the ROK economy based on economic performance and forecast results for the economy.
Key economic indicators and statistics for 2008:
- GDP – US$953.5 billion
- GDP per capita – US$19,638
- Real GDP growth – 4.1 per cent
- Inflation – 5 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Korea is a democratic republic, led and governed by a President and National Assembly, whose representatives are elected by popular vote.
The first democratic Presidential elections occurred in 1987.
The incumbent President, Lee Myung-bak of the Grand National Party (GNP) won the presidential election on 19 December 2007. President Lee, a former top executive of the Hyundai Group and former mayor of Seoul attracted 48.7 per cent of the electorate vote.
The members of the National Assembly are elected for a period of four years.
The relationship with the Democratic Peoples Republic of Korea is entering a new phase under the new Presidency.
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Trade relations and statistics
As a modern, industrialised and democratic society Korea has strong political and economic relationships in the region and around the world. In particular, strong relations exist with China, USA and Japan, with military and economic links with USA remaining close. Despite the pull back from many South East Asian markets, Korean investment in China remains largely intact. Relations with the Democratic Peoples Republic of Korea (DPRK) have eased over the last two years and Korean companies have begun to invest in the DPRK.
Major Australian exports to Korea (2007-08):
- Crude petroleum – A$2,387 million
- Coal – A$2,359 million
- Iron ore and concentrates – A$2,060 million
- Beef – A$763 million
Major Australian imports from Korea (2007-08):
- Passenger motor vehicles – A$1,230 million
- Telecom equipment and parts – A$844 million
- Refined petroleum – A$631 million
- Monitors, projectors and TVs – A$329 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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