Background: Following World War II a republic was set up in the southern half of the Korean Peninsula while a communist government was installed in the north. Between 1950 and 1953 US and other UN forces intervened to defend South Korea from North Korean attacks supported by the Chinese; an armistice was signed in 1953. Thereafter South Korea achieved amazing economic growth with per capita income rising to 13 times the level of North Korea. In 1997 the nation suffered a severe financial crisis from which it continues to make a solid recovery. South Korea has also maintained its commitment to democratize its political processes.
Legislative branch: unicameral National Assembly or Kukhoe (299 seats - starting with the April 2000 election the number of seats will be reduced to 273; members elected by popular vote to serve four-year terms)
Judicial branch: Supreme Court justices are appointed by the president subject to the consent of the National Assembly
Political parties and leaders: Grand National Party or GNP [YI Hoe-chang president]; Millennium Democratic Party or MDP [KIM Dae-jung president]; United Liberal Democrats or ULD [KIM Chong-p'il honorary chairman]
International organization participation: AfDB APEC AsDB BIS CCC CP EBRD ESCAP FAO G-77 IAEA IBRD ICAO ICC ICFTU ICRM IDA IEA (observer) IFAD IFC IFRCS IHO ILO IMF IMO Inmarsat Intelsat Interpol IOC IOM ISO ITU MINURSO NAM (guest) NEA NSG OAS (observer) OECD OPCW OSCE (partner) UN UNCTAD UNESCO UNIDO UNMOGIP UNOMIG UNU UPU WHO WIPO WMO WToO WTrO ZC
Flag description: white with a red (top) and blue yin-yang symbol in the center; there is a different black trigram from the ancient I Ching (Book of Changes) in each corner of the white field
Economy overview: As one of the Four Dragons of East Asia South Korea has achieved an incredible record of growth. Three decades ago its GDP per capita was comparable with levels in the poorer countries of Africa and Asia. Today its GDP per capita is seven times India's 13 times North Korea's and comparable to the lesser economies of the European Union. This success through the late 1980s was achieved by a system of close government/business ties including directed credit import restrictions sponsorship of specific industries and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-99 exposed certain longstanding weaknesses in South Korea's development model including high debt/equity ratios massive foreign borrowing and an undisciplined financial sector. By 1999 it had recovered financial stability turning a substantial decline in 1998 into strong growth in 1999. Seoul has also pressed the country's largest business groups to swap subsidiaries to promote specialization and the administration has directed many of the mid-sized conglomerates into debt-workout programs with creditor banks. The major economic challenge for the next several years presumably is the maintenance of the pace of market reforms to restore the old growth pattern.
Exports: $144 billion (f.o.b. 1999) Commodities: electronic products machinery and equipment motor vehicles steel ships; textiles clothing footwear; fish Partners: US 17% Japan 9% China 9% Hong Kong 7% Taiwan 4% (1998)
Imports: $116 billion (c.i.f. 1999) Commodities: machinery electronics and electronic equipment oil steel transport equipment textiles organic chemicals grains Partners: US 22% Japan 18% China 7% Australia 5% Saudi Arabia 5% (1998)