Economics in South Korea compared to the EU (2024)

FAQs

How is the economy of South Korea compared to other countries? ›

Worldwide gross domestic product in 2022 was at about 12,607 USD per capita. GDP in South Korea, on the other hand, reached USD 32,255 per capita, or 1.665 trillion USD for the whole country. South Korea is therefore one of the world's largest economies and is currently at rank 13.

The European Union has the third-largest economy in the world, accounting for one-sixth of global trade. All together, 27 member countries make up one internal market allowing free movement of goods, services, capital and people.

South Korea's nominal gross domestic product (GDP) is provisionally ranked 13th in the world. It has dropped out of the global top 10. According to statistics released by the Bank of Korea (BOK) on July 12, South Korea's nominal GDP at market exchange rates was US$1.6732 trillion in 2022. It ranked 13th globally.

South Korea's real GDP grew at a pace of 0.3% quarter over quarter in the first quarter of 2023, showing a return to moderate positive growth after contracting by 0.4% quarter over quarter in the fourth quarter of 2022.

South Korea's education system and the establishment of a motivated and educated populace was largely responsible for spurring the country's high technology boom and economic development. South Korea began to adapt an export-oriented economic strategy to fuel its economy.

South Korea has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation. South Korea is a member of the Asia-Pacific Economic Cooperation (APEC) and the Asia-Pacific Trade Agreement (APTA).

The European Union has the second largest economy in the world, behind that of the United States. Trade within the Union accounts for more than one-third of the world total.

The economy of the European Union is the joint economy of the member states of the European Union (EU). It is the third largest economy in the world in nominal terms, after the United States and China, and the third one in purchasing power parity (PPP) terms, after China and the United States.

GDP had fallen by 0.1% in the last three months of 2022, and stagnated in the first quarter of this year. Separately, official data showed that the overall rate of inflation continued to fall this month. The consumer price index for the euro area rose by 5.3%, down from 5.5% in June.

2021 brought about a strong recovery (+4.3%) as the export-oriented economy benefited from the rebound in external demand. Growth then moderated to +2.6% in 2022. It is forecast to come in at just around +1% in 2023, dragged down by weakening external demand as well as domestic consumption and investment.

Is South Korea the 4th largest economy? ›

South Korea is the tenth largest economy in the world and the fourth largest in Asia. Even though per capita incomes in South Korea lag behind most advanced economies, the business climate and growth outperform advanced economy peers. Creditworthiness is high, as is the case in many advanced economies.

South Korea gdp for 2022 was $1,665.25B, a 8.05% decline from 2021. South Korea gdp for 2021 was $1,810.96B, a 10.13% increase from 2020.

Many countries experienced rapid debt buildups during the pandemic, but debt levels in South Korea were already troubling going into the crisis. Household debt is now at a record high, standing at 106 percent of GDP and about 166 percent of household disposable income.

South Korea has one of the world's largest gross national savings and reserves of foreign investment. Disposable household income has increased in recent years, and the country's large upper class is keen to spend their money on “brand name” items and products.

Economy. United States has a GDP per capita of $60,200 as of 2020, while in South Korea, the GDP per capita is $42,300 as of 2020.

Japan is the world's third-largest economy, with a GDP per capita of $39,286. South Korea, the world's 11th largest economy, has slowly caught up with its neighbor over the past two decades, reaching a GDP per capita of $31,362.