1 I. Some Facts on the Korean Economy Area: 98,480 sq km slightly larger than Indiana, US. Mostly hills and mountains arable land: 17.44% CIA – World Factbook

2 Population 2007 est. CIA RankCountryPopulationshare World6,602,224, % 1China1,321,851, % 2India1,129,866, % 3United States301,139,9474.6% 4Indonesia234,693,9973.6% 5Brazil190,010,6472.9% 6Pakistan164,741,9242.5% 7Bangladesh150,448,3392.3% 8Russia141,377,7522.1% 9Japan127,433,4941.9% 10Mexico108,700,8911.6% 12Vietnam85,262,3561.3% 13Germany82,400,9961.2% 21United Kingdom60,776,2380.9% 23Korea, South49,044,7900.7% 47Korea, North23,301,7250.4%

3 GDP in international prices, 2006 est. CIA RankCountryGDP (purchasing power parity)Share World$65,950,000,000, % 1United States$13,130,000,000, % European Union$13,060,000,000, % 2China$10,170,000,000, % 3Japan$4,218,000,000,0006.4% 4India$4,156,000,000,0006.3% 5Germany$2,630,000,000,0004.0% 6United Kingdom$1,930,000,000,0002.9% 7France$1,891,000,000,0002.9% 8Italy$1,756,000,000,0002.7% 9Russia$1,746,000,000,0002.6% 10Brazil$1,655,000,000,0002.5% 11Korea, South$1,196,000,000,0001.8%

4 Exports current dollars, 2006 est. CIA RankCountryExports World$12,440,000,000,000 European Union$1,330,000,000,000 1Germany$1,133,000,000,000 2United States$1,024,000,000,000 3China$974,000,000,000 4Hong Kong$611,600,000,000 5Japan$590,300,000,000 6France$490,000,000,000 7United Kingdom$468,800,000,000 8Italy$450,100,000,000 9Netherlands$413,800,000,000 10Canada$405,000,000,000 11Belgium$335,300,000,000 12Korea, South$326,000,000,000

5 GDP per capita in international prices, 2006 est. CIA. RankCountryGDP - per capita (PPP) 5United Arab Emirates$49,700 6Norway$46,300 8Ireland$44,500 9United States$44,000 14Hong Kong$37,300 16Canada$35,600 18Austria$34,600 20Switzerland$34,000 21Finland$33,700 22Australia$33,300 23Japan$33,100 25Sweden$32,200 27Germany$31,900 28United Kingdom$31,800 30France$31,100 32Italy$30,200 36Taiwan$29,500 38Spain$27,400 40New Zealand$26,200 45Korea, South$24,500

6 Trade Structure Exports - commodities: Semiconductors, wireless telecommunications equipment, motor vehicles, steel, ships, petrochemicals Exports - partners: China 21.3%, US 13.3%, Japan 8.2%, Hong Kong 5.8%, Taiwan 4.0% (2006) Imports - commodities: machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, plastics Imports - partners: Japan 16.8%, China 15.7%, US 10.9%, Saudi Arabia 6.6%, UAE 4.2% (2006)

7 Composition of Expenditures GDP in 2005 = 801 trillion won in current prices

8 Industrial Composition of Value Added

9 Fifteen Growth Miracles, Durlauf, S., Johnson, P., and Temple, J. (2005 )

10 Fifteen Growth Disasters, Durlauf, S., Johnson, P., and Temple, J. (2005 )

11 Sachs and Warner (1995)

12 * Law of 70 A variable increases at the annual rate of x%. How many years before it will double? Ans. 70/x Korea 7% per annum Year Income India 2% per annum Year Income