INQUIRY 101

EXAMINATION
South Korea 2016-2017

12 ABM C
Ma. Recy M. Pia
Mara Anita E. Esaga
Gelbert L. Asis
Competitiveness
South Korea is the 26 most competitive nation in the world out of 137 countries ranked in
the 2016-2017 edition of the Global Competitiveness Report published by the World
Economic Forum. Competitiveness Rank in South Korea averaged 21.67 from 2007 until
2018, reaching an all-time high of 26 in 2015 and a record low of 11 in 2008. South Korea
scored 5.07 points out of 7 on the 2016-2017. Competitiveness Index in South Korea
averaged 5.07 Points from 2007 until 2018, reaching an all-time high of 5.39 Points in
2008 and a record low of 4.93 Points in 2011

Employment Rate
Employment Rate in South Korea increased to 61.30 percent in September from 61.10
percent in August of 2017. Employment Rate in South Korea averaged 59.50 percent
from 1999 until 2017, reaching an all-time high of 61.50 percent in July of 2017 and a
record low of 56.10 percent in February of 2001.

GDP (Gross Domestic Product)

GDP Growth: 2.8%
GDP per Capita: $27,500
Trade Balance/GDP: 7%
Population: 51.2M
Public Debt/GDP: 46%
Unemployment: 3.7%
Inflation: 1%
Forbes Lists

GDP rises 2% in South Korea in third quarter

Gross Domestic Product of South Korea grew 1.5% in the third quarter of 2017
compared to the previous quarter. This rate is 9 -tenths of one percent higher than the
figure of 0.6% published in the second quarter of 2017.
The year-on-year change in GDP was 3.8%, 11 -tenths of one percent more than
the 2.7% recorded in the second quarter of 2017.
The GDP figure in the third quarter of 2017 was $282,083 million, leaving South
Korea placed 9th in the ranking of quarterly GDP of the 49 countries that we publish.
 South Korea has a quarterly GDP per capita, of $6,466, $39 higher than the same
quarter last year.
If we order the countries according to their GDP per capita, South Korea is in 21th
position of the 49 countries whose quarterly GDP we publish.
Available Resources
South Korea is relatively poor in natural resources. Once heavily forested, it has
been largely stripped of trees, especially near urban areas. However, a program of
reforestation is being carried out. The country's sparse mineral resources include coal,
tungsten, iron ore, molybdenum, limestone, and graphite.
South Korea’s main exports includes electronic products, machinery, motor
vehicles particularly Korea’s main exports includes electronic products, machinery, motor
vehicles (particularly automobiles, ships, steel, textiles and clothing. With no petroleum
reserves, South Korea must import substantial amounts of crude oil. Other imports
include food, machinery, chemicals and chemical products.

Inflation Rate
Consumer prices in South Korea increased 1.3 percent year-on-year in November
of 2017, easing from a rise of 1.8 percent in October and below market expectations also
of 1.8 percent. It was the lowest inflation rate since December of 2016 amid lower prices
of utilities and foods.
Year-on-year, prices rose at a softer pace for housing utilities (0.3 percent from 1.8
percent); food and non-alcoholic beverages (0.5 percent from 1.7 percent); health (0.3
percent from 0.6 percent) and alcoholic beverages and tobacco (1.4 percent from 1.6
percent). Also, inflation eased for miscellaneous goods and services (2.5 percent from
3.1 percent) and furnishings, household equipment and routine maintenance (1.7 percent
from 1.9 percent). In addition, prices fell for recreation and culture (-0.9 percent from 0.3
percent).
In contrast, consumer prices increased faster for restaurants and hotels (2.6
percent from 2.5 percent), while they rose at the same pace as in the previous month for
clothing and footwear (1.1 percent); transport (3.6 percent) and education (1.0 percent).
Annual core inflation, which excludes volatile items such as energy and food went
down to 1.4 percent from 1.6 percent.
On a monthly basis, consumer prices fell 0.7 percent, following a 0.2 percent
decrease in the previous month.
What makes them competent?

Korea is the only country in the whole world that have been divided into two parts,
the North Korea and the South Korea. South Korea is a great place and has become
competent because of different factors and attributes. One of which is the good
governance entailed by the government that makes human force or human gift not come
into waste. The country was more focused on the human power and innovation of
technological materials. In fact, it is the world’s number 1 producer in mobile phones,
displays, semiconductors and shipbuilding mainly exporting machinery, automotive,
semiconductors and petroleum products. It is also the world’s 15th largest economy and
9th largest trading nation, with a trade volume of more than 1 trillion US dollars. In addition
to that, the Korea’s labor productivity is the 2nd highest country OECD.

South Korea's economic success after the Korean War initially reflected the
government's strategy to catalyze the development of low-cost manufacturing exports.
But it was the emergence of the Korean conglomerates, known as "chaebols," as strong
multinational corporations which became essential to the economic transformation of the
country. Experiencing the worst because of the Korean War just makes them more
competent for they have learned throughout the said journey, they’ve become better and
those experiences will be forever be engraved in every Koreans heart. The war has not
become the hindrance for the South Korea to succeed and achieve its economic stability
as what we all can see now. They’ve been able to surpass the challenges because they
never have the will to give up. They may not be gifted with natural resources but they are
much more blessed with human gifts and talent which they have maximize to the fullest.

What major advances can you attribute to as product of research, inquiry or

investigation?

According to our research or the inquiry that we have conducted, we have

concluded that South Korea is indeed a great country, it may not be abundant with natural
resources but it has resources specifically on automobiles, ships and other technological
gadgets that separates them from many countries. It has human force that keeps on
innovating and discovering new things that makes their country stable and achieve
stability. We also think that South Korea is a blessed country for despite the hiccups and
bumps on their long ride they have achieved something and they have become better.

According to Rajiv Biswas, Asia-Pacific Chief Economist at the Global analytics

firm IHS, told DW "South Korea has been transformed since the Korean War from a very
poor agricultural society to an urbanized, high-technology economy with a highly skilled
workforce,". Indeed, South Korea is not just like another country, it is beyond that, it has
been folded and ruined many times but still they survived and they have achieved
economic stability. We also concluded that South has learned from the Korean War and
they give importance more on manpower of the society and they are slowly doing a
reforestation project for their natural resources to bloom and be more productive. And
that’s a good thing for us because they are not stopped by several barriers, they continue
to fight and they still survive.

Identify new innovation or technologies arising from inquiry or research?

Innovation and technology are the key factors that have underpinned South
Korean export competitiveness and fueled the country's remarkable economic rise over
the past decades. The growth rate has been so impressive that the East Asian nation
went from being one of the poorest countries in the 1960s to becoming the world's 13th
largest economy in 2014, according to the World Bank.
As a result, the country is investing much more in research and development
(R&D) as a share of GDP than other advanced economies. According to recently released
data by the Organization for Economic Co-operation and Development (OECD), South
Korea spent 4.29 percent of its GDP on R&D in 2014, followed by Israel (at 4.11 percent),
and Japan (3.58 percent).
In addition, the 2016 Bloomberg Innovation Index ranked the country as having the
world's most innovative economy, ahead of Germany, Sweden, Japan and Switzerland.
The index evaluated nations according to six different categories, including R&D, high-
tech companies, manufacturing, research personnel, patents and education.
“Spending more on R&D than any other economy not only reflects a domestic
consumer base with a high demand for new technological developments, but also the
government's objective to build a creative economy," Ferrier told DW. So South Korea
was more focused on innovation and technologies given the fact that they are not that
rich in natural resources, they have few resources but it is not enough. They have
usefully maximized the human power they have. South Korea maybe a small country
with lot of competitors, they’ve been compared to Japan and China their neighboring
country but South Korea is just unique in their own way. They stand out even without
they are not in the limelight.