World Grain - March 2023 - 24

COUNTRY FOCUS
KEY FACTS
FOCUS ON
SOUTH
KOREA
Limited arable land means nation
relies heavily on wheat, corn imports
by Susan Reidy
With less than a quarter of its land used for agriculture, South Korea
relies heavily on imports, particularly wheat and corn, while
producing a significant amount of rice.
Two-thirds of the nation is mountains and hills, so production
agriculture is characterized by small family farms cultivating
rice, with barley as the second most important crop. Agriculture
makes a small contribution to the country's gross domestic product
at 1.8% and employs only 4.8% of the active population, according
to the World Bank.
Production of rice, South Korea's dominant crop, is estimated
at 3.76 million tonnes for 2022-23, a slight decrease from the previous
year due to government incentives to reduce planted acreage.
The nation is expected to import 4.2 million tonnes of wheat,
a slight decrease from the previous year, while corn imports are
forecast to increase to 11.9 million tonnes.
Because of its limited size and insufficient natural resources,
the nation has focused on technology development
and innovation to promote growth. As a result,
it experienced one of the largest
economic transformations in the last
60 years, moving from a mostly
rural, agricultural nation into an
urban, industrialized country.
The primary industries include
textile, steel, car manufacturing,
shipbuilding and
electronics. It is also the
world's largest producer of
semiconductors. With the
COVID-19 pandemic, the
economy dropped 0.9% in
2020 before rebounding to
growth of 4.1% in 2021 and
2.6% in 2022. GDP growth is expected
to reach 2% in 2023, according
to the International Monetary Fund.
24
Capital: Seoul
Population: 51,844,834 (2022 est.)
Religions: Protestant 19.7%, Buddhist 15.5%, Catholic
7.9%, none 56.9% (2015 est.)
Location: Eastern Asia, southern half of the Korean
Peninsula bordering the Sea of Japan and the Yellow
Sea.
Government: Presidential republic. Chief of state/
president: Yoon Suk Yeol (since May 10, 2022); Prime
Minister Han Deok-Soo (since May 21, 2022).
Economy: South Korea has a strong export-driven
economy and acts as a foreign aid financier. It is
also a global health care technology leader and
the world's largest semiconductor producer. It ranks
12th among the world's largest economic powers
and fourth in Asia. The country is famous for its rise
from one of the poorest countries in the world to a
developed, high-income country in one generation.
GDP growth is projected to reach 2.7% in 2022 and
slow to just under 2% in 2023 and 2024. In response
to weak disposable income growth and a sluggish
housing market, private consumption and investment
are expected to lose momentum. Due to South
Korea's limited geographical size, insufficient natural
resources and population size, the country has
paid special attention to technology development
and innovation to promote growth. Main industries
include textile, steel, car manufacturing, shipbuilding
and electronics. The agricultural sector makes a
negligible contribution to GDP at 1.8% and employs
4.8% of the active population. The service sector is
the largest and fastest growing economic sector, accounting
for 57% of GDP and employing 70.2% of
the active population. Employment has recovered
to pre-crisis levels. Unemployment has started rising
but remains historically low. However, the number
of irregular workers in South Korea is high, and the
government is spending more on job-creation projects.
Monetary policy tightening should continue to
re-anchor inflation expectations. Private consumption
had grown robustly but has slowed amid high
inflation. Although the direct impact of Russia's war
of aggression against Ukraine has been relatively
modest, given limited direct trade and financial
links, global energy prices have driven up inflation.
Currency depreciation has pushed up import prices.
GDP per capita: $44,200 note: data are in 2017 dollars
(2021 est.); inflation: 2.5% (2021 est.); unemployment:
3.53% (2021 est.).
Currency: South Korean won (KRW); 1297.89 wons
equal 1 US dollar (Feb. 23, 2023).
Exports: $771.202 billion note: data are in current
year dollars (2020 est.): integrated circuits, cars and
vehicle parts, refined petroleum, ships, office machinery
(2020).
Imports: $698.103 billion note: data are in current
year dollars (2021 est.): crude oil, integrated circuits,
natural gas, refined petroleum, cars (2020).
Agriculture: 2.2% (2017 est.) of GDP and 4.8% of
the labor force.
Internet: Code: .kr; 50,281,152 (2020 est.) users.
Source : CIA World Factbook/OECD Economic Outlook
March 2023 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - March 2023

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