Figure 8 South Korea Per Capital
The Korean Republic has combined poverty reduction with rapid economic growth. The Government policies resulted in the increase of real gross domestic product by 7.3% annually between 1960 and 2019 (The World Bank, 2016a). The country has grown from being a recipient of aid to a contributor to the International Development Association (IDA), a World Bank’s Fund supporting developing countries worldwide. In this case, the discussion will revolve around Korea’s economic geography.
Korea’s economy heavily relies on exports, and Covid-19 has impacted global trade. The country’s export has declined tremendously since the first quarter of 2020 (Stangarone, 2021). The decline was prompted by the lockdowns that countries implemented to prevent the spread of the pandemic. Korea’s exports were mainly affected when the pandemic spread throughout China since it is one of the countries that rely on Korean exports. However, the export of goods started improving in the second half of 2020 because countries had adjusted with Covid. Therefore, Covid-19 affected the Korean economy to a greater extent, which led to its GDP decline.
The country is divided into three major regions; politically favored southeast, a dominant northwest, and a left-leaning southwest. The dominant northwest or Seoul is the wealthiest region in Korea, followed by Ulsan and South Gyeongsang, that is when per capita income is considered (Lewis, 2016). However, in terms of economic production, measured by per capita GDP, Korea’s economic development is evenly balanced. The southwest is not underdeveloped, while the southeast has the lowest and also the highest output levels.
Ulsan outclasses Seoul in the southeast and Jeollanam-do in the southwest. It is good to note that southeastern Busan is Korea’s second-largest metro area, and it has the fifth largest port in the world; however, in terms of economic production is ranks very low. In shorter terms, the country exhibits variation in the economic output. When per capita is considered, Ulsan produces goods and services 3.6 times the neighboring region, Daegu, and is located in the Gyeongsang region (Lewis, 2016).
The gap between Daegu and Ulsan is caused by the changing fortunes of the industries, which are textile-based. Daegu thrived from the inexpensive fabric and clothing exports, while Ulsan thrived following its exportation boom of the transport equipment. The headquarters of Hyundai, oil refinery and automobile factory are in Ulsan (Lewis, 2016). However, per capita GDP is the primary deployed metric; it is a flawed indicator. An area can generate a high level of value but lose the resulting income stream to other regions.
Page Author : Omar Touray
