In addition, South Korea has been traditionally an export-led country, which is highly likely to be influenced by outside impacts (see Figure 10). The total trade volume including imports and exports has been over 50 percent of Gross Domestic Product (GDP). The trade volume continues to increase and in 2008 starts to reach over 100% of GDP, which means that the Korea’s economy highly relies on external economies, thereby likely to be more vulnerable to potential external shocks than before. Out of total trades, the volume of exports has been bigger than that of imports. However, considering the ratio of exports to GDP, say, less than 50% of GDP in the late 2000s, extra safety net would be required. Moreover, even though Korea continues to increasingly accumulate foreign reserves, the degree of the reserves has been ranging from 20 to 30 percent of GDP. Given less than a half share of exports of GDP, self-help efforts to counter potential external shocks would be limited. Figure 10. Trade Volume and Foreign Reserves of GDP in South Korea [%] SOURCE: UNCTADstat Database (Search date: Nov. 3, 2013) NOTE: The graph shows the ratio of exports, imports, total trades of exports and imports and foreign reserves compared with GDP from in 1997 to in 2012.
In addition, South Korea has been traditionally an export-led country, which is highly likely to be influenced by outside impacts (see Figure 10). The total trade volume including imports and exports has been over 50 percent of Gross Domestic Product (GDP). The trade volume continues to increase and in 2008 starts to reach over 100% of GDP, which means that the Korea’s economy highly relies on external economies, thereby likely to be more vulnerable to potential external shocks than before. Out of total trades, the volume of exports has been bigger than that of imports. However, considering the ratio of exports to GDP, say, less than 50% of GDP in the late 2000s, extra safety net would be required. Moreover, even though Korea continues to increasingly accumulate foreign reserves, the degree of the reserves has been ranging from 20 to 30 percent of GDP. Given less than a half share of exports of GDP, self-help efforts to counter potential external shocks would be limited. Figure 10. Trade Volume and Foreign Reserves of GDP in South Korea [%] SOURCE: UNCTADstat Database (Search date: Nov. 3, 2013) NOTE: The graph shows the ratio of exports, imports, total trades of exports and imports and foreign reserves compared with GDP from in 1997 to in 2012.