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South Korean Economy In A Major Crisis Even As Exports Improve In Previous Month

By March 14, 2017 at 4:01 am
South Korean economy in a major crisis even as exports improve in previous month - DONE (Photo : SeongJoon Cho | Bloomberg via Getty Images)

The South Korean economy may face another big problem as experts are expressing concerns that the country is heading for another economic crisis. The issue is said to be caused by the inward-looking and "myopic" economic view of many policymakers in Seoul.

According to Korea Times, economic indicators in the domestic market indicate that there will be a downturn in the next few months as it is estimated that debt and unemployment may grow worse for the foreseeable future. Fears of the fall of the South Korean economy after a few years of high performance is partly fueled by the different issues big businesses have experienced recently.

The collapse of Hanjin Shipping and Daewoo Shipbuilding & Marine Engineering, the exploding battery scandal of Samsung and the political scandal of now-ousted President Park Geun-Hye have contributed to the tarnished image of South Korea on the global stage. The South Korean economy thrived on its clean reputation for years and these various mishaps may negatively impact products sold worldwide.

It is not all bad news for the South Korean economy, however. According to the Business Times Singapore, exports from South Korea have improved 20.2 percent from the same point in 2016, resulting in earnings of $43.19 billion. The country's mainly export-driven economy has also posted a trade surplus of $7.22 billion.

South Korean economists are taking this good news with a grain of salt, though, as everyone's eyes are still on whether the United States will be overhauling its trade policy with the new administration. It can be remembered that US President Donald Trump promoted a protectionist trade stance during his campaign and became a leading voice against globalization. Businesses in South Korea are especially wary as the U.S. is a big customer of tech products.

Watch this documentary short on South Korea's rise as an economic superpower in the video below.

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