Agricultural and Macroeconomic Outlook of South Korea
The Republic of (South) Korea is a small East Asian country, with a total territory of almost 100.000 square kilometers, which equates to about the same size as Pennsylvania. Located in between the regional powers of Japan and China, South Korea is a close ally of the United States in the region. With a total population of more than 50 million citizens, South Korea’s economic development during the last half century has been remarkable, contrary to its statist counterpart, North Korea. Like neighboring Japan, the bulk of the population in South Korea is quickly aging and this dynamic will present a significant issue during the coming decade. Currently, the country’s median age is above 41 years.
Today, South Korea’s annual gross domestic product (GDP) is of approximately US$1.8 trillion, placing the country within the group of twenty (G20) richest economies in the world. Similarly, the country has experienced positive economic growth of more than 2.0% annually throughout recent years. South Korea’s national economy is divided into 3% agriculture, 37% manufacturing, and 60% services. However, the agriculture industry utilizes about 18% of the national territory, while another 64% is forested. Likewise, the South Korean agricultural industry employs 6% of the national labor force, while manufacturing employs about 24% and services employ another 70%.
In terms of natural resources and geography, South Korea has coal, tungsten, graphite, molybdenum, lead, and hydropower potential. Similarly, the country is mountainous and hilly with a prevailing temperate climate throughout most of the year and a cold winter season. Within the manufacturing industry, South Korea produces high-end electronics and telecommunications products, automobiles, chemicals, ships, and steel. The country’s agricultural industry has as main products rice, root crops, barley, vegetables, fruit, cattle, pigs, chickens, milk, eggs, and fish. This article explores the status of markets and agriculture in South Korea.
Agricultural and Macroeconomic Outlook of South Korea
In terms of trade, South Korea’s most important partners are the United States, China, and Japan. Furthermore, South Korea has numerous free trade agreements (FTA) currently in effect, including with the US, Chile, India, Peru, the European Union, and the Association of Southeast Asian Nations (ASEAN).
One sector of South Korean agriculture is wheat, which has been growing in both size and output during the last decade. In 2006, South Korea produced some 5.800 metric tons of wheat throughout 1.700 hectares. For the year 2016, this amount increased to approximately 36.000 metric tons of wheat produced throughout more than 10.000 hectares. At the same time, the average annual consumption of wheat in South Korea exceeds 4 million metric tons, meaning that the country is a large wheat importer. During 2016/17, South Korea is expected to import some 2.3 million metric tons of wheat for human consumption alone as well as additional amounts destined for animal feed.
Another commodity crop cultivated in South Korea is corn. In 2006, the country produced over 64.600 metric tons of corn throughout some 13.700 hectares of land, which subsequently increased to more than 75.000 metric tons of corn during 2016.