group assignment south koreas economic situation after the war with north korea

GROUP ASSIGNMENTthe Korea EconomyGroup members: Nguyễn Thành Luân SS171184Lê Nguyễn Nhật Minh SS171207-Trần Nguyên Khôi SS171304Bùi Nguyễn Quốc Huy SE173128... South Korea''''s economic sit

GROUP ASSIGNMENT

the Korea Economy

Group members: Nguyễn Thành Luân

-SS171184

Lê Nguyễn Nhật Minh -SS171207

Trần Nguyên Khôi -SS171304

Bùi Nguyễn Quốc Huy -SE173128

TABLE OF CONTENT

I Terms used in Article………….……… … 3

II Introduction……… … 4

1 Korea……….……… …4

2 Samsung……… …5

III Content……… 7

1 South Korea's economic situation after the war with North Korea… 7

2 Samsung's Role in the Miracle of the Han River……….8

IV Samsung's Influence on the Korean Economy……… 9

1 Samsung's losses after 14 years……… 9

2 Korean economy after the losses of Samsung……….11

V Conclusion……… 13

VI References……….14

I Terms used in Article

1 GDP (Grossdomesticproduct):GDPmeasuresthemonetaryvalueof finalgoodsandservices—thatis,thosethatareboughtbythefinal

user—producedinacountryinagivenperiodoftime(sayaquarterora year)

2 Nominal gross domestic product (GDP) isGDPgivenincurrent prices,withoutadjustmentforinflation

3 Gross national product (GNP) isanestimateofthetotalvalueofall thefinalproductsandservicesturnedoutinagivenperiodbythemeans ofproductionownedbyacountry'sresidents

4 CPI: The Consumer Price Index (CPI) isameasureoftheaverage changeovertimeinthepricespaidbyurbanconsumersforamarket

basketofconsumergoodsandservices

5 Inflation isariseinprices,whichcanbetranslatedasthedeclineof

purchasingpowerovertime.Therateatwhichpurchasingpowerdrops canbereflectedintheaveragepriceincreaseofabasketofselected

goodsandservicesoversomeperiodoftime

6 Exports:Export refers toa product or service produced in one country but sold to a buyer abroad

7 A mixed economic systemisasystemthatcombinesaspectsofboth capitalismandsocialism.Amixedeconomicsystemprotectsprivate propertyandallowsalevelofeconomicfreedomintheuseofcapital,

butalsoallowsforgovernmentstointerfereineconomicactivitiesin ordertoachievesocialaims

II Introduction

1 Korea

Korea,officiallyknownastheRepublicofKorea,isacountrylocated ontheKoreanPeninsulainEastAsia.ItisborderedbyChinatothe

northwestandRussiatothenortheastwhilesharingaheavilyfortified borderwithNorthKoreatothenorth.SouthKorea,asitiscommonly referredto,hasarichculturalheritagethatdatesbackthousandsof

years

TheKoreaneconomyisahighlydevelopedmixedeconomy

characterizedbyconglomeratesownedbywealthyfamiliesknownas Chaebol.SouthKoreaisthe4thlargesteconomyinAsiaandthe10th

largest intheworldbynominalGDP.Thisisafamouscountryknownto manypeopleforitsmiraculouseconomicgrowthfromoneofthe

poorestcountriesintheworldtoahigh-incomedevelopedcountryin justafewgenerations

KeyInformationaboutSouthKoreaNominalGDPGrowth

SouthKoreaNominalGDPGrowthwasreportedat2.179%in Mar2023

ViewSouthKorea'sNominalGDPGrowthfromMar1961to Mar2023inthechart:

+

Source:www.CEIDATA.COM|CEICData

2 Samsung

Oneofthemostwell-knownandinfluentialcompaniesinKoreais

Samsung.SamsungGroupisamultinationalconglomeratethatwas foundedin1938.Ithassincegrowntobecomeoneoftheworld'slargest technologycompanies,offeringawiderangeofproductsandservices acrossvariousindustries.SamsungElectronics,asubsidiaryofSamsung Group,isparticularlyfamousforitsconsumerelectronics,including smartphones,televisions,homeappliances,andmore.Thecompany's innovativetechnologyandhigh-qualityproductshavemadeitaglobal

leaderintheindustry.Samsung'ssuccesshasnotonlycontributedtothe economicgrowthofKoreabuthasalsoplayedasignificantrolein

shapingthecountry'sreputationasahubfortechnological

advancements.Thecompany'scommitmenttoinnovationand

advancementhasmadeitahouseholdnameworldwide,symbolizing Koreantechnologicalprowess

(Source:https://www.statista.com/statistics/1314374/south-korea-samsun g-groups-revenue-as-a-share-of-gdp/#:~:text=In%202021%2C%20the% 20revenue%20of,time%20in%20the%20group's%20history.)

In2021,therevenueofthe15largestaffiliatedcompaniesofthe SamsungGroupaccountedforabout20.3%ofKorea'sGross DomesticProduct(GDP)

III Content

1 SouthKorea'seconomicsituationaftertheWarwithNorthKorea

AfterthewarwithNorthKorea,SouthKorea'seconomyunderwenta remarkabletransformation

Despitebeingdevastatedandimpoverished,thecountryimplemented effectivegovernmentpoliciesandfocusedonindustrializationand

exports.Thisledtorapideconomicgrowth,knownasthe"Miracleon theHanRiver."

SouthKoreadiversifieditseconomythroughthepromotionofheavy industriesandattractedforeigninvestment.Thecountryeventually becameagloballeaderintechnologyandinnovation.Exports,

particularlyinautomobiles,electronics,andtelecommunications

equipment,playedacrucialroleindrivingeconomicsuccess.South Koreaisnowoneoftheworld'slargesteconomies,knownforits

technologicaladvancementsandgloballyrecognizedcompanies

However,incomeinequalityandyouthunemploymentremain

challenges

Overall,SouthKorea'seconomicdevelopmentpost-warisconsidered remarkable

Injust10years,Koreahasmanagedtoexportenoughgoodsto payoffitsforeigndebt.Inthe1960s,Seoulbecamethe

manufacturinghubofKorea.Injustashortperiodoftime,Korea achievedanaverageannualeconomicgrowthrateof7.6%,

continuouslyfor40years

Inthemid-1980s,thetotalrevenuefromthefivelargeeconomic groupsaccountedfornearly66%ofGNP

Intheperiod1973-1996,theannualeconomicgrowthreached 11.2%

Bytheendof2011,theGDPofKoreawashigherthantheEU

average

2 Samsung'sRoleintheMiracleoftheHanRiver

Samsung,oneofthelargestandmostinfluentialconglomeratesinSouth Korea,playedasignificantroleintheMiracleoftheHanRiver

Samsungexpandedintovariousindustries,includingelectronics,

shipbuilding,construction,andmore

IndustrialDiversification:Samsung'sexpansionintodiverseindustries, includingelectronics,shipbuilding,construction,andmore,helped diversifySouthKorea'sindustrialbase,suchasrefrigerators,washing machines,andairconditioners

particularlyinelectronics,helpeddriveSouthKorea'sexport-oriented growthstrategy,boostingitseconomyandgeneratingforeignexchange reserves

EmploymentGeneration:Samsung'sexpansionandinvestmentscreated numerousjobopportunities,contributingtoareductionin

unemploymentratesandimprovedlivingstandardsformanySouth Koreansandothercountries

Aftermanyyearsofimplementation,theconsensus,thespiritof

solidarity,andthestrongwilltoriseuphavehelpedKoreamakea

"miracleoftheHanRiver"withthebirthofaseriesofchaebolssuchas Samsung,Daewoo,HyundaiorLG, madethiscountryoneofthefour Asianeconomic"dragons"intheearly90softhetwentiethcentury,

makingagreatcontributiontothespectacularmakeoverthatcreatedthe

"MiracleontheHanRiver"

IV Samsung's Influence on the Korean Economy

1 Samsung'slossesafter14years

SamsungElectronicsrecentlyreportedsignificantlossesafter14years,which hashadanimpactontheKoreaneconomy.Inthefirstquarter,thecompany's

operatingprofitdroppedto640.2billionwon,adecreaseof96%comparedto

firsttimesincethefirstquarterof2009thatSamsung'squarterlyoperating

profitfellbelow1trillionwon.Thecompanysaidthat"overallconsumer

spendingslowedamidtheuncertainglobalmacroeconomicenvironment"

Source:https://www.marketscreener.com/quote/stock/SAMSUNG-ELECTRONI CS-CO 6494906/news/Samsung-profit-likely-lowest-in-more-than-14-years-as

-chip-glut-persists-44275311/

Samsung'ssuccesshascontributedsignificantlytoGDPgrowth,job creation,andexportrevenues.Itsdiversebusinesssegments,including electronics,shipbuilding,construction,andmore,havebeen

instrumentalindrivingeconomicdevelopmentinSouthKorea

However,therecentlossesexperiencedbySamsungElectronicsraise concernsaboutitsinfluenceontheKoreaneconomy.Thedeclinein

operatingprofitreflectschallengesfacedbythecompany,whichcould potentiallyhavearippleeffectonrelatedindustriesandthebroader

economy

2 KoreaneconomyafterthelossesofSamsung

SamsungisSouthKorea'slargestconglomerateandalsoplaysan

importantroleinexports,employment,andtaxes.Thecombined

revenueofthecountry'slargestconglomerateaccountedfor18.3%of SouthKorea'sgrossdomesticproductin2021,accordingtotheantitrust agencyandcentralbankfigures

TheSouthKoreantechgiantestimateditssecond-quarteroperating profitfellto600billionwon($459million),from14.1trillionwona

yearearlier,inanearningsreport shortpreliminary

ThatwouldbeSamsung'slowestprofitinanyquartersincea590billion wonprofitinthefirstquarterof2009,thecompany'sdatashowed

Source:https://www.asiafinancial.com/chip-arm-losses-tank-samsungs-s econd-quarter-profits-by-96

TheaboveistheonecausingthecurrentsituationinKorea.Thesituation oftheKoreaneconomyafterSamsung'slossesaffectedthefollowingresults

Theeconomyshrank0.4%inthefourthquarterof2022 fromthepreviousthree-monthperiod,soasecond consecutivecontractionwouldmeetthewidelyaccepted definitionofatechnicalrecession

"Withweaknessinglobaldemand,thedowncycleinchips andelectronics,andChina'sgradualrecovery,South Koreanexportswillstruggleuntilthesecondhalfofthis year,"DaveChia,associateeconomistatMoody's Analytics”

SouthKorea'scommodityexportshavefallensince October2022asmajoreconomiestightenedmonetary policytocurbinflation

InMarch,theconsumerpriceindex(CPI)inKorea increasedby4.2%,thelowestlevelinayear

SouthKorea'sannualconsumerpriceinflationrecordeda 24-yearrecordhighof6.3%inJuly2022

Thecentralbankexpectstheeconomytogrow1.6%in 2023,slowingfromlastyear's2.6%expansion

V Conclusion

SamsungplaysahugeroleinKorea'smissiontobringtheworldtotheworld.The

groupalsocontributesalargeparttoSouthKorea'sGDP.TheKoreaneconomycanbe saidtobequitedependentonSamsung.Inthecontextoftheglobalsemiconductor

decline.ThisalsoledtoSamsung'slossesafter14years.Incidentdamagealso

seriouslyaffectedtheKoreaneconomy.Whenthecentralbankhastomakean

announcementaboutcuttingKorea'sgrowthrate.Orpredictionsabouttheeconomic recessioninthenearfuture

ManyexpertsalsoadvisethattheKoreangovernmentshouldcreatefavorable

conditionsforpromisingbusinessesindifferentfields.Inordertoavoiddependence onasinglecorporationManyexpertsalsoadvisethattheKoreangovernmentshould createfavorableconditionsforpromisingbusinessesindifferentfields.Inorderto

avoiddependenceonasinglecorporation

VI References

(1)https://www.ceicdata.com/en/indicator/korea/nominal-gdp-growth

(2)https://www.statista.com/statistics/1314374/south-korea-samsung-groups-revenue-a s-a-share-of-gdp/#:~:text=In%202021%2C%20the%20revenue%20of,time%20in%20t he%20group's%20history

(3)https://www.zila.com.vn/ky-tich-song-han.html

(4)https://thanhnien.vn/han-quoc-bi-mat-tao-nen-ky-tich-song-han-1851041773.htm#

(5)https://www.marketscreener.com/quote/stock/SAMSUNG-ELECTRONICS-CO 6 494906/news/Samsung-profit-likely-lowest-in-more-than-14-years-as-chip-glut-persis ts-44275311/

(6)https://asia.nikkei.com/Business/Tech/Semiconductors/Samsung-s-profit-woes-cast -shadow-over-South-Korea-s-economy

(7)https://dangcongsan.vn/the-gioi/tin-tuc/kinh-te-han-quoc-tranh-duoc-suy-thoai-tron g-quy-i-2023-636458.html