The main economic performance of a country can be seen from its gross domestic product. In other words, the total quantity of all goods and services sold within South Korea minus intermediate consumption. Worldwide gross domestic product in 2022 was at about 12,647 USD per capita. GDP in South Korea, on the other hand, reached USD 32,423 per capita, or 1.674 trillion USD for the whole country. South Korea is therefore one of the world's largest economies and is currently at rank 13. If this is calculated per inhabitant, taking purchasing power parity into account, then South Korea is in the list of the world's richest countries in place 34.
Inflation in South Korea in 2022 was around 5.09%. Within the EU, the average in the same year was 8.83 percent. In the United States, it was most recently 8.00%.
The index for perceived corruption in the public sector is 63, which is rather mediocre by global standards.
Back to overview: South Korea
Income and purchasing power
The average monthly income in South Korea is 3,016 US Dollar per capita. In the USA, the figure is 6,398 US Dollar. However, the prices of consumer goods are also around 27.6 percent lower than in the USA. If you compare income and price levels, the result is a more expensive life in South Korea than in the United States. The bottom line is that the costs do not offset the lower income, and you get about 34.9 percent less.
However, it is also important to remember that this is a purely statistical model. Both the labor output and the type and quality of the goods received always correspond to the national average on both sides of the equation - so they do not necessarily have to match. Here you can also find an international comparison of cost of living and purchasing power.
The income tax payable in South Korea on all income is very low compared to other OECD countries. A married couple with 2 children and normal average income pays on average 4.4% income tax. The total tax burden including social security contributions but excluding employer contributions is 12.2%. The top tax rate is 26.4 percent. Please also read our country comparison of income tax.
Economic performance 2022
| Indicator | South Korea Total | South Korea per capita | EU Total | EU per capita |
|---|---|---|---|---|
| GDP | 1.674 tn USD | 32,422.57 USD | 16.747 tn USD | 32,559.17 USD |
| Gross national product | 1.868 tn USD | 36,188.16 USD | 17.949 tn USD | 34,897.96 USD |
In the Global Innovation Index, South Korea ranked 10th in 2023 with 58.6 points. The index is calculated annually by the World Intellectual Property Organization (WIPO) and most recently included 129 countries. The top country was Switzerland with 67.6 points. Out of the 2,000 largest listed companies in the world, 59 originate from South Korea. This is determined annually in the Forbes Global 2000 list. The 10 largest companies in the country in 2023 were:
Rank 14: Samsung Electronics
Rank 104: Hyundai Motor
Rank 256: KIA
Rank 278: KB Financial Group
Rank 279: SK Hynix
Rank 299: Posco
Rank 300: Shinhan Financial Group
Rank 339: LG Chem
Rank 420: Hana Financial Group
Rank 464: Hyundai Mobis
Development of gross domestic product in billions of USD 1960 - 2022
Impact of the COVID-19 pandemic
Overall, the gross domestic product in South Korea in 2020 decreased moderatly from 1.651 trillion US dollars to 1.644 trillion US dollars. Certainly, there have been shifts in some sectors of the economy, but a drop of 0.43 percent is still comparatively good this year. Numerous countries suffered more substantial losses. The tourism sector alone slumped by around 54 percent. The unemployment rate rose from 3.8 to 3.9 percent. The country's gross debt increased by 12.8 percent. The consumer inflation rate has risen from 0.4 percent previously to 0.5 percent now.
There was already a recovery in 2021 and gross domestic product rose to 1.818 trillion (=110.1% of 2019).
Largest economic sectors
- Electronics
- Telecommunications
- Automobile production
- Chemicals
- Shipbuilding
- Steel
Imports and Exports 2022
| Indicator | South Korea Total | South Korea per capita | EU Total | EU per capita |
|---|---|---|---|---|
| Imports | 811.13 bn USD | 15,711.00 USD | 9.114 tn USD | 17,719.26 USD |
| Exports | 820.64 bn USD | 15,895.27 USD | 9.446 tn USD | 18,365.45 USD |
Development of imports and exports in billions of USD 1976 - 2022
Exports
Imports
Household debt and deficits 2022
| Indicator | South Korea Total | South Korea per capita | EU Total | EU per capita |
|---|---|---|---|---|
| Government debts | 909.45 bn USD | 17,615.50 USD | 9.099 tn USD | 17,689.71 USD |
› Debt budget development
› Development of inflation
› Corruption in South Korea
› Cost of living in a global comparison
Unemployment rates in percentages 1991 - 2023
The unemployment rates according to the ILOSTAT estimates used here do not always correspond to the official government figures. Instead, they are based on a harmonized procedure to compensate for different unemployment criteria and make them comparable across countries. Further information and an international comparison can be found here.
