Development of Ocean Economy Satellite Account in Korea

Abstract

The ocean has emerged as a new solution to new growth engines. However, some issues remain to be resolved, such as unified concepts and evaluation methods for the ocean economy, comparability between the national economy and the ocean economy, and the connection between global and national assessments. Since the ocean economy comprises various complex industries, it is necessary to establish policies based on an objective analysis of economic indicators. However, there have been difficulties in analyzing industrial activities related to the ocean economy within the national account system. To more accurately calculate the share of the ocean economy sector in the national economy, it is necessary to create a satellite account that reflects the characteristics of the ocean economic activities while maintaining consistency with the national account. This study aims to develop a satellite account for the ocean economy, a measurement of GDP in the ocean sector, which can correspond with the national accounts system and intends to propose Korean practices as a framework in the process of discussing international guidelines. This study introduces a potential structure for Korea's ocean economy satellite account, the principles, methods, and data used for value coefficient estimation, and finally presents pilot results for several components of the ocean economy. This account can be utilized to diagnose the economic position as well as the policy effects of Korea’s ocean economy sector while contributing to the establishment of mid-to-long term industrial policies. This case study of Korean practices can be an important example that offers a framework and principles for international discussions.