Economy of the Republic of Korea in the Face of New Challenges

Abstract

The South Korean economic miracle is cited as an example of the consolidation of business and government acting in the interests of the country’s prosperity. Thanks to the industrialization carried out in a short time and the implementation of the export-oriented economy model, the Republic of Korea received the status of a developed country already in the mid-1990s. One of the important factors of South Korean success at the global level is that the foreign economic relations of the Republic of Korea were closely intertwined with access to world markets, technologies, and investments. However, the economic crisis caused by the Covid-19 pandemic and the global geopolitical shift has been testing even the most sustainable economics. Since the South Korean economy has been deeply integrated into international trade and finance, it becomes very vulnerable to external challenges. Deepening partnership with the United States requires the administration of President Yoon to diversify foreign economic ties dramatically. At the domestic level new administration of President Yoon faces unresolved economic problems, which only have been worsening. First of all, it is unemployment (especially among young people), inflation, real estate crisis, problem of an aging population. One of the main focuses in the article is Russian-South Korean economic partnership and its prospects. The authors noted that our economic partnership due to strict sanction’s policy against Russia is under pressure. Economy of the Republic of Korea, diversification of the economy, foreign economic relations, entrepreneurship in the Republic of Korea, economic partnership between South Korea and Russia