Korea Foundation

Special Lectures on Korea 2015

Jung Soo SEO

KAC, Keimyung University
Daegu Korea

October 22, 2015

Nazarbayev University
  On the 70th Anniversary of Korea’s independence from Japanese
Annexation, NSO released some interesting statistics for Korea

Foreign Reserve ('15.07)(US$

Population ('15, estimation) 50,617,045 370,822.3
million)
GDP(current Goods Exports('14) (US$
1,485,078.0 572,664.7
prices)('14)(Billion Won) million)
GDP Per capita (current
2,968.0 Goods Imports('14) (US$ million)525,514.5
prices)('14)(0,000 Won)
No of Automobile
Life Expectancy ('13) 81.94 20,117,955
Registration ('14)
Internet Users (per 100) Current Account Balance
83.6 12,186.5
('14)(%) ('15.06) (US$million)
Source: statistics.kr

2
 These figures place Korea in 2014 as
 7thlargest trading countries by exports &
imports (IMF WEO DB)
 13th largest economy by GDP (IMF WEO DB)
 13th highest internet penetration ratio (World
Bank WDI DB)
 27th largest country by population size (World
Bank WDI DB)
 31th richest economy by GDP per capita (IMF
WEO DB)
3
 Rank Country GDP(US$M) Rank Country GDP(US$M)
United
1 17,418.93 11 Canada 1,788.72
States
2 China 10,380.38 12 Australia 1,444.19
3 Japan 4,616.34 13 Korea 1,416.95
4 Germany 3,859.55 14 Spain 1,406.86
United
5 2,945.15 15 Mexico 1,282.73
Kingdom
6 France 2,846.89 16 Indonesia 888.648
7 Brazil 2,353.03 17 Netherlands 866.354
8 Italy 2,147.95 18 Turkey 806.108
9 India 2,049.50 19 Saudi Arabia 752.459
10 Russia 1,857.46 20 Switzerland 712.05
Source: IMF World Economic Outlook Database

4
 1 Luxembourg 111,716.27 21 New Zealand 43,837.29
2 Norway 97,013.26 22 United Arab Emirates 43,179.78
3 Qatar 93,965.18 23 Kuwait 43,103.34
4 Switzerland 87,475.46 24 Hong Kong SAR 39,871.10
5 Australia 61,219.16 25 Israel 36,990.98
6 Denmark 60,563.62 26 Brunei Darussalam 36,606.83
7 Sweden 58,491.47 27 Japan 36,331.74
8 San Marino 56,820.02 28 Italy 35,823.22
9 Singapore 56,319.34 29 Spain 30,278.35
10 United States 54,596.65 30 Bahrain 28,271.75
11 Ireland 53,461.97 31 Korea 28,100.72
12 Netherlands 51,372.96 32 Cyprus 26,115.46
13 Austria 51,306.67 33 Malta 24,876.20
14 Iceland 51,261.88 34 Saudi Arabia 24,454.02
15 Canada 50,397.86 35 The Bahamas 24,034.19
16 Finland 49,496.72 36 Slovenia 24,019.25
17 Belgium 47,721.59 37 Taiwan Province of China 22,597.73
18 Germany 47,589.97 38 Portugal 22,130.49
19 United Kingdom 45,653.41 39 Greece 21,653.08
20 France 44,538.15 40 Trinidad and Tobago 21,310.83
Source: IMF World Economic Outlook Database 5
 It is also indicated that
 Korea’s GDP in 2014 is 31,108 folds bigger than that
in 1953
 GDP per capita 424 times larger than that in 1953

 Korea’s exports (merchandise) in 2014 was 22,907

times larger than that in 1956
 Korea’s imports (merchandise) in 2014 was 1361
folds bigger than that in 1956
 Thus making Korea’s external merchandise trade
2672 times larger that in 1956
8
 But Korea is small in size of area
 with a slightly over 100,000km2 of land area, ranked 109th in
size
 Smaller than Victoria but 1.5 times bigger than Tasmania
 Arable land is roughly 17% of the area
 Not well endowed with natural resources
 With a very high imported energy dependence ratio of 95.6%

Country Size by Area ('14) Import Energy Dependence

100,284 95.6
(km2) ('15.04)(%)

Population Density ('13)

515.9 Arable Land('14)(ha) 1,691,113
(persons/ ㎢ )
Source: Statistics Korea

9
Still confronting with hostile North Korea
 The devastated economy during the Korean War
(1950-1953)
Short Lived but extremely bloody
Life loss(incl. deceased, casualties & missing): 2.81 million
lives
S. Korea: 650,000 & UN: 150,000
N. Korea: 800,000 & Chinese: 1230,000
Refuges: more than ½ total population
Highly Destructive to industrial production capacity
42% of S. Korea’s manufacturing
60% of N. Korea’s industries
 And surrounded with super powers: US, China,
Japan and Russia

10
 Geopolitics of Korea

Russia

Kazakhstan

DPRK

USA
Japan
China RoK

11
Source: googlemap
 Korean Economy is
 The Miracle on the Han River (World Bank, 1993)
 Asia’s Latest Miracle(Times, 2011.11.15)
 How did Korea achieve such a miraculous
economic growth?

12
13
 Average Growth Rate,1953-1960
 5.3%p.a.
 Resulting Market Saturation
 National Priority Goal: Reunification of Korean

Peninsula
 Source of Economic Growth?
 Foreign Assistance from US
 Growth Strategy?
 Industrialization & Inward Looking
 Import Substitution

14
15
 Political Leadership Committed to Economic
Development
 Came into power: 1961 Military Coup
 Government-Led Economic Development
 1st Five-Year Economic Development Plan(FYEDP) (1962-
1966) & 2nd FYEDP
 Average Economic Growth Rate (1962-1971): 9.9% p.a.
 Growth Strategy
 Outward Looking & Export Promotion
 Manufacturing; Labor Intensive manufacturing

16
 Policies and Incentives
 How to make export competitive?
 “Getting Prices Right”
 Unified Exchange Rate System (1961)
 Devaluation of Korean Currency by 50% (1964)
 Tax Concessions
 Import Liberalization
 Free import of materials and equipment used for export activities
 Negative Import List System (1967)
 Generous waste allowance for export business

17
 Policies and Incentives
 How to make export competitive?
 “Getting Prices Right”

 Unified Exchange Rate System (1961)

 Devaluation of Korean Currency by 50% (1964)
 Tax Concessions
 Free import of materials and equipment used for
export activities
 Generous waste allowance for export business
18
 Policies and Incentives
 Non-Pecuniary

 Export Target
 Monthly Export Meeting convened by President
 Social Respect
 Normalization of Diplomatic Relationship with
Japan (1965)
 Foreign Capital
 Export Market
 Source of Advanced Technology
19
Selection of Items 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971
　　　Gross domestic product (current prices, won) (Bil .Won) 301.65 365.81 518.47 739.59 831.25 1,065.87 1,313.26 1,692.34 2,211.86 2,794.80 3,433.30
　　　Per capita GDP (current prices, dollar) (U$) 84.0 90.0 103.0 106.0 108.0 128.0 145.0 174.0 216.0 253.0 290.0
　　　Gross domestic product (%) 6.9 3.8 9.2 9.5 7.2 12.0 9.1 13.2 14.5 10.0 10.5
　　　Exports of goods and services (%) 4.0 3.9 3.9 5.0 7.1 8.4 9.1 10.1 10.6 11.4 12.7
　　　Imports of goods and services (%) 14.0 15.6 14.7 12.4 14.3 18.2 19.7 22.6 22.5 21.1 23.0
　　　Gross saving ratio (%) 10.7 10.1 13.8 13.5 12.5 16.2 15.6 18.1 21.0 18.4 15.6
　　　Gross domestic investment ratio (%) 11.7 13.1 17.8 14.7 14.0 20.6 21.1 25.9 28.8 25.7 25.2
　　　Exports of goods and services (%) 5.2 5.0 4.8 6.0 8.5 10.5 12.1 12.9 13.4 13.8 14.6
　　　(Goods) (%) 1.7 1.9 2.8 3.6 5.2 5.8 6.0 6.8 7.3 8.5 10.0
　　　Imports of goods and services (%) 13.8 15.4 14.6 12.3 14.2 18.1 19.5 22.5 22.5 21.7 24.2
　　　(Goods) (%) 11.8 13.6 12.9 10.8 12.4 16.1 17.1 19.6 19.5 18.4 20.4
Population 25765673 26513030 27261747 27984155 28704674 29435571 30130983 30838302 31544266 32240827 32882704
20
 1972-1981 Average Growth Rate: 9.0% p.a.
 3rd(1972-1976) and 4th (1977-1981) Five
Economic Development
 Creating Comparative Advantage

 Heavy Government Intervention

 By promoting Heavy and Chemical Industries
 Iron & Steel, Non-Ferrous Metal, Shipbuilding,
Petrochemical, Machinery and Electrical
 Capital-Intensive & Energy-Intensive

21
 Backgrounds
 Losing comparative advantage & Needs to Upgrade
Industrial & Export Structure
 due to rapidly rising wages
 Catching-up by ASEAN
 Protectionist barriers against NIES’ export
 Non-Economic and Political Reasons
 The Nixon Doctrine (1969)
 Koreanization of Korean Security: Withdrwal of US troops from
Korea
 The fall of Vietnam (1975)

22
 Policies Used
 “Carrots
and Sticks”
 Government Subsidies and Tax Concession

 Preferential & Policy loans to HCI

 Negative interest rate, combined with higher inflation
rate
 Easy excess to foreign capital with government
guarantee
 Protection of HCI against import
 2nd stage import substitution
23
 Policies Used
 “Carrotsand Sticks”
 Export Promotion by promoting large firms

 Created General Trading Companies

 Samsung (1975)
 Highly Restrictive export target
 1975: US$50 million; 1979: US$301 million
 In returns for substantial rewards including cash subsidies
for export earnings
 SMEs were discriminated
24
Selection of Items 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981
　　　Gross domestic product (current prices, won) (Bil .Won) 4,259.80 5,513.50 7,879.90 10,505.10 14,413.20 18,520.30 25,023.10 32,218.90 39,471.30 49,324.00
　　　Per capita GDP (current prices, dollar) (U$) 324.0 406.0 562.0 615.0 831.0 1,051.0 1,452.0 1,713.0 1,703.0 1,870.0
　　　Gross domestic product (%) 7.2 14.8 9.5 7.9 13.1 12.3 10.8 8.6 -1.7 7.2
　　　Exports of goods and services (%) 16.6 23.9 22.3 22.7 25.6 26.0 24.9 23.5 28.5 30.0
　　　Imports of goods and services (%) 21.5 27.7 33.4 31.4 28.4 27.9 29.2 30.9 37.1 37.2
　　　Gross saving ratio (%) 17.5 22.9 22.2 19.5 25.1 28.6 31.3 30.6 25.4 24.9
　　　Gross domestic investment ratio (%) 21.2 25.7 32.3 29.1 27.5 30.6 34.2 38.0 34.6 32.7
　　　Exports of goods and services (%) 18.3 25.6 24.3 24.2 27.0 27.8 27.2 25.8 32.1 34.3
　　　(Goods) (%) 13.8 20.2 19.4 20.2 22.9 23.0 22.1 20.6 25.1 26.5
　　　Imports of goods and services (%) 23.0 29.3 35.0 33.9 30.4 30.1 31.3 33.5 41.9 43.2
　　　(Goods) (%) 19.0 24.7 30.0 28.3 25.7 25.2 26.2 27.8 33.1 33.3
Population 33505406 34103149 34692266 35280725 35848523 36411795 36969185 37534236 38123775 38723248
25
 FiveYear Economic Development changed
to Five Year Economic and Social
Development
 6th
(1982-1986) & 7th (1986-1991) FYESDP
 Emphasizing Stability, Balance, Efficiency

 Through Stable Prices, Openness, Competition, Social

Development, Social Welfare
 Average Growth Rate 1982-1991: 10.2% p.a.

26
 Backgrounds for Switch Over
 Internal Pressure
 Sectorial Imbalance and Social Inefficiency
 Associated with HCI Drive & Moral Hazard
 Socialization of Private Risk
 Excessive Capacity with Lower Capacity Utilization: 20%
 Political Instability
 Assassination of President & 2nd Military Coup
 Poor Harvest
 High Inflation associated with Rapidly rising international oil and
resources prices
 External Pressures
 High International Interest Rate
 Slowdown of Global Economy
27
 General Policy Stance
 To correct excesses and imbalances
 From export earnings to enhanced international
competitiveness
 By giving more private initiatives
 Continuing liberalization
 Unilateral Import Liberalization
 Privatization of banks by selling government shares(1981 & 1983)
 Retained the gov’t right to appoint CEOs of commercial banks
 Privatization of Interest rate (1988)
 Introduction of a negative list system for Inward FDI (1984)

28
 Political Liberalization
 June 29 Declaration of Democratization (1987)
 1st Democratic Change of Government
 Accompanied Massive Industrial Dispute & Outward FDI
 Hyper Economic Growth (1985-1988): 11%
p.a.
 Due to favourable external conditions: “3 Lows” or “3
Blessings”
 Low International Interest Rate
 Low Currency Value
 Low International Oil and Resource Prices
29
30
 8th FYESDP (19912-1996)
 Crisis
Hit the Korean Economy (1997-1998) &
Massive Economic and Social Reforms were
Conducted
 Average Growth Rate (1992-1996): 7.2% p.a.
 Background

 International Competitiveness Eroded

 Due to fast rising wages
 Growth of Nominal Wages: over 19% p.a.
 Revaluation of Currency by 8.65% (1987-1989)

31
 8th FYESDP (1992-1996)
 Background

 Slowdown of the Economy

 Consumption-led Growth
 Current Account turned in deficit again
 Further Acceleration of Globalization
 Capital Account Liberalization
 Korea Joined OECD in 1996

32
 Crisis Hit the Korean Economy in 1997
 Massive contraction of the Korean economy
 By - 5.5%
 The Value of Currency Plummeted
 By 40% in1998, relative to that in 1997
 Unemployment skyrocketed
 Unemployment rate in 1998: 7%
 2.6% (1997)
 No of the unemployed in 1998: 1.49 million people
 0.57million (1997)

33
 Reforms conducted
 Corporate sector reforms including Chaebols
 Big deals
 Public Sector
 More Foreign firms’ investment
 Increased FDI, especially M&As
 Government-led Reforms
 Reforms slowed down with a quick economic recovery
 9.6% p.a. Growth Rate (1999-2000)

34
35
 In the Post Asian Financial Crisis period: Globalization and
Regional Trading Agreement (RTAs)
 Actively Pursuing Free Trade Agreements
 Background
 Substantial Slowdown of Korean Economy
 Average Economic Growth Rate (2001-2014): 4% p.a
 Slow Down of Population Growth and Aging
 Average Population Growth Rate (2001-2014): 0.5%
 People with 65 and Older: 13%

 RTAs expanding rapidly,

 esp. since the establishment of WTO(Jan1,1995)
 604 RTAs Reported to WTO & 398 RTAs are being effective (January, 2015)
 Free Trade Agreement (FTA): 220 (58%)

36
Source: WTO (http://wto.org/english/tratop_e/region_e/regfac_e.htm)
 Korea’s FTA Status:
 FTAs in force (11)
 Chile, Singapore, EFTA(4), ASEAN(10), India, EU,
Peru, USA, Turkey, Australia, Canada
 FTAs signed (5)
 Columbia, Turkey, China, New Zealand, Viet Nam

38
 Chile April, 2004
Singapore March, 2006
EFTA(4 countries) September 2006 9(*EFTA: Switzerland, Norway, Iceland, Lichtenstein )
Goods Trade Agreementin June 2007, & Service Trade Agreement in
ASEAN(10 countries) May 2005, Investment Agreement in September 2009 (*ASEAN 10
Countries)
In-Force (11 India January, 2010
FTAs) EU(28) July 2011 (EU 28 countries)
Peru Agust, 2011
USA March, 2012
Turkey (Base Agreement
May, 2013
&Goods Trade)
Australia December, 2014
Canada January, 2015

Columbia Signed Feb.21, 2013

Turkey(Service & Investment) Signed (provisional) July 2014
Signed(5) China June 1, 2015
New Zealand Signed (Provisional) December 11, 2014
Viet Nam December 10, 2014
Indonesia Negotiating 7 time since March 28, 2012

In negotiation (3) Korea-China-Japan Negotiating 6 times since November 20,2012

Negotiating 6 times since November 20, 2012 At East Asia Summit
RCEP
(*RCEP : Korea,China, Japan, Australia, New Zealand, ASEAN)
Suspension and Started Negotiation in December 2003 and Negotiation is in suspension in
Resume Japan November 2004; 9times meetings to resume the negotiation during 2008-
negotiation 2012
Source: Customs, Korea 39
 Import
Export (US
(US$ Export (%) Import (%)
$ million)
million)

With FTA Partners 253,334 206,874 45.6% 40.1%

With FTA signed

169,790 91,830 30.6% 17.8%
Partners

Total Trade 555,632 515,586

40
 Korea actively participated bilateral free trade agreement as well
as mega-regional trade agreement such as RCEP or TPP
 Shifting Korea’s Trade Policy paradigm

 Why?

 To reduce costs associated with the Spaghetti Bowl Effect

 Asia is the most active in Global Supply Chain Management

Need to help firms to improve efficiency in production

 To counteract the possible trade diversion effect of mega-

trading blocs such as EU,NAFTA, MERCOSUR etc.

 To Tone down regional security threats

 Can Korea-Kazakhstan be Partners in the era of FTAs and Mega

FTAs?

41
42
 How Did Korea Achieve it?
 7.5% p.a. Economic Growth Rate (1953-2014)
 With a fairer income distribution
 Gini Coefficient: 0.344 (1965) => 0.307 (2012)
 Significant Structural Changes
 From Primary to Industry
 From Light Manufacturing to Capital Intensive and Technology Intensive
 Why?
 Leaders Committed to Economic Growth and Development
 Accountability and transparency in International Economic and Trade Policy
 Outward Orientation
 Globalization through a main level of openness
 Strategic, Pro-active Policy makings
 Competitive Macroeconomic Policy
 Promoting Competition

43
 Rapid economic growth
 Accompanied a Fair Income Distribution: Gini Coefficient
1990~19
1965 1970 1976 1982 1998 1999 2000 2001 2006 2012
97
0.281~0.
0.344 0.332 0.391 0.357 0.316 0.32 0.317 0.319 0.306 0.307
295
 Significant structural changes
 In Outputs
 Agriculture-Industry-Service
 In exports
 Primary – Manufacturing
 L-intensive-K-intensive-Knowledge-intensive
Export Share (%) 1962 1972 1977 1982 1987 1991 2001 2011 2014
Primary 27.5 10.3 13.8 7.9 6.0 3.5 2.7 2.8 2.2
Light Manufacturing 63.4 56.3 52.2 43.5 42.3 36.5 16.4 6.2 6.4
Heavy and Chemical Manufacturing 9.1 33.4 34.0 48.6 51.7 60 80.9 91 91.4
IT 　 　 　 　 　 15.4 27 22.4 23.9
Others 　 　 　 　 　 44.6 53.9 68.6 67.5
44
 1953 1962 1971 1981 1991 2001 2011 2014

Primary(Agriculture,
30.1% 25.9% 16.6% 9.8% 4.9% 3.3% 2.3% 2.3%
Forestry & Fishery)

Mining 2.0% 3.5% 2.7% 1.8% 0.7% 0.3% 0.2% 0.2%

Manufacturing 2.8% 4.9% 9.3% 16.9% 20.9% 25.1% 31.6% 32.0%

Electricy, Gas and Water 0.1% 0.2% 0.5% 0.9% 1.6% 2.1% 2.2% 2.1%

Construction 3.9% 5.5% 10.0% 10.6% 12.1% 6.8% 4.7% 4.4%

Services 61.1% 60.0% 60.9% 59.9% 59.8% 62.4% 59.0% 59.1%

Source: nso.kr 45
<1960s-Mid1980s> <Mid 1980s-1998> <Post-1998- >

Gov’t Gov’t Gov’t

Busin
ess Busine Busines
ss s People
Peop Peop
le le

Gov’t Gov’t Leadership

Gov’t Leadership
Entrepreneurial & Business Power &
& Business Power
Leadership People Power
46
47
 Kazakhstan and Korea: Now
　 Kazakhstan Korea
Area (km ) (ranking)
2 2,724,900 (9th) 99720 (109th)
Agricultural Land (%) 77.4 18.1
Population (million; 2015) (ranking) 18.2(61th) 49.1 (28th)
65 and overs (%) 7.17 13.00
Life Expectancy (years) 70.6 80
Population Growth Rate (%; 2014) 1.14 0.14
Birth Rate (per 1000 popltn) (ranking) 19.15 (19th) 8.19 (220th)
Fertility Rate(child born per woman)
2.31 (92th) 1.25 (220th)
(ranking)
GDP (US$) 212.3 billion 1.41 trillion
Exports (US$) 87.3 billion 572.7 billion
semiconductors, petrochemicals,
oil and oil products, natural gas, automobile/parts, ships, wireless
Major Export Products ferrous metals, chemicals, machinery communication equipment, flat
display, steels,
Imports (US$ Billion) 46.7 billion 525.5 billion
machinery and equipment, metal crude oil, petroleum products,
Major Import Products products, foodstuff semiconductors, coal, steel
Major Natural Resources Reserves
Crude Oil: 30 billion barrel (12th) Crude oil: 0 barrel
(ranking)
　 Natural Gas: 2.407 trillion m3 (15th) 5.748 billion m3 (89th)
Mobile Phone (2014) 28 million 57.2 million
Internet Users (2014) (ranking) 10.6 million (45th) 44.9 million (13th)
% of Population 59.3 91.5
Military Expenditure (% of GDP) 48
1.21 2.8
(2012)
Source: ciafactbook
 (USB$
)

Source: Korea Customs

Source: Korea Customs
 51
Source: Koreaexim Bank
 52
Source: Koreaexim Bank
 Korea-Kazakhstan Diplomatic Relationship
 January 28, 1992
 Korea-Kazakhstan Trade has expanded rapidly
 US$88 million (1993) to US$1468 million(2014)
 Exports
 US$41million(1993) to US$907 million (2014)
 Imports
 US$ 47 million (1993) to US$ 561 million (2014)
 But still remained below its potential
Year Export (USM$) Import (USM$) Total Trade (USM$)
1993 41 47 88
1998 104 31 135
1999 57 51 108
2000 82 49 131
2005 273 242 515
2010 604 334 938
2013 1,074 249 1,323
2014 907 561 1,468
Source: kita.net 53
Source: kita.net

54
 　 Products (SITC 2 digit) Imports Growth Rate (%)

　 　 Total 560,771 209.9

1 33 Petroleum and Petroleum Products 372,193 -

2 67 Steel and Iron 95,808 0.1
3 52 Inorganic Chemicals 72,228 2.9
4 68 Non-ferrous Metal 13,022 5.0
Non specified Unprocessed meat and
5 29 6,948 -0.1
vegetables
6 89 Miscellaneous n.e.s 155 75.2
7 59 Chemical Products, n.e.s. 137 -54.7

8 77 Electrical Apparatus and Machinery 80 -30.2

9 26 Textile and Textile Waste 49 -

10
Source: 74
kita.net Industrial Machinery and Equipment 46 -
Source: kita.net
55
 Exports Growth Rate
　 Products(SITC2 digit)
(US’000) (%)
　 　 Total 906,958 268.6
1 78 Automobile 388,723 267.4
2 57 Plastics(Materials) 62,270 34.1

3 76 Communication and Recording Equipment 61,692 52.3

4 77 Electrical Machinery and Equipment 53,077 131.2

5 87
Other Scientific and Control Apparatus and 46,981 32.6
Equipment
6 72 Special Industrial Machinery 46,832 28.3

7 67 Steel and Iron 36,308 108.7

8 74 Industrial Machinery and Equipment 35,129 68.8

9 82 Furniture, Bedding, Mattress etc. 18,418 -4.2

10 09 Other Food and Food stuffs 16,906 6.2

Source: kita.net
56
 Industry & Sectors Invested Amount (US$'000) Share (%)
Finance & Insurance 712,062 29.1%
Construction 418,546 17.1%
Manufacturing 380,832 15.6%
Reality and Lease 268,457 11.0%
219,120  In total , US$ 2.45 billion
Mining 9.0%
 Finance & Insurance
Electricity, Gas and Water 156,039 6.4% (29.1%)
Publishing, Broadcasting and Information Services 141,268 5.8%  Construction (17.1%)
Wholesale and Retails 65,730 2.7%  Manufacturing (15.6%)
52,279  Realty and Lease (11.0%)
Transportation 2.1%
Art, Sports and Leasures 23,103 0.9%
Argiculture, Foresty and Fishery 5,508 0.2%
Hotel and Restaurants 2,088 0.1%
Special Scientific and Technology Services 2,024 0.1%
Total 2,447,216
Source: kita.net
57
 Economic partnership between Korea and
Kazakhstan
 In trade and FDI: getting stronger but remained
less than its potential
 Why?
 Lack of mutual understanding
 Other reasons?
 How?

58
59