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South Korea & Hungary compared

Basic Macroeconomic Country Comparison

Krisztina E. Lengyel Almos

on 5 November 2012

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Transcript of South Korea & Hungary compared

2012 South Korea and Hungary Compared Basic Country Profile Location: North East Asia Central Eastern Europe South Korea Hungary turbulent history:
Korean "Hermit" Kingdom from VII century,
Japanese invasion (40 yrs),
Korean War (1950-53), division since 1953
military regimes under American influence
1987 - democracy & free market economy South Korea Hungary Major Sources of the Economy
Daehan Minguk 대한민국 Magyarorszag Area: 100,000 km 93,000km 2 2 South Korea peninsula, mountainous landlocked, flat, hilly
humid dry features: biodiversity: major cities: Seoul (10m), Busan (3m), Incheon (3m) Budapest (2m), Debrecen (0.5m), Miskolc (0.4m) population: 50 million 10 million population density: 496 people/km 107 people/km 2 2 low
(GEF: 2, 1.8) natural resources: coal, heavy metals, hydropower coal, bauxite, natural gas, fertile soil, arable land, spring &thermal water Hungary hot summer
cold winter
(4 seasons) (densely populated) Cultural & Historical Background at
crossroad of major powers small distinct
homogenous cultures:
one language
major ethnic group Altaic/Uralic
language group under foreign invasion
several times in history turbulent history: Hun antecedents
first Hungarian Kingdom in the XI century,
Turkish rule (150 yrs), Habsburg rule (200 yrs),
XX century - WWI: lost 2/3 of its territory, WWII,
Soviet rule (45 yrs), from 1956 "goulash communism" 1989 - democracy & free market economy language: Korean language:Hungarian 92% Hungarian, 2% Roma, (Slovaks, Serbs, Germans) 98% Korean religion: Christianity, Buddhism,
Shamanism, Confucianism education: 98% literacy rate, among the top 10 highest # of college graduates per capita Pct. population with with secondary education: 80%,
postsecondary education: 39% mostly Catholics (Roman & Greek) 53%
Protestants (20%), Jews (1%) education: 99% literacy rate
democratically elected by the Unicameral Parliament (386 members),
President (5 yrs) - diplomatic representation 2010-2014: Right-wing government,
PM: Viktor Orban Sources: www.wikipedia.com, http://www.indexmundi.com/facts/hungary/literacy-rate democratic
governments high level of
education democratically elected presidency (5-year term),
Prime Minister (head of government).
Legislative--unicameral National Assembly elected every 4 years magyar 한국어
[hangul] Government: similar size People South Korea Hungary religions: spicy
food Pct. population with secondary education: 81%, 14% (wikipedia) http://www.oecdbetterlifeindex.org/countries/hungary/ Life expectancy: 74 years in overall happiness, 65% are satisfied (below OECD medium level) Life expectancy: 81 years in overall happiness, 62% are satisfied (below OECD medium level) (water quality - above OECD
air quality - above OECD) (water quality - above OECD
air quality - below OECD level) republic Government: 2012-2016: conservative government,
PM since 2010: Kim Hwang-sik
(appointed by the president) http://www.southkoreagovernment.com/ 1988:
Seoul Olympic Games 2002 World Cup:
Japan-Korea Macroeconomic Indicators South Korea Hungary (OECD members) Trade Relations Macroeconomic Profile 34.5 % (stable in the past 5 years) 84.8 % (15% increase since 2009) PPP in USD: 825 won 130 HUF ( in USD, 2005 price levels, PPP, 2011) GDP 1,377 billion USD 174 billion USD K´s more than 8 times Indicators GDP per capita 16,570 USD/person Income Gap between lowest 20% and highest 20% of earners Government Debt (% of GDP): more then 5 times almost 4 times 13,696 USD/person Korea´s wealthier less difference in income in Hungary Conclusions http://0-www.oecd-ilibrary.org.millenium.itesm.mx/economics/economics-key-tables-from-oecd_2074384x Sources: Unemployment rate: 3.4 % 11% Inflation Rate: less unemployment in ROK 3.9% 4.0% low inflation in both countries Long term interest rates: 4.20% 7.64% cheaper to borrow in ROK, more attractive to invest in Hun. Hun. more indebted
(high in the EU) Annual GDP growth 3.6% 1.7% (2011, WB) GINI index: 31% 24% ROK´s growing faster (OECD) less inequality in HUN (CIA factbook) HDI index: 81.6% 89.7% (very high) high in both countries Korea´s wealthier, healthier, growing faster, while Hungary´s stagnating (EU member) manufacturing
ships & transport
chemical products
apparel & shoes
(agriculture) Exports South Korea Hungary Imports lack of resources (energy) (ROK: 45%, HUN: 37% of energy is from nuclear source) General features heavy state involvement: 68% of the economy is "free" (32% still state-owned), liberalization & privatization since 1990 14th largest free market economy (in nominal GDP), 12th in PPP low income taxation (16% flat, though it used to be high 52%), high VAT: 27%, corporate taxes are low low but progressive taxation
(income tax: 6-36%, VAT 10%)
strong preference for exporters tough issues: tax reform, health care reform
AUSTERITY MEASURES G-20, "Next Eleven" ("Asian Tigers") EU-member since 2002 (but not adopted the Euro) Downturn in the late 2000s: economic recession economic depression (heavy reliance on foreign direct investment) recovered easily growing population shrinking & aging population manufacturing
car assembly (BMW, Audi, Suzuki
chemicals & pharmaceuticals
agriculture (food & meat industry) Taxation weak support for exporters RELIANCE ON TRADE Trade as a % of GDP (2008) 53% 81% (OECD Online Database) Trade as a % of GDP (2001) 34% 71% Major Partners #1 Germany
#2 Austria
#3 Romania
#4 Slovakia
#5 Italy #1 Germany
#2 Russia
#3 Austria
#4 China
#5 Slovakia #1 China
#2 Japan
#3 US
#4 Australia
#5 Kuwait #1 China
#2 US
#3 Japan
#4 Hong Kong
#5 Singapore Major Partners Key Items machinery
manufactured goods
consumer goods http://www.tradingeconomics.com/hungary/imports machinery
transport goods
consumer goods
agricultural products
chemicals (EU: 70%, OECD: 80%), 2012 Key Items electronics
LCD panels, TVs
mobile phones, computers
ships & transport items (2011, http://www.tradingeconomics.com/south-korea/exports) (monthly average 2011) 42.7 billion USD machinery
transport equipment 8.47 billions USD (monthly average 2011) 9.27 billions USD 46.27 billions USD http://en.wikipedia.org/wiki/File:Hungary_Export_Treemap.jpg http://en.wikipedia.org/wiki/File:Korea_Export_Treemap.jpg one more thing... Curious data.... South Korea: most wired nation
highest # of video game addicts
in 3 years its total GDP per capita may surpass that of Japan

Samsung, Hyundai, Daewoo became household names

high # of suicide lately, low fertility
high stress, "exam hell",
highest # hours worked per person (though now it´s officially reduced to 40hrs/week) famous Koreans:
Ban Ki-moon (GS off the UN)
Jim Yong-Kim (President of World Bank)
Psy - Gangnam style has been viewed by more than 640 million viewers (chaebol conglomerates) http://en.wikipedia.org/wiki/Working_time http://www.economist.com/blogs/graphicdetail/2012/04/daily-chart-16 Hungary: Current Account Balance: 1.95 billions USD (1.3 % of GDP), 2011 4.34 billions USD, 2011 net exporter net exporter Currency: Korean Won (1,100 KWN/usd), appreciating (since 2010) Hungarian Forint (217 HUF/USD) - appreciating in 2012 Sources: www.xe.com, 1/ 3 of Hungarians live outside of Hungary (5 million)
only less than 10% of Hungarians have Asian DNA structure ("Hungarian blood")
Hungary - one of the oldest kingdoms in Europe was bigger than France in 1000
famous Hungarian inventions/discoveries:

13 Hungarians received a Nobel prize, more than Japan, China, India
only 5 countries have more Summer Olympic gold medals (US, USSR, UK, France, Italy) Famous people:
George Soros (financier)
Judit Polgar (chess Grand Master)
Houdini matches, ball pen, cathode ray-tube, collaboration on the Hydrogen-bomb, BASIC - computer language, father of computer progmamming (John von Neumann), vitamine C (paprika), Rubik´s cube, krypthon electric bulb Thank you!
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