http://times.hankooki.com/lpage/200701/kt2...18060110220.htm
Full Version: Korea to hit $30k income level in 8 years
[/b]Korea to hit $30,000 usd income level in 8 years[b]
http://times.hankooki.com/lpage/200701/kt2...18060110220.htm
http://times.hankooki.com/lpage/200701/kt2...18060110220.htm
Sometimes I wonder about these newspaper writers - first of all, Luxembourg isn't a good basis of comparison (that's like comparing Korea with just Manhattan) and Korea, unlike Taiwan, Israel, etc. has heavy industry (i.e. - shipbuilding) and auto manufacturing (which is one of the leading industries in building wealth).
What's probably more problematic are the unions in Korea (such as those at Hyundai - which are doing the same thing to Hyundai what the UAW did to GM and Ford) which go way beyond protecting workers' rights (Hyundai's management also shares part of the blame).
What's probably more problematic are the unions in Korea (such as those at Hyundai - which are doing the same thing to Hyundai what the UAW did to GM and Ford) which go way beyond protecting workers' rights (Hyundai's management also shares part of the blame).
It's an encouraging statement, but we have no idea how the Korean economy will turn out in the during the next 8 years.
By the way, what are we basing this on? GDP or GNP?
By the way, what are we basing this on? GDP or GNP?
QUOTE(Experience @ Jan 20 2007, 11:19 AM) [snapback]2666152[/snapback]
It's an encouraging statement, but we have no idea how the Korean economy will turn out in the during the next 8 years.
By the way, what are we basing this on? GDP or GNP?
By the way, what are we basing this on? GDP or GNP?
QUOTE
Korea’s per capita gross national income (GNI) was estimated at $18,300 last year, and is expected to reach $20,300 this year thanks to the strengthening won.
GNP.
same thing different spin:
QUOTE
Long Era of US$20,000 Income, Researchers Warn
The LG Economic Research Institute has predicted that with the strengthening won, Korea's per capita income will exceed US$20,000 this year, after 12 years of struggling to escape the $10,000 "trap". Despite this achievement, the institute said, it cannot truthfully be said that the country has joined the advanced economies of the world.
Experts are now warning of a $20,000 "trap". They point to Hong Kong and Singapore, which have yet to cross the $30,000 threshold more than 10 years after passing the $20,000 level. In a report entitled "Korean Economy with $20,000 Per Capita Income" released Thursday, the LG Economic Research Institute predicted that Korea won't pass the $30,000 mark until 2015.
The report says, "It took about 10.1 years on average for advanced countries to reach the $20,000 level after they passed the $10,000 level. In Korea, we had a delay of about two years with the financial crisis of the late 1990s. The country is now able to cross the $20,000 threshold thanks to the recent won appreciation."
In comparison, it took less than 10 years for major advanced countries to reach the $20,000 level -- Ireland (seven years), Japan (six years), and Switzerland (eight years). The report added that it is hard to say that the country has joined the group of advanced countries. "We should not compare the $20,000 that advanced countries achieved decades ago with the amount that Korea has just achieved," the report said.
For example, the U.S. exceeded the $20,000 level in 1988, but adjusted for inflation, Korea's $20,000 is equivalent to $12,900 in 1988 values. Kim Jong-seok, a professor of Economics at Hongik University, said, "We need to pay keen attention to the fact that Hong Kong and Singapore have been stranded in the $20,000 trap for 13 years. These two regions achieved $20,000 per capita income in 1994."
The report bases its prediction for $30,000 by 2015 on the current annual economic growth rate of 3.8%. But experts question if Korea can maintain that rate. "Those countries that joined the group of richest countries after they achieved $20,000, enhanced their growth potential by developing new growth engines, easing regulations, and resolving labor issues," said the report.
(englishnews@chosun.com )
The LG Economic Research Institute has predicted that with the strengthening won, Korea's per capita income will exceed US$20,000 this year, after 12 years of struggling to escape the $10,000 "trap". Despite this achievement, the institute said, it cannot truthfully be said that the country has joined the advanced economies of the world.
Experts are now warning of a $20,000 "trap". They point to Hong Kong and Singapore, which have yet to cross the $30,000 threshold more than 10 years after passing the $20,000 level. In a report entitled "Korean Economy with $20,000 Per Capita Income" released Thursday, the LG Economic Research Institute predicted that Korea won't pass the $30,000 mark until 2015.
The report says, "It took about 10.1 years on average for advanced countries to reach the $20,000 level after they passed the $10,000 level. In Korea, we had a delay of about two years with the financial crisis of the late 1990s. The country is now able to cross the $20,000 threshold thanks to the recent won appreciation."
In comparison, it took less than 10 years for major advanced countries to reach the $20,000 level -- Ireland (seven years), Japan (six years), and Switzerland (eight years). The report added that it is hard to say that the country has joined the group of advanced countries. "We should not compare the $20,000 that advanced countries achieved decades ago with the amount that Korea has just achieved," the report said.
For example, the U.S. exceeded the $20,000 level in 1988, but adjusted for inflation, Korea's $20,000 is equivalent to $12,900 in 1988 values. Kim Jong-seok, a professor of Economics at Hongik University, said, "We need to pay keen attention to the fact that Hong Kong and Singapore have been stranded in the $20,000 trap for 13 years. These two regions achieved $20,000 per capita income in 1994."
The report bases its prediction for $30,000 by 2015 on the current annual economic growth rate of 3.8%. But experts question if Korea can maintain that rate. "Those countries that joined the group of richest countries after they achieved $20,000, enhanced their growth potential by developing new growth engines, easing regulations, and resolving labor issues," said the report.
(englishnews@chosun.com )
QUOTE(enomosiki @ Jan 20 2007, 07:02 PM) [snapback]2666915[/snapback]
GNP.
No, its GDP (and GDP per capita)
QUOTE(notorious_k @ Jan 20 2007, 10:39 PM) [snapback]2667472[/snapback]
No, its GDP (and GDP per capita)
Gross National Income (GNI) means Gross National Product (GNP). The article mentions nothing in terms of GDP.
QUOTE
Korea’s per capita gross national income (GNI) was estimated at $18,300 last year, and is expected to reach $20,300 this year thanks to the strengthening won.
If you guys haven't realized, SK hit 30k is mostly based on appreciation of the won. It's actually bad for South Korea, and the appreciation of SK actually gives Japan a chance to speed up their export.
QUOTE(supernovasp @ Jan 20 2007, 08:00 PM) [snapback]2667528[/snapback]
If you guys haven't realized, SK hit 30k is mostly based on appreciation of the won. It's actually bad for South Korea, and the appreciation of SK actually gives Japan a chance to speed up their export.
yep. just like that article about korean grads earning more than japanese grads, its mostly bc of yen depreciation and won appreciation.
korean gov't is the least active among korea china japan in terms of currency intervention. but for overseas koreans with land in korea, and for overseas exchange students, this is a good thing tho.
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