Seoul Financial

Seoul's financial sector's effect on Korean economy in general

It is not too much to say that Korea's economics might derives from the economic power of Seoul. With brisk economic activities, Seoul is a city filled with greater energy and vitality than most any other city in the world. The Gross Regional Domestic Product (GRDP) of Seoul in 1996 was about 92 tril. won, which accounts for some 23.7% of the GNP of 388 tril. won. The per capita GRDP of Seoul citizens is about 8.5 million won.

The economically active population of Seoul was about 5.3 million persons in 1997. This accounts for 63.8% of the 8.3 million persons age 15 or over. Among these, 5.1 million persons, or 97.3%, were employed, while only 2.7% (142,000 persons) were unemployed, demonstrating a very high employment rate compared to most other capital cities in the world. Due to the economic crisis which engulfed the whole nation toward the end of 1997, however, the unemployment rate once rose to about 9%. Thanks to the recent recovery of the economy, the employment rates have been on the decrease gradually.

Seoul is a true hub of the national economy, playing a key role in the free flow of national resources and capital. This is attested by the fact that Seoul accounts for 48.3% of the nation's bank deposits and 50% of bank loans. Naturally, the vast majority of head and branch offices of banks, stock and insurance companies are all concentrated in Seoul, with the stock market in Yeouido often referred to as the "Manhattan of Seoul". The consumer price index of Seoul is 116.7 when computed against the base value (100) of 1995, a little lower than the national average of city consumer price index of 117.8. This is also relatively lower than that of major world cities of the United States, the United Kingdom, or France.