Increasing influence of Seoul's economic condition on the overall Korean economy

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Description:

Seoul is at center 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. Also, the vast majority of headquarters of banks, stock and insurance companies are all concentrated in Seoul.

With brisk economic activities, Seoul is a city filled with energy and vitality. As the Seoul’s economy goes, the nation’s economy goes.

Enablers:

o There is a wide range of distribution channels and facilities to connect consumer citizens with manufacturers. Also, Seoul has an efficient transportation system, which makes it easy to distribute goods and services within the country and to neighboring markets in Asia.
o Seoul City government has been implementing a wide range of supportive policies, financially and administratively, for small and medium businesses. Total 700 billion won of funds will be raised to foster small businesses.
o Among 5.1 million people of working ages, 97.3% were employed, demonstrating a very high employment rate compared to most other capital cities in the world.
o Seoul is situated at the crossroads of two geopolitically very important economic axes; it is in the very center of the Korean peninsula linking the Pacific region to Eurasia, and the center of the strategic belt of Japan, Korea and China across the Yellow Sea.

Inhibitors:

o The cost of living in Seoul, is much higher than that of many other cities at home and abroad and Seoul is the tenth most expensive city to live in among the 150 major cities in the world.
o Amid the slowly declining economic conditions, labor strikes are increasing as a result of the on-going corporate restructuring both in the private and public sectors.


Paradigms:

With over 10 million people in the city and 23 million around metropolitan area, Seoul functions as an "industrial incubator", nurturing information technology & financial service industries, and is also the center of banking, securities and insurance for Korea.

Experts:

Ministry of Finance & Economy (english.mofe.go.kr), National Statistical Office (www.nso.go.kr), Small & Medium Business Administration (www.smba.go.kr)

Timing:

Seoul Olympics (July, 1988)
Korea-Japan World Cup (June, 2002)
Sangam Digital Contents Center & Theme Park opening (Dec, 2007)
Seoul International Financial Center opening (2010)


Web Resources:

english.mofe.go.kr
econo1.seoul.go.kr
english.lgeri.co.kr
www.bok.or.kr
www.koreaeconomy.org