South Korea’s Economic Imbalance

A slowdown in exports has thrown South Korea’s fast-growing economy out of balance, resulting in a rising foreign debt. Preliminary government figures released last week showed that the nation ended 1991 owing foreign nations $40.2 billion, about 26% more than in 1990. The reason behind the surge is that the export-oriented sector of the economy has slowed, leading to more goods imported than exported, or growing trade deficits. A look at its current account, the broadest measure of trade, shows a $9.83- billion deficit for the first 11 months of 1991, compared to a $2.67-billion shortfall a year earlier.

Source: South Korean Ministry of Trade and Industry