IDEAS home Printed from https://ideas.repec.org/a/mnb/finrev/v21y2022i2p188-197.html
   My bibliography  Save this article

A Shrimp between Fighting Whales: Lessons from the Economic Convergence of South Korea

Author

Listed:
  • Gabor P. Kiss

    (Magyar Nemzeti Bank)

  • Katalin Szoke

    (Magyar Nemzeti Bank)

Abstract

Having started as a poor, war-worn agricultural country in the mid-20th century, South Korea is now the world's 12th largest economy. The lesson from the country's economic convergence is that export-led growth, strong corporate competitiveness and significant research and development expenditure are essential to avoiding the middle-income trap. Relying on its strong education system, South Korea managed to become a key player in many high-tech industries. However, the challenge for the future is that income inequalities exceed the average of developed countries, and the persistently low fertility rate results in an ageing society. In addition, household indebtedness exceeds 100 per cent of GDP and around half of the housing loans are variable rate loans, which jeopardises the stability of the financial system.

Suggested Citation

  • Gabor P. Kiss & Katalin Szoke, 2022. "A Shrimp between Fighting Whales: Lessons from the Economic Convergence of South Korea," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 21(2), pages 188-197.
    • Handle: RePEc:mnb:finrev:v:21:y:2022:i:2:p:188-197
    as

    Download full text from publisher

    File URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-21-2-fa1-kiss-szoke.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hiroshi Akama & Kunihisa Noro & Hiroko Tada, 2003. "Financial and Corporate Restructuring in South Korea," Bank of Japan Research Papers 2003-06-20, Bank of Japan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. ., 2010. "The Korean Financial Sector: Its Transition and Future Agenda," Chapters, in: The Korean Economy in Transition, chapter 9, Edward Elgar Publishing.
    2. Oh, Frederick Dongchuhl, 2013. "Contagion of a liquidity crisis between two firms," Journal of Financial Economics, Elsevier, vol. 107(2), pages 386-400.
    3. Oh, Frederick Dongchuhl & Park, Junghum, 2023. "A large creditor in contagious liquidity crises," Journal of Banking & Finance, Elsevier, vol. 146(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mnb:finrev:v:21:y:2022:i:2:p:188-197. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Morvay Endre (email available below). General contact details of provider: https://edirc.repec.org/data/mnbgvhu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.