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Overall economic outlook ’healthy,’ but R&D spending slipping: report
South Korea has the 11th largest economy in the world in terms of Gross Domestic Product (GDP), but the second highest living expenses, and the nation was ranked just 34th in an index determining how well a country’s brands are known internationally. The index report said that only three products made in Korea are included in the world’s top 100 brands. The Korea International Trade Association’s (KITA) Trade Research Institute issued a report on 208 economic, trade, and social indexes on September 25. The report said the nation’s status was healthy overall. South Korea was ranked 11th in terms of overall economic size, with a GDP last year of US$788 billion. Korea came in 12th in terms of trade volume (US$546 billion), and maintained the lead position for shipbuilding, DRAM semiconductors, LCD technology, and other chief manufacturing sectors. Korea’s information index, measuring the level and quality of communications technology, reached 91, or third place, from last year’s sixth place. The top two countries were Sweden and the United States. On the other hand, the ratio of Korea’s research and development investment to its GDP, essential to expanding a nation’s potential economic growth, slipped from sixth place in 2003 to ninth in 2004. In case of the tourism industry, revenues went down one level from last year to 27th place, while spending went up three levels to 12th place.South Korea gained 6.49 points out of 10 - or 34th place among 61 nations - in the national image index, compared to China’s 7.29 and Japan’s 6.82. Included in the world’s "best 100 brands" were just three items produced by the nation, and just 12 Korean companies were put on the list of the "world’s top 500 firms." Seoul’s living expenses were second highest in the world in pure dollar amounts, just after Moscow. When setting New York as the standard (100), Moscow ranked the highest for living expenses at 123.9, followed by Seoul (121.7), Tokyo (119.1), Hong Kong (116.3), London (110.6), Osaka (108.3) and Geneva (103.0). Beijing (94.9) was ranked at 14th place and Singapore (92.0) at 17th place. This is the first time that Seoul’s living expenses surpassed those of Tokyo. The spike in cost of living is largely attributable to a strong currency and skyrocketing food, public utilities, and housing prices. Park Gi-im, a researcher of the KITA’s institute, said, "The won has maintained its strength, while the yen has been weak. Due to such a foreign exchange factor, the cost of living in Seoul has become higher than that of Tokyo."
