IndexIntroductionGross domestic productUnemployment and inflationRecessions and expansion in recent yearsTypes of economic policies that the country should adoptConclusionSouth Korea is considered one of the richest countries in the world with a exceptional economy that has been developed on the basis of stringent economic pillars. South Korea is the 12th largest economy in the world, which has developed significantly due to its dependence on exports considering the fact that the country lacks natural resources and has a small domestic consumer market. The economy has transitioned from a labor-intensive economy to a highly revolutionized technology-based economy that has been critical to the development of a sustainable economy. This article provides a detailed analysis of the South Korean economy through an analysis of the gross domestic product, unemployment, inflation, recession and expansion, fiscal and monetary policies that form the backdrop of the economy. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay IntroductionSouth Korea's economy is well supported and is based on strong macroeconomic stability and a high-level focus on global trade that has shaped the country's economic development over the years. years. The government has put in place crucial measures that have ensured a positive focus on the underlying economic pillars. The anchoring of the country's economy to the manufacturing industry has ensured that the country has a strong diversified economic background. South Korea's economy has been greatly strengthened by the high-performance electronics and technology industry with major tech giant companies, Samsung and LG having played a key role in boosting the country's economy. Nowadays, the country's economy is affected by growing tension with North Korea over possible attacks due to the long-standing conflict. The cost of living in South Korea has been increasing in recent years with the average rent ranging between $1,200 and $1,500. with a minimum wage of $1,300, relatively lower than other countries. The minimum wage was increased to 7.3% in 2016, which was higher than the consumer price index in 2016 which was 1.3% (Cheng, 2017). Development over the years has been based on greater focus and integration of better economic elements that have been developed to improve the overall economic development of the country. Gross domestic product. Increased construction investment and export growth of the country have played a key role in increasing the gross domestic product at a very high rate over the last 7 years. South Korea's current gross domestic product in 2016 was $1.4 trillion, accounting for 2.2% of the global economy. South Korea's average gross domestic product initially averaged $405 billion from 1960 until 2014, when it reached an all-time high of $1.4 trillion. The year 1961 represented the lowest gross domestic product, at $2.36 billion. South Korea's economy over the past 50 years has been significantly linked to effective fundamentals such as a high savings rate, efficient human capital, cautious fiscal and monetary management as well as effective institutions ( Chen, 2017 ). Trade openness has developed crucial access to affordable imported immediate goods, advanced technologies, and larger markets that have played a vital role in the country's productivity growth. South Korea's gross domestic product is expected to reach $1.8 trillion by 2012,based on the current structural and development planning process. This shows that South Korea's economy is built on solid economic pillars that can bypass the economic crisis and remain steadfast. Unemployment and Inflation South Korea's seasonally adjusted unemployment rate decreased slightly to 3.6 percent in October 2017 from an initial 3.7 in September 2017. This development is highly in line with market expectations that predicts that the unemployment rate will decrease significantly based on the measures implemented. The average unemployment rate in South Korea from 1999 to 2017 averaged 3.6%, with a high level of 7.1% in June 1999 and the lowest on record of 2.9% in November 2013 Although the unemployment rate in South Korea has stabilized at a low percentage level compared to other advanced countries such as Russia, which averages 5.8%, and China which averages 4.1%. , there are specific factors that are influenced negatively. The agricultural sector, despite its small contribution to the country's economy, lost approximately 128,000 jobs. The finance and insurance sector has also been negatively impacted, with 37,000 jobs lost over the past five years. However, in stark contrast, manufacturing gained approximately 173,000 jobs while health and social assistance gained 153,000 jobs over the same period. It is evident that South Korea's manufacturing industry is very strong and forms the basis of its large exports. The overall focus here is that unemployment is not a critical issue for South Korea, even though they are putting critical structures in place to ensure positive engagement. The unemployment rate in South Korea is expected to be 3.1% in 2022 (Cheng, 2017). The inflation rate in 2016 was 1.3%, although the average inflation rate over the years has been 1.1%, placing the country at position 30. in the world ranking. The inflation rate in South Korea is much better than that of most advanced economies such as the United States and the United Kingdom, which have a slightly higher inflation rate of between 1.5% and 2 %. The key aspects of the consumer price index are housing, gas and other fuels, electricity and water. Based on existing economic development measures in the country, it is estimated that by 2022 the inflation rate in South Korea will be at 2% (O'Malley, 2017). Recessions and expansion in recent years South Korea's economy is in crisis heavily dependent on exports, which has been increasing in recent years. Therefore, its expansion focused significantly on the largely successful economic policy of outward sourcing. South Korea does not have a large domestic market, meaning that it has been significantly engaged in integrating strategic partnerships with other countries to ensure that it is able to maintain economic growth within workable limits. The country suffered an indirect impact of the 2008 global recession (Ahn & Tsuchiya, 2016). South Korea's partner countries were affected by economic difficulties, which limited their purchasing power and therefore limited total exports which took a toll on the country's domestic GDP. product. Most of South Korea's recession-hit trading partners are still struggling to fully recover and this has caused the country's economy to grow gradually due to its high dependence on foreign markets for its prosperity. The fact that the country's economy largely depends on its.