World Economy

South Korea in Trouble

South Korea  in TroubleSouth Korea  in Trouble

South Korea’s gross domestic product is $1.4 trillion (nominal), which puts it in 11th place among world nations. Due to trouble at Samsung, the country’s largest conglomerate, worries about military and cyberattacks from North Korea, and a scandal that may push its president out of office, its economic health is at risk. Behind China and Japan, South Korea is Asia’s third largest economy, and it trails Canada and Brazil by very modest numbers. The economy is large enough that trouble would ripple to other countries. Samsung’s revenue is nearly 20% of the country’s GDP. It is fighting to shrug off a number of problems. According to Bloomberg: Samsung Electronics Co. and heir apparent Jay Y. Lee are facing rising pressure from investors for broad change at South Korea’s most valuable company. Shareholders are voicing dissatisfaction with the status quo after Samsung’s smartphone battery crisis that will cost at least $6 billion and has seen its offices raided twice as part of a widening political scandal in Korea. The presidential crisis could also bring the government to a halt.


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