[30][31] Renowned financial organisations, such as the International Monetary Fund, notes the resilience of the South Korean economy against various economic crises.

They cite the country's economic advantages as reasons for this resilience, including low state debt, and high fiscal reserves that can quickly be mobilised to address any expected financial emergencies.

[32] Other financial organisations, like the World Bank, describe South Korea as one of the fastest-growing major economies of the next generation, along with BRICS and Indonesia.

[36][37][38][39][40] The South Korean economy faces challenges due to a declining and ageing population, with a fertility rate among the lowest in the world.

A downturn in the South Korean economy in 1989 spurred by a decrease in exports and foreign orders caused concern in the industrial sector.

Ministry of Trade and Industry analysts stated that decreased export performance resulted from structural problems, including an overly strong won, increased wages and labour costs, frequent strikes, and higher interest rates.

The result was an increase in inventories and cutbacks in production at a number of electronics, automobile, and textile manufacturers, as well as at the smaller firms that supplied the parts.

Factory automation systems were introduced to reduce dependence on labour, to boost productivity with a smaller work force, and to improve competitiveness.

To promote development, a policy of export-oriented industrialisation was applied, closing the entry into the country of all kinds of foreign products, except raw materials.

Agrarian reforms were carried out and Park nationalised the financial system to swell the powerful state arm, whose intervention in the economy was through five-year plans.

[42] The spearhead was the chaebols, diversified family conglomerates such as Hyundai, Samsung, and LG Corporation, which received state incentives such as tax breaks, legality for their exploitation system and cheap or free financing: the state bank facilitated the planning of concentrated loans by item according to each five-year plan, and by economic group selected to lead it.

South Korea received donations from the United States due to the Cold War, and foreign economic and military support continued for some years.

[44] Through the model of export-led industrialisation, the South Korean government incentivised corporations to develop new technology and upgrade productive efficiency to compete the global market.

[51] By adhering to state regulations and demands, firms were awarded subsidisation and investment support to develop their export markets in the evolving international arena.

[52]: 136  The strategy was successful and ultimately also helped develop companies like Samsung and POSCO and reduced input costs for production in downstream industries as well.

To reduce the imbalance between rural and urban sectors, Seoul expanded investments in public projects, such as roads and communications facilities, while further promoting farm mechanisation.

[44] The measures implemented early in the decade, coupled with significant improvements in the world economy, helped the South Korea regain its lost momentum.

These economic reforms, pushed by President Kim Dae-jung, helped South Korea maintain one of Asia's few expanding economies,[citation needed] with growth rates of 10.8% in 1999 and 9.2% in 2000.

Growth fell back to 3.3% in 2001 because of the slowing global economy, decreased exports, and perceptions that corporate and financial reforms have stalled.

The slowing global economy, falling exports, and the perception that corporate and financial reforms had stalled caused growth to decrease to 3.8% in 2001[55] Thanks to industrialisation GDP per hour worked (labour output) more than tripled from US$2.80 in 1963 to US$10.00 in 1989.

The restructuring of chaebols, bank privatisation, and the creation of a more liberalised economy—with a mechanism for bankrupt firms to exit the market—remain an unfinished reform task.

[58] Annual growth in the economy slowed to 2.3% in 2008, and was expected to drop to as low as −4.5% by Goldman Sachs,[59] but South Korea was able to limit the downturn to a standstill at 0.2% in 2009.

The agreement contains an Investor State Dispute Settlement (ISDS) clause that permits legal action from South Korean corporations against the Australian government if their trade rights are infringed upon.

In June 1989, panels of government officials, scholars, and business leaders held planning sessions on the production of such goods as new materials, mechatronics—including industrial robotics—bioengineering, microelectronics, fine chemistry, and aerospace.

South Korea has today the infrastructures to meet a density of population and culture that has the capability to create strong local particularity.

These declines were caused by labour unrest, Seoul's unwillingness to provide financial assistance, and Tokyo's new low-interest export financing in support of Japanese shipbuilders.

This decline reflected sluggish car sales to the United States, especially at the less expensive end of the market, and labour strife at home.

The Hyundai Motor Group is South Korea's largest automaker in terms of revenue, production units and worldwide presence.

Coal, iron ore, and molybdenum are found in South Korea, but not in large quantities and mining operations are on a small scale.

Those hardware include modern aircraft such as F-15K fighters and AH-64 attack helicopters which will be used by Singapore, whose airframes will be built by Korea Aerospace Industries in a joint-production deal with Boeing.