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Korea Matters for America 2011 KOREA MATTERS FOR AMERICA KoreaMattersforAmerica.org KOREA MATTERS FOR AMERICA FOR MATTERS KOREA The East-West Center promotes better relations and understanding among the people and nations of the United States, Asia, and the Pacific through cooperative study, research, and dialogue. Established by the US Congress in 1960, the Center serves as a resource for information and analysis on critical issues of common concern, bringing people together to exchange views, build expertise, and develop policy options. Korea Matters for America Korea Matters for America is part of the Asia Matters for America initiative and is coordinated by the East-West Center in Washington. KoreaMattersforAmerica.org For more information, please contact: part of the AsiaMattersforAmerica.org initiative Asia Matters for America East-West Center in Washington PROJECT TEAM 1819 L Street, NW, Suite 600 Director: Satu P. Limaye, Ph.D. Washington, DC 20036 Coordinator: Aaron Siirila USA Research & Assistance: Ray Hervandi and Emma Freeman [email protected] The East-West Center headquarters is in Honolulu, Hawai‘i and can be contacted at: East-West Center 1601 East-West Road Honolulu, HI 96848 USA EastWestCenter.org Copyright © 2011 The East-West Center 1 2AMERICA FOR MATTERS KOREA AND ROK US INDICATOR, 2009 UNITED STATES SOUTH KOREA The United States and South Korea Population, total 307 million 48.7 million in Profile GDP (current $) $14,120 billion $833 billion The United States and South Korea are leaders in the world. The US IN economy is the world’s largest, while South Korea’s is the fifteenth larg- P est. The United States is the world’s largest exporter and South Korea is GDP per capita, PPP (current international $) $45,989 $27,168 rofi the eleventh largest. Both countries have democratic governments and populations that are almost evenly distributed between rural and urban Trade (% of GDP) 25% 96% L E areas. South Korea is, by some measures, the world’s most digitally advanced country, with more cell phones than people. Exports of goods and services (% of GDP) 11% 50% Foreign direct investment, net inflows $135 billion $1.5 billion (BoP, current $) East Sea/ NORTH Sea of Japan Beijing KOREA Pyongyang SOUTH Land area (sq. mi.) 3,537,000 sq. mi. 38,000 sq. mi. Seoul KOREA JAPAN Yellow Sea CHINA Tokyo Korea Strait Military expenditure (% of GDP) 5% 3% Taipei Paci c Time required to start a business (days) 6 days 14 days Ocean Taiwan Hong Kong, SAR Trade in services (% of GDP) 6% 16% LAOS VIETNAM PHILIPPINES Internet penetration rate 75.1% 75.6% Sources: World Bank; US Central Intelligence Agency; US Census Bureau; US Department of State 3 4AMERICA FOR MATTERS KOREA T US Trade with South Korea Totals TXOP E PORT PARTNERS: (IN BILLIONS) rade US MERCHANDISE EXPORT KOREA’S MERCHANDISE EXPORT $115 Billion PARTNERS, 2009 PARTNERS, 2009 RANO K C UNTRY US$ % RANO K C UNTRY US$ % In 2010, South Korea was the United States’ seventh largest two-way 1 Canada $204.7 19% 1 China (PRC) $86.7 23% trading partner. US exports of goods and services to Korea are valued at 2 Mexico $129.0 12% 2 United States $37.8 10% $55 billion, an increase of 92% from 2001. US imports from South Korea 3 China (PRC) $69.6 7% 3 Japan $21.7 6% are nearly $60 billion. The US trade deficit on goods and services has 4 Japan $51.2 5% 4 Hong Kong, SAR $19.7 5% declined 61%, from $12 billion in 2001 to $5 billion in 2010. 5 United Kingdom $45.7 4% 5 Singapore $13.6 4% 6 Germany $43.3 4% 6 Germany $8.8 2% $32.3 3% $8.0 2% The Korea-US Free Trade Agreement (KORUS FTA), signed in 2007, 7 Netherlands 7 India 8 South Korea $28.6 3% 8 Vietnam $7.1 2% would eliminate nearly 95 percent of all bilateral tariffs within three years 9 France $27.0 3% 9 Mexico $7.1 2% of ratification. 10 Brazil $26.2 2% 10 Indonesia $6.0 2% Total US Exports $1,057.1 Total Korean Exports $373.2 US TRADE BY PARTNER COUNTRY POpuLATION Source: IMF Direction of Trade Statistics, 2009 US trade with Korea is higher than with China and Japan when adjusted for population. COMPOSITION OF US GOODS EXPORTS TO KOREA, 2010 2,000 $1,820 per Korean Miscellaneous Manufactured 1,750 Articles ($4.1 billion) 1,500 10.6% Food and 1,250 Live Animals 11.5% All Others $1,430 per ($4.5 billion) 21.9% Japanese ($8.5 billion) 1,000 Chemicals and 750 Related Products 16.3% ($6.3 billion) 500 Machinery and 250 $339 per Chinese 39.7% Transport Equipment ($15.4 billion) $ 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: US Department of Commerce Sources: US Department of Commerce; United Nations, 2010 5 6AMERICA FOR MATTERS KOREA T 13 US States Have Doubled Exports rade to Korea since 2002 An additional ten states have increased exports by at least 50% during Korea. Six states send 5% or more of their total merchandise exports to this period. Thirteen states export more than $500 million a year to Korea; Alaska has the highest share at 14%. STATE PER CAPITA EXPORTS TO SOUTH KOREA, 2010 NEW less than $250 per person WASHINGTON HAMPSHIRE $250 - $500 $2,719 VERMONT $130 $131 $500 - $750 MONTANA MAINE NORTH DAKOTA $99 $187 MINNESOTA $750 - $1,000 $11 $627 $1,000 or more OREGON $937 NEW IDAHO WISCONSIN YORK $20 SOUTH DAKOTA $361 $1,992 MASSACHUSETTS $892 $13 MICHIGAN WYOMING $751 RHODE ISLAND $10 $39 PENNSYLVANIA CONNECTICUT $82 IOWA $792 NEBRASKA $224 NEW JERSEY $1,666 NEVADA $271 OHIO INDIANA $640 $41 UTAH ILLINOIS WEST DELAWARE $30 $788 $551 $273 VIRGINIA MARYLAND $481 COLORADO $107 VIRGINIA $18 KANSAS MISSOURI KENTUCKY $379 CALIFORNIA $228 $656 $482 $309 N CAROLINA TOP 10 EXPORTERS TO KOREA, 2010 TENNESSEE $606 RANK STATE US$ (MILLIONS) $557 OKLAHOMA $5,945 ARIZONA $58 S CAROLINA 1 California NEW MEXICO ARKANSAS $378 $29 ALABAMA 2 Texas $5,300 $28 $145 $574 3 Washington $2,034 MISSISSIPPI GEORGIA $72 $632 4 Louisiana $1,375 TEXAS 5 New York $1,344 $1,644 $6,447 FLORIDA 6 New Jersey $816 LOUISIANA $467 ALASKA 7 Oregon $707 $477 8 Pennsylvania $676 9 Illinois $669 HAWAI‘I $15 10 Massachusetts $625 US Total $28,282 Source: US Department of Commerce 7 8AMERICA FOR MATTERS KOREA TIT SECTION J OM O E xports to South Korea Support B S 114,000 US Jobs FR Exports to Korea supported an estimated 114,000 jobs in the United country: 27 states had at least 1,000 jobs supported by exports to South trade States in 2010, 25% more than in 2002. These jobs are spread across the Korea and 5 states had more than 5,000 jobs. L E HERE, CO JOBS FROM us EXPORTS TO SOUTH KOREA, 2010 NEW less than 1,000 jobs WASHINGTON VERMONT HAMPSHIRE 1,000 - 5,000 10,372 L 503 481 5,000 - 10,000 OR MONTANA MAINE NORTH DAKOTA 301 10,000 - 15,000 430 MINNESOTA 39 2,095 15,000 or more TIT TO CORRESPONDS OREGON 3,292 NEW IDAHO WISCONSIN YORK 1,930 SOUTH DAKOTA 1,206 5,425 MASSACHUSETTS 2,864 49 MICHIGAN WYOMING 1,860 RHODE ISLAND 58 39 PENNSYLVANIA CONNECTICUT 1,519 IOWA 2,228 NEBRASKA 723 NEW JERSEY 4,282 NEVADA 971 OHIO INDIANA 2,017 142 UTAH ILLINOIS WEST DELAWARE 403 2,359 1,371 746 VIRGINIA MARYLAND 1,195 COLORADO 186 VIRGINIA 709 23,096 KANSAS MISSOURI KENTUCKY 1,175 716 TOP TEN, 2009: L CALIFORNIA 2,009 904 JOBS FROM US EXPORTS TO E N CAROLINA KOREA, PER 100,000 RESIDENts TENNESSEE 1,770 OKLAHOMA 1,214 RAN K STATE JOBS ARIZONA 211 S CAROLINA 1 Alaska 270 NEW MEXICO ARKANSAS 1,009 791 ALABAMA 98 254 2 Washington 119 GEORGIA MISSISSIPPI 3 Louisiana 106 142 1,181 1,849 4 Idaho 73 TEXAS 5,649 5 Oregon 67 16,309 FLORIDA LOUISIANA 1,202 6 Texas 56 ALASKA 2,105 7 Vermont 50 8 Connecticut 47 HAWAI‘I 9 California 45 38 10 Delaware 39 Sources: The Trade Partnership, Washington, DC; US Census Bureau 9 10AMERICA FOR MATTERS KOREA I N Korean Investment in the US Has V Increased 400% in the Last Decade estment South Korean investment in the United States increased from $3 billion in 2001 to $12 billion in 2009. US investment in South Korea has nearly tripled, from $10 billion in 2001 to $27 billion in 2009. This investment creates jobs, such as at South Korean car manufacturing plants. Hyundai’s plant in Montgomery, Alabama, and Kia’s plant in West Point, Georgia, together have created about 8,000 jobs in the last few years. Other leading Korean investors in the US include Samsung, Hyundai, Kia, Doosan Heavy Industry, and SK Corporation. Leading US Courtesy KIA Motors investors in Korea include 3M, GM, Chevron, IBM, and Citigroup. US-SOUTH KOREA INVESTMENT (STOCK), 2001-2009 NET INVESTMENT FLOWS INTO us, 2010 (us$ BILLIONS) Sources: US Bureau of Economic Analysis; Economist Intelligence Unit Source: Economist Intelligence Unit, 2010 30 TOTAL $171.6 b $27b 25 ASIA JAPAN 20 EUROPE $17b $91b PACIFIC SOUTH $26b US DIRECT INVESTMENT IN KOREA KOREA $3b 15 SINGAPORE AMERICAS $23b $3b $12b 10 OTHERS $32b 5 KOREAN FDI IN US HONG KONG $0.1b $ BILLIONS CHINA $0.2b 2001 2002 2003 2004 2005 2006 2007 2008 2009 OTHER $0.3b INDIA $1b AUSTRALIA $2b 11 12AMERICA FOR MATTERS KOREA S US stuDY ABROAD stuDENts IN KOREA TUDENT South Korea is the 3rd Leading Source (TO TAL stuDENts BY ACADEMIC YEAR) of Foreign Students in the US 2,250 2,000 1,750 The number of South Korean students in the United States has in- 1,500 creased significantly in the last decade, rising by nearly half from 49,000 1,250 students in the academic year starting 2001 to 72,000 in 2009.
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