COLOMBO (News 1st): The economy of South Korea is the 3rd largest in Asia and the 11th largest in the World. South Korea is famous for its spectacular rise from one of the poorest countries in the world to a developed, high-income country in just one generation.

South Korea’s rigorous education system and the establishment of a highly motivated and educated populace is largely responsible for spurring the country’s high technology boom and rapid economic development.

Having almost no natural resources and always suffering from human overpopulation in its small territory, which deterred continued population growth and the formation of a large internal consumer market, South Korea adapted an export-oriented economic strategy to fuel its economy. In 2014, South Korea was the 7th largest exporter and 7th largest importer in the World.

How did South Korea’s economy develop so quickly?

Many studies attribute South Korea’s structural transformation to policy reforms aimed at opening the country to foreign markets. Export-oriented policies of South Korea are one of the most important factors of its success

The two other important factors that contributed to the increase in international trade and industrialization in South Korea is;

• Improvement in the Business environment
• Policies incentivizing investment in innovation