Tables and Figures Tables 2.1 Presidents of the Republic of Korea, 1948 Present 20 2.2 Comparative Po liti cal Development, Korea and Other Countries 22 2.3 Presidential Election Results by Region, 1963 1971 24 2.4 Presidential Election Results by Region, 1987 1997 30 2.5 Presidential Election Results by Region, 2002 2012 44 2.6 Presidential Election Results by Age Group, Based on Exit Polls, 2012 versus 2002 48 3.1 Comparative Growth Experience: Gross National Income (GNI) Per Capita, 1962 2007 63 3.2 Savings and Investment in Korea, 1962 1981 64 3.3 Composition of Foreign Capital Flows into Korea, 1945 1992 65 3.4 Growth Accounting Decomposition of Aggregate GDP, Excluding Agriculture and Mining, 1971 2005 68 3.5 Growth Accounting Decomposition of Aggregate GDP, Including Agriculture and Mining, 1964 1979 69 3.6 Saving and Investment Regressions, Time Fixed Effects 71 3.7 Determinants of Growth Slowdowns 76 3.8 Central Government Programs to Support SMEs in 2012 82 4.1 Consumer Loans by Financial Institutions in Korea 101 4.2 Foreign Reserves of the Bank of Korea 109
viii Tables and Figures 4.3 Restructuring of Financial Institutions, November 1997 2001 112 4.4 Public Funds Injected for Purposes of Financial Restructuring, November 1997 June 2001 113 4.5 Credit Card Market in Korea 115 5.1 Chaebol s Value Added as Share of GDP 159 5.2 In- Group Own ership Share for the Top Chaebol 160 5.3 Interest Rate Differential between Export Loans and General Loans, 1961 1991 161 5.4 Number of Financial Institutions, Selected Years 165 6.1 Speed of Population Aging in the World 181 6.2 School Enrollment Rates (ER) and Advancement Rates (AR), 1953 2012 186 6.3 Expenditures on Higher Education per Student, Korea versus OECD Average and Selected Other Countries, 2009 189 6.4 Weekly Hours Secondary Students Spent Studying: Korea, OECD Average, and Selected Other Countries 193 6.5 Alternative Estimates of Gini Coefficient of Inequality, 1965 1993 196 6.6 Income Shares by Income Deciles, 1979 2012 197 6.7 Comparisons of In e qual ity and Relative Poverty: Korea, Taiwan, and the United States 199 6.8 Incidence of Absolute and Relative Poverty by House hold Type: 1996, 2000, and 2006 205 6.9 Average Annual Hours Worked, All Employed Persons, 1980 2008, and Average Annual Hours Worked per 15- to 64- year- old in 2008 209 6.10 Public Social Expenditures as Percent of GDP: Korea and OECD Average, 1990 2009 212 6.11 General Government Expenditures by Function as Percent of Central Government Bud get, 2011 219 6.12 Change in General Government Expenditures by Function as Percent of Central Government Bud get, 2001 to 2011 220 7.1 Top Ten Korean Exports, Various Years 232 7.2 Horizontal and Vertical Intraindustry Trade between Korea and Other Countries 240
Tables and Figures ix 7.3 R&D Spending and Number of Researchers Each Year, 2001 2011 244 7.4 R&D Spending by Industry 245 7.5 Allocation of Researchers and R&D Expenditures among Sectors of Per for mance, 2011 248 7.6 Number and Status of Venture Companies, 1998 July 2011 250 8.1 Major Economic Indicators for South Korea and North Korea, 2011 260 8.2 Two Divergent Paths: South Korea and North Korea, 1960 2010 261 8.3 Comparative Factor Prices in Kaesong, China, and South Korea, 2002 273 8.4 Inter- Korean Transactions at the Kaesong Industrial Complex, 2004 2012 274 8.5 Inter- Korean Trade by Transaction Type, 2012 275 8.6 Inter- Korean Commercial and Noncommercial Transactions, 2004 2012 277 8.7 South Korea s Bilateral Food and Fertilizer Aid to North Korea, Selected Years 1995 2010 278 8.8 South Korea s Multilateral Aid to North Korea, 1996 2012 278 8.9 Composition of Commercial Transactions, 2004 2012 279 8.10 Inter- Korean Trade by Product Category, 2012 280 8.11 North Korea s Exports and Imports, 2007 2012 284 8.12 North Korea s Revenue from the Mount Kumgang Tourism Project 286 Figures 2.1 Corruption Perceptions Index for South Korea 47 3.1 Gross Investment and Savings, 1982 2010 70 3.2 Frequency Distribution of Growth Slowdowns (Oil Exporters Excluded) 74 3.3 Return to Capital in Korea 77 4.1 Additional Financial Liberalization Indices, 1991 2007 88 4.2 Financial Stability Index 89 4.3 Financial Interrelation Ratio (FIR) 95
x Tables and Figures 4.4 Concentration Ratios 99 4.5 Ratio of Short- term Foreign Liabilities to Foreign Exchange Reserves, 1990 2010 108 4.6 Loan- Deposit Ratio of the Korean Banking Sector 119 4.7 Korea s Portfolio Investments in Foreign Securities 120 4.8 Changes in the Nominal Exchange Rate 122 4.9 Foreign Exchange Reserves 125 4.10 Foreign Exchange Rates, Won versus U.S. Dollar 125 4.11 Gross Domestic Product 126 4.12 Exports 127 5.1 Debt / Equity Ratio (D/E) and Interest Coverage Ratio (ICR) in Korea s Manufacturing Sector 154 6.1 Youth and Aged De pen den cy Ratios, 1970 2030 179 6.2 Employment Shares by Industry 182 6.3 Gender Shares in Employment 183 6.4 Proportion of Age Group Enrolled in College or University versus Income Per Capita 187 6.5 Alternative Mea sures of Income In e qual ity: Total House hold Income, 1985 2008 200 6.6 Earnings Differentials by Level of Educational Attainment 203 6.7 How Satisfied Are Workers in Their Jobs? Korea and Other Countries in the International Social Science Programme 207 6.8 International Comparison of Heath Care Expenditures, 2006 215 6.9 Fiscal Revenue, Expenditure, and Surplus as Percent of GDP 217 6.10 Fiscal Expenditure by Function as Percent of GDP 221 6.11 Fiscal Expenditure by Function as Percent of Central Government Bud get 221 6.12 Trajectory for Public Social Spending as Percent of GDP 222 6.13 Trends in Forest Area and Growing Stock per Hectare in Korea, 1952 2010 224 6.14 Age- Class Structure of Korea s Forest Area and Growing Stock, 1980 2010 225 7.1 Korea s Exports, Imports, and Investment 231
Tables and Figures xi 7.2 Export Composition by Technology Content, Various Periods 234 7.3 Similarity Index for Chinese Exports Compared with Korean Exports, Based on 1991 Weights 235 7.4 Shares of Korea and China in the Total Imports of Countries to Which Korea Exports 236 7.5 Korean and Chinese Market Shares in World Exports for Korea s Ten Most Important Export Products, Selected Years: 1990, 1995, 2005 237 7.6 Increase in Korea s R&D Spending over Time 246 7.7 Increase in Number of Korean R&D Researchers over Time 247 8.1 Economic Trends in North Korea, 1990 2011 264 8.2 Inter- Korean Trade, 1989 2012 269 8.3 North Korea s International and Inter- Korean Trade, 2000 2012 272 8.4 Outward Foreign Direct Investment by South Korea s Large Firms and SMEs, 1990 2012 283 9.1 Expected Convergence of Per Capita GDP of South Korea and the United States under Alternative Korean Growth Scenarios: U.S. Growth at 1.5 Percent 305 9.2 Expected Convergence of Per Capita GDP of South Korea and the United States under Alternative Korean Growth Scenarios: U.S. Growth at 2.5 Percent 306