Lessons from South Korea

Summary Do you know that South Korea had exponentially increased its per-capita GDP to 12,710 USD (in 2000) that then sky-rocketed to over USD 36000 in 2025? A World Bank report 'Republic of Korea: Four decades of equitable growth' points out that South Korea has experienced rapid economic growth in 1990, where its real GDP grew by over 5 percent each year except 1998. Now is the time for us to profoundly study the economic policies adopted and implemented by South Korea that helped the country in increasing its per-capita GDP from roughly 159 USD (1960) to over USD 36000 per person each year in 2025. AI Generated Summary South Korea is one of the most remarkable countries in the world. Shortly after the mid-20th century, South Korea was one of the poorest countries in the world. According to World Bank, it had a per-capita gross domestic product (GDP) of roughly 159 USD in 1960. The Helen Kellogg Institute For International Studies (University of Notre Dame) points out that South Korea's per-capita income in early 1960 was lower than Haiti, Ethiopia and Yemen and over 40% of the South Korea's population was suffering from absolute poverty. However, with right public policy actions implemented in the right direction, South Korea was among the most rapidly growing economies in the world by the start of 21st century. Do you know that South Korea had exponentially increased its per-capita GDP to 12,710 USD (in 2000) that then sky-rocketed to over USD 36000 in 2025? A question that one would ask is, what formed the basis of this rapid economic growth and a resulting reduction in poverty in South Korea? A World Bank report 'Republic of Korea: Four decades of equitable growth' points out that South Korea has experienced rapid economic growth in 1990, where its real GDP grew by over 5 percent each year except 1998. Absolute poverty decreased incredibly in South Korea during 1975 – 2001. Those who remained poor were either had low educational achievements or were unemployed or underemployed. In 1975, South Korea earned USD 12.4 billion through trade that then skyrocketed to a trade volume of USD 314.6 billion in 2002. Thus, in a span of 27 years, trade volume of South Korea increased over 25 times which is nothing less than a remarkable success story. A journey that helped South Korea to achieve rags-to-riches status in 3 decades time. In my opinion, education made a significant difference in South Korean society and made it more socially resilient to meet the challenges of today and tomorrow. As we all know that with education and the use of common sense, we make better life choices that then helps us is attaining better results for us and our families. Do you know that South Korean society is one of the most educated societies in the world? As per Organization for Economic Co-operation and Development (OECD), over 58% of masses in South Korea has tertiary education. In-fact, South Korea performed better than Luxembourg, Australia, Norway, Netherlands and several other countries when it comes to percentage of masses (25 – 64 years) who have completed tertiary education in 2025. Highly educated masses mean highly qualified labour that can help any country in commencing sustainable social and economic development over a sustained period. We all are familiar with Samsung Electronics and the leading role it plays in connecting countries and people across the globe. Do you know that Samsung Electronics is a South Korean company? In 2025, Samsung Electronics declared a revenue worth a whooping USD 233.3 billion. Similarly, Hyundai Motor Co., Ltd is another South Korean motor vehicles and parts manufacturing company. According to Forbes, in 2025, Hyundai Motor Co., Ltd declared a financial revenue worth a whooping USD 128.4 billion including a profit of USD 9.1 billion. Hyundai Motor Company pointed out that it sold over 4 million vehicles worldwide out of which close to a million vehicles were electrified vehicles. Likewise, Kia Corporation is South Korea's oldest motor vehicles manufacturing company and has a capacity to produce over 1.4 million vehicles each year. Kia Corporation has over 40,000 employees and normally reports an annual revenue of over USD 17 billion each year. LG Electronics is another South Korean tech giant that reported a revenue of USD 62 billion in 2025. Finally, SK Hynix Inc is another South Korean company that manufactures semiconductor products and had reported an annual revenue of USD 51.2 billion in 2025 with profits over USD 18 billion. It is crucial to mention here that SK Hynix Inc is among the largest memory chip manufacturer's in the world and acts as a rival to Samsung. Moreover, it is an important memory supplier to Apple and the components supplied by SK Hynix Inc are widely used in iPhone, iPad and MacBooks. Carnegie Endowment for International Peace reports that South Korea's gross domestic product (GDP) was USD 1.71 trillion in 2023 and its per-capita GDP was USD 33,121. Do you know that in 2020, South Korea invested USD 112.9 billion on domestic research and development (R&D). Globally, it stood on fifth position when it comes to spending on R&D. Top spending on R&D in 2020 was commenced by United States with USD 720.9 billion, followed by China with USD 582.8 billion, Japan with USD 174.1 billion and Germany with USD 143.4 billion. Despite commencing rapid social and economic development, South Korea has not compromised on environmental conservation. According to The Korea Times newspaper, South Korea planted roughly 10 billion trees from 1960 to 1980. As a direct result of this, Korea Forest Service (KFS) reported that South Korea's forest growth rate exponentially increased from 50 cubic meters per hectare in 1990 to 148 cubic meters per hectare in 2015. Thus, in a span of 25 years, forests in South Korea observed nearly 3 times increase in growth rate. It serves as an excellent example that we can commence economic growth, eradicate absolute poverty and conserve environment simultaneously. The already discussed example shatters the paradigm that we must compromise and degrade environment to commence economic growth. A successful reforestation program in South Korea proves the fact that we can commence economic growth and protect environment simultaneously. Do you know that trees are the most inexpensive carbon capture and storage devices? Moreover, healthy forests help us to decrease the concentration of carbon dioxide gas in atmosphere, mitigate climate change, prevent biodiversity loss, avoid landslides and provide clean air and water by decreasing pollution. We must understand this basic fact that for our commenced economic growth to be sustainable, we must preserve and protect environment. In-fact, Sustainable Development has 3 pillars namely social, economic and environmental. Any development that is commenced by deteriorating environment and harming people is Unsustainable Development. United Nations (UN) has defined Unsustainable Development as development that is pursued for immediate rewards without thinking about the negative impacts on humans and environment. Thus, when it comes to economic policy making, we must always adopt an ecocentric approach where we put planet and people (instead of financial profit) at the heart of economic policy making in Pakistan. Without environmental conservation, there is no sustainable economic growth. Similarly, by deteriorating environment, we will deteriorate the resilience of our society and its ability to cope with the challenges of today and tomorrow. World Economic Forum (WEF) highlights that South Koreans generate over 130 kilograms of food waste per person each year. With right public policy actions implemented in the right direction, South Korea has increased its food waste recycling from 2% in 1995 to 95% today. Another remarkable story which reflects that it is indeed possible to commence economic development while exacerbating an implementation of Sustainable Development in the country. Do you know that in Sejong (South Korea) there is a 5.5 miles long bike path that is equipped with 7502 solar panels installed as a roof on close to 3 miles stretch of the bike path. The installed solar PV panels offers shade to bicyclists, generate clean electricity, decreases greenhouse gases emission from electricity and transport sectors, reduce traffic congestion and optimize an affective use of the given space and built infrastructure. It is indeed another excellent example of how we can promote an active lifestyle among citizens by encouraging them to leave their cars parked at home and to take bicycles instead. A well-functioning bicycle lane with an ability to generate clean electricity is a much-needed step in the right direction to create climate-smart cities. To conclude, there is a dire need for Pakistan to deeply analyse the economic progress commenced by South Korea since 1975. If South Korea can eradicate poverty, Pakistan can as well. Do you know that roughly 45% of masses in Pakistan lives below poverty line. United Nations Development Programme (UNDP) Pakistan further points out that a lion's share of poor masses over 75% are women and girls in Pakistan. It is quite sad that slightly less than half of our population is poor and it is women and girls that pays the highest price of prevailing poverty in Pakistan. We must do all it takes to end this financial discrimination against women and girls in Pakistan. Now is the time for us to profoundly study the economic policies adopted and implemented by South Korea that helped the country in increasing its per-capita GDP from roughly 159 USD (1960) to over USD 36000 per person each year in 2025. National Nutrition Survey 2018 by Ministry of National Health Services (Government of Pakistan) points out that malnutrition incurs a financial damage worth a whooping USD 7.6 billion annually to Pakistan's economy. In other words, malnutrition slices away 3% of Pakistan's GDP each year due to lost human capital, health care expenses and lower levels of productivity. Sustainable Development Policy Institute (SDPI) highlights that Pakistan is losing roughly 1 per cent of its GDP each year due to climate-related damages. Similarly, International Monetary Fund (IMF) focuses on the fact that climate and weather-related disasters has incurred a financial damage worth a whooping USD 29.3 billion to Pakistan during 1992 and 2021. Unfortunately, World Food Programme (WFP) say that 20.7% population in Pakistan is undernourished. How can we expect Pakistan to commence sustainable social and economic development when one-fifth of its population is suffering from undernourishment and the country is losing billions of dollars as direct consequence of climate and weather related damages. Time is slipping through our hands, and we need to act now to create a sustainable and resilient Pakistan for all that is strong enough to meet the challenges of today and tomorrow. Choice is ours and will always be. The writer is a Stockholm-based policy analyst and the Founder / Operations Manager of Project Green Earth (www.projectge.org). He can be reached at aubhameedi@yahoo.com