Korea's Economy
From the Issue
Korea's Economy Volume 30About Korea's Economy
Korea’s Economy is KEI’s annual journal publication dedicated to the key issues of the day for the Korean economy. Articles in Korea’s Economy are designed to give the casual, but informed reader insight into issues related to Korea’s markets and financial institutions, economic reform, economic relations with the wider world, and North Korea. It is published jointly each year with the Korea Institute for International Economic Policy.
Author: Jeong Yeo-cheon
Region: Asia
Theme: Economics, Foreign Relations
Location: Korea, South, Russian Federation
Published March 4, 2016
Download PDFThe beginning of Korea-Russia economic relations go back 130 years, however, for most of the last century, the relationship between Korea and Russia has been curtailed due to historical events. It was not until the early 1990s that South Korea and Russia established new diplomatic ties and resumed normal economic interaction.
Over the last 20 years, South Korean and Russian economic relations have vitalized rapidly. Russia is currently South Korea’s tenth trading partner, and is becoming increasingly important as an importer of automobiles and an exporter of energy resources. As large-scale direct investments of Korean companies into Russia have increased since the mid-2000s, the fields of economic cooperation between the two nations have become more diverse.
There is a strong synergy between South Korea, with its powerful manufacturing industry, and Russia, which has abundant natural resources. Another possible factor accelerating economic relations between the two nations is the Russian government’s pursuit to develop the Far East, and the Korean government’s goal of a tighter connection with the Eurasian continent. If North Korea’s peaceful participation is made possible, the economic relations of Korea and Russia will progress even more rapidly.