Shipments of mobile phones from companies like the Samsung Electronics Co. and automobile companies such as the Hyundai Motor Co.’s profits increased as car sales rose in China. South Korea had one of the world’s fastest growing economies from the early 1960s to the late 1990s.
South Korea is concerned about the pace of the yen’s rapid depreciation against the won, the country’s deputy finance minister said, in the latest warning about the cross rate. The won stood at 10.0171 to the Japanese currency as of 0437 GMT. Traders and analysts said that despite such warning and a possible intervention by the foreign exchange authorities, the won is expected to rise more to the yen.
According to Bloomberg News, a gamble for South Korean exporters is the possibility the won will continue to rise against the yen after strengthening 22.5 percent in 2013, putting the companies at a disadvantage to Japanese competitors.
Kim Choong Soo, Bank of Korea Governor said in a December speech that,” South Korean policy makers should focus on strengthening the nation’s long-term growth base when there are clearer signs that the U.S. and other advanced economies are recovering from the crisis.” South Korea is still one of the fastest growing developed countries in the 2000s, along with Hong Kong, Singapore, and Taiwan. South Korea’s exports are predicted to grow even as the yen’s fall against the won imposes limits on the nation’s trade. Some South Koreans refer to this growth as the Miracle on the Han River.
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