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Economy of Seoul

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Economy of Seoul
Downtown Seoul
Gangnam
Yeouido
Outlook of three major business districts in Seoul
Statistics
Population9,501,528 (2021)[1]
GDP₩486 trillion (nominal; 2021)[2]
GDP rank2nd (nominal; 2022)
GDP growth
3.4% (2021)[3]
GDP per capita
US$43,404 (nominal; 2021)[1]
GDP per capita rank
3rd (nominal; 2021)
Average gross salary
₩26.61 million (nominal; 2022)[2]
Public finances
₩4.4 trillion (operating; 2019)[4]
Revenues₩30.6 trillion (operating; 2019)[4]
Expenses₩26.1 trillion (operating; 2019)[4]
AA by S&P (2019)[4]
All values, unless otherwise stated, are in US dollars.
Economy of South Korea
History
Business culture
Industries
Regional
Related topics

Seoul, the capital of South Korea, is home to giant business groups such as Hyundai, SK, LG, Hanhwa, GS, KB, CJ and Samsung, ranking fifth in global city GDP and second in Asian city GDP.[5] The service sector accounts for the largest portion of the city's labor force. As the center of the country's finance, Seoul is concentrated in Yeouido, where the headquarters of major stock exchanges and banks are located. The city holds many annual trade fairs.[6]

According to the Union of International Associations, Seoul is the city that hosts the most international conferences in Asia. Seoul's global financial competitiveness ranked 10th out of 130 cities.[7]

Manufacturing

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See also: Manufacturing in South Korea and Category:Manufacturing companies based in Seoul

The traditional, labor-intensive manufacturing industries have been continuously replaced by information technology, electronics and assembly-type of industries;[8][9] however, food and beverage production, as well as printing and publishing remained among the core industries.[8] Major manufacturers are headquartered in the city, including Samsung, LG, Hyundai, Kia and SK. Notable food and beverage companies include Jinro, whose soju is the most sold alcoholic drink in the world, beating out Smirnoff vodka;[10] top selling beer producers Hite (merged with Jinro) and Oriental Brewery.[11] It also hosts food giants like Seoul Dairy Cooperative, Nongshim Group, Ottogi, CJ, Orion, Maeil Holdings, Namyang Dairy Products and Lotte.

Business

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See also: Category:Central business districts in South Korea

Seoul has three central business districts; the Downtown Seoul(CBD), Gangnam(GBD), and Yeouido(YBD).[12] The Downtown Seoul, which has 600 hundred years of history as unparalleled business district in entire Korea, is now a densely concentrated area around Gwanghwamun and Cheonggyecheon with headquarters of major companies, foreign financial institutions, largest news agencies and law firms. Other two business districts are developed in 1970s and have different characteristic; while Gangnam is well known for tech, luxury and private education industries, Yeouido is famous for securities exchange and asset management.[13]

As significant portion of South Korean economy is propelled by manufacturing and tech firms, office market in Seoul is not driven by FIRE companies. Rather, diverse industries creates demand for office in central business districts in Seoul. This characteristic is most clearly evident in Downtown Seoul, where most of foreign companies headquarters South Korean branch office regardless of their industry. Meanwhile, Gangnam office market is also sustained by diverse industries, yet most of its components come from tech and luxury retails. The most homogeneous composition is found in Yeouido, where most of financial institutions, especially most of native stock brokerage firms reside in.[14]: 80–82 

Finance

[edit]
Further information: Yeouido and Downtown Seoul

According to the Global Financial Centerss Index report released in 2024, Seoul ranked 10th. The city ranked 13th in business environment and financial sector development, seventh in human capital, 10th in infrastructure and 12th in reputation.[15] In 2023, the city announced plans to invest $44.7 million over six years to create a dedicated area to attract foreign investment.[5]

Seoul's nowadays competency in financial industry is mainly found in Yeouido, which is often named as Wall Street of South Korea.[16] Although history of Yeouido got started in 1979 when the national government relocated Korea Stock Exchange out from Downtown Seoul, its distinct fame as financial district of the whole nation started later in 1990s, when South Korea started deregulating stock market to attract foreign investments.[17]

Yet it is notifiable that major functions as financial district are still distributed among big three business districts, as Yeouido leads, Downtown Seoul follows, and Gangnam is in the last. In 2022 survey of the Seoul Institute, about 40% of entire financial institutions were settled in Yeouido. However, its composition was heavily concentrated to native firms on stock brokerage and asset management. Other sectors, such as banking, insurance and credit cards, were found mostly concentrated in Downtown Seoul. Also, most of foreign stock brokerage firms settled in Downtown Seoul. Meanwhile, Gangnam had its distinct competency in fintech start-ups and real estate firms.[18]: 20–22 

Retail

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Main article: Shopping in Seoul
See also: Retailing in South Korea
Myeong-dong is one of the most popular destinations in Seoul.

The largest wholesale and retail market in South Korea, the Dongdaemun Market, is located in Seoul.[19] Myeongdong is a shopping and entertainment area in downtown Seoul with mid- to high-end stores, fashion boutiques and international brand outlets.[20] The nearby Namdaemun Market, named after the Namdaemun Gate, is the oldest continually running market in Seoul.[21]

Insadong is the cultural art market of Seoul, where traditional and modern Korean artworks, such as paintings, sculptures and calligraphy are sold.[22] Hwanghak-dong Flea Market and Janganpyeong Antique Market also offer antique products.[23][24] Some shops for local designers have opened in Samcheong-dong, where numerous small art galleries are located. While Itaewon had catered mainly to foreign tourists and American soldiers based in the city, Koreans now comprise the majority of visitors to the area.[25] The Gangnam district is one of the most affluent areas in Seoul[25] and is noted for the fashionable and upscale Apgujeong-dong and Cheongdam-dong areas and the COEX Mall. Wholesale markets include Noryangjin Fisheries Wholesale Market and Garak Market.

The Yongsan Electronics Market is the largest electronics market in Asia. Electronics markets are Gangbyeon station metro line 2 Techno mart, ENTER6 MALL & Shindorim station Technomart mall complex.[26] Times Square is one of Seoul's largest shopping malls, and contains the world's largest permanent 35 mm cinema screen, the CGV Starium.[27]

Korea World Trade Center Complex, which comprises COEX mall, congress center, 3 Inter-continental hotels, Business tower (Asem tower), Residence hotel, Casino and City airport terminal was established in 1988 in time for the Seoul Olympics. The 2nd World trade trade center is being planned at Seoul Olympic stadium complex as MICE HUB by Seoul city. Ex-Kepco head office building was purchased by Hyundai motor group with 9billion USD to build 115-storey Hyundai GBC & hotel complex until 2021. Now ex-kepco 25-storey building is under demolition.

Technology

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See also: Science and technology in South Korea and South Korean robotics

Seoul has been described as the world's "most wired city",[28] ranked first in technology readiness by PwC's Cities of Opportunity report.[29] Seoul has a very technologically advanced infrastructure.[30][31]

Seoul is among the world leaders in Internet connectivity, being the capital of South Korea, which has the world's highest fiber-optic broadband penetration and highest global average internet speeds of 26.1 Mbit/s.[32][33] Since 2015, Seoul has provided free Wi-Fi access in outdoor spaces through a 47.7 billion won ($44 million) project with Internet access at 10,430 parks, streets and other public places.[34] Internet speeds in some apartment buildings reach up to 52.5 Gbit/s with assistance from Nokia, and though the average standard consists of 100 Mbit/s services, providers nationwide are rapidly rolling out 1Gbit/s connections at the equivalent of US$20 per month.[35] In addition, the city is served by the KTX high-speed rail and the Seoul Subway, which provides 4G LTE, Wi-Fi, and DMB inside subway cars. 5G will be introduced commercially in March 2019 in Seoul.

GDP

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As of 2023, Seoul's GDP is $779.3 billion.[5]

GRDP

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Year Nominal GRDP (₩TN)[6]
2005 232.18
2006 245.6
2007 266.6
2008 282.07
2009 293.69
2010 313.28
2011 326.42
2012 340.71
2013 340.71
2014 350.26
2015 370.17
2016 387.36
2017 404.08
2018 423.74
2019 435.93
2020 444.55
2021 472.04
2022 485.75

(See List of cities by GDP for more figures.)

Top publicly traded companies in Seoul

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See also: List of largest companies of South Korea

In 2023, 11 out of 18 Fortune Global 500 companies based in South Korea, headquartered in Seoul.

Top Eleven Fortune Global 500 companies headquartered in Seoul (2023)[36]
Local rank FG 500 rank Company name Industry Location
1 85 Hyundai Motor Company Motor vehicles Yangjae-dong, Seocho District
2 92 SK Group Electronics, etc Jongno, Jongno District
3 196 Kia Motor vehicles Heolleung-ro, Seocho District
4 204 LG Electronics Electronics Yeoui-dong, Yeongdeungpo District
5 296 Hanwha Group Aerospace, etc Myeong-dong, Jung District
6 322 GS Caltex Energy and Chemical Yeoksam-dong, Gangnam District
7 339 KB Financial Group Finance Yeoui-dong, Yeongdeungpo District
8 371 LG Chem Chemical Yeoui-dong, Yeongdeungpo District
9 390 Hyundai Mobis Motor parts Yeoksam-dong, Gangnam
10 481 CJ Group Food, Media, etc Namdaemunno, Jung District
11 496 Samsung Life Insurance Insurance Seocho-dong, Seocho District
Note: Samsung C&T has its headquarters divided by departments: Some of them are based in Seoul, while the other is based in the city of Yongin. So this company is not included in the table.

See also

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References

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  1. ^ a b "Seoul's GRDP per capita surpasses $40,000 in 2021, up 3.4% YoY". english.seoul.go.kr. Seoul Metropolitan Government. 27 December 2023. Retrieved 22 March 2024.
  2. ^ a b Oh, Seok-min (22 December 2023). "Regional GDP climbs 3.9 pct in 2022 on rising manufacturing sector". Yonhap News. Seoul, South Korea. Retrieved 22 March 2024.
  3. ^ 김, 기훈 (21 December 2023). "2021년 서울 1인당 GRDP 4만달러 돌파… 전년대비 3.4%↑" [In 2021, Seoul's regional GDP per capita pass over 40,000 USD… 3.4% YoY↑]. Yonhap News (in Korean). Seoul, South Korea. Retrieved 22 March 2024.
  4. ^ a b c d "Seoul Metropolitan Government 'AA/A-1+' Ratings Affirmed; Outlook Stable". disclosure.spglobal.com. Standard & Poor's. 27 August 2020. Retrieved 22 March 2024.
  5. ^ a b c "Richest Cities In The World 2023". New Trader University.
  6. ^ a b "Economy of Seoul". Britannica. 20 March 2024.
  7. ^ "Seoul at a Glance". Invest Seoul.
  8. ^ a b "Seoul: Economy". Encyclopædia Britannica. Archived from the original on 22 February 2014. Retrieved 13 February 2014.
  9. ^ "The primacy of Seoul and the capital region". United Nations University. Archived from the original on 4 November 2014. Retrieved 13 February 2014.
  10. ^ "It's official: Jinro soju is the world's best-selling liquor". CNNTravel. 12 June 2012. Archived from the original on 21 February 2014. Retrieved 29 April 2013.
  11. ^ "Fiery food, boring beer". The Economist. 24 November 2012. Archived from the original on 1 July 2017. Retrieved 24 April 2013.
  12. ^ "Top 3 Major Business Districts (CBD) in Seoul, Korea". pearsonkorea.com. Pearson & Partners. 25 August 2020. Retrieved 5 March 2024.
  13. ^ Lee, Sue (18 March 2011). "Beginners guide to Seoul office lease". The Korea Times. Seoul. Retrieved 5 March 2024.
  14. ^ Ryu, Jongpil (4 May 2018). "Seoul Office Market: Occupancy Characteristics and Their Impact on Market Stability at a Global Level". Cornell Real Estate Review. 16: 78–85. hdl:1813/70818. Retrieved 22 March 2024.
  15. ^ "Seoul rises one spot to 10th in Global Financial Centres Index". The Korea Herald. 21 March 2024.
  16. ^ "Neon shines brightly during the bustle on Yeouido stock street". Korea JoongAng Daily. 5 January 2010. Archived from the original on 17 May 2014. Retrieved 13 February 2014.
  17. ^ Park, Anna J. (2 November 2020). "Korea Exchange witnesses economy's ebbs and flows". The Korea Times. Seoul. Retrieved 22 March 2024.
  18. ^ 주, 재욱; 김, 진하; 윤, 종진 (31 August 2022). 서울시, 금융산업 발전 위해 다양한 정책수단 모색 필요 [To achieve development of financial industry, Seoul needs to look for various policy measures] (in Korean). The Seoul Institute. ISBN 9791157006892. Retrieved 22 March 2024.
  19. ^ "Dongdaemun Market". Visit Seoul. Archived from the original on 22 February 2014. Retrieved 11 February 2014.
  20. ^ "Myeong-dong". Korea Tourism Organization. Archived from the original on 15 February 2014. Retrieved 11 February 2014.
  21. ^ 서울공식여행가이드. Visit Seoul Net. Archived from the original on 14 February 2016. Retrieved 16 May 2018.
  22. ^ "Insa-dong". Korea Tourism Organization. Archived from the original on 16 January 2014. Retrieved 11 February 2014.
  23. ^ "Hwanghak-dong Flea Market". Korea Tourism Organization. Archived from the original on 22 February 2014. Retrieved 12 February 2014.
  24. ^ "Antique Markets". Seoul Matropolitan Government. Archived from the original on 8 October 2010. Retrieved 12 February 2014.
  25. ^ a b "Itaewon: Going Gangnam Style?". The Korea Times. 14 February 2013. Archived from the original on 4 March 2016. Retrieved 12 February 2014.
  26. ^ "Yongsan Electronics Market, Asia's largest IT shopping mall". KBS World. 1 March 2011. Archived from the original on 21 February 2014. Retrieved 12 February 2014.
  27. ^ "Largest Permanent 35mm Cinema Screen". Guinnessworldrecords.com. 18 August 2009. Archived from the original on 16 January 2013. Retrieved 7 August 2013.
  28. ^ "50 reasons why Seoul is world's greatest city". 12 July 2017. Archived from the original on 22 October 2014. Retrieved 24 October 2014.
  29. ^ PricewaterhouseCoopers. "Cities of Opportunity" (PDF). Archived (PDF) from the original on 20 May 2014. Retrieved 20 May 2014.
  30. ^ "KOREA: Future is now for Korean info-tech". AsiaMedia. Regents of the University of California. 14 June 2005. Archived from the original on 16 December 2008.
  31. ^ "Tech capitals of the world – Technology". The Age. Melbourne, Australia. 18 June 2007. Archived from the original on 12 September 2009. Retrieved 18 June 2009.
  32. ^ akamai's [state of the internet] Q4 2016 report (PDF) (Report). Akamai Technologies. Archived (PDF) from the original on 13 May 2018. Retrieved 18 December 2017.
  33. ^ "Hi Seoul, SOUL OF ASIA – Seoul Located In the Center of Asian Metropolises". Seoul Metropolitan Government. Archived from the original on 10 July 2012. Retrieved 7 August 2013.
  34. ^ Wifi in All Public Areas Archived 17 June 2011 at the Wayback Machine
  35. ^ CJ헬로비전-에러페이지. Archived from the original on 20 December 2017. Retrieved 18 December 2017.
  36. ^ "Leading South Korean companies on the Fortune Global 500 ranking in 2023, by revenue". Statista.
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