Current State of the Economy of the Republic of Korea

The Republic of Korea's economy is entering a critical phase due to the negative geopolitical environment, escalating trade wars, growing domestic socio-economic problems and weak economic growth prospects. In addition, the current year 2024 will be the midway point of President Yoon Suk Yeol’s term in office, which will allow summarizing the latest results of his foreign and domestic economic policies. South Korea is currently facing the following key challenges that need to be addressed immediately: falling birth rate and aging population, polarization of society and impoverishment of socially vulnerable groups, destabilization of trade relations and increasing dependence on the United States, search for new growth drivers and related risks. However, despite a number of negative trends, the South Korean economy is expected to grow gradually in 2024. This is primarily due to the recovery of the ROK's exports, namely the sale of semiconductors and other high-tech products. Among the external challenges that may have a negative impact on economic development in 2024, the following should be emphasized: military conflicts in the Middle East, technological confrontation between the US and China, and other equally serious factors. The paper analyzes the current economic situation in the ROK, South Korea's policy towards its key trading partners, and examines the problems and prospects for further economic development of South Korea. In addition, the authors note that the unbalanced policy of the ROK administration may lead to serious negative consequences both domestically and in international markets.