Canada Wood Today | The Canada Wood Group

Economy Update

Tai Jeong

By Tai Jeong

Country Director, Canada Wood Korea

August 1, 2018

South Korean economy expanded 3.1% last year and is expected to grow 2.9% this year. The country’s facility investment is expected to increase 1.5% this year, sharply slowing down from last year’s 14.6% on-year rise. Construction investment is forecast to decline 0.1% this year, a turnaround from last year’s 7.6% expansion.
Private spending, a major pillar of the country’s economic expansion, is projected to increase 2.7% this year, slightly higher from last year’s 2.6% rise.
The South Korean government decided to raise the minimum wage for next year to 8,350 won per hour, up 10.9% from this year. This is the first time in history that the country’s minimum wage will surpass the 8,000 won mark.
South Korea has successfully hosted the 2018 Winter Olympics in February, 2018 in PyeongChang, Gangwon Province. As North Korea sent athletes and delegation to the Winter Olympics and successful summit talks held between South and North Korea and North Korean and the US, the easing of geopolitical risks is also likely to have a positive impact on the South Korean economy.