Economic and Energy Prospects of Pacific Basin Country: Korea

Abstract

In spite of the rapid economic growth which the Republic of Korea has achieved during the past twenty years, the problem of securing the required energy sources to sustain the growth in national prosperity and fair international balance of trade remains acute. Due to the limited resources available domestically, much of the energy needed has to be imported. The lessons of the oil crisis and its adverse effects on the national economy have caused Korea to proceed in the direction of greatly lessened dependence on imported oil. The current and future phases of the on-going Five year Economic and Social Development Plan will emphasize diversification of supply sources for imported oil as well as its storage, development of alternative energy sources such as coal and nuclear power to reduce the oil import, vigorous exploration of territorial as well as overseas oil fields and improvements of energy utilization efficiency through industrial restructuring. The GNP is expected to grow by 7.6 percent every year during the plan years of 1982-86. The coal and nuclear energy utilization in 1986 is expected to be 38.5 and 10.5 percent respectively, while oil will supply 46 percent of the nation's energy, down from 58 percent in 1981. Long-term Projections made for the period of 1980-2000 seem also to support the growing trend of continuing interfuel substitutions and increasing role of nuclear power, as less energy-intensive but more electricity- intensive economy develops.