In 2017, since the beginning of the year, stock indices around the world have risen significantly, with South Korea's stock market showing a much larger percentage increase compared to Thailand's. TerraBKK provides insights into the South Korean stock index, which is currently attracting attention, highlighting the key factors driving the country's economic growth.

Stock Index Growth in 2017

Since January, the KOSPI (South Korea Index) has risen from around 2,000 points to approximately 2,400 points as of September, representing a remarkable 20% increase!!! This is a significant rise over just nine months. In comparison, the SET index (Thailand Index) has only increased about 8%, from 1,570 points to a peak of 1,689 points as of October 3, 2017.

Strong Growth in South Korean Exports

In 2017, South Korea's export value has been continuously growing, reaching its highest average in the past five years. Notably, the figure for September hit $55.1 billion, a 35% increase from the same month last year. Importantly, this is the highest figure in South Korea's history. In contrast, Thailand's export figures have also shown decent growth at around 12% compared to the same month last year, but still lag significantly behind South Korea in terms of growth rate.

South Korea's import value was approximately $41 billion in September, an increase of about 21% from the same month the previous year, resulting in a trade surplus of $14 billion. This is a crucial factor contributing to economic growth.

Key Export Products of South Korea

The top 10 export products in 2016 included:

  1. Electrical appliances with an export value of $134.3 billion, accounting for 27.1%
  2. Vehicles with an export value of $62.7 billion, accounting for 12.6%
  3. Machinery and computers with an export value of $58.3 billion, accounting for 11.8%
  4. Ships with an export value of $33.2 billion, accounting for 6.7%
  5. Plastics and plastic packaging with an export value of $27.7 billion, accounting for 5.6%
  6. Medical equipment with an export value of $27.6 billion, accounting for 5.6%
  7. Fuels and oils with an export value of $27.4 billion, accounting for 5.5%
  8. Steel with an export value of $18.7 billion, accounting for 3.8%
  9. Organic chemicals with an export value of $17.9 billion, accounting for 3.6%
  10. Iron products with an export value of $11.1 billion, accounting for 2.2%

The product category with the highest export growth rate since 2009 is vehicles, which are a standout quality product of South Korea. However, in 2017, the most noteworthy growth in exports has been seen in steel and iron products, benefiting from rising steel prices.

It is evident that countries with clear economic strengths, like South Korea with its export prowess, can achieve effective economic growth. If Thailand can identify and strengthen its economic advantages, it will undoubtedly lead to significant progress and economic growth.