South Korean economy has slowed

The powerhouse that was South East Asia seems to be cooling as the economy has grown as its slowest pace in over four years in the last quarter, as the country is flirting with recession due to the reduction in consumer confidence that has caused a huge reduction in exports.

During the last year the currency, the won has slumped by 32 percent and is under performing when compared to its neighbours in a period where gross domestic product rose 0.6 percent over the last three months.

Demand has weakened most in the US, Europe and parts of Asia as both South Korean manufacturers and retailers are being hit hard by the depression and are having to lay off factory workers due to falling demand of consumer electronics.

The construction industry is also a cause for concern as there is a very large backlog of unsold homes and the weakened labour market has also affected the property market.

It is clear to say that the South Korean economy is down, however, the greatest fear is that it is across the board, from manufacturing to the construction industry.

During the year the economy has slowed to just 3.7 percent, despite the government announcing that they are pumping $130 billion into their banking system, many economists have called on the government to take even further drastic action.

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