South Korea Between China and Japan

When Japanese Prime Minister Shinzo Abe came to power in December of 2012, promising to reinvigorate the long-moribund Japanese economy, he famously proposed an economic strategy composed of what he called "three arrows." One of those arrows appears to have made a direct hit on the economy of South Korea, which depends for half of its gross domestic product on exports. According to the Seoul-based Samsung Economic Research Institute, 49 of the top 100 Korean and Japanese exports overlapped in 2012, creating a pricing advantage that will be paid by South Korean exporters. Indeed, growth in South Koran exports slowed sharply, from 3.5 percent in the first quarter to 1.5 percent in the second.

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