Korea - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Korea was 31.86 as of 2020. Its highest value over the past 60 years was 41.23 in 1991, while its lowest value was 10.52 in 1960.

Definition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1960 10.52
1961 12.70
1962 14.07
1963 18.79
1964 15.41
1965 14.76
1966 21.70
1967 22.20
1968 27.10
1969 29.93
1970 26.32
1971 24.98
1972 21.48
1973 26.01
1974 32.60
1975 28.53
1976 27.64
1977 30.11
1978 34.48
1979 37.47
1980 34.03
1981 32.16
1982 31.97
1983 32.48
1984 32.30
1985 32.27
1986 32.61
1987 32.59
1988 34.82
1989 36.72
1990 39.55
1991 41.23
1992 38.74
1993 37.65
1994 38.51
1995 38.95
1996 39.42
1997 37.19
1998 27.78
1999 31.01
2000 32.89
2001 31.60
2002 31.09
2003 32.28
2004 32.55
2005 32.51
2006 32.99
2007 33.10
2008 33.67
2009 29.40
2010 32.55
2011 33.32
2012 31.32
2013 29.89
2014 29.79
2015 29.53
2016 30.14
2017 32.29
2018 31.49
2019 31.49
2020 31.86

Limitations and Exceptions: Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow method using data from production, trade, and construction activities. The quality of data on government fixed capital formation depends on the quality of government accounting systems (which tend to be weak in developing countries). Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable. Estimates of changes in inventories are rarely complete but usually include the most important activities or commodities. In some countries these estimates are derived as a composite residual along with household final consumption expenditure. According to national accounts conventions, adjustments should be made for appreciation of the value of inventory holdings due to price changes, but this is not always done. In highly inflationary economies this element can be substantial.

Statistical Concept and Methodology: Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts