Posted January. 16, 2005 22:00,
More than 17 trillion won went out of the country for overseas travel, studying abroad, and medical services last year.
The government analyzed that if the money had been spent in the country, the Gross Domestic Product (GDP) would have increased by 1.8 percentage points.
The Ministry of Commerce, Industry and Energy (MOCIE) released its Trend of Balances on Service, Travel and Overseas Study on Sunday, based on the International Balance of Payments announced by the Bank of Korea. It shows that the Korean people spent 7.3 trillion won on studying abroad from January to November last year.
Adding 4.1 trillion won of deficits in the balance of travel, such as golf, and 5.2 trillion won of deficits in business services, such as medicine, law, and advertising, a total of 16.6 trillion won went out of Korea for overseas study and travel, and medical services.
The MOCIE estimated that the number might exceed 17 trillion won when the December expenditure is added.
The ministry said that the total amount would have led to a 1.8 percentage points increase in GDP growth considering the fact that the Value Added Inducement Coefficients of Consumption in 2003 were 0.79, which means that when one won is spent, 0.79 won worth of added value is created.