GDP regains pre-crisis level of $1 tril.

By Kang Seung-woo

Korea’s gross domestic product (GDP) is estimated to have surpassed $1 trillion (1,100 trillion won) last year to return to the level seen in 2007 before the global financial crisis, preliminary government data showed Tuesday.

In addition, the country’s ranking in the global GDP standings is expected to go up a notch or two, while its per capita gross national income (GNI) is estimated to have reached around $20,500, also back to the level seen before the 2008-2009 crisis.

According to the Ministry of Strategy and Finance, the nation’s nominal GDP eclipsed the mark for the first time since 2007 when it first reached the figure. The 2010 GDP is estimated to reach between 1,140 and 1,150 trillion won.

Korea marked $1.04 trillion in GDP in 2007, but the global crisis sent the Korean won’s value plunging against the U.S. dollar, reducing GDP to $931 billion and $833 billion in 2008 and 2009, respectively.

Asia’s fourth-largest economy, is expected to move up the ladder of the global rankings, competing with Australia and Mexico for the 13th spot. It placed 15th in the GDP list last year behind Australia with $924.8 billion and Mexico with $874.9 billion.

The government said the latest GDP improvement is driven by the nation’s faster-than-expected economic recovery from the global downturn.

According to ministry data, the Korean economy grew 6.1 percent last year following a 0.2 percent gain the previous year. Last month, it forecast 5 percent growth for 2011, citing robust exports and recovering domestic demand.

Korea’s per capita GDP passed the $10,000 level for the first time in 1995 at $11,432 before plummeting after the 1997-98 Asian financial crisis. The per capita income began to recover quickly and continued to rise until it finally broke the $20,000 mark in 2007.

But it fell below this mark again in 2008 in the wake of the global financial crisis, sparked by the bankruptcy of Lehman Brothers, and in 2009 it fell to a five-year low of $17,071.

The finance ministry estimates that the per capita income may reach an all-time high of $23,000 this year.

“This year’s reading might exceed the $23,000 level if the exchange rate is stable and the economy grows by the government’s goal of around 5 percent,” said an official of the finance ministry.