Holding Seoul 1988 Olympic Games was just the time when Korea put a great deal of efforts on industrializing its economy. Therefore, it was no doubt that the Korean would spare no endeavor to prepare for Olympic investments. Seoul 1988 Olympic Games pushed Korea into one of the Newly industrialized Countries (NICs) from developing countries. Holding the Olympic Games stimulated 7 billion US dollars of production and 2.7 billion US dollars of national income as well from 1981 to 1988. Not only did it bring 300 million US dollars of profits, but also promptly motivated constructional development in Korea.
The investment on holding the Olympic Games started since 1982. The Korean spent 3,296 million US dollars on Olympic investment. The amount of direct investment was 1,534 million US dollars, while the amount of indirect was 1,763 million US dollars. Each of the percentage was 46.5% and 53.5% respectively.
From 1982 to 1988, GDP contributed from manufacturing as shown in table 3-3 was 127 million US dollars. Respectively, 35%, 33% and 20% were contributed from manufacturing, construction, and service. Moreover, the Olympic Games brought employment of 336 thousand workers. In detail, employment from service increased by 153 thousand. Those from construction and manufacturing were 94 and 54 thousand workers respectively.
Table 3-4 illustrates economic indicators of Korea from 1982 to 1990. Before 1990, growth rates of GDP and gross investment kept expanding and climbed to the summit at 18.8% and 23.3%, respectively, in Games-Year. However, growth rate of GDP plumped into 12.2% in 1989. Furthermore, growth rate of investment boosted since 1982 and kept increasing after the Olympic Games. Additionally, growth rates of household consumption and government expenditure were stable before 1989, and they increased abruptly afterwards. As for growth rate of employment, it slightly fluctuated from 3.0% to 5.5%. Although growth rate of index value dropped into -25.3% in 1982, the beginning year of Olympic investment, they climbed to the summit at 87.3% in 1986, and kept amazing growing afterwards.
Source : Kang, Hsuan-Wei and Hwang, Jen-Te. 2007. The Impacts of Beijing 2008 Olympic Games on China's Economy. Department of Economics, National Chengchi University.