Last year, South Korea's economy contracted for the first time in 22 years

Last year, the South Korean economy contracted for the first time in 22 years. The coronavirus pandemic has destroyed jobs in the services sector and dampened consumer spending. The country's central bank said on Thursday that, according to preliminary data, gross domestic product fell by one percent in 2020. It was its first year-long reduction since 1998, when South Korea was hit by a severe financial crisis. The South Korean economy would be in an even worse situation during the pandemic if it were not supported by exports of the technology sector. The increase in demand in this area was driven by the purchase of personal computers and servers, as the pandemic forced millions of people around the world to work from home. The Central Bank of South Korea expects the country's economy to strengthen slightly this year, thanks to exports. However, it noted that it would take longer for the labor market to recover from damage in the services sector, such as the restaurant and transport segments.