South Korea is a constitutional democracy.The president is the head of state and serves a five-year term by direct election. The president is also the chief executive of the government and commander-in-chief of the armed force.The State Council,or cabinet,which includes the president and the prime minister is responsible for formulating government policy.The prime minister is appointed by the president.The National Assembly,or parliament, has one chamber and is directly elected every four years. Reflecting the past influence of the armed forces on South Korea`s political life,the constitution stipulates that the armed forces maintain ""political neutrality"" The most recent presidential election was won in December 2002 by Roh Moo_hyun, then the candidate of the ruling Millennium Democratic Party (MDP).In April 2004 the Uri Party,which had broken away from the MDP in late 2003 in order to support Roh Moo-hyun, won the general election.Since then,However,the unpopularity of the president has eroded support for Uri, and in early 2007 the party fragmented when around 30 of its members of parliament (MPs) left in order to set up a new political grouping.In April 2007 the right-leaning Grand National Party (GNP) was the largest party in parliament. Until the late 1980`s manufacturing industry accounted for a rising share of GDP-nearly 33% in 1998-compared with only 25% in 1973.The counterpart of this expansion was a fall in the share of agriculture of agriculture,forestry and fishing from 25% to 10% during this period.Since 1988,however.the share of manufacturing in GDP has stabilised at around 25% where eas that of agriculture,forestry and fishing has continued to fall,standing around 3% of the total in 2006. The decline of manufacturing as a share of GDP does not indicate that it has performed badly,however.Real value added by manufacturing rose by an annual average of 7.9% in 2002-06,rather faster than the real average annual growth rate of 4.8% for the economy as a whole.Instead,it reflects the fact that hit hero neglected areas of services have caught up fast.One sign of this catch hitherto neglected areas of services have caught up fast.One sign of this catch up fast.One sign of this catch up has been the rise in employment in services.Between 1997 and 2006 the share of services in employment rose from 66% to 74% of the total whereas that of manufacturing fell from 23% to 19%

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