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Riding into the sunset : The political economy of bicycles as a declining industry in Korea

Related Document
Frame of Image cles as a Declining Industry in Korea
July 2004 Hun Joo Park Y u n-Sook Park e KDI School of Public Policy and Management, 207-43 Chongnyangri- Dong, Dongdaemun-Gu Seoul 130-868 Korea phone: 82-2-3299-1028 fax: 82-2-3299-1240 e-mails: hjpark@kdischool.ac.kr; yeunsookpark@kdischool.ac.kr
Abstract This paper investigates the causes underlying the tragic story of Korea’ bicycle s industry from what appeared to be as competitive as Taiwan’ up until the 1970s to its s complete dissolution and collapse. Whereas Taiwan went on to overtake Japan as the world’ number one bicycle exporter by 1980, Korea’ bicycle industry peaked in the s s late 1980s without ever reaching its maturity both in terms of export and production performances and then hopelessly declined to fall apart by the late 1990s. This paper examines three key causal factors: Samchuly-Kia’s monopolistic complacency; Korea’ s industrial structure and the assembler-supplier relations; and the state’ unbalanced and s big chaebol-biased industrial policies. In so doing, it contributes to rethinking and redefining the role of government and industrial policy in managing so-called sunset industries. Key words: Bicycles, Sunset industry, Industrial upgrading, Small business, South Korea JEL classifications: L52, O53, P16
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Introduction
What has motivated this research is the following puzzle: While the bicycle industry in Korea 1 remained at least as competitive and promising as that in Taiwan up until the early 1970s, the s


Full Text
Title Riding into the sunset
Similar Titles
Sub Title

The political economy of bicycles as a declining industry in Korea

Material Type Reports
Author(English)

Park, Hun Joo; Park, Yeun-Sook

Publisher

[Seoul]:KDI school of Public Policy and Management

Date 2004-07
Series Title; No KDI school working paper series / 04-15
Pages 35
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology < General
Holding KDI school of Public Policy and Management

Abstract

This paper investigates the causes underlying the tragic story of Korea’s bicycle
industry from what appeared to be as competitive as Taiwan’s up until the 1970s to its
complete dissolution and collapse. Whereas Taiwan went on to overtake Japan as the
world’s number one bicycle exporter by 1980, Korea’s bicycle industry peaked in the
late 1980s without ever reaching its maturity both in terms of export and production
performances and then hopelessly declined to fall apart by the late 1990s. This paper
examines three key causal factors: Samchuly-Kia’s monopolistic complacency; Korea’s
industrial structure and the assembler-supplier relations; and the state’s unbalanced and
big chaebol-biased industrial policies. In so doing, it contributes to rethinking and
redefining the role of government and industrial policy in managing so-called sunset
industries.