This study identifies and analyzes the effects of Korean public enterprises on the national economy of Korea.
The concept of “public enterprise” combines elements of both entrepreneurship and management with the goal of enhancing the public welfare and interests. Forming a major category of businesses worldwide, public enterprises began to emerge in Korea in the early 1960s. Over the 14 years from 1963 to 1977, the Korean economy consistently grew at an annual rate of 9.3 percent, while Korean public enterprises grew at an annual rate of 10.0 percent during the same period. This is a good indication of how public enterprises exert significant direct and indirect influence on the Korean economy and its development.
Public enterprises can be understood and grouped on the basis of ownership types, controllability, production unit identifiability, and marketability. The successful public enterprises in Korea, which grew at a rate of about 10 percent annually between 1963 and 1977, are mostly found in the areas of social overhead capital development and direct productive activities. The net worth of these public enterprises has multiplied from KRW 31.41 billion in 1963 to KRW 1.191 trillion in 1977. More specifically, the value of public enterprises in the gas and waterworks industries, for example, grew from KRW 12.3 billion in 1963 to KRW 39.5 billion in 1977, while the value of public enterprises in the areas of public works and personal services has similarly multiplied, from KRW 0.2 billion in 1963 to KRW 2.4 billion by 1977. The steady growth in the output and value of public enterprises across various areas of production and service has exerted a positive impact throughout the national economy of Korea. Furthermore, whereas these public enterprises made up 26.8 percent of the national economy as late as 1970, their share increased by almost 10 percent in only a year, reaching 34.9 percent in 1971, and again rising to 41.1 percent by 1977.
Public enterprises will need to play an increasing, and also increasingly positive, role in the growth of the Korean economy. They therefore need to ensure the efficiency of the projects they undertake, and may even be compelled to undergo radical reforms, when necessary.
한국공기업부문의 국민경제적 역할(Role of Korean public enterprises in the national economy of Korea)
|Journal Title; Vol./Issue||한국개발연구:vol. 1(no. 2)|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Entrepreneurship|
|Holding||KDI; KDI School|