This study examines and analyzes the cost structure of Korea’s quickly-expanding color TV manufacturing industry, and the effect of the related policy measures.
The demand for color televisions is growing not only in Korea, but around the globe. This spike in demand is exerting significant influence on the growth and evolution of the related manufacturing industries. In 1978, the Korean color TV industry earned, on average, USD 162.8 from each color TV it exported. The prices vary by brand and model, but generally range between USD 150 and USD 190. The prices of a 12-inch color TV in other countries, such as the United States and Japan, are USD 295 and somewhere between USD 300 and USD 330, respectively. Sony, a leading color TV manufacturer, charges approximately USD 400 for each 12-inch color TV it produces. Korean-manufactured color televisions, produced mostly by original equipment manufacturers, charge significantly less on the American market than do major brands of other countries. However, the market for color televisions in Korea remains underdeveloped, as the demand for black-and-white televisions remains prevalent.
Making a color TV requires a wide range of components, and is why the growth of the color TV industry prompts the growth of related industries as well. The dozen or so main components of a color TV include a cathode ray tube (CRT), a tuner, an interchanger (IC), a transistor (TR), a diode, and an FBT, among others. The most important of these is the CRT, which accounts for 38.7 percent of the cost. The tuner accounts for 3.8 percent; the IC, the TR, and the diode altogether, for 12.0 percent; the FBT, for 2.4 percent; and others 38.6 percent.
Korea, a relative latecomer to the international color TV market, needs to enhance the assembly and manufacturing capabilities of the industries specializing in color TV components in order to ensure the success of its color televisions on the international market. The cost of production can be lowered and significant technological innovation achieved only when the production of these components becomes localized. This is especially urgent for the manufacturing of the CRTs, of which Korea is producing 1.8 million at present. Only around 28 percent of the components that Korean TV manufacturers use come from domestic sources. The success of the Korean color TV industry will therefore require Korean companies to localize production and development, Korean businesses’ experience with manufacturing black-and-white televisions, the improvement of the quality and technologies for producing related components, and increasing investment in pioneering overseas markets.
칼라TV공업의 비용구조와 관련정책분석(An analysis of the cost structure of the color TV manufacturing industry and the related policies)
|Journal Title; Vol./Issue||한국개발연구:vol. 1(no. 4)|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Manufacturing|
|Holding||KDI; KDI School|