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중화학공업부문 연구자료(A study on heavy and chemical industries: the case of heavy electric machine manufacturing) : 중전기공업

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Title 중화학공업부문 연구자료(A study on heavy and chemical industries: the case of heavy electric machine manufacturing)
Similar Titles
Sub Title

중전기공업

Material Type Reports
Author(Korean)

노부호

Publisher

[서울]:한국개발연구원

Date 1981
Series Title; No KDI 연구자료
Pages 117
Subject Country South Korea(Asia and Pacific)
Language Korean
File Type Documents
Original Format pdf
Subject Industry and Technology < General
Holding KDI; KDI School

Abstract

This study surveys the current status of the heavy electrical machine industry, which has been largely ignored in the government’s policy on supporting industrialization, and suggests policy measures that can help improve the heavy electric machine industry.
Heavy electric machine manufacturing can be categorized as part of machine manufacturing, and as a subset of electric machine manufacturing more specifically. The industry has grown consistently for the past decade, but is exhibiting a declining level of productivity, indicating a slow market. While heavy electric machines have never formed a major part of Korea’s export portfolio, there has been growing overseas demand for these machines, particularly since 1974, suggesting the potential that the industry can become a leading source of Korea’s exports.
There are many organizations supporting the heavy electric machine industry, such as the Korea Heavy Electric Machine Manufacturing Cooperative, the Korea Electric Association, the Korea Electric Goods Manufacturing Association, the Korea Electric Works Association, and the Korea Electric Society. The problem is, however, the absence of a single center that can effectively advance the industry. Although the Korea Heavy Electric Machine Manufacturing Cooperative has been the most well-recognized organization, it still needs significant support from the government and elsewhere to perform the required research and other necessary functions on behalf of the heavy electric machine industry. The support that the Korean government provides for this industry is limited, confined to the scope of some general legislation, such as the Technology Development Promotion Act, the Tax Act, and the Mechanical Manufacturing Promotion Act. However, the ratification of the Electric Manufacturing Fostering Act has led to the significant growth of heavy electric machine business, which attests to the influence that the government can exert over the success or failure of an industry. In order to promote the continued growth of the heavy electric machine industry, the government also needs to lower the tariffs.
A labor-intensive industry offering high added value, the heavy electric machine industry has the potential to become a central player in Korea’s heavy and chemical industrialization drive. In line with its goal to achieve industrial and economic growth by focusing on the development of the heavy and chemical industries, the Korean government needs to provide greater and more systematic support for the heavy electric machine industry, through reform of the market structure, introduction of advanced technology, and reinforcement of survey and planning functions, while also ensuring the stability of supply.