This study analyzes the current state of the competitiveness of the Korean electronics industry, and it provides future forecasts regarding the trend of technological innovation and the international division of roles on the global market during the 1990s. The goal is to help businesses and the government alike to find a proper strategy for strengthening the stature and competitiveness of the Korean electronics industry worldwide. In the late 1980s, Korean electronics businesses began to make their transition from the investment- and labor-intensive strategy of competition toward a more advanced strategy combining the enhancement of productivity and the development of timely and quality products with progressive features and functions. The competitiveness of the Korean electronics industry during the 1990s will therefore depend on how Korean businesses manage to beat their Japanese counterparts on the global stage. To do that, they need to wisely target markets abroad and form an effective portfolio of exported products. While competing with products made by Southeast Asian manufacturers of Japanese electronics companies in terms of price, Korean electronics companies also need to localize the development of core parts and materials.
Korean businesses can maintain their edge in the price battle by carefully balancing the pace of increase in productivity and the wage level. The Korean government therefore needs to encourage these businesses to make more efficient use of the existing facilities and resources instead of investing in creating new facilities and programs. In order to increase businesses’ competitiveness in the field of technology, the government should encourage them to build the foundations for the development of their own technologies in the long run. In the process, however, they should focus on creating efficient systems of technological development and production division as well as a substructure made up of a stable pool of workers, rather than spending their budget on short-term projects. For their part, businesses should improve the stability of wage increases, ensure the fair distribution of profits and establish effective labor-management relations and partnerships with humane management policies. The government should form an environment that induces these positive changes from businesses, while also implementing a more future-oriented strategy of human resources development.
한국전자산업 경쟁력의 실태와 전망(Present and future of the Korean electronics industry)
|Series Title; No||정책연구시리즈 / 91-22|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < General|
|Holding||KDI; KDI School|