This study analyzes the Korean color TV market and compares it to color TV markets abroad, with an objective of finding ways to ensure the sustained growth and expansion of the Korean color TV industry enabling it to survive and overcome increasing international competition.
The color TV industry, facing escalating demand worldwide, is a technology-intensive industry that can generate growth in related industries, and is capable of pioneering new markets in and outside Korea.
Compared to its American and Japanese counterparts, the Korean color TV industry is still relatively immature. However, investment is being made in expanding the industry’s output and production facilities, and as a result the industry now produces 1.8 million assembly kits and cathode ray tubes (CRTs) each year. Although there is room for growth in the quality of parts and technology, the Korean TV industry is expected to start producing the majority of the parts and components it requires domestically. The Korean color TV industry may still lag far behind its American and Japanese competitors in terms of the available production factors and the quality of technology, but the determination of manufacturers in Korea and the experience with black-and-white televisions will lead to the eventual success of the Korean color TV industry.
In order for Korean color TV makers to strengthen their competitiveness on the international market, they must first outgrow their dependence on the American market, and hurry the localization of the production of TV components, while also researching and developing new technologies. As 90 percent of the Korean color TV production cost is concentrated on the production or purchase of components, it is crucial for the manufacturers to improve the quality of their products so that they can export them to an increasing number of countries. As Japanese manufacturers boast far greater markets, better part quality, and greater profile on the international market than Korean manufacturers, Korean manufacturers will eventually have to compete with their Japanese counterparts. They can clash especially hard over quality and price. The Japanese and Korean color TV industries share a great deal in common, including the fact that both first focused on stimulating domestic demand to increase productivity, and technological innovation through repeat assembly and part manufacturing breakthroughs, and used their domestic success to expand their markets abroad.
The demand for color televisions in Korea has been closely related to the rising level of household income. We can use this correlation to forecast the output of the Korean color TV industry in the future. The number of people owning black-and-white and/or color televisions was 138 out of every thousand in 1978, but will rise to 179 out of thousand in five years, and reach 400 out of thousand by the early 1990s. The growing demand for color televisions on the domestic market will stimulate the development of related parts industries, helping to make the TV industry one of the strategic sources of Korea’s continued economic growth and export.
한국의 칼라TV공업(Color TV manufacturing in Korea)
[서울] : 한국개발연구원
|Series Title; No||연구보고서 / 제79-07권|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Manufacturing|
|Holding||KDI; KDI School|