This study analyzes the major industries in Korea that are undergoing structural and environmental changes, and makes long-term forecasts on Korea’s industrial structure, exploring possible improvements to be made. The chain-like series of technological innovations throughout the entire industrial structure, from material production to system engineering, gives birth to new industries and prompts existing ones to innovate. The ability to seize new opportunities in the changing technological and market environments becomes the key to maintaining an upper hand on the increasingly competitive world market.
The division of labor by multinational corporations (MNCs) around the globe decreases the importance of production and pricing factors, and also limits the effect of short-term policy measures. Accordingly, the free trade system begins to devolve, with multilateral economic blocs emerging one by one, embracing regionalism and reciprocity. This, in turn, increases the uncertainty and instability of the world economy, causing various governments to adopt policies akin to those of MNCs. This series of phenomena require businesses to seize new opportunities; build and extend networks with markets and suppliers around the world; and develop a new production organization that supports R&D, technological mastery, high quality and low cost. As the manufacturing sector in Korea is likely to experience a slowdown, while the weight of intellectual labor and service industries will increase, the Korean government needs to brace itself for anticipated changes.
The Korean textile industry should accumulate increasing amounts of management resources on the domestic market—facing growing pressures to personalize, distinguish and shorten the lifecycles of products—as its competitors worldwide are increasing their production of low- to middle-end products. The shoe industry is labor intensive and excessively dependent on the American market. Shoe manufacturers therefore need to establish a long-term strategy that would allow them to develop and secure new technologies and also acquire product planning and marketing skills in the long run. The electronics industry needs to strengthen its ability to copy the advanced products of Japan in short spans of time, while enhancing its own R&D organizations in the long run. The automobile industry faces increasing demand both at home and abroad, and is narrowing its technological gap with its counterparts in advanced economies. However, the partnership between finished car manufacturers and suppliers still leaves room for improvement. The shipbuilding industry is likely to see growing demand in the future. It therefore needs to increase its market share vis-à-vis Japan on the market, while also improving its manufacturing technology and productivity. As the general machine industry is still heavily dependent upon imports, it needs to secure and develop core parts and software technologies one by one in the long run based on the growing demand.
산업구조변화의 장기전망(Long-term forecasts on the structural changes in Korea’s industries)
|Series Title; No||정책연구시리즈 / 93-09|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < General|
|Holding||KDI; KDI School|