Country report
South Korea – Electronic
Country Profile
In February 1945 the end of World War II, Korean Peninsula divided into North and South Korea. South Korea also name Republic of Korea, 99,392 sq. km, has a population of almost 50 million, and has its capital at Seoul, the largest city in Korea. The second largest city is Busan, which is the country’s main port, has wonderful nature harbor beside the delta of Nakdong River.
The major industrial prior 1948 was agriculture in Korea peninsula, South Korea was in a sever environment of economic. The war damage and the refugee from North Korea keep South Korea inflation and unemployment.
Korea is full of mineral source, however, most minerals concentrated in the North such as gold, coal, ore, iron and graphite. There are some tungsten, amorphous graphite, coal, and iron in South Korea and the distribution percentage is North 80%~90% to South 10%.
International trade
Balance Of Payment
The table above is the South Korea’s balance of payments account and this table can track the payments to and the receipts from other countries from 2006 to 2010. As we can see the current account surplus in all five years and it means that these five years South Korea exports more goods, services, and income than it imports. (Data from world databank)
The Current Account
South Korea reported a current account surplus equivalent to US4231 Million in October of 2011. South Korea relies largely upon exports to fuel the growth of its economy. The most important exports are form electronics industry such as semiconductors, LCD panel, mobile phone, computers related, television, motor vehicle, steel, ships and petrochemicals. South Korea imports machinery, oil, steel, transport equipment, organic chemicals and plastics. (Bank of Korea)
The Term Paper on South Korea’s Policy towards North Korea
The purpose of this essay to address issues concerned with foreign policy of one state over another. In this paper the main concern is South Korea’s policy toward North Korea with emphasis on brief history of past and present foreign policy. A brief description of the Korean government gives clarifications about historical and cultural highlights. The Korean Peninsula was initially populated by ...
(http://www.tradingeconomics.com/)
The Capital Account
Net capital account includes government debt forgiveness, investment grants in cash or in kind by a government entity, and taxes on capital transfers. Also included are migrants’ capital transfers and debt forgiveness and investment grants by nongovernmental entities. South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. An extremely competitive education system and a highly skilled and motivated workforce are two important factors driving this knowledge economy. In recent years, Korea’s economy moved away from the centrally planned to government-directed investment model and toward to a more market-oriented one. (Bank of Korea)
(http://www.tradingeconomics.com/)
The Financial Account
In the financial account, international monetary flows related to investment in business, real estate, bonds and stocks.
Also included are government-owned assets such as foreign reserves, gold, special drawing rights (SDRs) held with the International Monetary Fund, private assets held abroad, and direct foreign investment. Assets owned by foreigners, private and official, are also recorded in the financial account. During the 2008 and 2009 or 1997, South Korea’s financial account affected by the world recession especially in bonds and stocks, however, it is coming back very fast. (http://research.stlouisfed.org/)
Trading Relationships
According to the table, obviously, South Korea has great relationship with China in trading with import and export. As a major trade partner with South Korea China contains 24.5% of trading, Japan has 11.5%, U.S. has 10.8%, E.U. has 9.7%, and Singapore has 3.9%.
The Essay on Korea South Economy 2001 Est
Economy - overview As one of the Four Tigers of East Asia, South Korea has achieved an incredible record of growth. Three decades ago GDP per capita was comparable with levels in the poorer countries of Africa and Asia. Today its GDP per capita is seven times India's, 17 times North Korea's, and comparable to the lesser economies of the European Union. This success through the late 1980 s was ...
The relationship between China and South Korea is deep and broad. Their scope of import and export exceed not only the trade with United States but also the sum of Japan and United States and the trade relationship is keep growing.
South Korea also has a great relationship in ASEAN, and the major countries are Singapore, Philippines, Thailand, Indonesia, Malaysia, Vietnam, and Brunei Darussalam. In 2006 South Korea signed the free-trade agreement (FTA) with ASEAN for goods and in 2007 for trade in services has helped increase trade for both sides. Most ASEAN countries are developing countries, which means they need money, high technology, and Korea’s experience. For South Korea, they can find the cheap labor cost, large market, and expending the scope of enterprises. The growth in trade makes ASEAN’s trade with South Korea surpassing Unite States and Japan. (Data from
Top Exports And Imports
With the success of Samsung and LG, South Korea has become the world’s leader in electronic industries. Therefore, the major export from South Korea is electrical machinery and equipment and parts. And its export industries require foreign machinery and equipment for production, so electronic elements become a main import for South Korea when South Korea has surpassed Japan and the United States in selling memory chips, that’s why importing chip machinery is so important for South Korea’s economy. They also are doing well in shipbuilding (Samsung Heavy Industries) and automobile industries (Hyundai KIA) showing that South Korea became car. When they become the number five car company in the world, Hyundai KIA is trying to expand more into China and India’s emerging markets. As a result, ships, boats, and vehicle are part of major export, so the iron and steel play an important role in import. South Korea also have heavy depends on fossil fuels, South Korea is the second largest importer of liquefied nature gas, and most from Malaysia, Indonesia, Qatar, and Oman. (Data from WTA) Data from (http://www.eoearth.org) (http://www.indexmundi.com)
Foreign Direct Investments
Inflows
During the 1997-1998 the Asia financial crisis, but it provided a great period for foreign company to invest in Korea market. In the passed 10 years, the China’s economic growth and keep investing in other countries, this made South Korea’s FDI steady. In 2010, the world economic started to recover from the recession, and the investments by U.S. and Japanese investors that want to back from the global financial crisis has attributed greatly to the increase in FDI.
The Term Paper on Country Notebook For South Korea
In 1997, Outback entered the South Korean market through the franchise agreement with Aussie Chung Inc. Currently there are 101 Outback Steakhouse locations throughout South Korea. I recommend continued expansion in South Korea and would target the city of Busan in the southern region of the country. Busan is city with over 2 million in population with a highly educated population who have ...
Outflows & Stock
In 1997, the Asia financial crisis the number of outwards decreased, but since 1998 the number of outwards increased gradually especially in industries such as electronics, automobiles, and machinery. And the total accumulated stock of outward FDI reached $103 billion by June 2008. (Data from Shenkar, 2008)
The stock of direct foreign investment at home was US110.8 billion in the end of 2009 and US112.1 billion in the end of 2010. The stock of direct foreign investment abroad was US74.6 billion in the end of 2008 and US115.6 billion in the end of 2009. (http://www.indexmundi.com)
At Home | 2007 | 2008 | 2009 | 2010 |
South Korea | 119,600,000,000 | 124,200,000,000 | 110,800,000,000 | 112,100,000,000 |
Abroad | 2006 | 2008 | 2009 |
South Korea | 82,100,000,000 | 74,600,000,000 | 115,600,000,000 |
Non-Tariff Barriers
South Korea imposes non-tariff barriers to protect its industries. For example, issues related to the inability of US car manufacturers to gain adequate access to the South Korea market have derailed the talks between the two countries.
South Korea has eliminated tariffs on international trade in computers, semiconductors and telecoms devices, under the WTO’s International Telecommunications Agreement (1997).
Parts, components and other materials going into semiconductor manufacturing equipment have been exempt from customs duties since May 2001. In the latest step towards fulfilling the country’s obligation to the agreement, South Korea signed an agreement in March 2006 with the United States, the European Union and Taiwan to eliminate customs duties on metallized ceramic polyimide chips. This agreement came into force in April 2006. (http://country.eiu.com)
Electronics Industrial
Introduction
In 1945, Japan ended the occupation in Korea and charged by U.S military. But South Korea’s economy still highly dependent on Japan, for example, the Japanese owned 94 percent of business established in Korea and most engineers and technicians were Japanese in many industrial. Most Korean established the small firms and used old technology in metal and chemical industrial, so, the retreat of the Japanese made many production activities stop.
The Essay on North And South During The Industrial Revolution
The Differences between the North and South During the Industrial Revolution During the early 1800s, the United States changed in numerous ways in a little amount of time. The changes that occurred were a result of the industrial development and advancements that took place in the 19th century. Consequently, there were both many positive and negative effects that occurred as a result of these ...
The average production index increased 3.9 times from 1946 to 1953, however, the level of industrial in South Korea still far below the average and during this period, most imports were food grains and manufactured goods. The Wholesale Price index in 1953 was 8.2 but it increased to 29.2 in 1957, and GNP deflator was 5.7 in 1953 and it boost to 19.5 in 1957. (Bank of Korea) The major reason of this great boost in economic from 1953 to 1957 is the foreign aid from United Nation Korea Reconstruction Agency (UNKRA) and United State bilateral assistance program. (Frank, Jr. 1975)
In the last decade, South Korea became a first- rate economic power and a model of speed and effectiveness in its development policy. Today, South Korea is the 15th economic power in the world. How South Korea became a world economic power after war and in that time their GDP per head was equivalent to the GDP per head in Cameroon and Indonesia. One of reasons is that their government strongly supported the electronic industrial and they also become one of big supplier of China with EU and Taiwan.
Electronics in South Korea
I believe that when we talk about electronic, we can easily connect to South Korea, they success in this field by create a mark in solid notability to the world, just like computer to Silicon Valley, films to Hollywood, or wine to France. Their high quality of the product and the low cost of labor force in China take advantage in electronic industrial. Between 1980 and 1990, South Korea was a major producer in electronics industrial, the product including microwave ovens, radios, personal computer, color TVs, videocassette recorders, and watches.
The total value of parts and components (including semiconductors) produced in 1988 totaled US$9.7 billion, overtaking consumer electronics production (US$9.2 billion) for the first time. Manufacture of industrial electronics also grew significantly in 1988 and totaled US$4.6 billion (20 % of total production).
Electronics exports grew rapidly in the late 1980s to more than US$15 billion in 1988, up 40 percent from 1987–to become Seoul’s leading export industry. (http://countrystudies.us/south-korea/50.htm)
The Essay on On Reading Poems to a Senior Class at South High
The short poem “On Reading Poems to a Senior Class at South High,” by D.C. Berry expands on its basic sense of imagery, by focusing on the key aspect of conveying uprising emotions that the narrator encountered with. Besides the evident presence of visual imagery being used by D.C. Berry, he also includes organic imagery as a way of expressing emotions and feelings as they develop, as the poem ...
South Korea’s electronic products quickly surpass the Japanese products by their lower price, however, they still have heavily rely on Japanese components, that’s why South Korea’s chronic trade deficit with Japan. Some Korea companies like to form joint ventures with foreign. In the late 1980s, South Korea’s leading electronics firms such as Samsung, LG, and Hyundai began to establish plants in foreign market such as Germany, UK, Turkey, and Ireland. (U.S. Library of Congress)
Demand Conditions
South Korea has a very good in export, so they benefit from a high international demand on its electronic products. The country has a good reputation concerning high-tech industry, as well as well-known automobile and steel industries.
South Korea’s electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV products, are projected to be worth around US$12.5bn in 2010. This is expected to increase to US$12.7bn by 2014, at a compound annual growth rate of less than 1%, slower than in the preceding five years. (http://www.electronics.ca)
The recession in 2008 and 2009, the growth was slowdown, but the handsets product had better sales than anticipation. In the future, we can still imagine that this market will keep mature in many segments, and will keep growing up and has a larger extent with the innovation of smartphone and touch screen handsets as well as LED and 3D TV sets.
When we talk about South Korea, they have high level of education and as a result the consumers have strong spending power, therefore, they keep pursuing higher level of quality requirement. So when we concerning the imports, just like exports, they are keep rising to support the domestic request. The table is the domestic demand for electronics goods; we can see an increase for 2010 in the domestic demand for electronics goods, with 3.8% for home appliance, 15.1% for communication equipment and 41.0% increase for displays.
(http://www.koreaittimes.com/story/7048/outlook-koreas-electronics-industry) (IT Times)
The Term Paper on Korea And Japan: Electronics Items Between Samsung And Sony
... part of Samsung group, the largest chaebol in South Korea. Samsung Electronics currently has approximately 254,000 employees in several parts ... it is not likely that Samsung Electronics maintains such high growth indefinitely, its market capitalization demonstrates that ten years ago, ... and non-TQM firms: A case in the Korean electronics industry. Proceedings of the 1999 Decision Sciences Institute ...
Related and Supporting Industries
One of important industries for the growth of electronics industrial is original equipment manufacture (OEM).
Korean company can sell the products under foreign company, so that Korean has the skill and knowledge in the high tech process. But they want their own brand by reduce export through original equipment manufacture agreement, so that they keep innovate in technology and design and establish their prestige. This caused Korea became a leader in electronics industrial.
The other important industrial is semiconductor industry including DRAM and SRAM, now the Korea’s semiconductor industry is top three in the world with United State and Japan. Because the high percentage of South Korea’s semiconductor sales is overseas, so that let the industrial’s revenue has high sensitive to the global market. Korean play well in the global market and had over 60% market share and they are already in a high value and high performance market.
The education is also an important element to sustain the electronics industry in South Korea. They have a very high quality education system and they would like to hire well and high educated workforce to have better quality of the industry. And some companies have their university to cultivate the talented students and work in the company after they graduate. For example, Samsung has her own university and they hire some professor from MIT Sloan for their MBA program and provide their employee to learn more in the program. They also invested the R&D in the university and provided high-tech equipment for the student. This method keep the industry have high quality workforce and become a high value asset for the company.
The density of the communications network, we shall calculate telephone lines for thousand inhabitants and subscriptions to the mobile telephony for thousand inhabitants. In the first case, it is 542 for Korea and in the second, 761. The density of the transport network, South Korea has 63,200 kilometers of roads laid with cobblestones on 98,799 km ², is a ratio of 638 (Km of roads / the area).
In Korea, the transport network is near perfect. The number of international airports reported in the total area of the country: Korea has 4 international airports, which is very important for exporting firms in an exporting country.
South Korea has 10 ports, among which there are two big scale ones (Pusan and Inchon).
Pusan is the fifth worldwide harbor in terms of traffic of containers. As we can see that the communications, maritime and air transport networks are satisfactory and the international airports and ports are primordial for export. South Korea is a well-developed country and the industrial parks also supported by the government and the multiplicity of the activities of chaebols.
(Human Development Report.
Factor Conditions
In the Korean Peninsula most natural resources are in the North Korea, and South Korea just have some coal, tungsten and graphite. The geographical location of South Korea has some pros and cons, one of the cons is that they has one single border with North Korea, which is their main enemy in the world. However, South Korea is the part of continent with China, which is country growing fast and developing well, so the position is their advantage.
In South Korea, it is a high tech society and the communications of network is also well developed. Because the high level of technology and high level of education, so the electronic entertainment is a part of their live. For example, Video, audio, and gaming devices seized 23% of South Korea consumer electronics spending in 2009 and they have big market in those high-tech devices. And we can easy find out the industrial will keep innovate such as LED TV, Blue-Ray, and 3D TV, and that’s one of reasons that the electronics industrial is so prosperous in South Korea. The technology in South Korea is several years ahead some of European or American counties, also South Korea has the highest rate of broadband connection of the world and ranked 4th country in relation to the Internet.
The price of product is also a crucial factor that South Korea can survive in the competitive market. The firms in South Korea always care about the quality of the products and also the price and it became more attractive to the consumers. For example, Samsung Electronics has also cut the price of its PDP (plasma display panel) sets by as much as 20 percent while LG cut its sale prices of PDP TV sets from 8 to 22 percent.
The education system developed well in South Korea, and the workforce in South Korea are more likely to have a higher secondary education than developed countries. However, their education is based on strictness and excellence therefor students in Korea has a competitive educational environment, which might be one of the essential keys of the economic miracle.
Finally, Korea is a country with good public management and productiveness in progress. Although they do not have major natural resources, they do have the hyper-developed system of communication and of the advanced educational system, with a hard working culture.
Strategy, structure and rivalry in the industrial
One of reasons that the electronics industrial is so successful in South Korea is that not only the government supported the chaebols so much but also the bank. As a result, the chaebols founded their expansion on export. Supported by the government and the banks, chaebols concentrate the majority of resources because of the concentration of domestic savings and external financings towards them. The chaebols can do the various investments in many industrials when they have financial assistance. As a result, chaebols become stronger and stronger, however, this squeezed the space of development of SMEs and foreign firms.
The industrial organization is oligopolistic, and almost 50% of the Korean export is accomplished by big chaebols. According to Porter, “Strong domestic rivalry encourages the industry to be competitive and develop strategies and structures for survival”, because it allows to stimulate innovation. And this structure produces a strong rivalry between international market and the big Korean business companies on the domestic.
Because the government provided protection from international competitor including firms from Japan, were forbidden to sell their electronics to the consumer in South Korea, this eliminate the main competitor for companies in Korea but the company like Samsung or LG can still free to invest in overseas companies and market. Also, South Korean adopted new tactics of export aimed at the emergent countries. For example, Samsung and LG redeployed their activities to Southeast Asia (China, Indonesia, Thailand), to Latin America (Brazil, Argentina, Venezuela) and to Africa (Botswana, Zimbabwe).
This strategy focus on fast growing markets and also has a strong potential in the future, of course these countries will have a large demand in high-tech and electronic devices.
(http://www.referenceforbusiness.com/)
Samsung’s strategy
Samsung is a most successful electronics firm in South Korea, and we can see Samsung’s mobile phone easily, their branding strategy play a important role in the world market. However, in the beginning, it is hard to impress the consumer to buy their products, so they mutated the technology from other brands. They cut the cost as much as they can, they are the number three biggest smartphone in China, and during the recession their low price products attracted the consumers and change consumers’ taste and preference. In last few years, they keep offer Windows (Microsoft), Symbian (Nokia) and Android (Google) smartphone, and this easily beat one of rivals in the world, Motorola. It seems not enough for Samsung, so they launched their own OS Bada. And the most success product in Samsung is Galaxy S serious, and it is probably the first phone that is carried by all major telecoms in United States and their sell more than Apple iPhone in the world. (http://www.brightsideofnews.com/default.aspx)
To sum up, the structure of electronics industrial in South Korea is formed by chaebols, self-regulation, numerous subsidiaries, multinational, and globalized. And the strategies are the government and banks support, from imitation to innovation, expansion based on export, foreign direct investments as a strategy of access to the foreign markets, penetrate to the emerging countries.
Government policies
South Korea’s government set export targets, and rewarding those companies who exceeded their targets. The high performance comes after high reward that were economic support such as low interest loans and import licenses that could increase their profits. In 1980, South Korea’s success in automobiles, ship building, and eventually electronics leaded South Korea to the world’s leading industrial economies.
Especially for the electronics industrial, the South Korea government plays an important role, because the government decided the specific policies in establishment and functioning of clusters. And the policies of R&D and of cooperation let the Korean clusters benefit from a regional policy of innovation in order to stimulate innovation and to improve the integration of decisions.
Human resources are also in the center of the government politics for the development of the South Korean clusters. The ministry of education encourages universities and firms to share their research capacities, and the ministry of education has set up the project named Regional Human Resources Development, so that firms could utilize universities and training centers that have the necessity human capacities. The cooperation between firms and universities bring a consequent financial support to the universities that increase the Research & Development. The government encourages R&D in order to increase and improve the electronics and high-tech industry. (http://www.korea.net)
In South Korea firms that were favored by government policy were those that were able to show the competitive export in world markets. But what caused electronics industrial to be successful, and therefore to be favored by the nation’s industrial policy? The entrepreneurship, firms that were entrepreneurial, that were able to innovate in their production processes by keeping their costs low and in their output by producing what consumers wanted, those firms gained further advantages through government policy.
But the policy still has some disadvantages, one them is that it makes it more difficult for new firms that have potential in innovation to compete with those big companies that in different level.
Culture and Business Practice
General Description of Country Culture
Nowadays, South Korea becomes a fast modernizing country, but they still preserve their traditional values and the life style. In big cities, most people live in the apartment, but in the rural area they still live in the traditional way. South Korea uses the same language with North Korea, and there are 65 million people speak the Language, with 45 million in South Korea. Because Korean language is easy to learn, Korea is one of high literacy rates in the World. Buddhism is one of old religions in South Korea but its influence in society has declined recently. However, there are still many Korean’s that practice Buddhism. Christianity has become more and more popular in recent years in South Korea. Catholics spread very quickly, and some of the world’s largest churches will be found in Korea.
South Korean has a very high quality education system, which revealed in Confucianism philosophy, education is based on strictness and excellence. It is high competitive environment in educational system, which might be one of the reasons that the South Korea had an economic miracle. The situation is almost the same with my home town Taiwan, the parents in South Korea always try their best to get children in the better school, and it is totally different with United States. In South Korea students will go to cram school after class and work hard to get into best university. For Koreans, their whole early education is based around getting into a good college and that is only goal in the childhood, and that is what the parents want.
The Confucianism influences South Korea’s society strongly like harmony, propriety, and the common good are valued over individual, and great respect for family, hierarchy, and age. Just like Chinese, the family name is more important, so that it is the beginning of total name.
Business Protocol and Communication
(Culture specific business practice)
When doing the new business contacts with Korean, never try to cold call and always present a business card using your both hands and read thoroughly before placing the card within a pocket. The business card is very important and if you are an English speaking person, the card should be printed in English with the Korean translation on the reverse side. )
Meetings should not be scheduled during mid-July and Mid-August or early October as this is when South Koreans vacation. South Koreans believe that younger people should always defer to their elders. When planning a business meeting, it is recommended that each side try to match the ranks of those attending the meeting. As the meeting commences, the members of the parties should enter the conference room in order of importance (http://www.executiveplanet.com).
The South Korean business people would like to have a personal conversation before the business conversation, and during the conversation people prefer address each other by title and family name instead of given names. (http://www.business-in-asia.com/koreabiztips.html).
South Korean like drinking and when a meeting is hold in a restaurant or lounge, and it is rude when you refused the drink offer. During the dinner, shouldn’t discus the business, also spouses should not appear in the meeting.
Culture Do’s and Don’ts
Different cultures have their own character and we all have to respect it. Korea Culture emphasizes the hierarchical and heavily influenced by Confucian ethics, the Koreans place great emphasis on respect for one’s elders.
Do’s:
* Being half-an-hour late is acceptable in South Korea.
* Public drunkenness is perfectly OK as long as the inebriated individual is not being
aggressive or offensive.
Don’ts:
* Koreans will seldom pay separately.
* Talking a lot during a meal is impolite, as is blowing your nose at table and resting
your chopsticks in the rice.
* Remember remove your shoes when entering a South Korean house. There are also some restaurants where you are supposed to enter bare feet.
* Don’t eat first if there is someone older than you, and remember don’t let elders’ glass empty.
(http://www.berlitzpublishing.com/)
Negotiation Style and Tactics
South Korean is smart and knows how to win in a negotiation, they even don’t know what is fair play, and they want to take all advantages if they can. As a South Korean negotiator, they would like to put value on getting as much as possible out of every deal, and their favorite tactic is to make last minute demands when they know the other group’s deadline, so never let Korean know your schedule. And it is common for a Confucian oriented country that reluctance to say no quickly and would like to drag the things on, so we can say that they are more carful in the negotiation. No matter how good is the deal, they would like to have agreement with someone they can trust or feel comfortable, and sometimes the business relationships are too emotional and personal.
Compare on various dimensions to American culture using Hofstede’s work
The table below compares the various dimensions in South Korea culture and American culture.
Cultural values (Hofstede’s dimensions Individualism-collectivism, power distance, uncertainty avoidance, masculinity-feminity, short term vs. long term)
Individualism-Collectivism |
Individualistic | Collectivistic |
The culture is a loosely knit social framework in which people take care of themselves and their immediate family. | The culture is a tight social framework in which people take care of the members of a broader in-group and act loyal to it. |
United States | South Korea |
Power Distance |
Low | High |
The culture prefers that power be distributed uniformly where possible, in a more egalitarian fashion. | The culture accepts the fact that power is usually distributed unequally within organizations. |
United States | South Korea |
Uncertainty Avoidance |
Low | High |
The culture tolerates uncertain and ambiguous situations and values unusual ideas and behaviors. | The culture feels threatened by uncertain and ambiguous situations and relies on formal rules to create stability. |
United States | South Korea |
Masculinity-Femininity |
Masculine | Feminine |
The culture values stereotypically male traits such as assertiveness and the acquisition of money and things. | The culture values stereotypically female traits such as caring for others and caring about quality of life |
United States, South Korea | |
Short-Term vs. Long-term Oriented |
Short-Term Oriented | Long-Term Oriented |
The culture stresses values that are more past- and present-, such as respect for traditional and fulfilling obligation. | The culture stresses values that are more future-oriented, such as persistence, prudence, and thrift. |
United States | South Korea |
Conclusions
South Korea is a country depends on international exchanges, with advanced education system (high skilled workers), well society developed, and hard working culture character. In electronics industrial, they really play well because a great supports by government (R&D and innovation) and bank, also they keep innovating is important for them to stay on the top of industrial. But the success in electronics industrial also combines a lot of elements and not by coincidence. The location is an advantage for South Korea where the world’s most active regions between Japan and China. The dominance of chaebols in the Korea’s economy is a unique structure. Chaebols shaped the Korean industry and economy, they always a part of plan in government policies.
The firms in South Korea are not only focus the growth of scale in the world market but also search for the low cost of production. That’s why their products are always cheaper than the products in Japan or United Stated and high rivalry among international.
Reference
Asia-Pacific Trade and Investment Review (Byung S. Min 2006)
COUNTRY PROFILE: SOUTH KOREA (Library of Congress – Federal Research Division 2005)
FDI SYNOPSIS ON SOUTH KOREA (2009)
The Race to Innovation in Korea: The Chaebol Titans vs. The Cluster Theory
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