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Rachel Anne NatialMalgun KimA 2-2INDUSTRY OF SOUTH KOREA

ALLPPT.com _ Free PowerPoint Templates, Diagrams and ChartsWhat is Industry?economic activity concerned with the processingof raw materialsandmanufactureof goods in factories (Oxford)

a group of businesses that provide a particular product or service (Merriam-Webster)

Industrializationthe process in which a society or country transforms itself from a primarily agricultural society into one based on the manufacturing of goods and services. (investopedia.com)

occurs when industry is introduced on a large scale to a region or country (vocabulary.com)

HISTORYFollowing the Korean war, South Korea was one of the poorest countries in the world. In 1960, its gross domestic product per capita was $79, much lower than that of most of its neighboring countries.In 1961, the Economic Planning Board was established and a program of rapid industrialization based on exports was launched.

Stages of Industrialization

The Role of Korean firms in Industrial Development 1960 1970: Korean firms concentrated mainly on basic assembly, beginning the manufacture of standard, simple goods often supplying foreign transnational corporations (TNCs), mostly from the USA and Japan, under the sub-contracting arrangement called original equipment manufacturer (OEM).

1970 1990: Samsung and others learned to not only master the manufacturing process but also to innovate with manufacturing and product improvement.

From the mid-1990s onwards, firms learned how to produce original product designs from scratch, and they began to rely more on their own research and development to innovate.

The Role of Korean firms in Industrial DevelopmentBy the mid-2000s Samsung Electronics had become one of the most successful electronics producers in the world.

In 2007 it registered 2,725 patent in the USA, nearly as many as the world leader IBM with 3,148.

In 2006 Samsung spent US$5.6 billion on research and development, employed around 123,000 workers, operated 17 R&D centers around the globe

IMPORTSProducts imported bySouth Korea: Crude Petroleum(20%),Petroleum Gas (6.3%), Integrated Circuits(5.1%),Refined Petroleum (4.7%), andCoal Briquettes (2.8%)

IMPORTSImport origins of South Korea:

China(16%),Japan(13%),United States (8.4%),Saudi Arabia(7.0%), and Qatar (4.6%)

EXPORTS Products exported bySouth Korea:

Refined Petroleum(9.2%),Integrated Circuits(8.7%),Cars(7.6%), Passenger and Cargo Ships(5.2%), andLCDs (4.3%)EXPORTS Export destinations of South Korea:

China(23%),United States(11%),Japan (6.9%),Hong Kong(4.8%), and Singapore (4.6%)