THE ECONOMY OF SOUTH KOREA

Worlds 15th Largest GDP High Income Economy Developed Market Very High Human Development G-20 Major Economy

ANALYSIS OF KOREAS COMPETITIVE ADVANTAGEPORTERS FRAMEWORK

Factor Endowments

Demand Conditions
Related and Supporting Industries Firm Strategy and Structure

FACTOR ENDOWMENTS
Government Policies -Improvement in IT infrastructure - Favorable environment for development of IT industry Over 90% of nation is wired with broadband Internet network Overall Education in Korea is relatively high Joint research and development projects

DEMAND CONDITIONS
Privatization and deregulation in telecommunication market Sophisticated internet usage Wide range of Internet users- Individuals, Businesses, Government Sector

FIRM STRATEGY AND STRUCTURE

Favorable business environment - Quick registration process - Low entry barriers in IT industry - Lower cost using telecommunication infrastructure - Diverse capital resources - Government support

FIRM STRATEGY AND STRUCTURE

Results in huge number of small, mediumsized venture in IT industry Leads to severe domestic rivalry due to competition Encourages the development of Innovative technology

RELATED &SUPPORTING INDUSTRY

Korea is United States most significant trading partner A leading position in Semiconductor market Leading manufacturer in LCD and Smartphone Samsung and LG Support for R&D and Prevention of Piracy

A LEAP TO THE FOREFRONT

1960s Underdeveloped and Agrarian Economy 1990s- Significant Economic Growth 2000s- Industrial Powerhouse with Highly Skilled Workforce - Centralized and regulated education

EDUCATING A LABOR FORCE

3 of top 50 Technology Universities reside in South Korea Compulsory elementary education Government monitors higher education and sets enrollment quotas for different programs Free tuition and military exemption

SCIENCE & TECHNOLOGY

Promotion of Applied Research In High Tech and Emerging Technology Inclusion of Robotics in Main R&D Projects(2003) Biotechnology

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