Sou

th

Kore

a대 한 민 국

Land of the Morning Calm

THE ECONOMY OF SOUTH KOREA

• World’s 15th Largest GDP

• High Income Economy

• Developed Market

• Very High Human Development

• G-20 Major Economy

ANALYSIS OF KOREA’S COMPETITIVE ADVANTAGE-

PORTER’S 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, medium-sized 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

SmartphoneSamsung 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

Fastest Internet Connection