Megatrends Surrounding Future Industries and the Implications for Korean Industries
|Author||Yunhui Choi, Ujung Shim, Seungmin Kim, Seokha Shin||Date||2016.02.01||Page||21|
South Korea emerged as one of the 10th largest economic powers as it achieved world-class industry growth by the 1990s. However, amid recent rapidly-changing global economic environment, the growth in Korea’s major industries has been stagnated, and its
future growth engine also seems to be uncertain. The developing nations such as China threaten Korean industry’s competiveness as they realize input-driven economic model which was previously Korea’s growth model. Furthermore, the developed nations such as the U.S. are also Korea’s competitors especially in the areas of future growth engine. In particular, China has been the Korean industry’s stable export market. But since it has enhanced its industrial competitiveness and experienced changes in the consumer market environment, China has become a great game changer for the Korean economy. In addition, from the domestic front, we have witnessed less vigorous economy with reduced local investment in manufacturing and service sectors in general. In this crisis, there should be a new strategy in order to continue Korean economy’s further growth. It is a time for change of growth model from a fast follower to a first mover or to a fast mover.
We have already experienced firsthand that rapid environment change is underway in the industrial sector as waves for change
toward a future society are reflected to the economy. For example, new products and services we never imagined before are being
introduced while we have seen hyper-connections and interactions between human beings and devices as well as convergence between the technologies and industries. Additionally, we are seeing changes such as consumer personalization and vice versa, consumer value shifting from function to emotion, social diversification and uncertainties, and climate change.
Various consumer needs such as environmentally-friendly products are reshaping the existing market. This study takes various perspectives including society, technology, environment, economic changes, etc. and covers key mega trends affecting the future Korean industry. In addition, the paper aims to draw political implications so that Korea can increase future industrial competitiveness
with proactive and preemptive measures. To this end, the paper first covers important policies and future growth by analyzing the
current status and growth of the Korean industry. The paper suggests comprehensive policy measures to secure competitiveness of the Korean future industry based on insights learned from the past analysis and global megatrend analysis, especially from the megatrend having a great impact on the Korean industry.
The target of this research is the overall Korean industry from the 1950s to the year of 2025. We analyzed the policies related to the Korea’s industrial development from the 1950s to the 2000s within the boundaries we can get materials. Global mega trend was analyzed with a main focus of references and surveys with experts. We also researched possible impact on the future of the Korean industry from the future decade, until 2025. And finally, we found multiple policy measures to strengthen future competitiveness of the Korean industry after reviewing analysis of the past of the Korean industry and analysis of global mega trend affecting the future.