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The US National Association of Manufacturers announced a decline in the competitiveness of the Korean manufacturing industry

Author Bai, Mi Kyung Date 2004.02.11 Issue No
File
e-Kiet Industrial and Economic Information No. 187

○ The US National Association of Manufacturers (NAM) analyzed and assessed in detail
themanufacturing cost competitiveness of the top 9 trading partner countries of the US,
including Korea, in the a report announcedpublished on December 3, 2003.
- The manufacturing cost index announced put forth by NAM is the value in which the total
salaries, except for social security benefits, were are divided by the output, and , which
this value is regarded as the barometer for manufacturing cost competitiveness.
○ According to the announcement of NAM, the manufacturing cost index of Korea is 6
times higher than China’s, 1.4 times higher than Japan’s, and 1.8 times than Taiwan’s, and
further, it is actually approaching the US level.
- EspeciallyIn particular, the social security benefits of production workers in the Korean
manufacturing sector were 29.6% of their total salary, which were is quite higher than the
20.3% of the US and 24.2% of Germany.
○ In conclusion, NAM assessed concluded that the Korean manufacturing industry’s
competitiveness was greatly declining. This result is worrisome to bring about an effect
toin that it may cause a decrease diminish thein investment in Korea by foreign
companies, including the US firms.