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The Changing Structure of the Korean Textile and Clothing Industry and Policy Tasks

Author Park Hoon Date 2020.04.30 Series
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The Korean textile and clothing industry has fallen into a positioning trap without any obvious strengths over the checks of advanced countries such as Japan, the United States and Germany and catch-up developing countries such as China and India.
The domestic production base has shrunk as companies expand overseas investment to improve price competitiveness through cost reductions while neglecting facility investment for the production of new products and expansion of new facilities.
In addition, the Korean textile and clothing industry has not only declined in terms of profitability but also in terms of productivity due to a lack of technological innovation capability, a lack of high value-added products and a reorganization of the industrial structure centered on small companies with low productivity and low profitability.