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Globalization and Aging - Implications for Korea -

Author Woo-Jin Youn, Sang-Hyop Lee Date 2012.03.31 Page 76
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The recent episode of globalization has helped promote economic growth through trade and
capital flows, but has also created vulnerability to external shocks. Korea’s globalization
strategies are facing new challenges and opportunities since the global financial crisis in 2008.
Korea needs to stay competitive in the changing pattern of global trade by taking advantage
of the rise of emerging markets and upgrading its export structure in response to increasing
global competition. The expansion of global production networks would provide enormous
market opportunities for Korea. Industrial and trade policies should support potential high
growth firms in identifying and developing the capabilities in expanding their access to the
global supply networks. Global firms tends to be bigger, more productive, and more skill-and
capital-intensive; and to pay higher wages than non-global firms. The government should
undertake comprehensive innovation and entrepreneurship policies to strengthen firms’
capacity to compete in the global markets.