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Korean manufacturing industry’s response to the Fourth Industrial Revolution and its assessment

Author Eunmi Jung Date 2017.05.17 Issue No

‘The Fourth Industrial Revolution’ is expected to change the roles, structures and ranges of the existing manufacturing and service industry based on the development of ICT. Considering high ratio of the manufacturing industry in the overall economy of Korea, a preemptive response to the Fourth Industrial Revolution is a grave matter that influences the industrial competitiveness and economic growth. However, considering the interest in and efforts for the Fourth Industrial Revolution, the manufacturing industry is staying in an initial stage of a vague direction and deduction. Therefore, it is necessary to understand the influence of core technologies, routes, specific industries, above all, by sector. The Fourth Industrial Revolution is estimated to bring about overall changes in AI (Artificial Intelligence), technology products based on AI, processing, value chains, business models, production factors and competition, etc. However, it is in an initial stage of examination, and is being pushed for in part, for example, manufacturing and processing, etc. A growing number of companies are expressing their interest, making it possible to visualize its impact on industrial activities in 3 to 5 years. In this regard, it is necessary to have a paradigm shift of policy that responds to the efforts to realize a promise of technologies and thoroughly push for policy, based on the manufacturing industry’s capacity to respond to the Fourth Industrial Revolution and understanding of its expansion.