Country Focus
South Korea: where innovation is king for growth of industries Call it the Korean Wave! South Korea’s claim to fame goes beyond its cultural economy popularised by Hallyu and culinary tourism. Its flair for innovation has transformed the country into a major global innovator resilient to economic downturns, says Angelica Buan in this report.
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outh Korea is the world’s fifth largest exporter and the 15th largest economy. The latest World Bank (WB) data places its GDP at US$1.6 trillion. The country has enjoyed moderate inflation, since the Asian financial crisis in late 1990s, and has promoted the implementation of economic reforms, opening up to more foreign investments; and flexing its free trade agreements to 27, some with its major markets of China and the US. Strong as it is, South Korea, dubbed as the Land of the Morning Calm, buckled to the detrimental impact of certain global economic issues, such as the trade feud between the US and China. China and the US are the country’s leading export destinations, respectively accounting for export values of US$142.1 billion and US$68.8 billion in 2017. According to the Korea Development Institute (KDI)’s analysis, domestic demand in both China and South Korea will be affected by the China-US trade dispute. KDI estimated that a 10% decrease in China’s exports to the US could dent South Korea’s GDP by a slight 0.31%. Already, revenues from South Korea’s major products have German machine maker Dr Boy’s South Korean shrunk along China’s representative SCM (Scientific Chemical Machinery) will economic slowdown. present three models of machinery, including a 63-kN XXS A data from the producing bookmark clips, equipped with 3D-printed mould Ministry of Trade, inserts. Boy says the printed mould inserts are a more costIndustry and Energy effective alternative to traditional metal moulds for the use (MOTIE) indicated that in prototype manufacturing and small batch production. Boy adds that South Korea is one of the fastest-growing markets exports to China in in the areas of prototyping and material testing equipment January fell by 19.1% as well as technical parts, and in the high-class automotive to US$10.8 billion, sector due to a decline in sales of semiconductors, general machinery, petroleum products, and wireless communication devices. JANUARY / FEBRUARY 2019
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