The Decrease in International Competitiveness of the Korean Economy and its Future Perspective
International competitiveness (国際競争力)
Korean economy (韓国経済)
Economic growth of developing country (発展途上国の経済成長)
Economic development (経済発展)
The Korean economy，after reaching a GNP per capita of more than US$ 10,000 in 1995，joined the OECD in 1996. Korea，after a high growth period with about 8% per year on average，became the country with the 11th world largest economy in the world and with the 12th largest trading volume. However，after attracting attention as a model of developing country economic growth，in the second half of 1995 a trade deficit and a decrease in investment lead to a rapid fall in the pace of growth. Due to the containment by developed countries and the pursuit by developing countries the international competitive power of the Korean economy has decreased. For many developing countries we can say that whether Korea becomes a fully-fledged member of the developed countries group or cannot overcome the limitations of a developing country is a most important issue. This paper focuses on the decrease of international competitive power experienced by the Korean industry in the second half of the 1980s，with special emphasis on the semi-conductor and automobile industries，and tries to capture the internal and external factors responsible for that decrease in international competitive power. After taking due consideration of the process of industrial structural adjustment of the Korean economy，several proposals to increase its international competitive power are presented.
Departmental Bulletin Paper