Weak industrial competitiveness

¡°World¡¯s top class in quantity, but second- or third-tier in quality.¡±

This is a pitiful, but straightforward self-evaluation that the government made on the competitiveness of the nation¡¯s leading industries.

According to a report released today by the Ministry of Commerce, Industry and Energy on ¡®Outlook for major industries and development strategies,¡¯ most of Korea¡¯s leading industries were revealed to have big shares in the global market, but fall far behind those of advanced countries in terms of competitiveness including productivity per worker and technological level.

In the shipbuilding industry, which jumped to the world¡¯s top position with a market share of 41% last year, market experts predict that Korea would continue to hold the top place. But laborers¡¯ skillfulness, productivity and production automation level of local shipbuilders were appraised to remain at 80% level of those of Japanese rivals.

The display sector, including liquid crystal displays, has emerged a new star, ranking second only behind Japan last year. However, its technological level is equivalent only to 60% of that of Japan, according to the MOCIE report. Although production and assembly technologies are almost close to those of Japan, Korean display makers are suffering from much inferior technologies for production of components, materials and equipment.

Digital consumer electronics industry also has made a great stride, as its global market share ranked fifth (4.0%) last year, and the nation succeeded in mass-production of some digital electronic gadgets for the first time in the world. However, 10% of the selling prices are to be paid as royalties to foreign companies, reflecting the harsh reality that is not so good as it looks.

Textiles, steel and petrochemicals also came in the fourth (5.5%), sixth (5.2%) and third, respectively, in the global market last year. However, their competitiveness were revealed to remain in the 50%-to-80% range of those of advanced countries, the MOCIE report said.

Besides, the nation¡¯s automobile industry, which ranked seventh in terms of the world¡¯s market share, has still inferior technological development level. And computer industry, which boasted of the world¡¯s eleventh largest market share (2.0%) last year, also has a weak competitiveness with two-or-four years behind those of advanced countries.