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South Korea Electronics
In 1989 South Korea was a major producer of electronics,
producing color televisions, videocassette recorders, microwave
ovens, radios, watches, personal computers, and videotapes. In
1988 the electronics industry produced US$23 billion worth of
goods (up 35 percent from 1987), to become the world's sixth
largest manufacturer. The total value of parts and components
(including semiconductors) produced in 1988 totaled US$9.7
billion, overtaking consumer electronics production (US$9.2
billion) for the first time. Manufacture of industrial
electronics also grew significantly in 1988 and totaled US$4.6
billion (20 percent of total production). Electronics exports
grew rapidly in the late 1980s to more than US$15 billion in
1988, up 40 percent from 1987--to become Seoul's leading export
industry. Although South Korean electronic goods enjoyed
substantial price competitiveness over Japanese products, the
electronics industry continued to be heavily dependent on
Japanese components, an important factor in South Korea's chronic
trade deficit with Japan. Some South Korean firms formed joint
ventures with foreign concerns to acquire advanced technology. In
the late 1980s, South Korea's leading electronics firms (Samsung,
Lucky-Goldstar, and Hyundai) began establishing overseas plants
in such markets as the Federal Republic of Germany (West
Germany), Britain, Turkey, and Ireland.
By 1990 significant shifts were occurring within the
electronics industry. In 1989 South Korea had lost some of its
cost advantage to newer consumer electronics producers in
Southeast Asia. At the same time, production of electronic
components and of industrial electronics, particularly computers
and telecommunications equipment, continued to expand to such an
extent that overall demand for South Korean electronics products
was expected to increase modestly in the early 1990s. In 1990
Seoul projected that the microelectronics industry would grow at
an annual rate of 17.2 percent in the early 1990s.
Data as of June 1990
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