Since the 1980s, South Korea has been one of the fastest growing economies in the world. It was once poor, but the country has been able to transform itself from a backwater to an innovation nation. In doing so, the country has built a network of advanced research and manufacturing facilities.
The country is known for its growing aerospace industry. South Korea is also a leading producer of automobiles and electronics. Each of these industries creates demand for labor that cannot be met by the country’s large population.
These trends led to increased competition among companies in the aerospace industry. A number of companies have closed down. Hiring has been difficult. Recruitment has become more difficult.
The South Korean government found that the amount of industrial capacity that was in place was not enough to meet the growing demand. This problem was brought into the attention of the government by the Organization for Economic Cooperation and Development (OECD).
The OECD recommended that the European Union and Japan work together to reduce trade barriers. The result was the creation of the South Korean market access policy. A decade later, South Korea has been able to bring goods into its market at a lower cost than before.
The Case Study Solution, Rebounding AfterCrisis: South Korea employs a formalized policy of economic liberalization. It also encourages investment, innovation and exports through the provision of free trade zones and investment financing schemes.
A number of foreign investors were attracted to South Korea, particularly those with manufacturing companies. They used this opportunity to provide finance to start-up businesses in South Korea and thus led to the development of advanced technology manufacturing plants.
If you look at the history of South Korea’s economy, you will see that it had to cope with a massive internal migration and a massive external migration in the early years. It was forced to build its infrastructure on the back of international investment and the export of technological knowledge.
The next time there is a significant international event in South Korea, such as the Olympics, you can be sure that there will be a rush to secure international investments. South Korea would then be a potential provider of advanced technologies and manufacturing equipment.
This is the kind of scenario that the Case Study Analysis can provide for your organization. It can help provide guidance and help formulate a strategy that will take your organization from “behind” to “leading.” The strategies can include hiring new workers, improving training for current workers, encouraging expansion and procurement of production equipment, and support the rise of a more sophisticated technology and industrial base.
Use the Case Study Solution to improve the state of your organization. Then do your part to produce good economic results for your company.