PROLOGUE ................... > A Study on Economics & Industrial System in KOREA 한국의 경제와 산업시스템에 관한 연구 LG Global Challenger 2014 1 1 A Study on Economics & Industrial System in KOREA CONTENTS PROLOGUE Prologue Part 1. About Our Topic 1.1 Background Story 1.2 Getting to Know Mongolia, Nepal, Kyrgyzstan & Thailand Part 2. Our Expediton 2.1 Expedition Plan 2.2 LG Electronics, Changwon Plant 2.3 POSTECH 2.4 POSCO Museum 2.5 Busan Port Authority 2.6 LG Science Hall (Busan) 2.7 Hyundai Heavy Industrial Corp. 2.8 Hyundai Motor 2.9 Renault Samsung Motors 2.10 Ulsan Museum References Epilogue 2 PROLOGUE PROLOGUE Korea is considered to be one of the countries that has the most shockingly fast pace when talking about the country’s economic development. It is really fascinating to see how much Korea has grown when comparing to the last six decades. Our team shares a common interest which is contributing to our own countries de- velopment. And since everyone in our team come from countries so-called “developing or underdevelopment country” (Mongolia, Nepal, Thailand, Kyrgyzstan), we all agree that in order for our home countries to become economically successfully, we need to set Korea as the role model. We are really interested in how Korea becomes financially influ- ential not only in Asia but also in the World. We assume high development of today’s Korea is related to the result of heavy industry which played as the back bone of powerful financial and economics. And through some initial research, our assumption is proven to be true. But research through secondary materials alone was not enough. That is why we chose A Study on Economics and Industrial Sys- tem in KOREA as our topic for LG Global Challenger program so that we can fully explore this topic. In order to study more about this topic we visited the factories, companies and museum, located all around Korea, to get in order to experience and study about the history, ideas, concept and system directly. 2 3 Part 1. About Our Topic 1.1 Background Story 1.2 Getting to Know Mongolia, Nepal, Kyrgyzstan & Thailand 4 1.1 Background Story Mongolia Kyrgyzstan Nepal Thailand Korea is considered to be one of the countries that has the most shock- ingly fast pace when talking about the country’s economic development. It is really fascinating to see how much Korea has grown when compar- ing to the last six decades. Our team shares a common interest which is contributing to our own countries development. And since everyone in our team come from countries so-called “developing or underdevel- opment country” (Mongolia, Nepal, Thailand, Kyrgyzstan), we all agree that in order for our home countries to become economically successful- ly, we need to set Korea as the role model. We are really interested in how Korea becomes financially influential not only in Asia but also in the World. We assume high development of to- day’s Korea is related to the result of heavy industry which played as the back bone of powerful financial and economics. And through some initial research, our assumption is proven to be true. But research through secondary materials alone was not enough. That is why we chose A Study on Economics and Industrial System in KOREA as our topic for LG Global Challenger program so that we can fully explore this topic. In order to study more about this topic we visited the factories, com- panies and museum, located all around Korea, to get in order to expe- rience and study about the history, ideas, concept and system directly. 4 5 1.2 Getting to Know Us We have four members in our team and each member on our team come from different countries: Enja from Mongolia, Bakulya from Kyrgyzstan, Bom from Thailand and Era from Nepal. Even with different language in culture background and different mother tongue, we all share the same interest and love in Korea and Korean language. And through this opportunity from LG Global Challenger Program, we would be able to learn more about Korea’s Industry and Economics and hope that some day we could use the knowledge to help develop our country and Korea altogether. ENJA ERA BAKULYA BOM MONGOLIA Mongolia transferred into a market economy in 1992, the beginning of industrialization, after dem- ocratic revolution in early 1990s. Factories are rel- atively in their young stages, with a huge potential to expand. Processing of animal products, cash- mere and natural fiber manufacturing business are becoming very productive recently. Specially, Mon- golian cashmere is widely known for its quality and durability. Moreover, among extensive mineral de- posits in the country, gold makes the most indus- trial production, a leading copper and coal. Major domestic privatization programs have 6 1.2 Getting to Know Us been undertaken, as well as fostering of foreign direct investment through international tender of the oil distribution company. NEPAL Nepal is a small developing country whose economy largely depends on agriculture. Nepal is famous for its cottage industries like baskets, woollen clothes, and carpets. The manufacturing industries are soap, jute, sugar, cigarette, bricks, and cement. Concentrating in export and import, Nepal has been exporting woollen carpets, pashmina and has been importing the products like petro- leum products, machinery and equipment, auto mobiles etc. which is comparatively very ex- pensive to the amount they re- ceive from exports which lead to trade deficit. According to past geological study, Nepal has major metallic and industrial mineral deposits, but a poor infrastructure, po- litical instability, lack of equip- ment and skilled work force in- hibited further development of the mineral industry. Similarly, many of manufacturing indus- tries have been shut down due to load shedding problem which has led to high rate of unemployment. Many of Nepa- lese have been migrating to developed countries like U.S.A, Korea, Arab countries in search of better opportunities.. As a result, Nepal is in more lack of skilled manpower since the people who went to developed countries never wish to come back. Because of the above problems, Nepal has not been able to develop its economy. 6 7 1.2 Getting to Know Us KYRGYZSTAN Kyrgyzstan is a beautiful country with plenty of re- sources and people ready to work. But behind the beautiful scenery, it is hidden with the serious political situations and painful history. After the collapse of Soviet Union, one of the most developed countries of central Asia, Kyrgyzstan had faced tremendous amount of challenges. As a new born coun- try, Kyrgyzstan had neither experience nor reliable government. Since then it has been struggling both politically and economically. Once very developed economy with large amount of factories and agrarian villages, Kyrgyzstan became one of the most cor- rupted and weak. Time passed by and the country condition has got worse. Despite having so many resources, the country was not able to develop as much when compar- ing to Korea whose resources are very lim- ited. THAILAND Thailand is a country at the center of the Indochina pen- insula in Southeast Asia. It is a coconut rich with natural resources such as tropical forest, rubber forest, coals etc. Thailand is an emerging economy and is considered a newly industrialized country. Thailand has experienced exception- al economic growth over the past several decades and is rapidly entering the ranks of the newly industrialized coun- tries. While the agricultural sector continues to experience significant growth as Agriculture provides many raw ma- terials for Thailand’s industrial sector. Rubber for latex, sugarcane for refined sugar, cassava for processed livestock feed, and fruit for canning and juices are examples of manufacturing industries that process agricultural commodities into intermediate prod- ucts or consumer goods for domestic use and exports. A significant share of Thailand’s industrial sector is based on processing agricultural commodities. 8 Part 2. Our Expedition 2.1 Expedition Plan 2.6 LG Science Hall (Busan) 2.2 LG Electronics, Changwon Plant 2.7 Hyundai Heavy Industrial Corp. 2.3 POSTECH 2.8 Hyundai Motor 2.4 POSCO Museum 2.9 Renault Samsung Motors 2.5 Busan Port Authority 2.10 Ulsan Museum 8 9 2.1 Expedition Plan Purpose of Visits In order to study more about Korea’s economic and industrial system, we decide to visit three types of places: the factories, companies and museums. Each visits are aimed gain information and to experience and study about the history, ideas, concept and system directly. Objectives for Each Destination LG Electronics Since LG is well known for its electronis devices exporting to all over the world. Our objective is to observe the fac- (Changwon Plant) tory environment and its management system. Hyundai Hyundai Heavy Industrial Corporation is considered to be Heavy Industrial one of the world’s largest shipyard operated in Korea. Our Factory objective is to observe the factory environment and its Corporation management system. Renault Samsung Renault Samsung Motors is one of the most important automobile factories in Korea. Our objective is to observe Motors the factory environment and its management system. Busan port is the world 5th ranked container port and the Busan largest transshipment port in Northeast Asia. Our objec- Port Authority tive is to first-handedly observe and enhance our under- standing of the port operations. Since POSTECH is Korea’s first science and technology re- POSTECH search- oriented university that was established by POS- Company CO, our objective is to see the university campus and facilities provided and interact with its students Hyundai Motor Company is considered to be one of the world’s largest automobile assembly plant operated in Ko- Hyundai Motor rea.