A Technological Perspective on The General Machinery Industry in the Republic of Korea



There is nothing extraordinary about the fact that countries classified as less developed produce a large fraction of their general machinery requirements. In the mid-1960s, when the Republic of Korea (hereinafter South Korea or just plain Korea) had paved over the final cracks of its civil war but was only beginning to launch its development drive, it was producing over half its requirements of general machinery (ISIC 382, which includes such items as prime movers, metal working equipment, special industrial machinery, general machinery parts, etc.) (KTA, 1966). At the time, the machinery sector at large (ISIC 38) accounted at most for only about 10–15 per cent of manufacturing value added (EPB, 1966).


Technological Capability Excess Capacity Average Annual Rate Medium Size Firm Design Capability 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Amsden, Alice H. (1981) ‘An International Comparison of the Rate of Surplus Value in Manufacturing Industry’, Cambridge Journal of Economics, 5, 229–49.CrossRefGoogle Scholar
  2. Amsden, Alice H. (1983) ’ “De-Skilling”, Skilled Commodities, and the NIC’s Emerging Competitive Advantage’, American Economic Review Proceedings (May) 73, 2; 333–7.Google Scholar
  3. Amsden, Alice H. (forthcoming) ‘The Rate of Growth of Demand and Technological Change’, Cambridge Journal of Economics.Google Scholar
  4. Amsden, Alice H. and Linsu Kim (1982) ‘Korea’s Technology Exports and Acquisition of a Technological Capability’ (Washington, D.C. Productivity Division, Development Research Department, World Bank).Google Scholar
  5. Amsden, Alice H. (forthcoming) The Acquisition of a Technological Capability in the Republic of Korea.Google Scholar
  6. BOK (Bank of Korea) Financial Statements Analysis, various years.Google Scholar
  7. Cha, Dong Se (1983) The Effects of Foreign Capital ( Seoul: KIET Press ) (in Korean).Google Scholar
  8. Dahlman, Carl F. (1982) ‘Analytical Framework for Acquisition of Technological Capability Research Project’ (World Bank, Development Research Department, Productivity Division, mimeo).Google Scholar
  9. EPB (Economic Planning Board) Report on Mining and Manufacturing Survey, various years.Google Scholar
  10. EPB (Economic Planning Board) (1983) Major Indicators of the Korean Economy.Google Scholar
  11. FKI (Federation of Korean Industries) (1980) Plant Exports of Korea.Google Scholar
  12. Harbison, Frederick and Charles Myers (eds) (1965) Manpower and Education; Country Studies in Economic Development ( New York: McGraw-Hill ).Google Scholar
  13. KDB (Korea Development Bank) (1982) ‘Current Trend and Issues in Korean Investment’ (December).Google Scholar
  14. KDI (Korea Development Institute) (1982) ‘Korean Industry Capital Stock Calculations, 1960–77’, Research Report 82–06.Google Scholar
  15. KEB (Korea Exchange Bank) (1983) The Korean Economy: Review and Prospects, 5th edn.Google Scholar
  16. KIET (Korea Institute for Industrial. Economics and Technology) (1980) Current State and Issues in the Machinery Industry.Google Scholar
  17. KIET (Korea Institute for Industrial. Economics and Technology) (1982) The Heavy Machinery Industries of Korea: Problems and Prospects, Final Report (December)Google Scholar
  18. KOSAMI (Korea Society for the Advancement of the Machinery Industry) (1980, 1982, 1984) Machinery Industry Manual.Google Scholar
  19. KTA (Korea Traders’ Association) (1966) Trade Annals.Google Scholar
  20. Kim, Jae Hak (1982) ‘Promotion of the Machinery Industry’ (mimeo). Presented at the International Forum on Industrial Planning and Trade Policies, Seoul, Korea, June 1–12.Google Scholar
  21. Kim, Jae Won (1983) ‘Subcontracting, Market Expansion, and Subcontracting Activities Promotion: The Case of Korea’s Machinery Industry’, Korea Development Institute Working Paper 8305.Google Scholar
  22. Kim, Linsu (1982) ‘Technological Innovations in Korea’s Capital Goods Industry: A Micro Analysis’, International Labour Organization, Working Paper WEP 2–22/WP92.Google Scholar
  23. Kim, Seung Jin (1983) ‘Evolution of and Reform Proposals for Promotion Policies in the Korean Machinery Industry’, Korea Development Institute, Working Paper 83–06.Google Scholar
  24. Lee, Kyu Uck (Forthcoming) ‘Conglomeration and Economic Power’, Korea Development Institute, working paper.Google Scholar
  25. Lewis, W. Arthur (1965) ‘A Review of Economic Development’, American Economic Review Proceedings (May) 55, 1–16.Google Scholar
  26. Mason, Edward S. et al. (1980) The Economic and Social Modernization of the Republic of Korea ( Cambridge, Mass.: Harvard).Google Scholar
  27. MCI (Ministry of Commerce and Industry) (1979) ‘Master Plan for the Development of the Machinery Industry’ (mimeo).Google Scholar
  28. MCI (Ministry of Commerce and Industry) (1979a) Annual Report of Small and Medium Industry.Google Scholar
  29. Ministry of Labour, Yearbook of Labour Statistics, various years.Google Scholar
  30. MOST (Ministry of Science and Technology) Annal of Science and Technology, various years.Google Scholar
  31. Piper, Thomas R. and Wolf A. Weinhold (1982) ‘How Much Debt is Right for Your Company?’, Harvard Business Review (July/August) 60, 4.Google Scholar
  32. SMIPC (Small and Medium Industry Promotion Corporation) (1981) A Survey Report of Small and Medium Industry in Mining and Manufacturing.Google Scholar
  33. Westphal, Larry E. (1981) ‘Empirical Justification for Infant Industry Protection’, World Bank Staff Working Paper No. 445.Google Scholar
  34. Yoo, Jan H. (1983) ‘Economic Growth and National Security: Korea’s Experience and Prospects’, in Richard F. Kosobud (ed.), Northeast Asia and the United States ( Chicago, Council on Foreign Relations ).Google Scholar

Copyright information

© Martin Fransman 1986

Authors and Affiliations

There are no affiliations available

Personalised recommendations