Operation competitiveness has weakened drastically: KERI

Korean-made products are being nudged out of display stands in the markets of advanced countries, including the United States, Japan, and Europe. It has been confirmed for the first time that even many of Korea¡¯s workhorse product lines, like semiconductors, steel, ships and machinery, have fallen from the ranks of the world¡¯s top 10.

Analysts here said that this was mainly attributable to negligence on the part of Korean firms to boost their research and development (R&D) efforts and push external growth-oriented management strategies. Without epoch-making measures to bolster the competitive power of the local manufacturing industry, part of the foundation of the nation`s wealth, Korea is feared to fall further behind the advanced countries and be overtaken by upstart nations.

According to the Korea Economic Research Institute (KERI) and relevant industries Sunday, just 55 out of a total of 3,500 Korean-made products occupy the No. 1 position in the world in terms of market share. Based on the KERI¡¯s analysis of 32 countries, including Organization for Economic Cooperation and Development (OECD)-member countries, China, and Taiwan, Korea`s share of the world¡¯s top-level products was much smaller than those of its main competitors China (306) and Taiwan (206), not to mention Japan (354).

In a recent report to Cheong Wa Dae and relevant ministries, KERI recommended that the government shift its industrial policies so as to encourage investment in R&D and allow their participation in the public sector in order to rebuild the parts of the manufacturing base that collapsed in the wake of the 1997-98 foreign exchange crisis.