Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0023

Year : 2004

Industry : Engineering, Electrical and Electronics

Region : South Korea

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:“A miracle economy”, that is how it is sometimes called. Four decades of extraordinary growth transformed South Korea (Korea) from one of the poorest agrarian economies1 to the eleventh largest economy by 2003. Korea set out with limited natural resources, insufficient domestic market and with virtually no tradition of economic development experience to establish a stable and independent economy. Once known for the breach of patents and intellectual property rights, Korea emerged as a leader among developing countries with respect to the number of patents filed.

Korea's journey to industrialization began in the early 1960s, which formed its 'Competitive Development Stage'. During this stage it capitalized on its abundant and inexpensive labor and its ability to acquire technology through purchase and imitation of foreign capital goods. Korea achieved this by expanding its export-oriented light industry, investing in large-scale production facilities and improving its process technology.

Textiles, apparels, toys, wigs, plywood and other labor-intensive mature products were the items Korea began exporting in the mid 1960s. In the 1970s, Korea challenged well-established suppliers in the foreign countries with its flair in shipbuilding, steel, consumer electronics and construction service industries. The Government at this time established scientific institutions to provide foundation for Korea's scientific infrastructure.