Korea is an open market economy with a difference. The success of the Korean economy is evident and well recorded, in the space of just over fifty years it has gone from 3rd world to virtually 1st world- an international aid receiver to donor. However there is a unique quality which seems to have helped speed the process, essentially it is an economic national patriotism that I haven't seen anywhere else in the world.
What I mean is that Korea did not simply open its doors for business and say "come on in!". Rather it has pursued a strategy of government supported companies carefully but steadily growing domestically to then go out into the world and dominate that particular industry whatever it might be. Look up 'chaebol' for more background information.
Similar to the model of Japan in previous decades, although Koreans are not fond of comparisons to the Land of the Rising Sun, many similarities can be seen. Just like Japan at first was known for cheap products and has since graduated to have a reputation for quality and innovation so Korea is the same. In electronics they came in at the low end and now lead the world in numerous home electronic product segments. Korea is surprisingly the fifth greatest patent applier globally, behind only USA, Japan, Germany and recently China.
Today Korean industries are exceedingly concentrated, in automotive Hyundai has over 45%, Kia has over 30%, with GM Daewoo and Samsung-Renault each taking around 8% each. Bear in mind that Hyundai and Kia are part of the same group!! This dominance is not perceived as a bad thing in the mainstream media as far as I can tell. Moreover the Korean incumbents are supported unreservedly, there is no overwhelming demand for foreign products, except at the high end.
Where else do we see this dominance? Well the kite mark denoting 'made in Korea' is visible every day in all kinds of places (windows, toilets, doorframes, street furniture, homeware etc). It reminded me that the same used to be evident in the UK. As a child I remember the BSI kite mark on things that these days would only ever say 'Made in China'...
Even in the new economy we can find such examples, Korean born search engines such as Daum and Naver virtually control all the access to the web in Korea. They have a combined market share of over 88%, the trends for the future do not seem to suggest Google will take over any time soon. We must not forget that Korea already is one of the most wired countries in the world with broadband access for the general population at 95%.
In summary, although there may be a lack of choice in major markets, this is not something seen as a limiting factor. Of course the Korean companies are happy to keep it that way, fewer competitors, greater market share and higher profits. But also for Korea more widely, the jobs stay here and consequently the wealth and prosperity.
This is good for everyone - the foreign companies must simply try harder!
What I mean is that Korea did not simply open its doors for business and say "come on in!". Rather it has pursued a strategy of government supported companies carefully but steadily growing domestically to then go out into the world and dominate that particular industry whatever it might be. Look up 'chaebol' for more background information.
Similar to the model of Japan in previous decades, although Koreans are not fond of comparisons to the Land of the Rising Sun, many similarities can be seen. Just like Japan at first was known for cheap products and has since graduated to have a reputation for quality and innovation so Korea is the same. In electronics they came in at the low end and now lead the world in numerous home electronic product segments. Korea is surprisingly the fifth greatest patent applier globally, behind only USA, Japan, Germany and recently China.
Today Korean industries are exceedingly concentrated, in automotive Hyundai has over 45%, Kia has over 30%, with GM Daewoo and Samsung-Renault each taking around 8% each. Bear in mind that Hyundai and Kia are part of the same group!! This dominance is not perceived as a bad thing in the mainstream media as far as I can tell. Moreover the Korean incumbents are supported unreservedly, there is no overwhelming demand for foreign products, except at the high end.
Where else do we see this dominance? Well the kite mark denoting 'made in Korea' is visible every day in all kinds of places (windows, toilets, doorframes, street furniture, homeware etc). It reminded me that the same used to be evident in the UK. As a child I remember the BSI kite mark on things that these days would only ever say 'Made in China'...
Even in the new economy we can find such examples, Korean born search engines such as Daum and Naver virtually control all the access to the web in Korea. They have a combined market share of over 88%, the trends for the future do not seem to suggest Google will take over any time soon. We must not forget that Korea already is one of the most wired countries in the world with broadband access for the general population at 95%.
In summary, although there may be a lack of choice in major markets, this is not something seen as a limiting factor. Of course the Korean companies are happy to keep it that way, fewer competitors, greater market share and higher profits. But also for Korea more widely, the jobs stay here and consequently the wealth and prosperity.
This is good for everyone - the foreign companies must simply try harder!