KDI 한국개발연구원

요약 The East Asian economies that were engulfed in the financial crises of
mid-1997 are currently undergoing industrial upgrading in an effort to get
out of continuing—or in some cases potential—crises and to set themselves
back on the track to stable growth. Looking to the coming twentyfirst
century, the globalization of production, the consolidation of Europe,
and the emerging digital economy will alter East Asian positions in the
global economy. This volume focuses on the patterns of industrial globalization.
The multinational corporations (MNCs) are the instruments of
production consolidation on a global scale. The MNCs will find it compelling
to decide where to locate important segments of their global production
facilities and to figure out East Asia’s strategic importance in their
production consolidation networks. The challenge to the East Asian countries
is to offer conditions that will make them attractive for these MNCs to
establish their centers there. The success stories of Ireland, Singapore, and
the United Kingdom and what they did right in inducing specific kinds of
foreign direct investment (FDI) can be contrasted with what Korea did
wrong. FDI can play a critical role in the industrial upgrading of the Korean
economy, enabling it to move from mid-tech manufacturing to hightech
industry.

The book examines several key issues. It compares Korea with other
countries and evaluates Korea’s advantages, along with the disadvantages
that Korea has to overcome in terms of its locational factors and implementation
organizations. It attempts to identify the kinds of value-added
activities that would be most advantageous for the MNCs to allocate to
Korea. It includes some discussion of what Koreans are doing to take
advantage of FDI. It explores ways of improving and upgrading Korea’s
resources as well as industrial upgrading in the age of the knowledgebased
economy, so that Korea can serve as the best place for centers of
high-value-added activities of MNCs, with its institutional and economic
factors enhanced. This volume predicts FDI flows into Korea and proposes
conditions under which Korea can induce global firms to locate their operations
in Korea, as well as action plans to realize this objective. Finally, this
volume explains how Korea’s FDI-inducing organizations differ from
those of Ireland, Singapore, and the United Kingdom and evaluates how
effectively Korea’s organizations have been working to attract FDI.

The volume comprises the papers presented at the conference entitled
"Industrial Globalization in the Twenty-First Century: Impact and Consequences
for East Asia and Korea,"

jointly organized by the Korea Development Institute and the East-
West Center and held on August 2–3, 1999, in Honolulu, Hawaii. TheIntroduction and Overview chapter has been updated to reflect new
changes in economic environments. I would like to thank Dr. Lee-Jay Cho,
Senior Advisor of the East-West Center; Dr. Yoon Hyung Kim, Professor of
Economics at Hankuk University of Foreign Studies and Senior Fellow at
the East-West Center; and Dr. Chung H. Lee, Professor of Economics at the
University of Hawaii at Manoa for coordinating the conference and
preparing this volume for publication. I also thank the paper writers, discussants,
and other participants who contributed to the conference. Our
gratitude goes to Dr. Kennon Breazeale for production coordination and
the East West Center’s graphics and production services, which prepared
the cover and book design and brought the book to a camera-ready state.