Time to revive manufacturing
President Moon Jae-in has said innovation in the manufacturing industry should be the key pillar of the government’s industrial development policy to build an innovative, inclusive economy.
A more effective way for President Moon to ratchet up the momentum of the economy is the full development of economic vitality instead of income-led growth. The past year has been difficult for the Moon administration on the economic front. Although the President promised to improve quality of life, ordinary citizens are still worried about their livelihoods.
The manufacturing sector has been the path of the country’s development. It has been the strategic achievements of rich nations over the past several hundred years to create a high-quality manufacturing industry in order to develop national wealth and power.
The sector is the most important cause of economic growth. Global trade is based on manufactured goods, not service. Furthermore, most jobs, directly or indirectly, depend on the manufacturing industry. Unlike the United States and other developed economies. Korea’s economy is still fairly heavily focused on the production of manufactured goods.
Korea’s economic growth rate is forecast to fall this year and the flagship industries, including vehicles, steel and shipbuilding are faltering.
What’s more serious at the moment is that there is no sign of things getting better in the near future.
If Korea is unable to keep a strong manufacturing sector over the medium-term, Korea’s economy will begin to lose competitiveness in the export market. The manufacturing sector is closely connected with engineering and industrial design.
The sector includes all intermediate processes required in the production and integration of products components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead.
The manufacturing process begins with product design, and materials specification from which the product is made.
These materials are then modified through manufacturing processes to become the required part.
Encouraging the development of a more dynamic and productive manufacturing sector would help to address the issues of wage stagnation and income growth.
The manufacturing industry provides the necessary foundation for an economically, socially and environmentally sustainable society. In addition, the sector drives technological innovations — the industry accounts for over two-thirds of all commercial research and development, which is the creation of new, greener products.
Above all, Moon needs a strongly pragmatic approach in implementing major policies.
I sincerely hope that manufacturing innovation will be the key pillar of government’s industrial development policy.