A Study on Strengthening International Competitiveness of Korean High-tech Industries for Protectionism

Abstract

This study analyzed the international competitiveness of Korean high-tech industries in the U.S., Japan, and China, all of which are Korea’s major trading partners by using UN comtrade database. In terms of trade volume from 2001 to 2016, China s trade volume increased the 18 times, and Korea’s exports and imports increased by five to seven times during the period. In the case of the U.S. and Japan, the increase in exports was very little, but the increase in imports was significant. As a result of examining the trade specialization index by item, it was found that there were many import-specialized sectors in Korea in general. Specifically, import specialization in the biotechnology industry was very high. In the U.S., nuclear technology and electronic products are found to be export-specialized sectors, while in Japan, export specialization of automatic production and electronic products are high. On the other hand, China is highly specialized in exporting weapons, information and communication technology products. While the U.S. and Japan are losing their overall competitiveness, Korea’s technological competitiveness is increasing while China’s price competitiveness is increasing. In order to establish and implement effective policies to enhance the competitiveness of high-tech industries, government-led R&D policies should be encouraged to involve private companies, major universities, and government agencies.