Políticas corea y taiwán

South Korea
Kim and Leipziger (1997) study South Korea industrial policy in terms of distinct phases (see table 9). Initial industrialization focused on expanding manufacturing exports. During this period there was protection of the domestic market that is quantitative restriction not only for imports goods but also for foreign currency allocation. Moreover government –trough the bankingsector- also ensured that credit went to areas in which exports were most important. From the mid-1960’s onwards firms had export targets and to be able to receive long-term credit they had to meet such targets over time.
At this stage it was exports in general rather than particular firms that were being targeted, so that interventions were functional rather than selective.
An important inflectionpoint happened when The Presidential Decree of 1973 formalized the change of the industry into the production of industrial intermediates and capital-intensive goods in the Heavy and Chemical Industry Drive. This was part of an attempt to diversify and upgrade the structure of exports. Shor-term objectives and official statements “to meet the expected degree of international competitiveness” wereset to those industries. At this stage government interventions became more selective than earlier.
Policy loans –the preferential credits at low interest rate to priority sectors – were used extensively at this time reaching a peak in 1978 –those credits accounted for half of all credit in the economy. Loans at subsidized rates were available to any exporter, but only priority firms and sectorscould obtain long-term funding at these rates (Kim and Leipziger 1997).
Around 1980 these selective measures relaxed and became more functional again. The Comprehensive Stabilization Program was announced to look for a private sector that led the economy. However, government involvement remained much higher than in many other economies (Smith 2000).
During the 1980’s there was a gradual processof import liberalization which meant the elimination of import licensing and the reduction in import tariffs. Although rate of protection remained very high for agriculture it fell for manufacturing -from 22% in 1980 to 11% in 1985 and 6% in 1990 (Smith 1990). Also, high technology activities became the priority through the reduction of FDI restrictions to facilitate the access to foreigntechnology.
In addition, export incentives were reduced to decrease the reliance in such aids and the target of fiscal incentives shifted to more specific types of investment, such as R& D expenditure.
Regarding the famous policy loans, they were still important but more exclusive to small and medium companies, high-technology activities and firms in need of restructuring.
Finally in the 1990s asubstantial government withdrawal from economic activity and the ending of ‘old-style’ industrial policy took place. The chaebol – business conglomerate: powerful global multinationals owning numerous international enterprises - was forced to give up certain lines of activity to concentrate on their core areas.
Table 9: key features of industrial policy in Republic of Korea.
Period | Priorityactivities | Main instruments |
1960-73 | Exports in general- key sectors labor-intensive manufactures. | Import protection, export subsidies, subsidized credit allocations, export targeting. |
1973-80 | Heavy and Chemical Industries: priority sectors steel, petrochemicals. Nonferrous metals, shipbuilding, electronics and machinery; priority firms selected large enterprise. | Importprotection, export subsidies, subsidized credit allocations, export targeting. Widespread use of policy loans to channel funds to priority firms and sectors. Investment incentives through tax credit. |
1980-90 | Manufactured Exports, firms needed restructuring, small and medium enterprises. High technology activities now priority. | Phased import liberalization, ending of policy loans. Still government...