GVC Linkage of Materials, Parts, and Equipment Industries in China, Japan and Korea

Jeong, Hyung-Gon

doi:10.2139/ssrn.3916573

Cited by 3 publications

(2 citation statements)

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“…In particular, the new semiconductor industrial policies and accompanying subsidies could not protect the majority of SMEs from the new volatility of international markets. Beijing's ‘Made in China ( zhongguozhizao ) 2025’ initiative has increasingly reduced its imports of materials and parts from Korean SMEs (Jeong, 2021: 7). The worsening performance of many SMEs was all the more remarkable because their business performance has been increasingly decoupled from that of the chaebol.…”

Section: Beneath the Entrepreneurial Statementioning

confidence: 99%

“…As the state's goal of industry-wide cooperation and technological localization became subject to the chaebol's discretion, the government became further distracted from SMEs' workplace concerns. Industrial specialists have acknowledged that technological localization would not be sustainable without resolving the skilled labor shortage in SMEs (National Assembly Budget Office, 2020: 38–40; Jeong, 2021). Therefore, the government has designed a KRW 300 billion (USD 260 million) project to foster 3,000 master's degree holders and Ph.D.-qualified experts in the field of semiconductor research and development for the next 10 years.…”

Section: Explaining Limited Sme Incorporationmentioning

confidence: 99%

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When old institutions pay off: a new entrepreneurial state in South Korea and its limit in incorporating small firms into semiconductor production

Yang

Yun

2023

Japanese Journal of Political Science

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This study discusses why South Korea has not always succeeded in the ‘entrepreneurial state’ approach – defined as policy efforts to move away from the old developmental state model to a new industrial system of innovation in which small- and medium-sized enterprises (SMEs) are incorporated – by focusing on the limitation of new semiconductor industrial policies of the former Moon Jae-in government (2017–2022). Conventionally, many scholars have exclusively ascribed this limitation to large businesses' (chaebol's) practice of in-house production. Building upon historical institutionalism and its concept of increasing returns, alternatively, we shift attention to the way the Moon government played its entrepreneurial role. We argue that, as the government sought increasing returns from the developmental state idea and institution, the likelihood of wider SME incorporation decreased. Nationalism enabled the government to control the policymaking process but made it difficult to obtain new information through policy contestation. The government depended on developmental alliance to increase policy visibility through the chaebol's capabilities, but demands of small firms were downplayed. This study proposes to construct a more theoretical framework with which to explain how the old political economy model affects new entrepreneurial goals.

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Section: Beneath the Entrepreneurial Statementioning

confidence: 99%

Section: Explaining Limited Sme Incorporationmentioning

confidence: 99%