Seung-Ho Kwon

The cultural industry policies of the Korean government and the Korean Wave

The paper examines how the Korean government promoted Korea’s cultural industries over the last 20 years. In the early 1990s, there was a radical departure in the government’s cultural industry policy, from that of political control over the cultural industries to viewing them as central to the government’s export-focused economic development strategies. The policy of developing the cultural industries was implemented in conjunction with government investment in other strategic industries, such as the information and communication technology industries. In the 2000s, the domestic market for cultural products expanded and diversified rapidly as the Korean society enjoyed improved living standards and a growing middle class demanded improved quality from Korea’s cultural products. The rapid development of other industries also facilitated the enhanced competitiveness of Korean cultural products in global markets. As a result, Korea’s cultural industries made substantial inroads into East-Asian markets in the late 1990s and into global markets in the 2000s.

Globalization and Employment Relations in the Korean Auto Industry: The Case of the Hyundai Motor Company in Korea, Canada and India

Examination is made of the complex interactions between globalization and employment relations as reflected in the operations of the Hyundai Motor Company (HMC) in Korea, Canada and India. After the closure of its short-lived attempt to manufacture cars for the North American market from Canada, the HMC ‘relaunched’ its globalization strategy in India in 1998. An examination of Hyundais experience in both countries suggests that employment relations is likely to continue to be an evolving blend of company-specific policies and locally-based practices.

Repression and Struggle: the State, the Chaebol and Independent Trade Unions in South Korea

The paper examines the interactions between the state, the chaebol and independent trade unions in South Korea from 1945 to 1999 within a political economy framework. It explores four propositions. First, that a more contingent approach is needed to understand the diversity and dynamic nature of environmental forces affecting South Korean industrial relations than the conventional emphasis on rapid industrialisation, Confucian values and anti-communist ideology. Second, that the role of the state has altered since 1987 from one of repression of labour militancy to one of playing a less interventionist role in industrial relations, although the state remains more supportive of the interests of employers. Tbird, that employers, especially family- owned conglomerates or chaebol, play an increasingly central role in industrial rela tions. Fourth, that economic, social structural and political factors aided the re-emergence of independent trade unions, in particular the development of large-scale heavy and chemical industries in regional industrial estates as part of the process of rapid industrialisation and the movement towards democratic political rule in 1987.

Business Crisis and Management Fashion: Korean Companies, Restructuring and Consulting Advice

The concept of management fashion has become increasingly common in studies of management knowledge diffusion, although rarely applied outside of Western economic settings. In this article we examine the activities of one group of management fashion setters, global management consultancies, and their role in the restructuring of Korean industry following the 1997 economic crisis. We find that large Korean companies made significant use of Western consultancies in the aftermath of the 1997 crisis. However, while the engagement of Western management experts provided an impression of reform, the adoption of consultant-directed change has been variable and consultants faced considerable client resistance to the adoption of new practice. The article explores the reasons underlying the limited embrace of Western consulting expertise in Korea and highlights the implications of the Korean case for management fashion theory.

Globalization Strategies of South Korean Electronics Companies After the 1997 Asian Financial Crisis

Most theories of foreign direct investment (FDI) either begin with the existing ownership advantages of a firm or explain that the firm-specific ownership advantages are developed internally through experience (Cantwell, 1991). Porter (1990) on the other hand lists the conditions that would be conducive to the creation of international competitive advantage of an industry. As most of the traditional theories do not aim to explain how competitive advantages, or ownership advantages in Dunning’s paradigm (1988, 1995) are created, there are limitations with these theories for explaining the emergence of latecomers such as Korean electronics companies in international markets during the past 30 years. Korean electronics companies did not have substantial firm-specific ownership advantages when they started exporting in the international market in the early 1980s. Although most of the conditions in Porter’s ‘Diamond’ (1990) were not easily identifiable among Korean manufacturers during the first stage of entering the international market, some of them have successfully established themselves and become major players in the international market. Foreign direct investment (FDI) by Korean companies began to increase rapidly in the 1990s. Although Korean companies had competitive advantages over producers in less developed countries (LDCs), their FDI decisions in the developed countries (DCs) cannot easily be explained by traditional theories of international business. The financial crisis which hit the Korean economy hard in 1997 initiated substantial changes in the Korean corporate sector, including the structure of the large business groups and their business strategies, both domestic and international. This study aims to show that there are distinct changes in the globalization strategies of the Korean companies after the 1997 financial crisis. Our findings indicate that after the changes in the structure and business strategies of these business groups, the decisions to make overseas investment/disinvestment can now be more easily explained by the traditional theories in international business developed to explain the behaviour of the companies in western industrialized countries. The electronics industry is one of the representative industries in Korea. Along with the automobile industry, they are the leading exporters in Korea. To examine the impact of the 1997 financial crisis on the globalization strategies of the Korean companies, 18 companies were chosen from the subsidiaries of the three largest Korean electronics

Privatisation and 'Light-handed' Regulation: Sydney Airport

This paper examines the privatisation of Sydney Airport and the regime of ‘light-handed’ monitoring of service quality and airport charges that followed the sale in 2002. The arguments for privatisation are reviewed, in particular the need for increased competition and/or appropriate regulation where a former public monopoly, such as Sydney Airport, is sold. The aftermath of the privatisation of the airport has led to complaints by the major airlines and consumers of ever increasing charges for use of the airfield and for car parking and other services. This highlights that the ‘light-handed’ monitoring regime has not constrained the airports ability to charge monopoly rents. The aftermath of privatisation has resulted in labour shedding, outsourcing and a focus on cost minimisation by the airports management.

Whither the Developmental State in South Korea? Balancing Welfare and Neoliberalism

Abstract Scholars of political economy have been debating the role of the Korean state in the economic development of the country, as the characteristics of a developmental state, a neoliberal state and/or a welfare state have appeared simultaneously in the various governments’ policies since the 1990s. This paper argues that although the nature, degree and extent of government intervention has varied from administration to administration, the basic stance of a developmental state has been retained while neoliberal and welfare policies have been used concurrently to further economic and social development. This coexistence of contradictory approaches reflecting alternative market economic systems was the product of a combination of government policies that has for the past 20 years provided the Korean government with the ability to deploy flexible policy mixes in response to changes in the political and economic environment and to maximise the outcomes of developmental policies.

Public sector management and the changing nature of the developmental state in Korea and Malaysia

This article traces the role of the state in developmental theory and practice, paying particular attention to public sector management. The early orthodoxy of modernisation theory put the state at the centre of development, giving it prime responsibility for generating development. Realisations of the shortcomings of modernisation theory and disappointment with its results led to the rise of neoliberal approaches in development thinking and action, with a focus on the shrinking state. However, in turn, the efficacy of neoliberalism has been questioned, and its human toll has been critiqued. Coupled with evidence of the success of the East Asian developmental states, the result has been a rethinking of the state and a new acknowledgment of its central role in development. Strong institutions and efficient, effective and responsive public sector management have been identified as key ingredients of capable states that made development happen. In outlining this trajectory, the article introduces the case studies that comprise this symposium.

From censorship to active support: The Korean state and Korea’s cultural industries

This article examines the phenomenal growth of Korean cultural industries and their export to East Asia and other parts of the world. In the early years of industrialisation, culture was used by the authoritarian regime as a form of ideological support. Strict controls were exercised over cultural production and presentation. Controls were later relaxed as the regime used entertainment and sport as popular distractions. However, the increase in television ownership, the growth of domestic electronics and home appliance industries, and rising incomes (especially among the middle class) provided the material base for the growth of cultural industries following democratisation in the 1990s. Cultural industries became key drivers of economic growth, innovation and employment, and were strongly promoted and supported by government in the style of the developmental state. The result was burgeoning production and international trade across a wide spectrum of cultural industries – film, television drama, animation, video games and music. As a reflection of the increasing integration of Korea into world markets, the government also had to ensure compliance with international trade regulations and clamp down on piracy. Today, the Korean Wave of popular culture has reached consumers in all parts of the world and makes a significant contribution to Korean gross domestic product and exports.

The Chaebol and Labour in Korea: The Development of Management Strategy in Hyundai

Introduction I The Political Economy of South Korea 1. The state, the chaebol and independent trade unions II Family Business and Expansion: 1940-1960s 2. Towards formalisation of labour management in Hyundai III Business Diversity and Concentration: 1970s-Early 1980s 3. The organisation of work in heavy industries 4. A dual approach to personnel management and labour resistance IV Crisis and Transition: Early 1980s-1990s 5. The re-emergence of independent trade unions 6. Decentralisation of heavy industries 7. The extension of paternalism and union-avoidance 8. Conclusion