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1STRATEGY FOR POST-INDUSTRIALIZATION OF THE ECONOMY IN REPUBLIC
OF KOREA Tairova Zarnigor Mammat qizi
Department of Economics, Tashkent University of Applied Sciences (TUAS) (88)900-41-18 zarni gor.zt@gmail.com https://doi.org/10.5281/zenodo.10800401
Annotatsiya. Maqolada iqtisodiyotda sanoatlashtirishni rivojlantirishning ayrim jihatlari muhokama qilinadi. Koreya Respublikasi iqtisodiyotini postindustriyalashtirish yo'lida faol rivojlanmoqda. Asosiy strategiya og'ir sanoatga bog'liqlikdan yuqori texnologiyali tarmoqlar, innovatsiyalar va xizmatlarning o'sishiga o'tishni o'z ichiga oladi. Asosiy yo'nalishlar qatoriga sun'iy intellektni rivojlantirish, yangi materiallarni ishlab chiqarish, yashil texnologiyalarni targ'ib qilish va iqtisodiyotni raqamlashtirish kiradi. Ushbu yondashuv mamlakatning raqobatbardoshligini oshirish, iqtisodiyotni yanada barqaror rivojlanishiga turtki bo'lish va yuqori texnologiyali sohalarda yangi ish o'rinlarini yaratishga qaratilgan. Janubiy Koreya sanoatlashtirishdan keyingi strategiyani muvaffaqiyatli amalga oshirishni ta'minlash uchun ilmiy tadqiqotlar, ta'lim va infratuzilmaga faol sarmoya kiritmoqda.
Kalit so'zlar: tahlil, innovatsiya, sanoatlashtirish jarayonlari, omillar, ta'lim, ilmiy-texnikaviy taraqqiyot, sanoat, investisiya, rag'batlantirish, modernizatsiya, sanoat salohiyati, investisiya loyihasi.
Аннотация. В статье рассматриваются некоторые аспекты развития индустриализации в экономике. Республика Корея активно продвигается по пути постиндустриализации своей экономики. Основная стратегия предполагает отказ от опоры на тяжелую промышленность в сторону роста высокотехнологичных секторов, инноваций и услуг. Ключевые направления включают развитие искусственного интеллекта, разработку новых материалов, продвижение зеленых технологий и цифровизацию экономики. Этот подход направлен на повышение конкурентоспособности страны, повышение устойчивости экономики и создание новых рабочих мест в высокотехнологичных областях. Южная Корея активно инвестирует в научные исследования, образование и инфраструктуру, чтобы обеспечить успешную реализацию стратегии постиндустриализации.
Ключевые слова: анализ, инновации, процессы индустриализации, факторы, образование, научно-технический прогресс, промышленность, инвестиции, стимулирование, модернизация, производственный потенциал, инвестиционный проект.
Abstract. The article discusses some aspects of the development of industrialization in the economy. The Republic of Korea is actively progressing towards post-industrializing its economy. The primary strategy involves shifting away from reliance on heavy industry towards the growth of high-tech sectors, innovations, and services. Key focuses include the advancement of artificial intelligence, the development of new materials, the promotion of green technologies, and the digitization of the economy. This approach aims to enhance the country's competitiveness, make the economy more resilient, and generate new job opportunities in high-tech fields. South Korea is actively investing in scientific research, education, and infrastructure to ensure the successful execution of the post-industrialization strategy.
Keywords: analysis, innovation, industrialization processes, factors, education, scientific and technological progress, industry, investment, stimulation, modernization, industrial capacity, investment project.
The modern stage of development of the world economy is characterized as a postindustrial economy, where the increasing role of knowledge and innovations serves as drivers of economic growth. The Republic of Korea, like other advanced countries, has entered the 21st century with a developed economy of an innovative type. Despite the fact that Uzbekistan's initial conditions for transitioning to an innovative economy were much more favorable, it is now evident that the country's progress in this direction has been more modest. The experience of the Republic of Korea is beneficial for Uzbekistan.
The goal of this article is to assess the potential application of South Korea's experience in innovative development to Uzbekistan. While South Korea is considered an advanced state in the development and implementation of innovative technologies, Uzbekistan also possesses a significant technological base and experience, particularly in the fields of space technology and aviation. With a high level of education and development in certain sectors, Uzbekistan has the potential to transition to a new level of innovative development, and the experience of South Korea could be valuable, given that both countries emphasize the crucial role of large companies in the state's innovation development.
The South Korean government made substantial efforts to develop its science and technology policy following a military coup that led to Park Chung Hee assuming the presidency. The technological policy underwent significant changes during the years of military rule. During the Third Republic (1963-1972), the president actively implemented key political decisions, focusing on the development of essential institutions capable of adapting and applying foreign technologies. These included the Ministry of Science and Technology, one of the first government bodies dedicated to technological development, and the Korea Institute of Science and Technology (KIST), a government research center designed for the implementation of new technologies. The United States provided initial financial support and administrative consultations for the establishment of these institutions, expressing a willingness to offer further financial assistance in the future. Additionally, the government established the Korea Advanced Institute of Science and Technology (KAIS), initially presented as one of the first science and technology universities, later renamed the Korea Advanced Institute of Science and Technology (KAIST), which is now a leading technical university in Korea.
During the Fourth Republic of South Korea (1972-1980), the private sector began to play a modest role in decision-making processes and initiated the establishment of its own research organizations. The government developed a series of specialized research institutions, laying the
foundation for the creation of Daedeok Science Town (C^^^E^I) in Daejeon. In the late
1990s, this town was renamed Daedeok Science Valley (DSV), the Korean equivalent of Silicon Valley. Currently, thirty research institutes operate in this scientific hub, all under state control. Daedeok Science Valley is home to a total of 242 research organizations with over 24,000 employees, including 6,200 doctoral candidates and researchers. Their research activities are divided into four main sectors: IT technologies, biotechnology, nuclear technologies, and nanotechnologies. [1]
During the Fifth Republic of South Korea (1980-1987), the country already possessed a
substantial technological foundation. Transnational corporations, known as Chaebols (*H=),
became partners with the state. Under the leadership of President Chun Doo-hwan, more committees and technological associations were established. The focal point became research and development, which received extensive funding through the National Research Projects.
South Korea, implementing economic programs since 1980, emerged as one of the most successful new industrial nations. Phenomenal economic growth had already been achieved in the 1960s and 1970s, driven by a robust national innovation system. However, adapting to rapidly changing political and economic circumstances posed challenges. Issues such as failures, mismanagement of the financial sector, and a reluctance of foreign investors to enter the Korean market led to a major economic crisis in 1997.
The Asian financial crisis had a significant impact on the economic and social life of South Koreans. Nevertheless, despite the negative consequences, the crisis also presented an opportunity to transform outdated economic and innovation systems, aligning them with the requirements of the new millennium.
The early years of the Sixth Republic (from 1987 to the present) signified a shift toward democracy. Chaebols led the way in technological advancements, with the government directing its attention to a high-profile initiative known as the "Big Seven" project. This endeavor symbolized South Korea's ambition to be on equal footing with the most affluent and advanced nations of the 21st century (refer to the table). Furthermore, the government focused on various ambitious projects, including electric vehicles and HDTV, but achieved only limited success.
South Korea has made significant changes aimed at fostering closer integration into the global economy. The government and major corporations actively sought foreign investments to attract new capital and cutting-edge technologies. Striving to strengthen ties with industrially developed countries, they intensified efforts after the Asian economic crisis, leading to a substantial increase in foreign direct investments in the Republic of Korea.
Since the early 1980s, the National Research and Development Program (NRDP) has been actively implemented with the involvement of the Ministry of Science and Technology (MOST). The government launched the "21st Century Frontier R&D Program," expressing its commitment to developing advanced technologies independently. This program aimed to strengthen competitiveness in science and technology in emerging sectors. Over the following decade, the government allocated $3.5 billion to twenty-three projects in areas such as bioscience, nanotechnology, and space technology, with each grant amounting to approximately $1 million. [2]
During the Sixth Republic, starting from the mid-1990s, Korean policymakers became captivated by the possibilities of "big science," i.e., basic or fundamental science. The Republic of Korea actively participated in various international scientific programs and established another major state funding initiative (577 programs) to support fundamental science. The government invested considerable political efforts in shaping a "vision" for future technological development, but the technological future may hinge on maintaining economic competitiveness.
In 1999, a program was launched to enhance competitiveness in the fields of science and technology, and over the following decade, the government invested $3.5 billion in twenty-three projects spanning areas such as bioscience, nanotechnology, and space technology. Each grant was allocated approximately $1 million. During the 1990s, five new specialized research funds were established under the National Research and Development Program (NRDP). Among them, the longest-standing is the Space Research and Aerospace Program, originating in the early 1990s. This program formed the core of Korea's emerging space initiative, with a focus on satellite development.
Even before the "21st Century Frontier R&D Program" in 1999, there were extensive discussions about supporting fundamental scientific programs. Korean policymakers believed that
the country had accumulated enough scientific assets to emerge as a leader in "Big Science." These assets included individuals with technological skills willing to invest in key technological products and a young population possessing significant technological expertise, with consumer funds directed towards cutting-edge technical developments. Korea actively participated in several "Big Science" programs, being a member of the International Thermonuclear Experimental Reactor (ITER) Consortium. The country developed the "National Fusion Energy Development Plan" for the 2006-2035 period, allocating significant funds to individual research projects.
The space technology development program encompassed three key elements: "Basic Technologies," launch vehicles, and satellite technologies. Since 2008, the Korean Space Agency has collaborated with NASA in civil aviation, geodesy, solar and space physics, as well as weather research.
Research projects supporting climate change adaptation receive approximately $45.4 million, while oceanic and polar research programs are funded with a maximum of $4.54 million. Korea has substantial cooperation agreements in science and technology with the United States, Japan, Russia, France, Italy, Israel, Switzerland, and the EU. It collaborates with multilateral organizations such as APEC, OECD, and MTCP. To further support "Big Science," the government introduced another ambitious program, "Program 577," aiming to increase R&D investment to five percent of GDP. This program focuses on seven key technological areas and aims to achieve seven key statuses in terms of scientific references and international patent applications. Traditional industries such as automobiles, electronics, and military technologies are included, with a special emphasis on the space program, nuclear development, and "Convergence Technology" (nano-technology and robotics). In 2009, the Samsung Economic Research Institute (SERI) highlighted five fundamental research areas for Korea's future: space exploration, earth satellite research, genetics research, nuclear fusion, and particle physics.
Since 2013, the Republic of Korea has been implementing the "Creative Economy Action Plan". The plan aims to create a conducive environment for:
• Developing domestic businesses and ensuring guarantees for the protection of creative activities.
• Supporting the development of innovative technologies.
• Attracting international specialists and foreign highly skilled workers.
• Strengthening international cooperation in scientific and technical research and information and communication technologies.
• Attracting foreign investors to establish high-tech manufacturing facilities within the country.
According to the Bloomberg Innovation Index 2015, South Korea holds the top position globally among the 50 most developed innovative states.
Table 1
Key criteria characterizing the level of innovation in the national economy of the Republic of Korea
1 Coverage of the population with higher education (as a percentage of the population in the age group officially corresponding to this level 94
2 Number of subscribers to mobile cellular telephone services (per 1000 people) 1243
3 Percentage of the population using the internet 95
4 Number of fixed broadband internet subscribers (per 100 people) in 2016 40.5
5 Number of mobile broadband internet subscribers (per 100 people) in 2016 111.5
6 Organizations using ICT (as a percentage of the total number of organizations in the entrepreneurial sector): Broadband internet access, 'Cloud' services 991 132
7 Domestic expenditure on research and development (as a percentage of GDP) 4.24
8 Government expenditure on education (as a percentage of GDP) in 2017 5.3
9 Patents granted by patent offices of countries (total number of applications) in 2017 7767
10 Sales of industrial robots (units) in 2017 39700
11 Number of personnel engaged in research and development (as a percentage of the employed population) 1.5
After the approval of the third 'Basic Plan for Science and Technology' in 2013, five strategic research and development (R&D) directions were identified. The first one, accounting for 28% of the total R&D funding, focused on the convergence of information technology into new industries, aiming to advance future communication technologies, develop new materials, and introduce environmentally friendly vehicles into industrial production. The second direction, with 35% of the total R&D funding, centered on 'Future Growth Engines,' encompassing projects related to renewable energy sources such as solar technologies and the development of indigenous space launch vehicles. The third direction, 'Health and Longevity,' involved projects for personalized drug treatments, the use of biochips for disease diagnostics, the automation of medical services, and stem cell technologies, receiving 20% of the total R&D funding. The 'Clean and Safe Environment' direction, allocated 9% of the R&D funding, focused on promoting and enhancing smart home technologies.[3]
Among the countries of the world, the Republic of Korea ranks fifth in terms of the total amount (in US dollars) of domestic expenditure on R&D, trailing only the United States, China, Japan, and Germany. However, this gap is still quite significant. If we take the indicator for the United States as a unit, then in relation to it, the domestic R&D expenditure of the Republic of Korea will be only 0.155; for Japan - 0.329, and for China - 0.889.
Table 2
Domestic expenditure on R&D in billion US dollars
Countries 2010 2011 2012 2013 2014 2015 2016
Russia 33,0 35,1 37,9 38,6 40,3 39,7 39,8
China 213,4 247,8 292,1 334,1 370,5 407,4 451,2
Republic of Korea 52,1 58,3 64,8 68,2 73,0 75,7 79,3
Japan 140,6 148,3 152,3 164,6 169,5 169,6 168,6
As seen from Table 2, during the period from 2010 to 2016, domestic R&D expenditures in the Republic of Korea increased from 57.1 billion US dollars to 79.3 billion US dollars, or by 1.38 times. In Russia, during the same period, it increased by 1.2 times, in China by 2.1 times, and in Japan by 1.2 times. Only the Republic of Korea and China, despite the economic crisis, did not allow themselves to reduce the volume of R&D funding. At the same time, the domestic R&D expenditure as a percentage of GDP in the Republic of Korea is the highest among the countries in the region, and during the same period, it increased from 3.47% to 4.24%.[4]
The automotive industry of the Republic of Korea was initially developed as an export-oriented sector of the economy. Cheap labor provided South Korean companies with a competitive advantage in the global market. The conducted research allows us to conclude that in the early 21st century, South Korea confidently entered the group of the most developed post-industrial countries, and managed to establish itself in the global shipbuilding and automotive industries.
REFERENCES
1. British Embassy, Seoul. 2011. Science and Innovation in Korea. July 11, p. 11.
2. Ministry of Education, Science and Technology. 2010. National R&D Program.
3. Joel R. Campbell, Building an IT Economy: South Korean Science and Technology Policy // Issues in technology innovation, 2012. № 19
4. World Intellectual Property Indicators 2018. World Intellectual Property Organization. -Geneva, 2019. - 228s
5. Strategic, Policy and Social Innovation for a Post-Industrial KoreaBeyond the Miracle Edited By Joon Nak Choi, Yong Suk Lee, Gi-Wook Shin. Copyright 2018
