Abstract

The development of the electronics industry in the East Asian region in characterized by the "flying geese pattern." Forming this flying geese pattern, the most important factor has been the search for low wage labor by firms of more developed countries. They relocate their labor-intensive industries and processes to the developing countries. However, this explanation is not complete because it does not explain how the development of the Korean electronics industry is breaking the existing commodity chains and forming new ones. Like other fast growing economies of East Asian countries, Korea's electronics industry began from importing foreign technology and investments mainly from Japan and the United States. Subsequently, Korean producers began to compete with the developed countries in consumer electronics under their own brand names and became one of the most important manufacturers in the world semiconductor industry. In this regard, the Korean electronics industry demonstrates and exceptional development pattern. To explain this, we must focus on the role of the government and the industrial structure. The distinct development of the electronics in Korea is attributed to the interaction between local firms belonging to chaebol, the government support.