Supply Chain Analysis by Manufacturing Process of Selected Industries in Korea

From the 1990s to the late 2000s, the production of goods was divided among several countries on the basis of efficiency, and trade based on the global value chain developed around the world. As manufacturing process were split between links on the global value chain, trade in intermediate goods such as parts and materials increased six-fold between 1990 and 2015, and as of 2018, the share of intermediate goods in global trade accounted for more than half of the total commodities trade. Korea is an active participant in the global value chain, lowering production costs and investing in overseas markets. Growing protectionism represented by the trade conflict between the U.S. and China adds constraints to the production process fragmentation, complicating firms’ sourcing strategies for intermediate inputs. This paper examines changes in the supply chains of major Korean industries given changes in the international environment and analyzes industrial characteristics.