The Age of Economic Security: The Future of Strategic Industries and Korea's Response

The escalating hegemonic rivalry between the United States and China will exert profound, long-term impacts on the global geopolitical landscape as well as South Korea’s strategic industries. This report examines the implications for policy carried by these political developments for semiconductors, future cars, and biopharmaceuticals — Korea’s three key strategic industries — based on input from 45 experts. The suggestions for policy will seek to establish an advantage for Korean industries that they might leverage to dominate the global competition. The semiconductor industry will require robust government support to maintain and strengthen its advanced manufacturing base, while the future car industry will need government support to flexibly and rapidly adapt to changes in the industrial ecosystem and develop world-class software service platforms. The biopharmaceutical industry will require support to develop innovative new products both in Korea and abroad and enhance its manufacturing competitiveness in the face of new risks and opportunities presented by geopolitics and an evolving demand structure. Other important manufacturing industries in Korea, such as shipbuilding, steel, communication equipment, electronic appliances (the Internet of Things), and displays, will also require a prompt and strategic policy response to meet the challenges and take advantage of opportunities being ushered in by a political environment in flux and rapidly changing market conditions.