The Political Economy of Technology in Global Markets and Transforming Governance of Korean Chaebol

With the increasing significance of the new mode of ‘knowledge-intensive development’ which is related to the dynamic competitiveness of the electronics industry in world markets, this chapter provides an empirical study of individual Korean MNCs acting as market-makers, alongside the growth of Korean MNCs. To develop the argument, the chapter considers three seemingly related observations. Firstly, it appears that a particular industry in one country tends to have spill-over effects on the entire national economy or other industry sectors. It is generally recognised that a major feature of the electronics industry is its global character which means ‘an industry in which a firm’s competitiveness in one country is significantly affected by its position in other countries or vice versa’ (Jun 1987: 5; Porter, 1990). The electronics industry has been characterised as a trigger that is closely linked to the prosperity of Korea’s overall economy. According to Henderson (1994: 258–9): Because of the higher technology content of their products and production processes, they [electronics industries] have the capability to deliver higher productivity and value added, and hence rapid economic growth coupled with faster increases in general prosperity … the potential for electronics industries to make a massive contribution to development is clear.