South Korea’s Economic and Industrial Development: Insights from the Electrical and Electronics Industry with Implications for Thailand

Abstract

South Korea’s economy has grown rapidly, transforming from a small economy to a country with a high income. Its outward-looking policy and the 5-year economic development plan implemented between 1960 and 2023 have led to the nation's economic restructuring from relying on agriculture to the industrial sector, mainly by implementing an export-driven strategy. South Korea’s electrical and electronics industry not only become the backbone of economic development but also is a basis required for advanced technology and innovation. This study is to examine South Korea’s economic structure, especially in the electrical and electronics industry. It also explores key success factors for its industry and economy. This qualitative research collected data from a comprehensive review of research and official documents related to economic and industrial policies together with secondary economic data and indicators using the theory of economic growth as an analytical framework. The results show that the 5-year economic development plan is the main determinant that directed South Korea’s economy. Key success factors of its economy, especially in the electrical and electronic industries include the national leaders’ visions, Research and Development (R&D) that steadily constitutes new knowledge and ideas, the development of human potential, government aid, and cooperation between the public and private sectors. The study also finds that South Korea’s economic growth proves the theory of economic growth. Its technology and innovation-driven strategy is achieved and even exceeded its target goals. The national economic and industrial development plan is devised step by step and follows the stages of growth. In addition, attaching to human investment and R&D causes South Korea’s economy pursuing sustainably in the long term. Taken all together, it will be useful for Thailand as a gradually recovering economy compared with its neighboring countries, to learn and adapt these successful models and practice from South Korea.