Post on 03-Apr-2018
transcript
7/28/2019 The Korean Miracle
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KOREA
Japanese colonial rule (1905-1910)
Cold war politics
The division of Korean peninsular
(Korean war 1950-1953)
American economic and
military support
Confucianism ethics emphasizing
hierarchy and ethics (Dictatorship)
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In 1910- Independence
Japan colony Industrial development in
Northern Korea
General Park Chung Hee 1961 -Autocratic
Leadership
Develop five years plan for economic
development
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Chaebol:range of industries.(south Korea)-
Hyundai,Daewoo,Samsung and Lucky Gold star.
Economic Planning Board(EPB)-
Govt.association for future growth
Credit with low interest rate.
Massive investment in capital intensive
industries-1970
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Samsung History
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In 1993 Sonymarket leader(premium price)
Try to improve quality
Arranged meeting in Japan , US , Europe
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General Chun Doo gained control of the Korean govt.
after General Park.
He believed in opening the domestic market to foreign
competition
First five year plan in 1982 was a watershed in
Korean industrial policy
Chun regime reduced the govt. role in economic
planning and promoted market forces as the primary
mechanism for allocating capital, labor and
technology.
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Pressure from China and Japan
Questioning the octopus like diversificationstrategies of the Chaebols.
The strategies led chaebols to emphasize mass
production of commodities rather than develop
the technical and marketing capabilities
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Lee Byrung Chull started in 1983 with reporting
dry fish
Entered the sugar production in 1950 after
abandoning the operation in Seoul.
By 1959,Samsung emerged as one of the
largest business groups in South Korea
Five year management plan in 1967
Entered variety of unrelated activities.
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Samsung introduce structured programs such
as SIX SIGMA and TQM
the line stop system was first used in Samsung's
washing machine
In November 1993 Samsung announced major
changes in the composition of top executive
In 1994 Lee reorganized Samsung in to four
core sectors
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Electronics,machinery,chemicals and financialservices
In 1997 Samsung had financial problems
In 1998 Lee reduced the size of the secretarys
office from 250 to 150 employees
In April 1998 Lee eliminated the position of
chairman of the Samsung group.
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Samsung accounted 26% of the total market
value
as In 2000 Samsung surpassed Hyundai as the
group in south Korea
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Kim woo choong founded the Daewoo industrial
corporation in 1967
During the next decade, the Korean government
became more liberal in economic policies
Daewoo responded by establishing a number of
joint ventures with U.S. and Europeancompanies.
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Kim won the international business award
Kim took steps to improve Daewoo affiliate
competitive position
In August 1993 Kim announced a plan to
achieve world class technology by building a
group level research center
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Kim used the profits from textiles for rapid
expansion and getting loans at 40% interest.
Kim brought renamed Daewoo industries (
Hancock machinery) to profitability.
Close relationship with General Park
General Park assassinated in 1979
Kim maintained close relationship with govt. until1992
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Managing Daewoos operations required
extraordinary efforts
In 1993 Samsung introduced new
management
Kim initiated Daewoo's global management
initiative
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Govt. Intervention
Labor Market
Operation in global economy
Product quality from Korea
Daewoo leveraged
Battle in cheaper market segment
Investing in all fields(R&D, Production, Finance etc.)
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