Model Of Development Of "Smart Industry" In The Republic Of Korea In The Conditions Of Innovative Economy

Аннотация

The article examines the South Korean model of smart industry in a country with an innovative economy within the context of the integration of advanced technologies such as automation, artificial intelligence, and data analytics into manufacturing and production processes. The study's relevance lies in the Republic of Korea's exemplary success in the economy, attaining a leading position in international trade through robust and practical policies. This success is attributed to four factors: 1) creating a favourable business environment by maintaining the lowest tax burden among OECD countries; 2) implementing targeted policies since the 1960s to promote exports; 3) actively participating in negotiations to conclude free trade agreements (FTAs) with developed and developing countries, recognising exports as a key growth factor; and 4) diversifying its presence in global markets. Furthermore, the shift of the world economic centre from the traditional West to the East, specifically the Asia-Pacific region, underscores the Republic of Korea's sustained economic development through pragmatic relations with countries in the region. Overall, the smart industry model in an innovative economy aims to drive continuous improvement and growth through the strategic adoption of cutting-edge technologies and practices. 1 INTRODUCTION companies are able to deliver high-quality products and services at a faster pace. Furthermore, the Republic of Korea's commitment to In recent years, the Republic of Korea has emerged fostering an innovative economy has created a as a global leader in the development of "Smart conducive environment for research and development Industry" within the framework of an innovative (R&D) activities. The government has established economy. With its strong emphasis on technological numerous innovation centers, research institutes, and advancements and a robust industrial ecosystem, Korea technology parks to facilitate collaboration between has successfully positioned itself at the forefront of the industry, academia, and research institutions. This fourth industrial revolution. This revolution, collaborative ecosystem has fueled the creation of characterized by the integration of digital technologies groundbreaking technologies and has nurtured a culture into traditional industries, has paved the way for the of entrepreneurship and innovation. emergence of smart factories, smart cities, and smart infrastructure. 2 MATERIALS AND METHODS Driven by a vision to enhance productivity, efficiency, and sustainability, the Korean government has been actively promoting the development and After the Second World War, South Korea had adoption of cutting-edge technologies such as artificial favorable conditions for the development of its intelligence (AI), Internet of Things (IoT), big data economy. Despite having a large number of low-skilled analytics, and robotics. These technologies have been workers, the country was able to open up to the world, integrated into various sectors including manufacturing, primarily to the American market. Natural resources energy, transportation, healthcare, and agriculture, were scarce, there was no capital, and the domestic transforming them into intelligent and interconnected market was relatively small and technologically systems. underdeveloped. The development of smart industry in Korea has not In order to accumulate all resources, a large number only revolutionized traditional manufacturing processes of multi-profile corporations, or chaebols, were but has also catalyzed innovation across multiple established with state support. This became the first sectors. By leveraging advanced automation, data premise of the Korean "economic miracle". Another analytics, and real-time monitoring, Korean industries premise was the high level of diligence of the have achieved higher levels of precision, agility, and population.[1] customization. This has resulted in increased Starting from the 1960s, economic programs were competitiveness in the global market, as Korean developed based on five-year plans. The first five-year plan (1962-1966) focused on the initial steps towards intellectual property. If we were to represent the formula successful industrialization. The main emphasis was of creative economy, it would be as follows: placed on the production of electricity, mineral extraction, oil refining, and cement production. The Creative Economy = Intellectual Property + second five-year plan (1967-1971) aimed to modernize Innovation + Cultural Industries + ICT (Information industry and develop sectors capable of producing and Communication Technology) products that were previously imported, such as steel production, machine building, and chemical production. This formula captures the essence of the creative The third five-year plan (1972-1976) focused on the economy and its contribution to economic growth. rapid development of export-oriented industries, The main directions of the p