Sourcing in South Korea

Overview by
Type of Production
The manufacturing sector contributes nearly 40% to the GDP while as the services sector contributes around 57,2%. Korea's main industrial activity sectors are textile, steel industry, automobile manufacturing, shipbuilding and electronics (semiconductors, mobile phone, TV, etc).
Manufacturers Associations of the Main Industries
Korea Automobile Manufacturers Association (KAMA)
Korea Electronic Industries Cooperative (KEIC)
Korea Federation of Textile Industries (KOFOTI)
Korea Shipbuilders' Association (KOSHIPA)
Korea Iron & Steel Association (KOSA)
Korea Automobile Importers & Distributors Association
Korea Pharmaceutical Trades Association
Korea Wines & Spirits Importers Association

Type of Manufacturers

Original Equipment Manufacturers
OEMs are found in every major Korean industrial sectors like automobile, electronics, information, clothing, etc.
Original Design Manufacturers
In the electronics and information sectors like mobile phones or printers, the ODMs are growing to adapt the rapidly changing market need.
Most of big groups like Hyundai, Samsung and LG depend largely on their subcontractors. To survive in the international market, these big groups are more demanding the high quality and the innovation to their subcontractors.

Meanwhile, the unjust practices of these big groups upon their subcontractors became social issues. Therefore, the Fair Frade Commission (FTC) reinforces the inspection on the unfair subcontract transactions and orders the corrective measure to defray the unpaid subcontract payments, etc.

Useful Resources
Korea Auto Industries Coop. Association

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