The Republic of Korea (or more popularly South Korea) has quickly become the world’s most advanced mobile economy, having embraced 3G and 4G since their onset. Mobile represents 11 percent of the country’s GDP, valued at $143 billion.
South Korea is a leading actor across all phases of the mobile value chain, particularly in its high-value segments such as design and production of devices and components. A strong focus on R&D and bold investments in nascent technologies, such as semiconductors in the 1980s and CDMA two decades later, helped South Korean players take the lead in design and manufacturing operations.
Two of the world’s leading smartphone OEMs, LG and Samsung, are based in South Korea. These companies have managed to transition from low-cost product to premium, cutting-edge products, contributing exceptionally high value and building a strong global brand.
By participating at such a fundamental level in the value chain, South Korea has become a highly successful net exporter, with exports of devices and components significantly exceeding imports in overall value.
How can the Indonesian industry benefit from the hard won lessons learned by South Korea, in particular in its focus towards high-technology industries? How can Indonesia similarly make the transition to an advanced mobile economy like South Korea? Such transitions will no doubt be a significant, much needed boost to the national economy.
Explore Indonesia’s potentials and the possibilities awaiting the country in the Indonesia Economic Forum 2015.