Cover Image
close this bookTechnological Independence The Asian experience (UNU, 1994, 372 pages)
close this folder3. The Republic of Korea
View the documentPreamble
View the documentHistory
View the documentDevelopment policies and strategies from the 1960s to the 1980s
View the documentThe plans
View the documentImpact on the agricultural and industrial sectors
View the documentScience and technology in korea before the 1960s
View the documentThe role of science and technology in recent development
View the documentScience and technology and the exogenous environment
View the documentEducation and training
View the documentResearch and development
View the documentReassessment of the policy and strategy
View the documentAchievements in industrial development
View the documentThe electronics industry as a case-study
View the documentSelf-reliance targets at each stage
View the documentProblems and issues
View the documentFuture plan for self-reliance of science and technology
View the documentThe long-term goals and strategy of national development
View the documentRole of science and technology for future development
View the documentLong-term goal of S&T development
View the documentSumming-up and regional cooperation
View the documentRegional cooperation
View the documentBibliography

Science and technology and the exogenous environment

Because the import of foreign technologies requires foreign exchange, it has been controlled by the law for foreign capital inducement. Before the revision of 1978, every contract for technology imports was reviewed by the Minister of the Economic Planning Board. The operational decrees of the foreign capital inducement law, revised in 1978, classified technology imports under three categories, enabling some imports to be exempted from the review.

To be classified in the review-free category, the contract would have to be short-term and worth only a small amount and the imported technology would have to be deemed necessary for any one of the following industries: shipbuilding, machines, electronics, electrics, metals, chemicals, or textiles. Technology imports in other categories still had to be reviewed. Long-term contracts or ones involving large amounts and/or the import of technologies necessary for the nuclear, computer, or defence industries belonged to this latter category. Technology imports not included in either of these two categories were exempted from review only when no objections were raised within 20 days by the ministry from which the Minister of the Economic Planning Board asked an opinion.

More revisions were later made in the direction of liberalizing technology imports, and finally, in June 1984, individual review was completely abolished. As a result, technology imports nearly doubled, the amount spent annually increasing from $120 million in 1983 to $213 million in 1984.