Korea Policy
From the Issue
Korea Policy Vol. 3, Issue 1About Korea Policy
Korea Policy is the premier journal for analysis and commentary on developments affecting the U.S.-South Korea alliance. Bridging scholarly insight and policy relevance, Korea Policy features original research and expert perspectives on strategic, political, economic, and other issues shaping Korea’s role in the world. In this way, KEI aims to inform academic debate, guide policy discussions, and foster a deeper understanding of the important partnership between the United States and South Korea. Contributions come from leading scholars, practitioners, and emerging voices across various fields.
Korea Policy is an open-source academic journal commissioned, edited, and published by the Korea Economic Institute of America in Washington, D.C
Driven by shifts in the global economic landscape, the perception of industrial policy has evolved from skepticism to a recognition of its strategic importance. This paper identifies emerging patterns in industrial policies in several key countries, highlighting trends in government interventions, sectoral priorities, and policy instruments. Today’s industrial policies are more innovative, inclusive, and collaborative, offering greater flexibility in design, relaxed selection criteria, and adaptable conditionality requirements.
Policy Recommendations
- To strengthen industrial policies, policymakers should adopt a more flexible and inclusive approach, integrating targeted strategies across sectors and firm sizes. Policymakers can expand support beyond traditional manufacturing to encompass services, recognizing their growing role in global value chains. Focusing on SMEs alongside large corporations will foster innovation and regional economic growth.
- Policymakers should also enhance data-driven decision-making by incorporating real-time feedback from the private sector to address market information gaps. To achieve this, governments could develop collaborative platforms that enable businesses to participate voluntarily in policy initiatives, thereby ensuring broader engagement.
- Countries should offer customizable financial support and adaptable conditionality based on firm performance and market shifts, ensuring resources are allocated where they are most needed. Infrastructure development, including digital and automation tools, should be prioritized to support industry-wide growth to foster innovation and resilience against economic disruptions.