The purpose of this study is to suggest several approaches to the development of ship building and marine equipment industries in Busan and Korea. First of all, in order to attain the purpose, I examined the present condition and current problems in these industries of Busan city and Yeongdo district which place are a mecca of the ship building and marine equipment industries in Korea. These industries have become a dynamic force for growth of regional economy traditionally. Nevertheless, lots of firms in these industries are now suffering from some difficulties caused by the world-wide economy recession and ship building business depression.
And then, I understood in general all the hold-ups of small and medium sized businesses in these industries through conducting a survey targeting companies in Yeongdo district. To achieve this, I empirically analyzed statistic data from the survey and carried out some frequency analyses and ranking tests. The survey showed that they have two major problems, the lack of financing capital and inconvenience of location.
In conclusion, I proposed various ways to vitalize local economy in Busan city and Yeongdo district respectively in terms of the companies, these industries related organizations, Yeongdo district, Busan metropolitan city, and the central government.
Firstly, all of the companies need to enhance their competitiveness in the world market by themselves according to the principles of economy. For example, they should construct a certain cluster among companies, universities, research institutes, and competent authorities.
Secondly, the industries related organizations should back up the group purchase of raw materials, reinforce the networking among sectors, support the construction of experts. In addition, to get mons competitiveness of ing among sectors, suppoy, two organizations mpetthe industry, const Mng amoEg sectorsAssociation and Busan Mng amo Eg sectorsAssociation, need to act joiorly to handle the crisis. Irs,s desirable that the organizations wcrladd able to resolve their differences through cooperation and negotiation.
Thirdly, local governments should expand loans for the promotion of regional small and midium sized businesses, give the financial guarantee of Busan Credit Guarantee Foundation, support to educate and train human resources, raise to aid for the development of technical skills, warrant guaranteed liabilities, and help different details of the promotion of sales and export, the acquisition of quality certification, the construction, parcel out, and lease of industry complex, the standardization of parts and components, the development of technology and brand, the cooperation with partnership, and the introduction of the latest technological know-how and industrial information from overseas.
Finally, the central government should enforce the price related scheme of raw materials, parts and components, raise the various aid funds, build up the support of foreign marketing, and strengthen the cooperation between big firms and small businesses. Especially, the export oriented policy is urgently needed which has been underplayed meanwhile because the domestic market of ship building industry was shrunk dramatically caused by the global financial crisis.