Exposición en la conferencia internacional del 23 de agosto "PERÚ, PAÍS COMPETITIVO: IMPACTO DE LA INNOVACIÓN Y LA CALIDAD EN LA APERTURA COMERCIAL"

1. Standards Infrastructure
as a National Growth Engine:
from Imitator, Imovator, to Innovator
23 August 2011 (version 2)
Donggeun CHOI
Chief Manager, Korean Standards Association (KSA)
Guest Researcher, National Institute of Standards and Technology (USA)
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2. Contents
I. Warming Up Quiz about South Korea
II. Korea’s Economic Growth
III. Economic Growth with Korean Standards
IV. Changing Global Business Environments
V. Future Agenda
2

3. I. Warming Up Quiz
about S-Korea
3

4. Q. Basics of about S-Korea?
Q1. Where is it?
Q2. How warm/cool is it?
Q3. How big is it?
Q4. How many live there?
Q5. How many live in Seoul Metropolitan area?
Q6. What is the GDP in 2010?
Q7. What is the GDP ratio of 2010 by 1960?
Q8. What is the ranks of GDP and Trade in 2011?
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5. Q1. S-Korea: where is it?
 Where is Korean Peninsula Located in Asia?
1) North-Eastern Asia
2) North-Western Asia
3) South-Eastern Asia
4) South-Western Asia
*Between China and Japan
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6. Q2. S-Korea: how warm/cool
is it?
 What is the common weather of Seoul, S-Korea?
1) August:51°F-66°F, January: 01°F-15 °F
2) August:61°F-76°F, January: 11°F-25 °F
3) August:71°F-86°F, January: 19°F-33 °F
4) August:81°F-96°F, January: 29°F-43 °F
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7. Q3. S-Korea: how big is it?
 S-Korea is around OO% of Peru in size
1) 8%
2) 13%
3) 18%
4) 23%
* South Korea: 100,032 km2,
Peru: 1,285,216 km2,
- Lima region: 32,129km2,
- Junin regoin: 44,197 km2,
- Pasco region: 25,319 km2
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8. Q4. S-Korea: how many live
there?
 S-Korea is around OO% of Peru in population
1) 75%
2) 115%
3) 145%
4) 165%
* Peru: 30,135,875; S-Korea: 50,004,441 (2012 July)
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9. Q5. S-Korea: how many live in Seoul
Metropolitan area?
 Seoul Metropolitan area (Seoul plus 50k near by area)
is around OO% of Peru in population
1) 25%
2) 50%
3) 75%
4) 100%
* Seoul metropolitan : 23,616,000 (Seoul + Incheon + Gyeonggi
province)
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10. Q6. S-Korea: What is the GDP in
2011?
 Which country is most comparable (IMF, PPP, $Million)?
1) Argentina (716,419)
2) Brazil (2,293,954)
3) Mexico (1,661,640)
4) Peru (301,967)
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11. Q7. S-Korea: What is the GDP
ratio of 2010 by 1960?
 What is the growth rate 1960-2010?
1) 50 times
2) 100 times
3) 200 times
4) 250 times
* Peru: 2.5B to 154B (60times)
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12. **GDP nominal in 1960-2010
- 4B to 1,000B (250 times)
 13B to 1,000B (Mexico 75 times), 15.2B to 2,100 B (Brazil, 130 times)
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13. **GDP per Capita in 1960-2010
- 155 to 22,424 (nominal)
Value of imported goods and services as percentage of GDP.
13

14. Q8. S-Korea: What is the ranks
of GDP and Trade in 2011?
 GDP nominal and Trade volume ranks?
1) GDP: 8th - Trade: 15th
2) GDP: 12th - Trade: 22nd
3) GDP: 15th - Trade: 8th
4) GDP: 22nd - Trade: 12th
* Exports(7th) and Import(8th)
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15. So, What do these mean?
- Korea’s Development
 Rapid and Successful Development in the 1960s-90s
 Short and Quick Industrialization History
 Government Leadership based Success
 Limited Private Sector Leadership
 Export/Imports Trade Dependent Country
 All of above applies to Standards Infrastructure
 US-Korea is major trading partners in both Goods/Services
 Standards Governance of Trade Partner May Matter
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16. II. Korea's Economic Growth
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17. 1. Korea’s Economic Growth -
GDP and Export
GDP: (1970) 3 B-USD  (2009) 1,364 B-USD
Export: (1970) 0.8 B-USD  (2009) 364 B-USD GDP (12th )
Export (9th)
 Korea’s National Strategy Source: IMF
 Export-driven Growth Strategy
 Globally-harmonized Open Policy
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18. 2. Korea’s Economic Growth
– World Class Product
 The number of Korea’s World Class Products has
grown ten times: (‘01) 55 products  (‘09) 387 + 197
 World Class: ranked within top 5 in global market share
 Movie clip of ‘Korea’s World Class Products’ (MKE)
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19. 3. Korea’s Economic Growth
– World No.1 Products
 Korean Product with No.1 Global Market Share
 (2002) 49 Products  (2009) 148 Products
 Expansion of world No.1 products has been supported
by export-driven policy and globally-harmonized
standardization strategy
P roducts M.Share C ompanies
Samsung Electronics,
Memory/DRAM 50.0%
Hynix
Samsung Electronics,
TFT-LCD 46.0%
LG Philips LCD
Samsung SDI,
PDP 52.0%
LG Electronics
Hyundai Heavy Industry,
LNG Carrier 73.0%
Samsung Heavy Industry
Samsung Electronics,
CDMA Mobile Phones 38.0%
LG Electronics
Samsung Electronics,
Flash Memory 54.0%
Hynix
Industrial Monitor 70.0% Kortech
large-size marine Hyundai Heavy Industry,
61.3%
diesel engine Doosan Engine
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20. 4. Korea: Industry Development
- 1950s to 2010s
50-60s 70s 80s
Raw, Agric, Light Industry Heavy Industry
Marine. Fabrics, Clothing Ship, Auto
10s
00s 90s
Smart Product
ICT EE product
Knowledge Serv
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21. 5. Korea: National Priority Evolution
- Standards and Quality Infrastructure
‘60: Legislation, Organizations
• ISA, MA, PSA
‘70-’80 : Quality Control
• KS certification, TQC, QC-Circle, Quality Control
’90 : Quality Management
• ISO 9000, WTO-TBT, International Standard
‘00 : Internet, Climate Change
• Web-base technology, E-commerce, GHG reduction,
• Sustainability
’10 : Smart Technology, Convergence Industry
• IT-convergence, mobile, smart phone, smart car, smart home, smart city
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22. 6. Korea: Key Legislation
Timeline
 1949 Agriculture Inspection Act
 1961 Industrial Standardization Act
 1961 Measurement Act
*1992  Act on Weight and Measurement
*2000  Measures Act
 1967 Industrial Product Safety Control Act
*1993  Quality Management Promotion Act
*2000  Quality Management and Industrial Products Safety Control Act
 1974 Electrical Appliances Safety Control Act
 1980 R.O.Korea’s Constitution (27 Oct)
 The State shall establish a system of national standards.
 1999 National Standards Framework Act
 2010 Framework Act on Product Safety
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23. 7. Korea: Key Legislation
- Standards, CA, Measurement
23

24. 8. Korea: Key Organization
Timeline
 1961 Bureau of Standards (within Ministry of Commerce)
*1973  (IAA) Industrial Advancement Administration
*1999  (KATS) Korean Agency for Technology and Standards
* merged with National Technology and Quality Agency
- 1994 (KOLAS) Korean Laboratory Accreditation System (AB for labs)
- 2001 (KAS) Korean accreditation system (AB for product certification)
 1962 (KSA) Korean Standards Association
 1975 (KSRI) Korean Standards Research Institute
*1991  (KRISS) Korean Research Institute for Standards and Science
 1990 (KASTO) Korea Association of Standards & Testing Organizations
 1995 (KCA) Korean Association for Quality and Environment
Certification
* 2001  (KAB) Korean Accreditation Board
24

25. 9. Korea: Key Organizations
G
G
G
G
25

26. III. Economic Growth
and Korean Standards
26

27. 1. Korean Standards
– Publications 1962-2009
•1962-2000 : Zero to 10,000+ KSs
• Production Based Standards; Mainly from JIS, BS, DIN, ASTM, etc
•2000-2010 : 10,000 to 20,000+ KSs
• Function based Standards; Mainly from ISO, IEC
25000
Imitator 23372
+Innovator 22058
20000 = Imovator 19865
Imitator Mainly
15000 from ISO, IEC 15176
Mainly from JIS, 10845
10000
BS, DIN, ASTM, etc 9368
8552
7029 7475
5000 4698
1846
1081
0 300
62 65 70 75 80 85 90 95 00 02 04 06 09
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28. 2. Korean Standards
– Number of Publications
 Quantitatively, the number of KS is world class level
 Similar to the total volume of ISO plus IEC
No. of Standards
39,555 40,031 40,000
23,372 24,229 30,000
I E C 6,146 20,000
10,864
ISO 18,083 10,000
KS iSO/IEC DIN BS JIS
 Consideration of industrial changes,
Korea employed new classification system in KS:
 In line with ISO ICS (International Classification System)
 More standards on functions and processes than product standards
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29. 3. Korean Standards
– mainly originated from ISO/IEC
 Statistics Original (15%)
 61% identical/modified from ISO, IEC
 24% based on JIS, BS, DIN, ASTM, etc
 15% purely Korean
 Strategy JIS, BS,
ISO, IEC
DIN,
 Harmonized (61%)
ASTM, etc
with Int’l Standards (24%)
 Originated from advanced as of
formal or non-formal standards Dec 2007
 These National Standards Have Assisted
Korea Economic Growth Institutionally
29

30. 4. Korean Standards
– KS Certification
 KS Certification in 1985 – 2005 (cumulative)
Number of Certification
Number of Factories
Number of Standards
 KS Certification of KS (based on ISO, IEC, other advanced
standards) Contributed to the Development of World Class
Korean Products
 Semiconductor, Ship-building, Automobiles, TFT-LCD
30 30
 Knowledge and Technology transferred to developed countries

31. 5. Korean Standards
- ISO Certification in Korea
 The double increase of ISO 9001/14001/TS16949 Certifications
have facilitated Korean Export, thus Economic Growth
 Higher Level of Openness and Advancement of Socio-Economic Infrastructure
ISO 9001 : 11th(‘04)  10th (‘09)
ISO 14001: 10th (’04)  6th (‘08)
TS 16949 : 6th (‘04)  3rd (’08)
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(Source: ISO Survey 2004 and 2008)

32. 6. Quality Activities in Korea
Number of Quality Circles Companies with QC Circles
Reported Higher Profit Ratio
2003~2005 Listed Companies
Companies Average
with QC Circles Profit Ratio
Yes 1,240 Yes 0.0415
No 289 No -0.0517
 KS and ISO Certifications have triggered QC Activities
 QC Activities have positive impact on Business
Performance in Korea
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33. IV. Changing Global Biz
Environments
33

34. V. Standards and
Trade & Innovation
34

35. 1. Imitator, Imovator, and to Innovator
in Standardization
Korean Economic Growth
• Legislation
ISO, Law • Regulation
IEC,
…
• Certification
Mark • Test/Inspection
JIS,
DIN, • Promotion
… Award • Competition
 Standards have functioned as a mechanism for
knowledge and technology transfer in Korean economic growth.
 It started from the position of imitator, has evolved to imovator,
and will transform to innovator in the upcoming years.
35

36. 2. Strengthening ‘Research’ Activities
domestically and internationally
Economic
Trade/FTAs Public Policy
Impact
Business Corporate Open Source
Strategy Intelligence Model
R&D-IPR- Technology Service
Standards Innovation Innovation
HRD
Case Studies ……
Education
36

37. 3. Standards and Trade
 “New rules will determine who flourishes, and who falls
behind. At the heart of those new rules are standards.
 Honourable John Manley, Canadian Minister of Industry (March
2000)
 “From a macroeconomic perspective, it is significant that
standards make a greater contribution to economic growth
than patents or licenses…. Innovation potential alone is not
sufficient to maintain competitiveness. An efficient
dissemination of innovation via standards is a precondition
for economic growth. ”
 “Economic Benefits of Standardization Summary of Results”
Published by DIN German Institute for Standardization (2000)
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38. **Korea’s trade statistics
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39. **Peru’s trade statistics
39

40. **Brazil’s trade statistics
40

41. 4. Standards, Innovation
and Competitiveness
 "Approximately 80 percent of international trade is affected by standards
and the health, safety and environmental regulations that incorporate the
m. The Department of Commerce is pledged to ensuring level playing field
s for US manufacturers and exporters by urging our trading partners to a
dopt market-driven performance standards, and to seek assurance of confo
rmity to agreed-upon standards so that we can achieve the goal of "one te
st, one time, accepted everywhere.“
 Dr. Arden Bement, Director, National Institute of Standards and Technology (20
02)
 “At the international level, standards are becoming a pillar of the new glo
bal trade system. As barriers to trade and investment are eliminated and
information technologies continue to evolve, standardization is taking on
an increasingly important role in global affairs.
”
 “Canadian Standards Strategy and Implementation Proposals” (March
2000)
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42. **SCaM is tech-quality infra
Measurement Standardization
Legal Metrology Testing
Calibration /Inspection
42
Certification
Accreditation

43. 5.1 Task – Three sectors
(not separately)
M CA
S
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44. 5.2 Task – Governance:
who/what
 Government led?
 Industry led?
 Partnership? Government
 Model country?
 USA?
 Germany?
 Japan?
Industry
44

45. 5.3 Task – Standards
harmonization and development
 Gold-powder/Zinc/Copper, Oil/Gas/Petroleum,
Coffee/Meat, Machinery
 Harmonization with ISO, IEC
 Harmonization with Exporting countries
 EU, USA, China, Switzerland, Canada
 Harmonization with Importing countries
 EU, USA, China, Brazil, Ecuador
 Developing Pure Peruvian: pros and cons?
 What if they are slightly different?
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46. 5.4 Task – Seven Pillars
Source: NSCAF
7
(KSA 2012)
Performance
Process
4 6 5
Infra- Human
structure Resources
Strategies and
Implementation 2 3 Stakeholders
Plans
1 Laws, Systems and
Institutions
Metrology
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47. 5.4.5 Task – HRD/HRM
Concept
• Cultivation of human resources(education, qualification, eligibili
ty criteria)
• Management system for human resources
• Capability of human resources(size, level)
1) Standardization
• Experts on standards planning(Strategy, needs)
• Experts on standards development
• (development & preparation)
• Experts capable of international standardization activities
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48. 5.3.5 Task HRD/HRM (2)
2) Conformity Assessment
• Policy experts for conformity assessment
• Certification auditor
• Experts for testing, calibration, inspection
• People in charge of quality control
3) Metrology (science, industry, legal)
• Experts on measurement standards development
• Experts on reference materials development
• Experts on reference standards development
• Experts on international measurement standards development and act
ivities
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49. CONCLUSION
- Cooperation to move forward together
1) Strategy for Expanded Role/Domain of Standardization
2) Efforts in Human Resources Development for Standardization
3) Serving and Contributing More to Int’l Standards Activities
4) Strengthening ‘Research’ Activities‘ at nationally and internationally
5) Cooperating with our neighbors
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50. Thank you for your attention!
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