| dc.description.abstract | The agricultural machinery industry, which has played an important role in the development of agriculture, is faced with a crisis due to adverse market conditions such as declining demand. Nevertheless, the industry has to overcome the current difficulties and lay down a foundation for a new leap forward as it is a backbone industry of agriculture. One of the ways to overcome such a difficult situation is none other than to expand the export of agricultural machinery. The government, too, recognizes the importance and is currently working on to establish an agricultural machinery export complex. With such a background, this study aims to provide basic data necessary for the government to efficiently carry out the construction of the export complex by laying out a blueprint for its construction and by analyzing the social and economic effects of the project.
The agricultural machinery industry in Korea has been losing steam as a result of further opening of the domestic market to agricultural imports, declining rice consumption, and the flight from agriculture. Moreover, the industry is showing signs that it has hit the stagnation point in creating new markets since the abolishment of government subsidies. As a result, the manufacturers are experiencing many difficulties. The factory operation rate is falling and business scale, too, is getting smaller. One of the ways to overcome such a situation is to create new demand by expanding the export. However, since export expansion is still lacking considerably with respect to technology, public promotion, and marketing, it is necessary to set up a separate institution that can provide systematic support. Besides, establishment of an agricultural machinery export complex conforms with the government policy since such an establishment is stipulated by law.
In establishing the export complex, it is necessary to install facilities that can perform various functions so that the export complex can provide comprehensive support aimed at promoting agricultural machinery export. The facilities to be installed include an export support center, a second-hand agricultural machinery and equipment export center, a history hall (museum), and a future vision hall, a training center for the education of how to use agricultural machinery and equipment, a testing facility, a distribution center for SMEs, and a bonded warehouse.
It was analyzed that if the export complex is built in the city of Cheonan, the economic benefit would amount to about 27.3 billion won for the city and 204 billion won for Chungnam Province. On the employment side, it will create 1,233 jobs in Cheonan and 1,598 jobs in Chungnam. In addition to bringing such benefits to the local economy, it is expected that it will have the policy effect of increasing the export by 12~25%. Also, since the city of Cheonan will be hosting the Korea International Exhibition of Machinery, Equipment, Science and Technology for Agriculture (KIEMSTA), the export complex can provide many things to see and do for exhibition visitors and transform the exhibition into a lasting event that can contribute greatly to revitalizing the local economy.
Researchers: Chang-Yong Kang, Ki-Hwan Park, and Ah-Reum Ju
Research period: 2012. 1. - 2012. 5.
E-mail address: cykang@krei.re.kr, kihwan@krei.re.kr | - |
