A Study on the International Competitiveness and Problems in Busan Shoe Industry

부산 신발산업의 국제경쟁력과 과제에 대한 연구

The Busan shoe industry has been the accelerating overseas transfer of production facilities due to loss of competitiveness in the wake of drastic revaluation of the won, an increase in personnel expenses and the rise of backup developing countries since the late 1980s. On account of changes in the general system of supply and demand caused by a decrease in exports and production, the Industrial structure has been subjected to a transition from export to domestic demand. As a result, the Busan shoe industry, which used to rank second in the world in terms of its shoe export and to account for 16.5% in terms of its market share, started to be regarded as a fast-fading industry. As a domestic companies have a tendency to almost all the tasks on bloc, it is true that their competitiveness is on the rapid decline for they prefer self-reliance on the premise that all the production should be dealt with for themselves. It is outsourcing that is taken into account as a strategic vehicle for converting such self-reliance into the system of low expenditure and high efficiency.