South Korea's manufacturing industry is on the verge of a "big stall." Key players like Samsung Electronics Co. have overstretched their global operations far beyond their capabilities, placing heavy burdens on themselves — especially as the growth of newly emerging economies has slowed.
Also, weakness in the industry's ability to pursue research and development has come to the fore, causing a rapid deterioration in the reputation of Korean brands, both at home and abroad.
A blast furnace more than 60 meters tall has just been completed in the town of Cilegon, Banten Province, on the Indonesian island of Java as a joint venture between state-owned Krakatoa Steel Co. and POSCO, South Korea's largest steelmaker. The furnace, the largest of its kind among members of the Association of Southeast Asian Nations (ASEAN), has an annual production capacity of 3 million tons. It stands as POSCO's first full-scale venture away from home.