Industries that migrate don't come back

摘要

These are not easy times for South Korea's tanneries. Like every other advanced economy, Korea faces intense competition from low-cost production platforms. Unfortunately for Korea it shares a border with the giant of low-cost producers - China. The process is not new. Indeed, initially, the migration of domestic manufacturing was not to China but elsewhere in southeast Asia, with Indonesia as a prime destination. According to Jo Jong-kook, who operates the Korea Leather Industry Information Centre (KLIIC), the process began when brand name customers in north America suggested to their Korean suppliers that they should open up in lower cost countries. These were essentially manufacturing operations for finished goods - mainly sports shoes and leather garments. They were often joint-venture operations with local partners too, says Mr Jo. Supplies of finished leather continued to be supplied primarily from tanneries in Korea.