Global Value Chain (GVC) and GVC-oriented Policy: Insights from the South Korean Experience

This short paper highlights various forms of global value chain (GVC)-oriented policies implemented by the Korean government in different periods to promote local firms’ integration and upgrading in sectors such as apparel, automotive, shipbuilding, electronics, and animation. It discusses the recent growing interest in GVC-oriented industrial policy and the role of the state in GVCs. Based on Korea’s experiences in GVCs, the paper highlights the key features of GVC-oriented policy measures in Korea, focusing on three aspects: moving into (integration), moving upward (upgrading), and moving outward (internationalization). The paper conclude with a discussion of some of the challenges posed by disruptions in GVCs prompted by the China-U.S. trade war and the global pandemic of covid-19.