ABSTRACT The aircraft manufacturing industry is critical to national defense and linked to various other industries. This paper explains the development of Korea’s aircraft manufacturing industry and the role of the government. Despite late entrance to the industry, Korea has developed and produced basic and jet trainers since the 1990s. In the meantime, the government has pursued technology sharing, integrated large companies, and provided financial incentives to manufacturers. It has also supported the strengthening of human capital and established a government research institute devoted to the aircraft manufacturing industry. In the early 2020s, Korea began to produce advanced fighter jets using its technologies. Based on Korea’s experience, this research presents policy implications for developing countries. The government must play a critical role in the aircraft manufacturing industry, which is an example of the infant industry argument. In the early stages of development, a developing country may learn advanced technologies through licensed production contracts and by requesting technology transfer when purchasing aircraft. It is necessary for the government to provide appropriate incentives, particularly for R&D activities, human capital development, and a dedicated government research institute in aircraft manufacturing. Moreover, regulating the number of domestic aircraft manufacturers may lead to greater efficiency. industries Koreas s 1990s meantime sharing companies 2020s experience countries argument RD R D activities Moreover efficiency

Abstract The Korean government has stimulated R&D activities of the electric vehicle (EV) industry and promoted commercialization of EVs. Korea’s EV industry developed rapidly. The industrial policy to promote the EV industry provides implications to the automobile producers. First, producers not developing EV technologies may lag behind in the market. Second, it is important to improve the efficiency of their R&D expenditures. Third, it may be effective for the less advanced EV producers to cooperate with foreign producers. Fourth, the EV producers are needed to cooperate with the rechargeable battery producers. Fifth, success of the EV industry will depend on the probability of reducing the production cost. Sixth, the government should prepare R&D support measures targeting promotion of SMEs in the EV industry. Seventh, the government wishing to promote the EV industry needs to define the responsibility of each Ministry and establish a system resolving conflicts between the Ministries efficiently.