Rising wages and an appreciating exchange rate currency forced Korean
exporters of manufactured goods to try to move up-market at the end of
the 1980s. This involves improving both product specification and con
formance to standards. The Korean government is actively promoting imp
roved quality systems in manufacturing as a means of enhancing competi
tiveness. Large Korean firms have much in their favour in this area -
particularly their technological competence and a well-educated labour
force. However, poor industrial relations and the poor quality of sma
ller supplier firms are obstacles which need to be overcome if Korea i
s to compete with advanced industrial countries in terms of quality.