There have been varied responses to the importation of electrical appliances from South Korea into the Taiwan market.

Those who are familiar with the process of economic development of the two countries will not find it difficult to understand this phenomenon. And those who are familiar with the competition between the two countries on the international market will pay close attention.

When you think about it, the small and mid-size businesses of the R.O.C. government as they work together make people understand the meaning of the words "quickness" and "resilience." They make calls for "profit" and "a better tomorrow for future generations." It's due to sayings such as these that the R.O.C. is seen as another tiger on the competitive world market.

Recently, among some of the commonly seen imported electrical appliances from Japan, Europe, and the U.S.--like color televisions, video recorders, and microwave ovens--displayed in Taipei department stores, there have surfaced some products from South Korea. What has caught the attention of consumers the most is the price of the products:

The lowest priced video recorder was selling for NT$4,000, about twenty percent less expensive than domestic models. Similarly sized color televisions were about half the price of the Japanese models. A sales representative shook his head and said, "It's due to price differences as these that only those with big bucks are able to afford them." Perhaps it's due to this that products from South Korea have gotten a firm grip on the Taiwan market.

Imports from South Korea began to expand since 1986 and took a jump in 1987. It all began with the appreciation of the NT in 1986. It rose in 1987 with the lowering of import tariffs on two occasions. Televisions, stereos, and video recorders were among those whose import tax was lowered a total of fifteen percent.

Some electrical appliance factories and others who are concerned about the competitive force of our nation's industry cannot rest at ease since electrical appliances have always been an important export product.

The technological standards of the R.O.C.'s electrical appliances have always been higher than those of South Korea's. A comparison was made in Industry and Finance Quarterly, published in 1982. Overall, the scale of production, the technological development, and the export quantities of the R.O.C.'s electronics industry surpassed those South Korea's. Cannot this impressive position survive any longer? How is it that South Korea is able to sell the same type of products as those of the R.O.C. at a lower price?

Wang Chao-ming, vice-chairman of the Council for Economic Planning and Development, Executive Yuan, says, "There are numerous factors involved. Besides industrial capabilities, the size of the production scale and the cost of local labor are also factors."

In a nation such as ours which practices a free market system, it should come as no surprise that electrical appliances are being imported. Our nation's export of electrical home appliances has not been affected, but the news that the imports have caused is something worth thinking about.

[Picture Caption]

With the appreciation of the NT dollar, import tariffs were lowered. Korean color televisions, video recorders, and microwave ovens have gotten a foothold on the R.O.C's market. The imports have also sounded the first alarm in the domestic electronics industry.

Samsung electric home appliances have used their own mark to enter the Taiwan market. (photo by Vincent Chang)

Gold Star electric home appliances have broadcasted numerous advertisements on television.

Electric home appliances have always been an important export of the R.O.C. Will they still be able to maintain their competitiveness in the future? (photo by Common Wealth magazine)

These containers hold electric home appliances for export. They also contain imports of home electric appliances. (photo from Sinorama files)

With the appreciation of the NT dollar, import tariffs were lowered. Korean color televisions, video recorders, and microwave ovens have gotten a foothold on the R.O.C's market. The imports have also sounded the first alarm in the domestic electronics industry.

Samsung electric home appliances have used their own mark to enter the Taiwan market. （photo by Vincent Chang）

Gold Star electric home appliances have broadcasted numerous advertisements on television.

Electric home appliances have always been an important export of the R.O.C. Will they still be able to maintain their competitiveness in the future? （photo by Common Wealth magazine）

These containers hold electric home appliances for export. They also contain imports of home electric appliances. （photo from Sinorama files）