This study aims an analysis on determination factors and a review on theoretical meanings by categorizing Korea''s Manufacturing sector with the size and the industrial classification from 1983 to 2011. The analysis is made by separating the determination factors into profit shares and
production-capital coefficient. The major conclusion is summarized as following:
First, from 1986 to 1998, the manufacturing sector''s profit rate shows in a long-term decrease mostly due to the decrease of the production-capital coefficient. After the currency crisis, the profit rate increases due to the increase of the profit share and the production-capital coefficient. In other words, a profit decrease tendency caused by the sophistication of capital''s organic composition is confirmed also in Korean economy. And, the profit rate is recovered by the decrease of investment and the restructuring of labor to overcome the economy crisis.
Second, after 2004, LCs(large companies)'' profit rates exceed that of SMCs(small medium companies). The overturn is occurred since the LCs'' production-capital coefficients rapidly increased causing reduction of gap against SMCs. The reason for this is that LCs with larger production facility scales and superior investment rates on the new technology adaption compared to SMCs reduced investments so that the capital accumulation structure is changed while the corporate governance structure and the industrial market are reformed.
Third, the bipolarization appears the intensifications of SMCs'' petty size and the economic power concentration of giant companies. While the weights of numbers of petty sized companies and employees increase rapidly, the weights of LCs are dropped and the gaps in the wage per an employee and the value-added labor productivity between SMCs and LCs are widened more. Also, even in LCs, the difference in the profit rates between the top group and the lower group is magnified.
Forth, no vivid convergence to the manufacturing sector''s average profit rate is shown in this study''s statistics. This seems to be caused by the analysis period which is short as from 1991 to 2010 and in the restructuring time showing great fluctuations in the profit rates.