Flender/Flender Gear Units/Helical speed reduction gearbox H3
domestically and for export. In 1, Korean producers began to significantly develo_p their ri vehicle gearing production capacity. 1 1,

approximately 7 percent of imports were of 1 ibid. Table 5-1 Gears and gearing: Korean shipments, exports, imports, and apparent

consumption, 1-8 Year Shipments Exports Imports Apparent consumption Ratio (percent) of Imports to consumption Value (million dollars) 1 1.0 9.3

1.9 2.6 4.8 1 1.0 9.8 1.2 2.4 4.0 1 1.0 1.3 1.4 3.1 5.0 1 2.0 1.9 2.9 4.0

5.5 1 2.0 1.5 2.9 5.4 5.9 Value (billion won) 1 1.1 7.5 8.3 1.9 4.8 1 1.8 8.5 9.5 2.7 4.0 1 1.1 9.1 1.7 2.7 5.0 1 1.7 9.0 1.6 3.4 5.5 1 2.8 8.4 2.0 4.4 5.9 Source: Estimated by the staff of the .. International Trade Commission. 5-2 vehicle gearing, with industrial gearing imports accounting for the remainder. Korean duty rates on gears dropped from 1 percent ad valorem in 1 to 1 percent in 1, and are expected to fall to between 7 and 8 percent in 1. Exports totaled only $1.5 million in 1, and were evenly split between vehicle and industrial gearing. Research and development At present, limited gear & in Korea is being performed primarily by motor vehicle companies. Additionally, Korean producers are benefiting from research conducted by captive suppliers outside of Korea, mainly through licensing and collaborative agreements. Officials of Korea-Spicer indicated that it plans to begin & on gears and gear production in the near future. Limited gear research is done at the University of Inchon. Employment and training The Korean gear industry employs an estimated 3,5 persons. According to unpublished data from the .. Bureau of Labor Statistics, hourly compensation costs for production workers in industrial and commercial machinery manufacturing (SIC in 1 were $2.9. Wage increases were granted in 1, however, and staff conversations with gear industry officials in Korea indicated that average hourly wages at the end of 1 we