Korean Automobile Industry Research Articles

The effects of conventional and unconventional FDI on the host country

PurposeThe purpose of this paper is to analyze and compare the effects of conventional and unconventional FDI on the host country in a more comprehensive and systematic way.Design/methodology/approachBoth the OLI paradigm and the imbalance theory are linked to the diamond model in order to compare the effects of conventional and unconventional FDI on the host country. This methodology is then applied to the real world as a case study, FDI toward the Korean automobile industry.FindingsConventional FDI is often said to be more beneficial to the host country than the unconventional type. However, the actual effect of unconventional FDI is shown to be more positive with better management and is often larger than perceived. Therefore, unconventional FDI emerges as important as conventional FDI for sustainable economic development.Practical implicationsIn general, unconventional FDI has often been criticized severely because of misperceptions derived from the dominance of conventional FDI on theoretical aspects, incomprehensive perspectives toward assessing the effects of FDI, and negative political views. Therefore, rigorous and holistic case study analyses based on solid analytical tools are needed in order to better understand the effects of unconventional FDI and to draw up effective and proper FDI promotion policies.Originality/valueThis paper provides a way to better understand the effect of unconventional FDI on the host country comprehensively and systematically by expanding and deepening existing theories. Based on this, the effects of conventional and unconventional FDI on the host country are compared theoretically and empirically, particularly with the case of the Korean automobile industry.

A Study on the Export Competitiveness of the Korean Automobile Industry in the World and Foreign Markets: Focus on Trade in Value Added

A Study on the Export Competitiveness of the Korean Automobile Industry in the World and Foreign Markets: Focus on Trade in Value Added

한국 자동차 산업의 무역 경쟁력 분석

한국 자동차 산업의 무역 경쟁력 분석

Supplier selection and stepwise benchmarking: a new hybrid model using DEA and AHP based on cluster analysis

This study proposes a new comprehensive methodology for supplier evaluation, selection, and improvement. A hybrid approach for evaluation and selection is presented using an expectation maximization (EM) algorithm for clustering, data envelopment analysis (DEA) for efficiency, and analytic hierarchy process (AHP) for importance. First, industrial taxonomy and EM algorithms are used to cluster the suppliers. Then, DEA is utilized to calculate internal operation efficiency. Next, AHP is applied to assess external function importance. After the weighted efficiency and importance scores are combined, the suppliers for improvement and strategic improving direction are determined based on a quadrant and diamond graph analysis. Finally, based on the supplier clusters, the effective stepwise benchmarking paths are presented with improvement strategies, and the final target indicators are obtained through DEA projection analysis. The proposed method is successfully demonstrated on 63 tier-one suppliers in the Korean automobile industry using three-year panel data from 2012 to 2014.

Lead acid battery recycling and material flow analysis of lead in Korea

Korean automobile industry was the fifth largest in the world in 2014, and there was a steady demand for batteries that are essential for automobile production. The battery used in automobile production is a lead acid battery, and since 2010, Korea has been conducting material flow analysis for major industrial-related materials such as lead. Lead material flow had focused on the production of raw and base materials and the battery production, which is one of the intermediate products. Many of these products were exported. Most of the primary leads used in the production of the basic materials were smelted with imported lead ores. Compared to the production capacity of secondary lead companies in Korea, a number of used batteries collected in Korea were insufficient, and the shortages were dependent on imports. 94.7% of the base materials were used for battery production through first processed products as metal, and 5.3% was used as an oxide. In addition, lead is a globally important environmental regulatory substance, and Korea has also managed the recycling of lead acid batteries. 98.2% of the leads collected through recycling process were reintroduced into the base material as the secondary lead.

The effects of domestic merger on exports: A case study of the 1998 Korean automobile industry

This paper examines the economic consequences of a horizontal merger between Korean automakers that took place in 1998, with a particular emphasis on export market behavior. Estimates of structural demand and supply reveal that the merger enhanced production efficiency of the merged party by 3.8%. Simulations, based on these estimates, indicate that while the merger increased domestic prices, the export volume of the merged party was more than doubled. Moreover, the effects of the merger are found to differ by auto model according to the model's pre-merger export status. It is shown that efficiency gains from the merger are likely to increase export volumes for models that were already exported prior to the merger, and to offset domestic market power for those that were not exported even after the merger. Finally, the paper compares the actual merger's effects to those of alternative counterfactual mergers, finding that the actual merger brought greater benefits to producers and fewer to domestic consumers.

한국자동차기업의 이란진출을 위한 전략제안

한국자동차기업의 이란진출을 위한 전략제안

공기식 브레이크 밸브의 요소설계

Air brake valves are widely used in automotive braking systems and the Korean automobile industry depends on importing them. Therefore, we should develop the technical expertise for their domestic production. In this study, air brake valves were analyzed that can be used in a variety of automobiles. Computational fluid dynamics analysis, static structural analysis, and hyper-elastic analysis were carried out. Before production of an air brake valve system, the performance of different parts has to be evaluated, for instance by using finite element analysis. The structural stability of the product can be determined using static dynamics. The compression behavior of the O-ring is predictable by nonlinear hyper elastic analysis, although errors are possible due to one-way loading. This simulation study can both save time and reduce costs compared to the development of experimental prototypes.

An Analysis of Enterprise Activities Using the Concept of Business Functions: The Case of the Korean Automobile Industry

An Analysis of Enterprise Activities Using the Concept of Business Functions: The Case of the Korean Automobile Industry

Reliability Examination in Horizontal-Merger Price Simulations: An Ex-Post Evaluation of the Gap between Predicted and Observed Prices in the 1998 Hyundai-Kia Merge

Horizontal-merger price simulations, which rely upon pre-merger data to predict post-merger prices, have been proposed and used in antitrust policymaking. However, a dearth of closely observed large mergers in differentiated-product industries makes empirical investigations of simulation performance extremely difficult, and raises many questions regarding the accuracy of simulation performance. Although a handful of previous studies exist, they focus on short-term simulation performances and ignore long-run effects of mergers. This research investigates the long-run simulation performance and long-run pricing effects of merger in the Korean automobile industry for the period 1991–2010. This period saw the merger of Hyundai and Kia Motors in 1998, a merger caused by the Asian economic crisis and which resulted in the conglomeration of 70 percent of the Korean automobile market. By taking Nevo’s (2000, 2001) method as a base and measuring its performance against this real-world merger, I find that post-merger prices can be predicted reasonably well in the short term, but that large discrepancies appear in the long-run simulation. To account for this discrepancy, I confirm four further factors that appear essential to move toward a more accurate post-merger price simulation model: change in marginal costs, change in product lines, and change in consumer incomes and preferences. I counterfactually investigate each factor’s contribution to price change, confirming their significance. In my investigation I estimate consumer preferences and substitution patterns leading up to the merger, then I calculate marginal costs, and simulate post-merger prices. In addition, I estimate automobile assembly plant-level production functions to evaluate merger synergy effects. By incorporating changes in the four factors I mention, I can account for 61 percent of the long-run price discrepancy.

Effects of FTA Provisions on the Market Structure of the Korean Automobile Industry

The Korean passenger car market is dominated by a few domestic producers. In this paper, we investigate whether this market structure is the result of import tariffs and taxes that penalize foreign manufacturers. Our counterfactual simulation under two FTA scenarios shows that the market shares of imported and domestic cars show minimal adjustments, suggesting that import tariffs and taxes may not explain the lack of penetration of import cars in Korea. We predict changes in consumer surplus and discuss the policy implications of our findings.

A Study on the Basic Foundation for Automobile Design in the Japanese Colonial Period

Background : The car is an item that contributed greatly to the development of Korean design together with urbanization and industrialization. Having a leading role in industrialization, the car’s historic significance is concentrated in the process of its growth since the 1960s. The design history also focuses on the development achieved by introducing foreign technology at that time. In this recognition, studies on the cars introduced to Korea for the first time under the Japanese colonial period that were set as daily means of transportation are insufficient. This study is based on the vision to extend the history of Korean automobile design, and considers the course of formation for a practical foundation of the automobile industry and the design at that time. Methods : This study encompasses all types of cars including passenger-type vehicles, buses and trucks. While previous studies on the economy, the industry and the technology were researched, references on the formation of several conditions, its background and design production activities accordingly related to the process of diffusion toward various cars and their manufacture were also collected. Results : The Korean automobile industry was started in the process of the spread of modern institutions and infrastructures by Japan in the Joseon dynasty, but it was subject to Japanese control and monopoly capital. Thus its substantial development was not achieved because it was industrialization for Japan’s interests. The foundation of industrialization was established due to the efforts of Koreans who took this as an opportunity to accumulate the technology actively by responding to the industrialization process of Japan, and these efforts have supported the formation of a modern design. Although the cars manufactured or modified in the Japanese colonial period may have been possible cases of design activity, it was difficult to identify the sufficient data on to what extent and what kinds of modifications were attempted. However, we just found that there was a history of efforts to bring about change and make progress even during the colonial period, and traces of the design through such evidence in this study. Conclusion : We could verify that this kind of history reflects the desire of the Korean people to pursue economic independence, and it was tacit knowledge that sustained the development of the automobile and the design within the limits of the era after liberation. These study results were based on a perspective that emphasized the proactive response of Koreans and the accumulation of experience, and identified the design history with a continuous viewpoint connecting the pre-and post-liberation periods.

Relationship between Operational Innovation and Financial Performance in Korean Automobile Industry

Relationship between Operational Innovation and Financial Performance in Korean Automobile Industry

The Globalization Strategy of Korean Automobile Industry in Case of Hyundai-Kia Automotive Group

The Globalization Strategy of Korean Automobile Industry in Case of Hyundai-Kia Automotive Group

The Impact of CEOs’“Design‐Driven” Decision Making in the Korean Automobile Industry

Design Management JournalVolume 7, Issue 1 p. 40-49 ARTICLE The Impact of CEOs’“Design-Driven” Decision Making in the Korean Automobile Industry Dong Oh Lee, Dong Oh LeeSearch for more papers by this authorKyung won Chung, Kyung won ChungSearch for more papers by this authorKi-Young Nam, Ki-Young NamSearch for more papers by this author Dong Oh Lee, Dong Oh LeeSearch for more papers by this authorKyung won Chung, Kyung won ChungSearch for more papers by this authorKi-Young Nam, Ki-Young NamSearch for more papers by this author First published: 01 October 2012 https://doi.org/10.1111/j.1948-7177.2012.00034.xRead the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Volume7, Issue1October 2012Pages 40-49 RelatedInformation

The Restructuring of Labour in the Automobile Industry in South Korea

Based on a case study of the South Korean automobile industry, this article explores the qualitative shift in employment practices implied by the expansion of contract labour from peripheral services to the main production activities of firms. This new phenomenon involves the greater integration of labour contracting into the production process, together with changes in employment practices and the rights of workers, which poses a challenge to our conventional understanding of labour contracting. The findings of the present study address the importance of investigating the issue of employment relationships and analysing the roles played by workplace actors in order to better understand the process of change in labour contracting and the consequences of increased numbers of non-standard workers in the workplace. By revealing both the cooperation and the conflicting interests between workplace actors, the study highlights the sources of tension and contradiction associated with changes in labour contracting arrangements and the subsequent restructuring of the workplace.

The Reality of Unfair Subcontracting Relations in Korean Automobile Industry and Alternative Policies: Focusing on Hyundai Motors

The Reality of Unfair Subcontracting Relations in Korean Automobile Industry and Alternative Policies: Focusing on Hyundai Motors

A Study on the Exhaust Gas Regulations of EU and Its Effect on Korean Automobile Industry - Focused on EURO-5 -

A Study on the Exhaust Gas Regulations of EU and Its Effect on Korean Automobile Industry - Focused on EURO-5 -

Changes and Determinants of Suppliers’ Customer Scope in the Korean Automobile Industry after the Asian Financial Crisis

This paper investigates changes in suppliers’ customer scope in the Korean automobile industry after the Asian financial crisis as well as causes for those changes. The paper found that the “customer scope” of suppliers, i.e. the number of assemblers that suppliers traded with, had increased compared with the past. This suggests that the closed and exclusive buyer–supplier relationship that existed in the Korean automobile industry before the crisis has somewhat loosened. Causes behind these changes can be attributed to the severe economic recession that occurred just after the Asian crisis and the changing competitiveness of suppliers in cost and quality. Foreign investments in Korean suppliers and the capability of suppliers in R&D did not have the expected influences in increasing customer scope. The results of this analysis can be used as a reference in analyzing the effect of current global financial crisis on the buyer–supplier relationship in the automobile industry.

A study on establishing a strategy of supply chain management: focusing on Korean automobile industry

The purpose of this paper is to present a new strategic framework of Supply Chain Management (SCM) in the automobile industry. For our purpose, we first had studied about the structure of relationship between supplier and buyer in Korean automobile industry. With this study, we searched for factors which compose a strategy of SCM, and whether or not the companies’ performance that are influenced by specific SCM strategy factors. Of course, our study based on existing researches, especially Cox et al.(1995) and Venkatraman et al.(1992), but the existing researches is differentiated in this paper that is treated several power factors as resource, value, environment and relation. So, results of our paper are what a good strategy of SCM composed by these factors and how to adopt this strategy on global logistics. And our methodology has some using of statistics method by SPSS 14(v) such as factor analysis, reliability analysis, and SEM(Structural Equation Model) with AMOS.