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The South Korean automobile industry has undergone considerable growth since its inception in the 1960s. That growth was initially driven by domestic demand. Since the Asian financial crisis of 1997, however, production increases for the South Korean automobile industry have been primarily a function of export sales. The research presented here exp...
Citations
... For instance, D. Truett and L. Truett in their study proved that South Korean car companies achieved the minimum efficient scale of production from the period 1977 to 2006. D. S. Lee conducted a competitive analysis of the Republic of Korea and French car markets from 2000 to 2016 using the revealed comparative advantage index (RCA), 3 the trade specialisation index (TSI) 4 and the international market share index. The analysis revealed that in terms of import-export relationships, the Korean automobile market is more competitive than the French market, with a significantly higher predominance of exports in its structure [2][3][4][5]. ...
... D. S. Lee conducted a competitive analysis of the Republic of Korea and French car markets from 2000 to 2016 using the revealed comparative advantage index (RCA), 3 the trade specialisation index (TSI) 4 and the international market share index. The analysis revealed that in terms of import-export relationships, the Korean automobile market is more competitive than the French market, with a significantly higher predominance of exports in its structure [2][3][4][5]. ...
... This trend led to HMG gaining a share of about 70% of the domestic automotive market in 2001 and continued to maintain its position at about this level until 2013. [3,6,7]. Also specific to the South Korean automotive market is the historical dominance of domestic car manufacturers over imported ones. ...
The article is devoted to the analysis of statistical data provided by the Committee of Automakers of the Association of European Businesses (AEB) on the volume of sales of passenger cars of various brands on the market of the Republic of Korea from 2010 to 2021. The article describes the history and current trends of the market in question. Moreover, the authors summarize previously conducted research on this topic, providing a list of relevant studies. By using the competitive analysis tool — SV matrix, the study aims to provide information of scientific importance on the subject of competitive environment within the market under consideration, as well as to identify leading companies. An interpretation based on the results of the study is presented as well. It includes an explanation of the dynamics in the market, including changes in the market share of companies within the selected time period, a description of the specificities of the modern market leaders development and the reasons for the existing competitive environment. The conclusion is made about the relative stability of the South Korean automobile market, which has a national manufacturer and retailer as a market leader throughout the analyzed period. Moreover, quite a reasonable assumption is made about the relevance of the development pattern of the South Korean automobile market for the corresponding market of the Russian Federation.
While it is common to highlight the negative aspect of cartels, it has also been argued that cartels have positive aspects that can be illustrated with concrete examples. With regard to economic growth, the issue of cartels thus remains extremely controversial issues. This article analyses the impact of the emergence of a cartel from the early stages of development of the Korean automotive industry. The Korean government encouraged this cartel in order to improve the efficiency and the competitiveness of the industry and it actively intervened, in particular during economic downturns. As a result, the Korean automotive industry stabilized and enhanced its competitiveness sufficiently for Korea to become one of the top five automobile-producing countries in the world.
Since 1962, South Korea has recognized the motor vehicle industry as a critical industry for economic development. The government has been closely involved in the industry's growth from infancy to its current position among the top five motor vehicle producers in the world. In its early years, the industry also gained technological knowhow through licensing agreements rather than investing heavily in research and development. The results of this study strongly suggest that the industry as a whole has achieved a minimum efficient scale of operations. However, cross price elasticity estimates indicate that many rigidities exist in the input markets, particularly with respect to outsourced intermediate products. The restrictions on imports of these products may have to be reduced as South Korea seeks to expand its global trade footprint by participating in bilateral preferential trade agreements, presenting challenges for the industry.
