Korean automotive foreign direct investment in Europe. The effects of economic integration on motivations and patterns of FDI and industrial location

Abstract:

The European car market is the largest overseas market for Korean motor vehicles and is increasingly important as a location for local manufacture. This work looks at the impact of European integration upon the FDI (Foreign Direct Investment) decisions of Korean vehicle manufacturers.

The work is organised over eight chapters, opening with an introductory chapter providing background to the study, aims, research questions and methodology. Chapter two concentrates on the theoretical considerations and includes a synthesis model of this study to apply to the Korean automotive FDI and industrial location in Europe. The third chapter looks at European economic integration and the impact on the automobile industry together with policies and measures of the SEM (Single European Market) and how they effect non-European companies. Chapter four examines the Korean automobile industry in the context of Korean economic recovery and its implications for Korean internationalism and industrial restructuring. The Korean automotive FDI patterns and motivations are the focus of chapter five. A case study analysis of the European operations of two Korean motor car manufacturers is the focus of chapter six with emphasis on FDI motivations and locational decisions. Chapter seven seeks empirical evidence of integration effects upon Korean FDI and industrial location in Europe. Chapter eight presents the conclusions drawn from the earlier analysis.

The work will interest students, scholars, researchers and policy makers engaged in European integration, European Studies, economics and investment planners.

Jae Hoon Hyun is Research Fellow at the University of Sheffield.