This article deals with the current challenges and future strategies for the Korean automobile industry in the global market. To understand its strengths and weaknesses, the trends of the world market for motor vehicles and the development of the Korean automobile industry are discussed. In the first part, Korea's automobile production in the world market is examined. A brief overview of the production and consumption of automobiles is provided along with a description of the four-stage development of Korean car production. In the second part, various forces of production are identified that affect Korean automakers’ competitiveness in the global market. Capital formation, labor relations, the role of government, management style, production technology, research and development, and workmanship are discussed briefly. Finally, in light of current observations, some of the challenges for the Korean automobile industry in the future are pointed out and some recommendations for automakers, labor, and the government are offered.
The Determinations of East Asia’s Automobile Trade Using a Gravity Model
