KOREAN AUTOMOBILE INDUSTRY

How the Korean Automobile Industry Impacted the Korean Economy?

How the Korean Automobile Industry Impacted the Korean Economy?

Introduction

The count of success ratios of industries in a country determines the development and strength of the economy (Kim & Lee, 1981). Korea is one of the countries, which has developed an environment, which protects and helps to grow industries in Korean economy. Some of the successful Korean companies include Daewoo Group, Daelim, Doosan Group, LG Corp, GS Group, Hyundai Group and Lotte Co. To appreciate the growth that has transformed the industrial sector of Korea, it is imperative to study them. This paper in this connection will examine the developments in the Korean automobile industry and will determine the impact of automotive firms on the overall economy. Korea is the fifth-largest automobile manufacturer of the world, competing with some of the world's biggest western economies. Thus, it is imperative to study the impact of this marvelous and rapid growth on the overall Korean economy (Kim, 1982). This research paper in this connection will examine the secret of success of Korean automobile firms, while giving special attention to current developments within the industry among firms. The paper in relation to the success of Korean automobile firms will also analyse how automobile firms are contributing their share towards the growth and development of the economy.

Thesis Statement

The automobile firms positively impact the Korean economy and support the economic stability of the country.

Discussion

Korea's automobile firms in the production since the IMF crisis in 1995 entered the top five had retreated to the sixth, but since 2000, despite the emergence of China as No. 5, Korean remained ahead of France. As domestic production of 4.27 million in 2010 and formed a record high overseas production also increased by 37 percent in 2009 compared to 2,605,000 2,000,000 surpassed (Korea Economic Institute (US), 2008). The automobile exports of Korea increased by 29 percent over the past year. This 29% increases in amount can be qualified as around 2.77 million. Average export prices rose 13.3 percent year-on-year to $ 2,119 per 10,000 has been steadily increasing (Sanidas & Park, 2011).

Hyundai-Kia Automotive Group in terms of individual companies in 2010 to 5.76 million sales grew to world top five car companies GM Korea, Renault Samseongcha, Ssangyong car of this phase is on track to survive in global competition has been increasing significantly (Sanidas & Park, 2011). For 2011 the status of Korea's automobile firms has a vertical rise. Hyundai-Kia Automotive Group, particularly in the U.S. market in May 2011, Honda sold 100,000 units of 7,426 (90,773) and Nissan (70,000 vs. 6,148) surpassed the U.S. market, was ranked 5. Just two years ago, stayed in the United States share units as opposed to 5%, starting with the financial crisis, while big breakthrough average 7.7 percent in 2010, in May 2011 rose by 10.1%.

In addition, the European Union (EU) and European Free Trade Association (EFTA) and other 28 countries in the past May 8585 a total of 50,000 units (4,508 versus ...