Foreign Direct Investment Flows from China to Korea in the Automobile Industry

Ka Hyun Lee, Jai S. Mah

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

This article addresses the effect of foreign direct investment (FDI) flows from China to Korea, particularly in the case of the automobile industry. Despite the various positive effects that FDI brings to the growth of the automobile industry, concerns and doubts have been cast upon China's overseas investment in Korea's automobile industry, as FDI may involve the transfer of technology, and thereby, China may soon catch up with Korea technologically. The Shanghai Automotive Industrial Corporation's (SAIC) acquisition of one of the automobile producers of Korea, Ssangyong Motor Corporation, and the consequent technology transfer or leakage have become a controversial national issue in Korea. This article draws the policy implications from the case of the former corporation's acquisition of the latter in light of the economic development and industrialisation of developing countries in general.

Original languageEnglish
Pages (from-to)26-45
Number of pages20
JournalChina Report
Volume53
Issue number1
DOIs
StatePublished - 1 Feb 2017

Keywords

  • automobile industry
  • China
  • foreign direct investment (FDI)
  • Korea

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