The competitive weakness in domestic autoparts companies
compared to that of domestic finished vehicles companies is
predicted to serve as an obstacle in the mid to long-term development
of the domestic automobile industry. Hence, a scheme to strengthen
international competitiveness of the automobile industry must
be devised.
For international competitiveness of the automobile industry,
formation of the “Latest Foreign Autoparts Industrial Complex”
is necessary.
- To transform low value-added cast-iron,
forging, injection products to high value-added high-tech products.
- To draw direct foreign investors who will specialize and
maximize the current automobile industry with poor industrial
conditions, lacking in technological know-how.
- To develop new products and materials, acquire new technologies,
rear specialists, share management and engineering know-how
between domestic and foreign companies.
- To actively respond to global outsourcing trends for autoparts,
to scheme penetration into advanced foreign autoparts market
and to grow into a global industry, allowing systematic linkage
with advanced foreign high-tech autoparts manufacturing companies.
For harmonious construction of such establishment, drawing
foreign direct investments and joint-penetration into foreign
markets are necessary. Foreign companies may also acquire
management know-how that may be used in expanding their markets
in the Northeast Asian regions.
To transform the autoparts industry into high value-added
industry, development of schemes that will link domestic autoparts
manufacturing companies to foreign investment companies with
high-tech know-how will be necessary. As such, advanced strategies
that will be beneficial for both domestic and foreign companies
will be devised creating a win-win situation.
Solid and convincing research results must be generated in
order to attract individual foreign high-tech autoparts companies
to invest in the Industrial Complex. Such designed scheme should
aid both Korean autoparts companies as well as foreign investors
to jointly expand into untapped markets and to develop the autoparts
industries for both parties as well as to collect rewards of
such efforts for individual companies.
Development plan which will actively respond to the global
industrial trends must be devised to be used for foreign and
domestic autoparts manufacturing companies.
Spillover effects from building the Latest Foreign Autoparts
Industrial Complex will allow the Industrial Complex to grow
into the Northeast Asian Logistics Hub.
Propriety analysis of forming “Latest Foreign Autoparts Industrial
Complex”
Evaluation of proposed sites for constructing the “Latest
Foreign Autoparts Industrial Complex”
Studying major foreign investment companies and development
of strategies to attract foreign investments
- Analysis of major complete vehicle manufacturing and
autoparts companies supply network to attract direct
investment of multinational autoparts companies.
- Selection of major foreign investment companies
- Development of method in which to prioritize electable foreign
investors considering such variables as possession of seed
technology, possession of latest technology, development of
new material, production of ecologically friendly parts, etc.
- Development of strategy to draw investments by investigating the overseas
strategies of major target companies.
Devising establishment scheme for industrial complex with
demand in mind
- Consider designing an industrial complex that will attract
major investments and possess competitive strengths
Encouragement of foreign investors inflow into the “Latest
Foreign Autoparts Industrial Complex” to build various forms
of mutual cooperative networks such as technological transfer,
collaborative R&D on ultramodern products, and joint-penetration
into target markets
- Development of strategies which will absorb the capacities
of foreign investments in competitively advantageous electronic
and digital technologies, human and technological resources
and industrial foundation in general
Development of the Industrial Complex into Northeast Asian
Autoparts Logistics Hub
Promoting Entity: Ministry of Commerce, Industry
and Energy
Research Institutions (Collaboration)
- Organizer of Research: S.TRADE
- Participating Research Institutions: KIET, Korea Polytechnic
University
Strengths of Each Institution
[S. Trade]
- S. Trade is located near the autoparts industry site in the vicinity of the metropolitan
area and, as a result, has the advantage of grasping the realities
of the industry. S.Trade also possesses broad understanding
of overseas market through its international networks.
- The Research Board is formed of KOTRA members with extensive
professional experiences acquired from working overseas, helping
the development of domestic small and medium-size companies
to enter the overseas markets.
- With the expansion of global outsourcing in the autoparts industry,
S.Trade will organize the international autoparts & accessories
specializing exhibition (KOAAshow) to encourage penetration
into the North American OEM autoparts market using systems such
as "Covisint" and "free market". S.Trade will also manage integrated
marketing businesses through on and off-line media and participate
in renown autoparts and accessories exhibition in the form of
Korean Pavilion to actively promote overseas marketing activities.
[KIET]
- KIET not only possesses extensive experience in research
related to automobiles, autoparts industries, foreign direct
investments and industrial complexes but also retains excellent
research staffs.
- For 20 years since its establishment, KIET has conducted research and its
implementation by classifying the automobile industry into industry
types, regions and functions.
- KIET has been benchmarking not only the BIG 3 of USA but also
prominent domestic as well as overseas automobile manufacturers.
Furthermore, KIET has been following the trends of overseas
direct investments and major functions thereof such as R&D,
production, and marketing strategies, etc. for research and
evaluation.
- KIET has held various seminars and also has published reports
for international seminars in related areas.
- KIET has domestically as well as internationally distributed
its research reports related to the formation of autoparts industrial
complex.
[Korea Polytechnic University]
- KPU has strenuously strived to achieve in-depth practical
study on governmental policies and industry/academy collaborative
researches. KPU is recording 3~4th in research expenses per
professor.
- KPU has been collaboratively researching with the resident
companies of national industrial complexes such as Banwol, Sihwa
and Namdong on technological design and management innovation.
- KPU’s practical researches are being conducted through on-site
study and in-depth interviews of the industry.
- The research staff of KPU consists of professionals in the
areas of Economics, Business Management and Engineering, who
have acquired on-location industrial experiences in diverse
entities and institutions such as the Korea Institute for Industrial
Economics & Trade, Korea Industrial Complex Corp., GM DAEWOO,
SK Networks, etc. KPU has harmonized theory and actuals, establishing
research collaborative systems with, for example, the Mechanical
and Electronical Engineering Departments within the university
to derive on-location and practical efficacy of research results.
Promotional Method
Basic Framework
Research aim is to form an industry-academy collaborative
research system efficiently harmonizing actual business
practices and its theories
Institutions with forte in on-location actual business
practices and research institutions and universities with
forte in research and in-depth study are coupled for cooperative
promotion
Demand-focused in-depth research will be conducted
showing deference to the opinions of the industry.
Active and effective utilization of internet and other
communicative tools
Maximizing utilization efficiency through effective application of human resources, budget and
time.
Formation of professional advisory board and collection
of professional advices to sustain objectivity and equity
Method
Investigative research will be implemented after being
classified into basic, main and final researches
and for general areas such as foreign direct investments,
active utilization of existing research materials will
be used to eliminate inefficiencies
Investigative research will be focused on actual on-location
business practices by using the collected opinions of
domestic and overseas CEOs, engineers and marketers and
joining them with the theories collected from relevant
academies and research institutes to extract the most
adequate and practical research results that may be applied
in real business activities
Research methods using high-tech systems such as ultramodern
multimedia network and high-touch system such as face-to-face
methods will be used together
<Research Staffs>
Entity
Title
Role
Name
Area of Specialization
S.TRADE
President
General Management
Joun Shik Lee
Business Management
"
Strategic Planning Director
Research
Tae Wan Lee
Law
"
Strategic Planning Director
Research
Hae Ick Lee
Economics
KIET
Chief Researcher
Research Management
Hang Koo Lee
Business Management
"
Senior Researcher
Research
Ha Yul Song
Economics
"
Senior Research Specialist
Research
Kyung You Kim
Business Management
"
Research Specialist
Research
Jin Myun Lee
Economics
"
Research Assistant
Research
In Sun Kim
"
Research Assistant
Research
Eun Young Yoo
Korea Polytechnic
University
Professor
Research Management
Seong Ho Nho
Industrial Economics
"
Professor
Research
Jae Kwang Lee
Management Science
"
Professor
Research
Ok Hyun Ryu
Industrial Engineering
"
Researcher
Research
Jong In Lim
Regional Industry
"
Research Assistant
Research
Ji Eun Kim
Chinese Economics
<Advisory Board>
Entity
Title
Name
Area of Specialization
BMR
Consulting
President
Sung Shin Lee
Automobile Economics
The Presidential
Committee on Northeast Asian Cooperation Initiative
Research Specialist
Sung Hoon Lim
Int’l
Business Strategy(Foreign Investments/Local Economy)
The University
of Suwon
Professor
Chul Soo Park
Local Economy
KATECH
Chief Director
Jin Seok Jang
Automobile Parts
KAP
Managing Director
Joon Hyung Lee
Automobile Parts
KAICA
Managing Director
Moon Soo Ko
Automobile Parts
Korea
Industrial Complex Corp.
Jong In Lim
Industrial Location
Korea
Research Institute for Human Settlements
Young Chul Park
Industrial Location
Kyonggi
Research Institute
Mi Sung Moon
Urban Engineering
Inzi Controls
Company, Ltd.
Executive Director
Sung Nam Yang
Autoparts Industry
Guarantee of reliability in policy decision and implementation
based on the research results for the propriety of establishing
the “Latest Foreign Autoparts Industrial Complex”.
Providing opportunity to establish direct foreign
investment exclusive industrial complex with market-friendly structure
that is flexible for use in corresponding industries and in
establishing and designing advance measures for industrial collaboration.
Obtain benefits for domestic companies as well as foreign
investors by cooperating in business operations as well as technological
developments
Developing the Industrial Complex as the Northeast Asian
Logistics Hub, producing not only high value-added autoparts
but also research results that may enhance the global autoparts
industries participating in the movement.
