Australian Direct Investment in Korea: Issues and Strategy

According to the survey results, Australian firms undertook investment in Korea in order to capitalise on the emerging business opportunities by means of their firm-specific advantages. On their business operations and relations with Korean companies, Australian respondents rated "importance of...

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Bibliographic Details
Published in:	Korea observer 2004-01, Vol.35 (1), p.87-119
Main Author:	Kwon, O Yul
Format:	Article
Language:	eng
Subjects:	Australia Business Companies Disadvantaged Economic crisis Economic growth Economic policy Economic structure Elgar, Edward Expatriates Foreign direct investment Foreign enterprises Foreign investment Free trade GDP Government policy Gross Domestic Product Indexing in process Information sources International investment Investments Kim, June Korean language Liberalization Manufacturing Polls & surveys Recent economic history Regulation Respondents South Korea Trade agreements Trade promotion Trends
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Summary:	According to the survey results, Australian firms undertook investment in Korea in order to capitalise on the emerging business opportunities by means of their firm-specific advantages. On their business operations and relations with Korean companies, Australian respondents rated "importance of personal relationships in business" as the most difficult area and "unfair advantages held by Korean firms (chaebols)" as the second most difficult area with average scores of 3.867 and 3.516 respectively. Because respondents perceived that Korean firms still rely heavily on personal relationships in business operation, they considered themselves disadvantaged. All this resulted in a flagging level of FDI in Korea. Since 1997, however, the Korean government has undertaken a paradigm shift in the FDI policy from "restriction and control" to "promotion and assistance," and undertaken a series of policy measures and all-out efforts to attract FDI. According to the survey results, Australian firms chose to pursue FDI in Korea to capitalise on the emerging business opportunities in Korea by means of their firm-specific advantages.
ISSN:	0023-3919 2586-3053