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Driving for exports

Article Abstract:

South Korean car makers are expanding aggressively in pursuit of exports but experts say that strategy faces several potential pitfalls. Kia, for example, is going to great lengths to expand a plant into Asan Bay, and all the auto makers are building plants and making deals overseas to enter protected developing markets. They compete directly with Japan, primarily on price, so the higher yen helps, but they also buy equipment from Japan. Many other countries' car manufacturers are also active in the new markets.

Motor vehicles and car bodies, Automobiles, Automobile Manufacturing, Automobile industry

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Hidden meaning

Article Abstract:

No one seems to truly understand the S Korean govt's professed policy of globalization, but it seems to entail greater openness and reduced bureaucratic interference. While chaebols and foreign investors say that it is not happening, chaebol are being allowed into new businesses and are showing record profits, giving the country a GDP growth rate projected to remain between 8% and 10% through 1998. The chaebol are also reorganizing, perhaps in part to accomodate the govt's plan.

Competition (Economics), International trade, International economic relations

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