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Is the transition to electric vehicles a crisis or an opportunity? The South Korean automotive industry experience

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  • Lee, Seoyoung
  • Kim, Hongbum
  • Hwang, Junseok

Abstract

The global automotive industry is undergoing a transformative shift driven by electric vehicles (EVs), reshaping supply chain structures and industrial ecosystems. This study examines the evolution of Korea’s automotive supply chain from 2008 to 2021, focusing on changes in regional roles and network dynamics amidst the transition from internal combustion engine vehicles to EVs. The findings indicate that this transition has strengthened the robustness of Korea’s automobile industry by expanding and stabilizing supply chains, reorganizing traditional structures, and integrating new supply nodes. By applying the network positioning matrix, the study highlights the emergence of new regional clusters and the evolving roles of key supply chain actors. These insights emphasize the necessity of targeted industrial policies and long-term investment strategies at the national level to strengthen regional competitiveness in response to technological transformations.

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  • Lee, Seoyoung & Kim, Hongbum & Hwang, Junseok, 2025. "Is the transition to electric vehicles a crisis or an opportunity? The South Korean automotive industry experience," Journal of Asian Economics, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:asieco:v:98:y:2025:i:c:s1049007825000624
    DOI: 10.1016/j.asieco.2025.101938
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