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EU Trade Policies, Korean FDI in the EU and the Emergence of Korean Electronics Multinationals

In: Newly Industrialising Economies and International Competitiveness

Author

Listed:
  • Doo-Jin Kim
  • Young-Chan Kim

Abstract

In this chapter, we develop the proposition that initial Korean manufacturing investment in the EU was mainly attributable to non-tariff trade barriers, especially anti-dumping duties imposed by the EU. We argue that EU trade policy measures can be interpreted as the first major factor in driving the internationalisation of large Korean electronics firms. EU trade policies, including anti-dumping duties on imports, local content and rules of origins, are shown to have been related to the emergence of Korean electronics MNCs. From the global perspective, trade protectionism in developed countries, in particular the EU, has significantly prompted Korean chaebol to become multinationals in terms of dealing with the electronics sector in the advanced markets. The chapter provides an overview of the major factors motivating Korean FDI in the EU and related empirical analyses illustrating the significant and strong connection between EU trade policies and Korean FDI into the EU that has consequently led to the internationalisation of Korean electronics firms.

Suggested Citation

  • Doo-Jin Kim & Young-Chan Kim, 2006. "EU Trade Policies, Korean FDI in the EU and the Emergence of Korean Electronics Multinationals," Palgrave Macmillan Books, in: Newly Industrialising Economies and International Competitiveness, chapter 6, pages 161-219, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-62670-6_6
    DOI: 10.1057/9780230626706_6
    as

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