Catch-up to Lead in Korea’s Automobile Industry

Abstract

The dynamics of Korea’s technological learning since the 1960s transformed itself from “catch up to lead”. Hyundai Motor, founded in 1967 with its affiliated firm Kia Motor, shows the typical example of a rapid catch-up to lead as it has joined the top five global automobile makers in 2009. This chapter aims to answer the question: What are the major factors of the rapid catch-up in Korea’s automobile industry? The government policy, corporate strategy, demand, entrepreneurs, MNC’s involvement, knowledge base, and the bases of the parts industry are important factors. Hyundai and Kia have met another challenge to be competitive in future vehicles. This research could give meaningful implications on how to develop the automobile industry as a stepping stone to the industrialization of the nation.