The Changing Capital Markets of East Asia

By Ky Cao | Go to book overview

Chapter 7

The political economy of Korean foreign direct investment in Southeast Asia

You-II Lee and Moon-Joong Tcha1


INTRODUCTION

Over the last three decades, Korea has experienced the most successful economic growth in the developing world. The average real annual growth during the period between 1962 and 1991 exceeded 9 per cent, and radical changes in the economic structure saw a move away from previous import substitution policies. The state implemented major economic reforms—such as the adoption of more realistic exchange rates, centralisation of import controls, and the introduction of export incentives—that encouraged industries to look to global markets and to develop the country’s comparative advantage such as low production costs and, until the early 1980s, a relatively compliant workforce. Consequently, agriculture’s contribution to the gross domestic product (GDP) dropped from 36 per cent to 13.8 per cent and the share of manufacturing increased from 25 per cent to 50 per cent between 1962 and 1985. 2 These elements have converted the image of Korea from that of an underdeveloped country in the 1960s to that of a newly industrialising country (NIC) by the late 1970s.

A significant consequence of Korea’s economic development has been an increase of investment in Southeast Asia where, since the late 1980s, it has emerged as one of the largest investors. In 1992, Korean foreign direct investment (FDD 3 in the region stood at over US$1.2 billion: more than twice the sum total of FDI in the period between 1968 and 1985 (US$570 million). In the period between 1986 to 1988, 96.2 per cent of Korean FDI went to Indonesia. Despite this dramatic increase, however, internationalisation of Korean capital is still at an early stage; the 1990 figure (US$820 million) represented no more than 0.4 per cent of Korea’s gross national product (GNP)—US$238 billion.

A large number of Korean investments realised in Southeast Asia are small-and medium-sized and engaged in labour-intensive manufacturing industries like textiles, footwear, garments and toys. Korean FDI by manufacturing firms in the region has shown remarkable growth since 1988, especially in Indonesia. The total amount of Korean FDI (US$48.17 million)

-202-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Changing Capital Markets of East Asia
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 344

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.