Korea's automotive industry gains

By Bernard Rowan

These days, Korea garners much favorable attention for its automotive industry. Long a global player in heavy industries, the automotive industry stands as one pillar of Korea’s advanced society. Today’s leaders and workers continue the legacy of those scions of government and industry who chartered the success of Korean development.

Hyundai, KIA, and other automakers gain further prominence on the world market. Other Korean firms excel in providing automotive parts, hybrid cars, or in developing next generation technologies and engines. Despite economic cycles and global demand swings, Korean carmakers deserve much praise. These companies should continually innovate to the benefit of Korean people and our world.

When I visited Korea, I noticed various cars, many of which in their past models didn’t sell in the United States. I thought the Equus, for example, was as fine a luxury car as anything I’d seen or read about. I liked SsangYong SUVs. The Hyundai Sonata was a serviceable midpriced sedan that performed well. I remember the Daewoo Tico, too, which made me think Korean consumers were sensible and efficient.

Much has changed since the late 20th century. We don’t have the Tico! Daewoo is no more. Hyundai owns part of KIA, I think, but their brands keep distinct identities and production to a great extent. We begin to see more Korean cars in other places. For example, the Hyundai Sonata and Hyundai Elantra are the tenth and ninth most popular U.S. import cars, according to Autoguide.com. In other countries from Russia and China to India, Korean automakers continue to make strides. They provide consumers with dependable, affordable cars of increasing quality and proven performance. J.D. Power, the respected quality ratings organization for automobiles, gives higher marks to Korean cars year by year. We can find the Equus in many countries nowadays.

Experts and industry followers hang their hats on how sales have fared this month or on shares compared with other Korean or global competitors. Korean development follows these standard metrics but also keys on the benefits of a long-term perspective. Maybe this year so far car sales have dipped, but in our interlocking and interdependent markets, that’s going to happen.

Korean automakers strike deals in other countries and find ways to start production lines abroad. It’s no easy matter to succeed abroad. The growth of Korea’s automotive export sales is in places directly related to the ability to work with foreign governments and businesses, with all that that entails. Government agencies should aid Korean companies in developing further context-specific relations that smooth the way for progress. The recent Wall Street Journal report on the difficulties of Kia in Mexico is instructive.

I’m not a fan of the chaebol, but I’m going to say Hyundai deserves praise for many innovations. Their success in marketing Korean brands to foreign audiences stands out. Their work to improve the capacity of their electric cars is forward-thinking. The excellence of their cars is gaining international repute. Hyundai has proven true to its long-standing strengths as a major producer of Korean heavy exports.

The future should see the decline to relative insignificance of fossil fuels. It’s time to find and perfect fundamentally different motors and engines. I’ll be glad to see that happen, as we’re burning up the atmosphere and so much else running on oil, gasoline, and other petroleum based products. Korea is a major player in developing future technologies. The government, universities, and companies must invest more to lead development of these possibilities. The world demands better and more advanced machines. Countries inventing them will be or remain the most advanced nations. With one of the most robust economic engines in the world, Korea should imagine itself as a major player in that future.

Keep innovating Korean automobiles. They’re the basis of a great world industry that captivates the human spirit and imagination. Korean cars are beginning to star on the world scene and should continue to do so. Apply your strengths in technological ingenuity and stay ahead of the curve with competitors. Invest in building sensible supply chains and regional integrations with partners based on the laws of comparative advantage. As other countries go, your opportunities will serve you well!

Bernard Rowan is associate provost for contract administration and professor of political science at Chicago State University, where he has served for 22 years. He is a past fellow of the Korea Foundation and former visiting professor at Hanyang University. Reach him at browan10@yahoo.com.