Globalization: The Increasing Trend of Korean Expansion overseas

The number of overseas affiliates established by Korean companies has increased sharply. For example, the total number of Korean overseas affiliates as of June 2004 approaches 20,000. This increasing trend of Korean overseas affiliates is expected to continue. This reflects the ongoing process of globalization in Korean companies, especially in top conglomores Samsung, Hyundai Automotive, and LG. One example of this is Hyundai AG's plants in India, China, Turkey, and the U.S.

Geographically, Korea is concentrating the bulk of its overseas production plants in China, its the booming neighbor. China has emerged as the most attractive investment destination for Korean businesses since 2002. As of June 2004, the number of affiliates in China was 9,853, accounting for 49.5 percent of total Korean affiliates in the world. The accumulated amount of investment in China amounted to $10.09 billion, or 19.3 percent of the total investment. This is the second largest, following investment in the United States. Nevertheless, the current brisk investment in China has fueled the fear that China would absorb resources around the region and might hollow out domestic Korean manufacturing.