Global Players from Emerging Markets: Strengthening ... - Unctad
Global Players from Emerging Markets: Strengthening ... - Unctad
Global Players from Emerging Markets: Strengthening ... - Unctad
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
96 Outward Foreign Direct Investment by Enterprises <strong>from</strong> the Republic of Korea<br />
Number of cases<br />
Number of projects<br />
1,400<br />
1,200<br />
1,000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
Figure 3. Korean OFDI: four major industries and firm size, 1996-2004<br />
(Number and millions of dollars)<br />
Source: Export-Import Bank of Korea (www.koreaexim.go.kr).<br />
Overseas operation<br />
Table 1. Korean OFDI activities: current status and plan<br />
A framework for analysis. The motivations of<br />
OFDI by Korean firms can be illustrated based on the<br />
extended diamond model (figure 6). 74 This extension<br />
74 Porter (1990) introduced the diamond model, which<br />
consists of four attributes of analysis: (1) factor conditions,<br />
(2) demand conditions, (3) related and supporting sectors<br />
and (4) strategy, structure and rivalry. However, Porter’s<br />
original model dealt mainly with domestic contexts and so<br />
(Percentage)<br />
Firm size<br />
Large TNCs Small TNCs<br />
Already owns 68.1 37.3<br />
Plans to transfer 14.9 39.2<br />
No plan 17.0 23.5<br />
Total 100.0 100.0<br />
Source: KCCI (2002).<br />
0<br />
Figure<br />
3-1.<br />
Manufacturing<br />
1996 1998 2000<br />
Year<br />
2002 2004<br />
Figure<br />
3-3.<br />
Service<br />
1996 1998 2000<br />
Year<br />
2002 2004<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
Amount ($ millions)<br />
Amount ($ millions)<br />
Number of projects<br />
1,400<br />
1,200<br />
1,000<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
800<br />
600<br />
400<br />
200<br />
50<br />
0<br />
0<br />
Figure<br />
3-2.<br />
Wholesale/<br />
Retail<br />
1996 1998 2000<br />
Year<br />
2002 2004<br />
Figure<br />
3-4.<br />
Mining<br />
1996 1998 2000<br />
Year<br />
2002 2004<br />
Large TNCs cases SMEs Cases Large TNCs Amount SMEs Amount<br />
Number of cases<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
incorporates the TNCs activities (Moon, Rugman and<br />
Verbeke 1998) and unconventional OFDI explanation<br />
(Moon and Roehl 2001). It includes factor conditions,<br />
demand conditions and strategy, structure and rivalry,<br />
and related and support sectors.<br />
was extended by Moon, Rugman, and Verbeke (1998) to<br />
incorporate international dimensions.<br />
500<br />
0<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
Amount ($ millons)<br />
Amount ($ millions)