THE INTERNATIONALIZATION OF SOUTH KOREAN COMPANIES AND THE ROLE OF THE STATE

ABSTRACT

The purpose of this article is to present the process of (late) internationalization of Korean companies occurred between the years of 1990 and 2015, its determinants and the degree of involvement of the State in this process. We can point out some determinants in this process, such as: cheap labor, problematic domestic market, cost disadvantages, competition and a clear public strategy to turn South Korea into a regional power. We conclude that this process was not a result of free market forces. There was a perception by the government that this process would not only be relevant but also necessary for the virtuous integration of South Korea in the international trade and productive structures.

KEYWORDS:
South Korea; foreign direct investment; internationalization