The Korean Auto Industry’s Post-Park Emergence Between Crises: 1980–1996

Serving as a continuation of the prior essay, this chapter, “The Korean Auto Industry’s Post-Park Emergence between Crises: 1980–1996,” examines the plight of the Korean auto industry from the second global energy crisis through the end of 1996/just months prior to the 1997 Asian Financial Crisis. It begins with an overview of the domestic and international political-economic context for the auto industry’s development during the Chun Regime (1980–1988). This includes discussions of the Park to Chun transition period, how growing trade friction between Japanese automakers and Western nations created an opening for Korean exports, particularly from Hyundai, and of the tumultuous end to the Chun Regime. These sections are followed by brief examinations of the evolving context under the Roh (1988–1993) and Young-sam Kim (1993–1996) Regimes. During the former period, auto industry growth slowed, as Korean vehicle exports began to confront trade friction of their own from North America. In contrast, during the latter period, Korean automakers experienced a second take-off, as Kim’s liberalization policies fueled capacity expansions at home and abroad. This resulted in a more than doubling of exports. This chapter closes with a summary of the essay’s key points and offers a look at the status of the Korean auto industry at the start of 1997.