ABSTRACT
Korean electronics firms have recently embarked on an internationalization drive, not only increasing their penetration of developing markets but also making significant inroads into industrialized markets. The electronics industry accounts for a large chunk of the Republic of Korea's overall exports and outward direct investment (ODI): 29 per cent and 25 per cent, respectively, in 1997. 1 This shift from a traditional export orientation — the source of Korea's rapid economic growth — occurred in a context where Korean manufacturing industries were hard hit by steep wage hikes and an appreciating won, multiple import restrictions imposed by developed countries, and a catching-up process engaged in by a second wave of dynamic Asian economies such as Malaysia and Thailand. At the end of 1997, Korean electronics firms' overseas activities amounted to 1475 projects worth USD 6.7 billion, a significant share of which was undertaken in North America and Europe (65 and 36 per cent, respectively, in terms of amount and cases).
