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The Republic of Korea's Foreign Direct Investments in Australia: The Chaebols Down Under

Journal Article


Abstract


  • The objective is to explain why the total value of foreign direct investment (FDI) from the Republic of Korea (hereafter ‘Korea’) remains small in Australia. Internationalisation of Korean production has proceeded rapidly since 1987 following changes in both the domestic and international business environments. Total outgoing FDI increased from US$ 356 million in 1987 to US$ 1,600 million in 1990. Australia, in comparison, received a cumulative FDI of only US$ 128 million in 1990. In terms of Korean FDI, Australia is a marginal location. Low FDI from Korea occurred despite being given priority status by Austrade in 1990 as a source for overseas capital and both countries being in each others top ten export destinations since 1989. Australia as a host nation for Korean corporations (chaebols) is discussed within Edgington's (1988) and Porters (1985) theoretical frameworks which consider overseas investment strategies. Copyright © 1994, Wiley Blackwell. All rights reserved

Publication Date


  • 1994

Citation


  • WAITT, G. (1994). The Republic of Korea's Foreign Direct Investments in Australia: The Chaebols Down Under. Australian Geographical Studies, 32(2), 191-213. doi:10.1111/j.1467-8470.1994.tb00671.x

Scopus Eid


  • 2-s2.0-0028551321

Web Of Science Accession Number


Start Page


  • 191

End Page


  • 213

Volume


  • 32

Issue


  • 2

Abstract


  • The objective is to explain why the total value of foreign direct investment (FDI) from the Republic of Korea (hereafter ‘Korea’) remains small in Australia. Internationalisation of Korean production has proceeded rapidly since 1987 following changes in both the domestic and international business environments. Total outgoing FDI increased from US$ 356 million in 1987 to US$ 1,600 million in 1990. Australia, in comparison, received a cumulative FDI of only US$ 128 million in 1990. In terms of Korean FDI, Australia is a marginal location. Low FDI from Korea occurred despite being given priority status by Austrade in 1990 as a source for overseas capital and both countries being in each others top ten export destinations since 1989. Australia as a host nation for Korean corporations (chaebols) is discussed within Edgington's (1988) and Porters (1985) theoretical frameworks which consider overseas investment strategies. Copyright © 1994, Wiley Blackwell. All rights reserved

Publication Date


  • 1994

Citation


  • WAITT, G. (1994). The Republic of Korea's Foreign Direct Investments in Australia: The Chaebols Down Under. Australian Geographical Studies, 32(2), 191-213. doi:10.1111/j.1467-8470.1994.tb00671.x

Scopus Eid


  • 2-s2.0-0028551321

Web Of Science Accession Number


Start Page


  • 191

End Page


  • 213

Volume


  • 32

Issue


  • 2