The world has been experiencing the Korean Wave – a trend that has gained such a wide global acceptance for Korean culture and Korean products. This can be felt in how Samsung is kicking the iPhone’s ass, the presence of BB creams in every woman’s makeup bag, the overwhelming viral success of PSY, and the fact that Hyundai and Kia have become just as popular as Honda and Toyota.
The auto industry in South Korea has come a long way since its humble beginnings in 1955, when some enterprising businessmen put together their first car, using parts from U.S. military jeeps and some junk finds. Whereas in the years preceding the 1990’s, Korea has been infamous for cheap, low-quality products, the car manufacturers have steadily upped their standards and allowed global brands such as Hyundai and Kia to emerge, brands that are now considered at par with the Toyota’s and GM’s of this world. Today, South Korea is a force to be reckoned with, ranking 5th among the world’s automobile producers in 2012, producing an excess of 4.5 million units, while ranking even higher – third in the world – in automobile exports, as it exports 41% of its auto production, while only importing a miniscule 1%.
Is there a secret to this country’s success? Apart from, probably just sheer tenacity and an iron will to do better. South Korea did not allow the world’s scoffs and general low opinion of its cars to shake its belief that it will eventually earn its awe and respect.
While the global recession has most companies paring down their research and development spending to the bare minimum, South Korean companies funneled more money into it. South Korea has instilled in its industries the value – the necessity – of spending money to make money, especially when the money is spent on creating great products that people will actually buy. Industries here are willing to shell out big bucks towards R&D.
This resulted in coming up with the best cars for different price points targeted for various market segments. Korean brands, not just in auto, but notably in IT and electronics as well, tend to have a wider range of products, spanning from low-end models to high-end ones, which sell at such competitive prices, and a wider distribution that does not just concentrate on first world countries.
Enticing the strongest auto companies such as DaimlerChrysler, GM, and Renault in the world to partner up and collaborate with homegrown giants. Right now, there are no independent, solely Korean-owned car manufacturers. This capitalizes on the experience and reputation of these foreign companies which could help the younger Korean brands in product development, marketing strategies. This could be crucial to the penetration of Korean car brands in both local and foreign markets.
South Korea has opened up to the world, coming to share the richness of its culture and the quality of its products to an extremely huge audience while at the same time allowing culture and knowledge from the outside to enter and become part of its soul. This openness has certainly worked well and contributed to the global success of more than just its auto industry.
