외환위기 이후 동남아지역 환경변화에 대응한 기업의 해외직접투자 전략

Korean Firms' Foreign Direct Investment Strategy Responding to Changing Environment After Economic Crisis in Southeast Asia

Foreign Direct Investment(FDI) in the Southeast Asia have played an important role in the economic growth over the 1980s and 1990s. However, the financial crisis during the latter half of 1990s paralyzed these countries' economy and put these countries into depression. It was expected that despite the financial crisis, many of the determinants of FDI such as host government inducement and deregulatory policies and market size remain attractive in the long run, and therefore a fall in FDI is likely only in the short or medium term. FDI flows to developing Asia as a whole have weathered the financial crisis. But this attractiveness for FDI did not mean the whole social and economic system in this area kept unchanged. Many prominent changes took place in th environment for attracting inward FDI. Many factors such as the increase of country risk, government inducement policy, deep depression of global economy, devaluation and social instability can be enumerated. The development and emergence of China as a global economic power will also influence this region. The significant change as a result of the financial crisis was in the country of origin of the investor. Intra-Asian investment has been replaced by large purchases of Asian firms by investors from non-Asian OECD countries, particularly by American, British and Dutch. This made the competition in this area more intense and global. Korean firms' FDI into this region was continuously declined. Furthermore, many companies, which had not gained competitiveness, divested from the region. In terms of the motivation to enter into this area via FDI, many investors seek to various reasons like market development and R&D instead of cost efficiency. Responding to these environmental and market characteristic change, more proactive and effective strategies could be proposed for Korean firms to build competitiveness and make profits through FDI. First of all, risk management should be prioritized. To do this, analytical and systematic market research and evaluation process should be implemented before the investment. Firms with global vision and strategy, should build up core competence to offset the cost of foreignness. Marketing plans and programs should be adapted to local culture and consumers. Relationship marketing rather than the conventional transaction approach is highly recommended. Relationships between the firm and its customers, suppliers, distributors, and other environments with whom the company wishes to maintain long-term relationships are recognized as a significant aspect of enduring success. Relational networks are more influential factor in Southeast Asia characterized by the critical role of Chinese capital. Korean firms' further investments into this region should be made with various industries such as service and high-tech field. Following the trend that M&As as a mode of entry for FDI are popular in global economy, Korean firms can utilize this entry mode to reduce risk.