Title: The changing nature of South Korean FDI to China

Authors: Jae-Yeon Kim; Nigel Driffield; Yama Temouri

Addresses: Warwick Business School, University of Warwick, Coventry, CV4 7AL, UK ' Warwick Business School, University of Warwick, Coventry, CV4 7AL, UK ' Aston Business School, Aston University, Birmingham, B4 7ET, UK

Abstract: The purpose of this paper is to explore the changing motives and location choice patterns of foreign direct investment (FDI) from South Korea to China. Prior to the global financial crisis of 2008, South Korean multinational enterprises (MNEs) invested in China for efficiency-seeking motives in order to take advantage of low costs. While evidence is emerging that MNEs from developed countries are now investing in China for market-seeking reasons, no such evidence exists for MNEs from Asia. This study exploits a unique data set to uncover a change in strategy by South Korean MNEs in China, both in terms of motive and location, something that has received little attention in the international business literature.

Keywords: South Korea; China; foreign direct investment; FDI motivation; location choice; global financial crisis; multinational enterprises; MNEs.

DOI: 10.1504/IJMCS.2016.081127

International Journal of Multinational Corporation Strategy, 2016 Vol.1 No.3/4, pp.269 - 287

Received: 30 Apr 2016
Accepted: 12 Sep 2016

Published online: 23 Dec 2016 *

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