A Study on the Reinforcement of Supply Chains Corresponding to Global Value Chain Reforms in the Automobile Parts and Component Industry

1Department of International Trade, Dong-A University, Busan 49236, Korea
2General Policy Research Division, Korea Maritime Institute, Busan 49111, Korea

Journal of International Logistics and Trade

ISSN: 1738-2122

Article publication date: 30 September 2021

Issue publication date: 30 September 2021

1190
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Abstract

Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic demand in emerging economies, such as China, and strengthened trade protectionism since the global financial crisis. Such changes lead to the reorganisation of value chains, focusing on domestic markets (reshoring) or neighbouring countries (nearshoring). In particular, the importance of supply chain risk management has been highlighted following disruptions to the supply network due to the COVID-19 outbreak in December 2019. In this regard, major countries such as the USA and the EU are rapidly shifting to regional value chains for stable and sustainable production, rather than primarily aiming for production efficiency targeted at reducing costs. Industries in particular are more exposed to such supply chain risks under the existing structure and it now has become extremely important for businesses to take reaction to such risks. This is especially important for major industries in a country such as automobile or semiconductor manufacturing industries in South Korea. The aim of this study, therefore, is to establish the basis for the simultaneous growth of ports and linked industries by examining the existing structure of the global value chain for the automotive industry, which has a strong presence in South Korea’s domestic economy. In this regard, this research carries out a supply chain analysis focusing on the imports and exports of automotive parts. It also analyses the current structural risks and suggests risk management measures to secure a stable supply chain.

Keywords

Citation

Shin, S.-H. and Shin, S.-Y. (2021), "A Study on the Reinforcement of Supply Chains Corresponding to Global Value Chain Reforms in the Automobile Parts and Component Industry", Journal of International Logistics and Trade, Vol. 19 No. 3, pp. 163-179. https://doi.org/10.24006/jilt.2021.19.3.163

Publisher

:

Emerald Publishing Limited

Copyright © 2021 Jungseok Research Institute of International Logistics and Trade

License

This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited


Corresponding author

*Corresponding author: Soo-Yong Shin General Policy Research Division, Korea Maritime Institute, Busan 49111, Korea Tel: +82-51-797-4780 E-mail:

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