• Journal of the Economic Geographical Society of Korea
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• v.7 no.2
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• pp.261-281
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• 2004

The location of auto industry in Jeon-buk is due to the strategies for secure a low-priced industrial site of the auto assembly companies, which attained to quantitative growth stage in the early part 1990's, and the regional balanced development policy by the location of leader enterprise of the government. As a consequence of the reversal development pattern that is located the auto parts firm after locating the auto assembly companies, the Jeon-buk auto industry has many structural vulnerability. First, because of the lack development of auto parts industries, the auto assembly companies located in Jeon-buk are dependent many auto parts at a external region. Second, most of auto parts firm belongs to the singular assembly company exclusively. And the majority of auto parts industries are the low value-added products that are necessary a simple labor power. Third, the agglomeration undeveloped of associated industries with automobile caused a low competitiveness of invitation a manufacturing company as against other provinces. For a regional economic development by the auto industry, it is necessary a flexible regional structure of production through an agglomeration of associated industries. The geographical proximity between an assembly company and a parts firms is an important locational factor with the induction of Just-in-Time production system and a modularization in the auto industry. And a modularization applies to more new factory than the existing factories. So that, Jeon-buk self-government has to create an amicable industrial environment, try to attract an auto parts enterprises and plan an agglomerated industrial complex that is able to supply a parts modulated to assembly company.