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With the pandemic slowing down, Korea-based manufacturer, especially Samsung, has started undertaking efforts to diversify risks as part of its Southeast Asia strategies.
Abstract
Korean firms' outward investment toward the service and manufacturing sectors declined in the wake of the COVID-19 pandemic.
Specifically, their manufacturing investment in the US exceeded that in China for the first time in 2021. However, China remains a major destination for Korea's investment into the manufacturing of electronics components, computers, imaging devices and communication devices while the US and Vietnam are receiving decreasing investment from Korea year after year.
Since the outbreak of the COVID-19, Samsung Electronics has been downsizing its operations in Vietnam while moving part of its production to India. Samsung Electronics' Korean suppliers however are not moving in synchronization in terms of their planning in Southeast Asia.
Table of contents
Chart 1: South Korea outward investments by three major sectors, 2016-2020 (US$m)
Table 1: Comparisons of outward investments between Taiwan and South Korea
Chart 2: South Korea manufacturing sector outward investments by key categories, 2016-2020 (US$m)
Chart 3: South Korea outward investments by key regions, 2016-2021 (US$m)
Table 2: Combined share of South Korea outward investments to US, Canada, China, Vietnam, Indonesia
Chart 4: South Korea IT manufacturing sector outward investments by key markets, 2016-2021 (US$m)
Chart 5: Samsung's plants and products manufactured in Vietnam
Chart 6: Samsung's plants and products manufactured in Thailand, Malaysia, and Indonesia
Chart 7: Samsung and its Korean supply chain manufacturing clusters in northern Vietnam
Table 3: Products supplied by Samsung's Korean suppliers in northern Vietnam
Chart 8: Samsung and its Korean supply chain manufacturing clusters in southern Vietnam
Chart 9: Samsung and its Korean supply chain manufacturing clusters in Indonesia
Chart 10: Samsung and its Korean supply chain manufacturing clusters in Malaysia
Chart 11: Samsung and its Korean supply chain manufacturing clusters in Thailand
Price: NT$14,000 (approx. US$500)
