Korean steel makers will face a drastic market change because of the reorganization of big 6 major automobile maker and restructuralization of domestic automobile industry, which is the chief demand industry of steel. The bargaining power of automobile industry has been strong and the needs have been diversified and they require high quality. Additionally, the competition has been expanded from one industry to another because of the competition with the substitute material such aluminum. Therefore, the Korean steel makers are facing an increasingly difficult task of practicing the structural reform in domestic area and of confronting the diverse market demands according to the reorganization of automobile industry in domestic and foreign fields.
The primary objective of this study is to provide the Korean steel makers with an adequate guidance for countermeasure strategy according to the reorganization of automobile industry. It consists of the three main parts.
First, it will analyze the interrelation of automobile and steel industry, and study the structural reform of the world and domestic automobile industry and its influence upon Korean steel industry.
Second, it will conduct an in-depth case study on the distinctive feature and influence of steel industry in the structural reform of British and French automobile industry as a benchmark for the Korean steel and automobile industry.
Third, based on the analysis and case study, it will suggest a countermeasure strategy that enable the Korean steel makers to grow continuously and to keep pace with the drastic change of the automobile industry.
The outcomes of the research suggest that the structural reform of Korean automobile industry has to be driven to maximize synergy effect through achieving economics of scale based on unification and strategic tied up with global network by long term vision for its development, and the Korean steel makers should put much emphasis on the following.
First, we need to accelerate the structural reform and expand high value-added products such as galvanized products and especially POSCO has to lead technological exchange and structural reform.
Second, we are required to strengthen our international competitiveness to use the GM advance into domestic market and the expansion of global sourcing as the chance of take-off.
Third, we need to develop joint researches such as early involvement program and do not hesitate to invest in joint research funds.
Finally, As a leader of the world steel industry, we are required to develop applicable light weight car technology, cooperate with automobile companies, and lead the tendency of light weight car and the innovative application of steel.
