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This study examines strategies to enhance economic cooperation between Korea and Africa in the value chains of the automotive industry with a focus on South Africa, the most advanced economy in the sub-Saharan Africa. South Africa has the largest automobile market in Africa, and its automotive industry has become the country’s largest manufacturing sector, contributing 4.9% to GDP and 21.7% to the manufacturing output.
Korea, the world’s fifth largest car producer, can strengthen ties with South Africa by supporting development of regional value chains of the automotive industry with policy advice and technical support. Cooperation can also focus on expanding Korean automobile companies’ production capacity to increase brand awareness and market share in South Africa and neighboring sub-Saharan countries, improving productivity and efficiency to boost the competitiveness of South Africa’s automotive industry, and strengthening the local production value chains in a more environmentally friendly way.
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