The governance of global value chain between Korea and China: A case of LG Display’s new plant in China

Hyung-In Chin^*, Guo Lei Ding^**

^*International Corporation and Logistics Association, Seoul, Korea, hichin21@daum.net

^**School of Business Administration, Shanghai Finance University, China, corresponding author, dinggl@shfc.edu.cn

© Copyright 2021 Korea Maritime Institute. 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.

Published Online: Jun 30, 2016

ABSTRACT

Global value chains exhibit a variety of characteristics and impact players involved in a variety of ways, and they have become much more prevalent and elaborate in the past 10 to 15 years. Multiple participants that comprise a global value chain are spread over wider areas, the activities of these players need to be tightly integrated and systematically managed. Thus the governance system becomes an important instrument in global value chains. Taking LG Display’s new plant in China as a case study, this paper analyses the structure of LG Display global value chain, and explores the governance strategies of LG Display in the view of global value. Some suggestions are proposed such as enhancing cooperation with local government authority, fostering strategic coupling with domestic firms, utilizing the opportunity brought by the policy of Chinese domestic demand expansion, effective management of human resources and strengthening the R&D capability.

Keywords: Global value chains; governance; LG Display; Korea and China