The governance of global value chain between Korea and China

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.