Changes in Management Efficiency in the Korean Automobile Industry During COVID-19

Previously, manufacturers in the global economy produced products by exchanging technologies and know-how through the global value chain (GVC), but they faced a major turning point due to COVID-19. In this process, Korean automobile manufacturers are also expected to have simultaneously been affected by the existing supply chain. This study therefore examines changes in the management efficiency of the Korean automobile industry during the COVID-19 period. Changes in management efficiency before and after COVID-19 were examined through DEA and Malmquist method with information on the domestic automobile manufacturing sector among external audit-mandated companies from “KisValue” database. The results revealed that in the finished car and component industries, productivity decreased compared to the preCOVID-19 period, but increased in the vehicle body and trailer fields. Taking this case as a lesson and considering a pandemic situation such as COVID-19 is highly likely to occur again, diversification and localization of the supply chain for parts and materials are considered important.