Rutherford: Unified Korea Would Be Car-Building Paradise

Mark Stevenson
by Mark Stevenson

Like two brothers who really, really, really can’t get along (I can’t stress enough how much they don’t get along) no matter how hard they supposedly try, the Koreas have a hot/cold relationship, to put it mildly.

One moment, the brothers are manufacturing trinkets together in Kaesong Industrial Region, a special administrative region in the DPRK. The next, the North is threatening to bomb everyone and the South shuts off the water and electricity service (literally) to its brother’s apartment.

But what if the Koreas unified; became whole again? Mike Rutherford of AutoExpress thinks it would be a car-building paradise, with Hyundai, Kia, Samsung, and SsangYong best poised to take advantage of low-cost Northern labor and cheap, cheap land.

In a short editorial over the weekend, Rutherford set the stage for his thesis by stating the South is just too darn successful and it’s outgrowing its own abode:

Hyundai Group reckons it’s built 100 million vehicles so far. But the firm has grown so huge down south that it’s running out of factory land, road space, natural resources, power stations and production line employees. That’s why it and other vehicle producers – including Samsung – need the greenfield sites and countless millions of hungry, willing and able workers up north.

You hear that? Hyundai needs North Korea to grow. Instead of expanding to, um, a country with a more friendly political climate, Rutherford believes (or at least pretends to believe) that a unified Korea would provide untold benefits to the car-building industry in the region.

Except for one little issue: the Koreas, while ethnically the same, have been separate since 1945. One is an industrial powerhouse. The other is a state on welfare. (Not a welfare state. That’s a very different thing.) On a regular basis, the Koreas trade barbs and blows. More money is spent fighting each other (the two are still technically at war) than any economic benefit generated by Kaesong Industrial Region, the area in DPRK that’s administered by the North and financially supported by the South.

And this is where Rutherford’s argument completely falls apart: The very cooperation that he provides as an example of evidence of future Korea reunification has been shut down multiple times for various reasons, and it currently sits dormant thanks to Kim Jong-un’s latest lunacy and the South’s reactions to it. Kaesong is a make-work project that allows the South to put boots on the ground in the North, and it’s certainly not indicative of a grand coming together.

While it’s fun to play “what if” and posit an idea now and then, the reality of a unified Korea is further off than it has been in decades.

Don’t count on North Korean Kia Rios in our lifetime, folks.

[Image: J.A. de Roo/Wikimedia ( CC BY-SA 3.0)]

Mark Stevenson
Mark Stevenson

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  • Johnster Johnster on May 02, 2016

    I've heard stories about how illegal North Korean immigrants have made their way into China and they'll do just about anything for wages below that that native Chinese get. The ethnic Koreans often pose as teenagers and get away with it because they have experienced years of malnutrition and are, on average, about a foot shorter than most Chinese of the same age. I've also heard that many North Koreans have suffered from minor brain damage as the result of many years of malnutrition. I also read a story about a North Korean electrician who immigrated to the South Korea. He told about how television and radio broadcasts from South Korea were blocked from being received in North Korea, and how when he was doing repairs he "accidentally" managed to catch a T.V. broadcast from South Korea. He said he watched part of a sit-com in which two women who lived in the same apartment building were fighting over a parking place. He went on to say that it completely blew his mind to think that people in South Korea were wealthy enough to afford privately-owned cars.

  • Pch101 Pch101 on May 03, 2016

    "Hyundai needs North Korea to grow." Hyundai is already operating production facilities in third-world locations such as India, Brazil and Alabama.

    • See 6 previous
    • VoGo VoGo on May 03, 2016

      @Corey Lewis THAT's funny!

  • Lou_BC I read an interesting post by a master engine builder. He's having a hard time finding quality parts anywhere. The other issue is most young men don't want to learn the engine building trade. He's got so much work that he will now only work on engines his shop is restoring.
  • Tim Myers Can you tell me why in the world Mazda uses the ugliest colors on the MX5? I have a 2017 in Red and besides Black or White, the other colors are horrible for a sports car. I constantly hear this complaint. I wish someone would tell whoever makes theses decisions that they need a more sports car colors available. They’d probably sell a lot more of them. Just saying.
  • Dartman EBFlex will soon be able to buy his preferred brand!
  • Mebgardner I owned 4 different Z cars beginning with a 1970 model. I could already row'em before buying the first one. They were light, fast, well powered, RWD, good suspenders, and I loved working on them myself when needed. Affordable and great styling, too. On the flip side, parts were expensive and mostly only available in a dealers parts dept. I could live with those same attributes today, but those days are gone long gone. Safety Regulations and Import Regulations, while good things, will not allow for these car attributes at the price point I bought them at.I think I will go shop a GT-R.
  • Lou_BC Honda plans on investing 15 billion CAD. It appears that the Ontario government and Federal government will provide tax breaks and infrastructure upgrades to the tune of 5 billion CAD. This will cover all manufacturing including a battery plant. Honda feels they'll save 20% on production costs having it all localized and in house.As @ Analoggrotto pointed out, another brilliant TTAC press release.
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