A Comparative Study of Iran and South Korea's Policy on Automotive Industry

The automotive industry in Iran and South Korea began simultaneously at a particular time, but the achievements of the two countries are not comparable in this area. Korea was able to make a huge contribution to the global market, but Iran failed to achieve its goals. In this article, we plan to examine the paths that the two countries have taken and examine the barriers to the success of the first and the causes of the success of the latter. For this purpose, we must look at the nature of the political system and, consequently, the economics of the political system and the policies of the two countries. Since the beginning of industrialization, especially in the automotive sector, Iran has always had a limited access system (consistent with Douglas North.) And rarely provided a platform for private sector entry into economic activity and the formation of competition. But South Korea, although initially had a limited access system, gradually shifted from fragile access to the base and then to the mature, and eventually became open access to the political system. The government of Korea, with the right solutions, could provide the necessary space to form a strong private sector in this field and compete.