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Policy Reference
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China's Foreign Trade, and Export Competition between Korea and China
Since the Uruguay Round agreement and the launching of the EEA and NAFTA, the world economy has advanced into a bloc-oriented competitive system based on the size and range of economy. These blocs contribute to integration in the ..
Yong-Suk Oh Date 1993.12.31
Trade policyDownloadContentSummarySince the Uruguay Round agreement and the launching of the EEA and NAFTA, the world economy has advanced into a bloc-oriented competitive system based on the size and range of economy. These blocs contribute to integration in the service market and liberalize transactions in labor, capital and technology.
Accounting for 70 percent of world market share, economic blocs in Europe and North America are expected to impose a heavy burden on the Korean economy. With such changes in the world trade environment, China has been rising as another threat to Korea's export. China's export market has grown dramatically due to the drastic forms made in policies on foreign trade, export drive, wages and labor.
China's export market focuses on the labor-intensive light industry for the United States, Japan, Europe and Southeast Asia, which is Korea's principal market.
This paper implies that the increase in Chinese exports will make inroads into the Korean market. This paper suggests that China's export competitiveness compared with Korea may increase not only in terms of price, but also in terms of quality. -
A Study on Korean Competitiveness in the US Market
This study examines changes in Korea's competitiveness in the U.S. market using several analysis methods. The results indicate the effect of inactivity in export trade toward the U.S.: rather than Korean competitiveness catching u..
In-Bom Choi Date 1993.12.31
DownloadContentSummaryThis study examines changes in Korea's competitiveness in the U.S. market using several analysis methods. The results indicate the effect of inactivity in export trade toward the U.S.: rather than Korean competitiveness catching up with Japanese competitiveness, the difference has recently widened. In terms of Korea's main exports, the competitiveness of developing countries such as China, Thailand and Malaysia have intensified, and the weakening of Korea's price competitiveness has resulted in a wage increase. These trends have affect Korea's export market.
This study suggests that to activate exports, there is an urgent need for wages to be stabilized. The Korea government stabilizes prices and helps companies lower financial expenditure by inducing a reduction of interest through financial liberalization. In addition, Korean companies should come up with the ways to strengthen competitiveness in the long-term through investment in technology. -
Current Status and Prospects of Korean Trade with Eastern Europe
This study is designed to analyze progress, current issues and prospects of Korean trade with Eastern Europe. In 1989, Eastern European countries started transforming from socialist planned economies to capitalist market economies..
Hoon-Young Kwon Date 1993.12.31
Trade policyDownloadContentSummaryThis study is designed to analyze progress, current issues and prospects of Korean trade with Eastern Europe.
In 1989, Eastern European countries started transforming from socialist planned economies to capitalist market economies. This was made possible by the preceding revolutionary political changes in the process of which old socialist ideology was discarded. As Eastern Europe countries pursued the same goal - establishment of a market economy - the basic directions of economic transformation consisted of the same elements: liberalization of economic activities, macroeconomic stabilization, the privatization of state enterprises and the introduction of a market infrastructure. These eastern European countries, which had lower production costs than EU member countries, can serve as beachheads from which Korea might access the vast EU market.
Thus, Korean must work out mew sales strategies and gradually increase participation in Eastern European local markets. Korea should also target increased direct investment in that region. -
A Study on the Privatization Efforts in Major Eastern European Countries
The purpose of this paper is to reexamine the general direction of economic exchange with Eastern European countries in accordance with the sudden internal and external changes, focusing on the increasing privatization to induce f..
Kern-Soo Yun Date 1993.12.31
Economic openingDownloadContentSummaryThe purpose of this paper is to reexamine the general direction of economic exchange with Eastern European countries in accordance with the sudden internal and external changes, focusing on the increasing privatization to induce foreign direct investment.
Since the 1990s, major Eastern European countries have pursued economic reform by transforming from socialist planned economy to capitalist market economy. These countries, which are short of accumulated resources and know-how in corporate management, have a tendency to raise the participation ratio of privatization compared to earlier reforms to induce foreign direct investment. In this contrast, Korea trade with major eastern European countries remains in its infancy stages. In the long-term, Eastern European countries will provide a larger market and meet favorable conditions as a production base for entry into the EC owing to historic and regional approximation.
Accordingly, based on Eastern European domestic demand, Korean companies should explore the possibility of investment expansion in the long term, giving consideration to exporting to the EC and Russia. -
A Case Study for Capital Market Liberalization
The following changes to the market will be preconditions for full-scale capital market liberalization in Korea. First, Korea should pursue capital market liberalization as it moves from the rapid growth period to the steady growt..
In-Jun Kim Date 1993.12.31
Financial liberalization, Capital marketDownloadContentSummaryThe following changes to the market will be preconditions for full-scale capital market liberalization in Korea.
First, Korea should pursue capital market liberalization as it moves from the rapid growth period to the steady growth period. Investment earning rates and domestic interest rates tend to be high in the high growth period, which may lead Korea to lose price competitiveness when liberalizing the capital market by revaluating the price of the won price due to the steep influx of capital.
Second, capital market liberalization should be pursed after international payments are stabilized, as unstable international payments can lead to speculative capital transactions.
Third, capital market liberalization has to be pursue on the premise of liberalization of trade and foreign exchange. Without liberalization of trade and foreign exchange, the imbalances in trade deepen.
Fourth, financial liberalization should precede or accompany capital market liberalization. Finally, Korean financial companies have to accept capital market liberalization.
Accordingly, it is necessary that ahead of opening the capital market, the government should assess business capital and the expected growth of the stock market to ensure that businesses take a positive attitude to the capital market. -
Reforms in Eastern Europe and Its Implication for the Korean Economy
This research assesses the recent reforms in Eastern European countries and discusses the strategy for further economic exchange by analyzing the reorganization of Europe's economic order and changes in investment environment in E..
Gab-Young Cheong Date 1993.12.31
Economic reform, Economic cooperationDownloadContentSummaryThis research assesses the recent reforms in Eastern European countries and discusses the strategy for further economic exchange by analyzing the reorganization of Europe's economic order and changes in investment environment in Eastern Europe market. Through such analyses, some useful strategies and devices will be offered for Korean companies hoping to enter the Eastern European market.
This research is organized as follows. The characteristics and task of economic reforms in Eastern Europe are identified In Section II. In Section III, economic reform and foreign relationships of selected countries (Poland, Hungary, Czech Republic and Slovakia) are introduced. In Section IV, the investment environment of Eastern Europe and the advance of developed economies into its market are examined. In Section V, the economic exchange between Korea and Eastern European countries is reviewed. In Section VI, some strategies to be considered for further economic exchange in Eastern Europe are proposed. Section VII contains a summary and conclusions. -
Capital Market Liberalization and Exchange Rate Policy
This paper explains the background and recent history of the exchange rate regime in Korea and discusses the policy implications for its capital market liberalization. The Korean government had been adopted the single currency peg..
Chung-Sik Sohn et al. Date 1993.12.31
Capital market, Exchange rateDownloadContentSummaryThis paper explains the background and recent history of the exchange rate regime in Korea and discusses the policy implications for its capital market liberalization.
The Korean government had been adopted the single currency peg (SCP) system since 1964. It has pursued a series of currency stabilization measures by introducing a floating exchange rate in March 1980.
It was expected that unlike the fixed rate system, the floating rate regime should reflect accurately the relative price of a country's currency accurately and prevent sustained severe imbalances between current accounts of different countries.
However, this simple system neither correctly nor flexibly reflected the changes according to economic situation. In particular Korea's trade surplus with the US exploded from in 1966 to in 1989 and resulted in trade dispute.
Accordingly, the Korean government has put into effect the market average exchange rate (MAR) system in 1990. Under this system, the basic won-dollar rate was the market average rate of the previous day, determined by the weighted average of the market exchange rate, where the weights were the volumes of each transaction. -
Changes in Terms of Trade, and the Effects of Capital Market Liberalization
This study analyzes how changes in trade and capital market liberalization have affected the Korean economy. It attempts to measure the effects empirically and theoretically by using an analysis matrix introducing land to internat..
Hak Kil Pyo et al. Date 1993.12.31
Capital marketDownloadContentSummaryThis study analyzes how changes in trade and capital market liberalization have affected the Korean economy. It attempts to measure the effects empirically and theoretically by using an analysis matrix introducing land to international trade theory. The empirical results will provide suggestions for understanding how Korea's financial markets have evolved. -
The Use of Economic Instruments for Environmental Protection: Current Use and Prospects
Recently, environmental goods have begun to be recognized as economic goods. Although the environment has become seriously polluted through the process of industrialization worldwide, threatening economic activity, it has not been..
Ho-Saeng Rhee Date 1993.12.31
Environmental policyDownloadContentSummaryRecently, environmental goods have begun to be recognized as economic goods. Although the environment has become seriously polluted through the process of industrialization worldwide, threatening economic activity, it has not been until recently that environmental goods have begun to be recognized as economic goods. Environmental goods are representative of goods that cannot be allocated property rights.
Recently, global environmental pollution has become a matter of primary concern. The UN Conference on Environment and Development in 1992 served as an opportunity for the concept of sustainable development to spread widely, reinforcing that economic policy and environmental policy are inseparably related in the pursuit of sustainable development. Economic instruments related to the environment are expected to strike harmony between economic and environmental policy by raising their effectiveness.
This report emphasizes for sustainable development, Agenda 21 must make use of economic instruments, financial institution and incentives effectively. -
A Study on Korea's Technolgy Import from Japan and Its Implications
The objective of this study is to examine features of Korea's technology imports from Japan so far and the reason for the depression in the 1990s. Based on this, this paper gives suggestions for promoting technology import from Ja..
Chon-Sok Im Date 1993.12.31
Technical cooperationDownloadContentSummaryThe objective of this study is to examine features of Korea's technology imports from Japan so far and the reason for the depression in the 1990s. Based on this, this paper gives suggestions for promoting technology import from Japan.
Since 1960, Korea has imported much of its technology from advanced nations such as the United States and Japan. In particular, Japan has held relative importance in Korea's technology imports. However, technology imports from Japan have declined in the 1990s.
This paper indicates that there are some worries in the dependence on technology imports from Japan.
Japan's technology imitates that of Europe and America, but is of a lower grade. In addition, there are differences in views on problems surrounding technology transfer between Korea-Japan, such as the lack of up-to-date technology transfer (Japan) and structural problems in the public and private sectors regarding technology transfer (Korea).
Therefore, Korea needs to identify its structural problems and improve the environment to facilitate smooth technology transfer.