This study aims at drawing out implications for promoting the service industry in the Korean economy. While assessing the current situation and problems objectively, this research focuses on industrial structure, linkage effects, and productivity of service sectors in the OECD member countries by application of the input-output model.
As the precedent researches involving international comparison analysis of service industries have generally used the national account data owing to limitations of statistical data, the majority focuses on the structure and change of service activities, such as the progress to a service economy. Although some studies include international comparisons analysis on linkage effects of service industries, the analysis is confined to a few countries. This study is distinctive in that it empirically analyzes the structure of service industries, its linkage effect and productivity of the OECD member countries, using the identical analysis method and sets of data. It contributes to a better understanding on the dynamic environment of the industry.
According to this study, service economies have grown in most OECD member countries in terms of total output, value added, and employment. The Korean economy, however, only shows employment-oriented progress in its service sector, unlike many other countries. It still has not used producer services in all areas of its economic activities at the same time. This study also states that there are significant changes in the linkage effect of services. As service industries play intermediate roles in national production system, the forward linkage effect of producer services is relatively greater than other service sectors. The Korean producer services is at a competitive disadvantage among the OECD countries due to sluggish service industries while its manufacturing sector is one of the greatest in terms of the forward linkage effect. The productivity of service sectors in OECD countries has improved, particularly producer services, while that of Korean services industries remains at a low level because of its reliance on labor.
This study seeks to draw some implications for promoting the service industry as follows. First, it is necessary to enact policies for promotion of the Korean service industry, focusing on stimulation of higher-value added service sector instead of employment-oriented policies. Second, the promotion of the Korean domestic producer services must be achieved within the earliest possible time considering its economic effect. Third, a competitive market environment including market access must be encouraged in the Korean commercial services sectors. Fourth, the Korean government must support the service companies to strengthen their area of specialty and extend their business abroad.

The possibility of Korea-China FTA negotiations starting in the near future is edging closer to reality. Thus there is pressing need for further research and preparation for the sensitive issues that will arise with the FTA, considering the huge impacts and consequences that the FTA will have on the Korean Economy. Within this vein, the issue of Movement of Natural Persons, otherwise known as Mode 4, will constitute the most sensitive part of the negotiations for Korea. On the other hand, China will strongly push for an opening of the Mode 4 sectors, something Korea has experienced during negotiations for the Korea-India Comprehensive Economic Partnership Agreement.
This study attempts to provide policy implications of negotiations on Movement of Persons in the Korea-China FTA. For this purpose, all agreements China has hitherto concluded including DDA, APEC, FTAs were examined and the analysis of China's positions in the negotiations for Movement of Persons are presented herein. On the basis of the analysis, this study outlines agendas and points likely to be adopted in the Korea-China FTA negotiations.
First, in China's FTA deals, the commitments made in Mode 4 categories were concluded at levels equal to that of existing GATS Mode 4 negotiations of its partner countries. Since Korea offered a commitment to open the Contract Service Supplier (CSS) category in the DDA negotiation, there is ground for requesting Chinese commitment in the CSS category, where Chinese commitment was not forthcoming in the DDA. The Business Visitor (BV) is a new category that China offered, for temporary residence of 6 months, first in the China-New Zealand FTA and then in all FTAs concluded afterwards. Korea included a BV commitment for up to 90 days in the DDA. Therefore, the category can be included in the Korea-China FTA talks pending adjustment of the duration of stay.
Second, it is possible that additional commitments for skilled workers can be requested by China. In the China-New Zealand FTA, New Zealand made a non-reciprocal commitment for temporary employment entry for Chinese skilled workers. On the other hand, Korea has included a list of 163 occupations of the Independent professional (IP) category, allowed a stay of up to one year, in the Korea-India Comprehensive Economic Partnership Agreement (CEPA). Therefore, assessing actual domestic needs for foreign manpower and setting the objective criteria for a list of occupations are required in preparation for the negotiations with China.
Third, China can request DDA-plus commitments linked to service sector commitments in the Movement of Persons negotiations. Education-related services is the sector that China has been especially active in pushing for openings in GATS as well as in other FTA deals, and China is also willing to institute policies to promote its own domestic education services. Therefore, there is a distinct possibility that China will be interested in opening the Korea education service market through Korea-China FTA negotiations. Meanwhile, Korea has not yet made many commitments for the education-related services in DDA due to the unique character, of education service in Korea, meaning Korea may need to prepare to handle Chinese demands for opening of additional markets. Furthermore, China obtained New Zealand's commitment for 200 Chinese doctors and nurses at one time for a 3 year stay. It seems quite possible that China will request a Korean commitment in the sector.
Furthermore, the study examines closely the Movement of Persons negotiations of the China-New Zealand FTA and the operations of the FTA agreement after the deal, in order to draw out lessons for Korea ahead of the Korea-China FTA negotiations. New Zealand installed new visa classification to manage the new categories of temporary entry generated by the Movement of Persons negotiations in the FTA. Moreover, it seems desirable for New Zealand to attempt to integrate the existing employment immigration policy into the Movement of Persons negotiations in its FTA talks.

Africa is emerging as a new partner for cooperation in the 21th century. During the 20th century, Africa has been perceived as a "crisis continent" with no potential of development. But recently, as a result of new changes, is becoming a market with opportunities The basis of these changes is the economical and political development that have occurred in Africa as well as its strategic value as a resource development market. There is sufficient evidence to believe that if Africa achieves political stability, it will become a new global growth engine. There are both optimistic and pessimistic views toward the future of African development, but the optimistic view recently have recently begun to prevail.
Attention is being given to Africa’s potential value asthe final remaining niche market in the world. Africa not only has economical values in such areas as resource procurement but can also be a partner for strategic cooperation in the international arena. Africa’s 53 nations represent 28% of the states comprising the UN General Assembly, and thus it could be said that close economic cooperation with African nations would have a direct impact on South Korea’s diplomatic competence. Africa’s importance as a strategic partner is recently increasing as African nations, through the African Union, are letting themselves be heardon international problems with a concerted voice. Nevertheless, emphasizing solely on South Korea’s economical benefits from cooperation would only bring temporary effects. What is needed is a mutually beneficial and future-oriented partnership founded on the basis of mutual understanding. As South Korea possesses both experience in overcoming poverty and development know-how, it could assist in developing Africa’s potential capabilities and increasing the ability of African countries to help themselves. Many African nations are actually learning from South Korea’s development history, which overcame experiences of colonization and war, and finally succeeding as a result of rapid growth and African countries are eager to benchmark South Korea’s policies.
Increasing cooperation with everyAfrican nation is unrealistic considering South Korea’s present capability in economic and development cooperation would be too limited; meaning selection and concentration is inevitable. From this perspective, this research identifies 4 countries deemed as requiring preferential attention: Ghana, Congo, South Africa and Ethiopia, who are also deemed major cooperation partner nations. There is a high chance of cooperation with Ghana, the nation with the highest potential for development in West Africa, as it has much interest in South Korea’s development experience. The mineral-rich Congo is also a possible cooperation partner in resource development and infrastructure construction, givenits recent concentration on national development. South Africa is strategically valuable as it is a resource-rich nation as well as the largest market in Africa. Although Ethiopia is the poorest nation in Africa, it is socially and politically stable and it also has a historical relationship with South Korea as an ally during the Korean War.
A summary of the promising fields or plans for cooperation with these major cooperation partner nations are as follows. First, comprehensive agricultural cooperation, construction plants and an establishment of an e-government are key fields for cooperation with Ghana. Ghana has a high potential in agricultural development as it possesses extensive arable land and a great reservoir in the form of Lake Volta. There is a need to utilize development aid funds for measures which include agricultural infrastructure support such as the expansion of irrigation facilities and the establishment of a training center for processing ofagricultural products. From a more long-term aspect, promoting and developing it into an MCI should receive serious consideration. This would lay the groundwork for entry of domestic agricultural businesses into Africa. On the other hand, the Ghanaian government is investing a majority of its budget in infrastructure expansion, which offers great opportunities for participation in construction projects. Also, by participating in Ghana’s national informatization projects, cooperation in high-value fields, e.g. e-government establishment, high-speed communications network construction and establishment of IT master plans, is also feasible.
Second, resource development in connectionwith SOC construction, infrastructure construction, establishmentof infrastructure for hydroelectric power generation or power distribution, and guidance in implementation of the Saemaeul movement are candidate fields for cooperation presented for Congo. As Congo is presently focusing on SOC construction, of which South Korea possesses comparative advantage, there is a need to implement plans which links SOC construction and resource development together. It would be appropriate to tie resource development with SOC construction because with a national budget scale of just4 billion dollars, Congo has difficulty in paying SOC construction costs. Yet, as has been experienced in the past, the matter depends on the prior organization of risk bearing and gain sharing arrangements between the participating entities. Cooperative guidance for the implementation of the Saemaeul movement in agricultural regions is also required. Since Congo shows much interest in the Saemaeul movement, it would be wise to make Congo the role model for implementation guidance of the Saemaeul movement in Africa. It is crucial that the guidance provided by South Korea be applied in a manner which takes into account the circumstances specific tothe partner rather than a simple one-sided guidance based on past experiences of South Korea.
Third, resource development, nuclear cooperation and bio-energy development through cooperation with advanced economies and FTA negotiations are fields for cooperation to be presented for South Africa. Considering the inter-African status of South Africa, an FTA with South Africa would lead to a cooperation mechanism which shall promote South Korea’s relationship with Africa. As South Africa is a member of a customs union, the SACU, approaching SACU is also required separately from bilateral negotiations. For resource development, entering Africa in concert with a major western major nationis recommended. In South Africa, the entry barriers for resource development are high because most of the market is dominated by major European nations. Thus, co-entry with major European nations would eliminate the challenges posed by market monopoly and also disperse theaccompanied risk forthese fields. There are also cooperation opportunities in the fields of new and renewable energies such as nuclear and bio-energy. Currently, South Africa is suffering from lack of power and is focusing on the development of new and renewable energies in search for alternatives. South Korea’s experience and know-how in the construction and management of nuclear power plants presents wide opportunities in the South African nuclear market. It is important to impress South Korea’s nuclear technology and world class management capabilities upon the South African government through human resources exchange.
Fourth, small-scale hydroelectric power generation, public health and education development support, agricultural development support and supply of drinking water are fields for cooperation presented for Ethiopia. Although Ethiopia has poor power conditions, it possesses great potential in the field of hydroelectric power generation. South Korea should consider providing support in the construction of small-scale hydroelectric power plants. Small-scale hydroelectric power plants (below 10MW) are independent means of power supply which have a low cost and have the advantage of being able to supply power to small urban or agricultural regions which are located far from power transmission networks. Expansion in support for public health and education is also required. Ethiopia has one of the poorest public health conditions in Africa, as 68% of its population is exposed to malaria in regions where the disease is endemic. Supplying drinking water is also acute as waterborne diseases frequently cause the death of Ethiopian children who drink polluted water. South Korea possesses comparative advantages in drinking water development projects incorporating well-digging, and should further expand these projects to more areas. Educational support is also required as the literacy rate in Ethiopia is 36%, which is far short of the average for Sub-Saharan Africa nations (68%).

Korea tries to play an active role in international development communities as a new member of the OECD Development Assistance Committee (DAC). Korea has taken steps to strengthen its position as a donor by increasing its aid volume and quality. In this context, Korea’s engagement with multilateral development organizations is expected to grow and Korea should take the opportunity to extend its global influence and develop strategic linkages between its bilateral and multilateral assistance. This study analyzed the global trend and major issues of multilateral aid to suggest Korea’s strategic direction and draw policy implications.

This paper firstly reviewed the trend of multilateral aid of DAC donors, the structure and main activities of key multilateral agencies such as UNs and multilateral development banks (MDBs). The global volume of multilateral aid as of 2008 reached at 35.5 billion dollars which takes 26% of total ODA flow. Korea provided 268 million dollars for the same period, standing at the second highest among the DAC members in terms of the share of multilateral aid in a country’s total ODA.

A review of the multilateral aid strategies of Denmark, Australia, and Switzerland was conducted. Denmark established its multilateral strategy in 1990s and has been systemically approaching with its efforts to cooperate with other donors to assess the effectiveness of multilateral aid and develop its own multilateral evaluation framework. Australia has similarity with Korea in terms of multilateral aid volume and its strong focus on MDBs. Australia has high portion of non-core contribution to actively engage with the Asia Pacific region and flexibly respond to regional challenges, meeting its economic and security interests. Switzerland has two main pillars of aid similar to Korea but effectively cooperates among various domestic actors to build common multilateral aid strategies.

The following chapter presented its analysis around the recent issues of fragmentation, balance between core and non-core contribution as well as multilateral organizations’ reform after the global economic crisis. It also reviewed multilateral effectiveness evaluation systems and surveyed growing trend of global funds. Lastly, it also examined the participation in aid procurement to identify Korea’s challenges and opportunities.

This paper concluded with recommendations for Korea’s multilateral aid strategy and policy actions. Korea needs to set up a comprehensive multilateral strategy with more focused and selective perspectives. Given the high level of aid going into MDBs, Korea needs to develop a systematic approach to fully utilize its multilateral assistance programs. As a recommendation, this study suggests the importance of establishing a long-term partnership agreement with core multilateral partners. It also carefully advises the expansion of non-core contribution as a transitional approach to the fully scaled-up multilateral aid while the strategy of multilateral aid should be aligned with that of bilateral aid. Finally, this study suggested that Korea should actively participate in joint multilateral aid monitoring and evaluation systems to feedback the relevant outcomes to improve the effectiveness of its multilateral aid.

 This research analyzed economic features in India by area and by state and suggests a series of strategies specialized for Korean companies doing business in India. The information of business environment in major states of India in compare and contrast will play an important role to set up a variety of demand and strategy for government and corporation. To do so, this report divides India into four areas– Eastern, Western, Southern and Northern area with consideration of several factors such as cultural and historical difference, regional identity and administrative division, economic gap and social development gap among regions, and economic structure and business atmosphere. General atmosphere, production, market and policy and openness were major parts of analysis.
Eastern area was assessed showing increase of economic development possibility with large-scale pro-industrialization centered on west Bengal and Orissa, although this area is the poorest and has the slowest development rate in India. However, there have been several weaknesses in terms of infrastructure, labor strike, and expropriation. Furthermore, the risk about rebel force like Naxalite exists.
Western area can be said as the most open and fastest development economy in India, and the state government has maintained a close relationship with central government. However, it also has downsides such as labor disputes, residents’ conflict by industrialization and hardly acquiring property.
Southern area has been with manufacturing, IT and tobacco industry, but labor disputes in this area is comparatively palpable and many of industrial complex in southern area has already been saturated.
Northern area revealed different features between area nearby border and capital. The major state in capital area, Haryana, has been in steep development, consumption and investment with concrete foundation for the economic growth. On the other hand, northernmost areas have slowed its growth due to conflict, Hindu-sacred area, hilly area, etc.
When it comes to the FDI of India by area, it has been strongly escalated since the middle of 2000, continued in spite of global economic downturn.
FDI inflow by area was allowed to northern area at 40% during 2000 to 2005, and western, southern, eastern area took 35, 23 and 2% respectively, but in the time from 2006 to May 2010, western area has been with a steep FDI increase as 56%. Northern and Southern areas were gone down to 26 and 16% and the eastern remained at 2%.
Recently, Japanese companies has rushed to Indian business, showing the augmentation from 475 in February 2007 to 1050 in April 2010 accounted by criteria of key area, which demonstrates double in 3 years. The number of Korean companies in India is about 500 and total amount of accumulated investments is 240 million dollars that increased 2.6 times compared to 2005.
The strategy targeting on India by area consists of 4 parts: interlink in links and its application strategy, expansion of business and a successful settlement, becoming a strategic base or a hub, and founding and supporting the relevant strategies and encouraging research.
First of all, for interlink in links and its application strategy, different income level by area and by state and also the propensity to consume should be considered. Moreover, deep consideration of the company’s purpose of entering oversea, target market and business features is also necessary.
Second, large companies need to think of expansion plan by area, and small and middle sized companies should pursue a sequential enlargement of their business after fully settled down on key area with the purpose of making more type of industries work in India.
Third, when Korean companies are designing to become a strategic base or hub, the looming of ASEAN and South Asia needs to be thought. For instance, eastern region can be used as a strategic base for expansion to Bangladesh, Myanmar and China. Likewise, southern area suites for Sri-Lanka, ASEAN, and western area suites for Europe, Africa.
Last but not least, it is important to secure Korean-only industry area and/or distribution centers in order to particulate market by area, and to reinforce the relationship between India and Korea in terms of education, human resources, etc.

In the consideration of the structural change in Southeast Asia countries, Malaysia, Singapore and Indonesia experienced fairly high level of structural change; Vietnam was in the middle level, and Philippine and Thailand experienced relatively low level of the change.
After 12years from the East Asian financial crisis during 1997-1998, higher value-added strategic industries include car, finance, new & renewable energy, IT and medical tourism. In relation with this, when we cooperate with Southeast Asia strategic industries, largely three factors should be considered.
First of all, the cooperation with Southeast Asia strategic industries has to satisfy the foreign market demand and also to strive to promote efficiency of domestic industries simultaneously.
Second, in regard to governmental cooperation, we need to consider not only with the each Southeast Asian country’s cooperation, but also with entire ASEAN and regional development. Especially, it should be accomplished in the purpose of contribution in ASEAN community formation, as planned until 2015.
Thirdly, it is appropriate to approach by each level in terms of long-term investment rather than short-term profit production under the private circumstance.
In regard to vehicle industry, it is required to begin with exportation of low priced vehicle or multi-purpose vehicle, utilizing India and China for vehicle or parts provision. In the long run, securing price competitiveness is needed by building local CKD base.
If we consider “motorization”, in the short term, Thailand where is maturely developed in several fields and, in the long term, Indonesia where have high potential demand are seemed to be advantageous.
As for IT industry, according to an increase in demand of wireless, a new service relating to wireless broadband such as WiBro(WiMax) and DMB will provide our companies with new opportunity. In a governmental view, the structure that can contribute for more efficient IT cooperation with ASEAN is needed and it will enhance a synergy effect along with the connection to government ODA business.
In the field of finance, it is essential for Korean companies invested in Southeast countries and financial institutions to mutual cooperate. In addition to recently settled Chiang Mai Initiative Multilateralism (CMIM), the proposal for enhancing investment of Asia bond market (ABMI) should be expedited.
Fostering medical tourism industry is capable to experience the effect of an improvement in local medical service, a reinforcement of competitiveness in related industry, a rapid increase in local absorption of demand of medical science overseas, expanding inducement of overseas patient, and excessive employment. Thus, in the enterprises point of view, it is necessary to capture niche market under the differentiated strategy rather than simply providing low cost of service. Moreover, they should be able to cooperate and support in various fields and it is important for the government to participate in fostering medical tourism industry.
Regarding New & renewable energy, the government has to contribute to allocate urgent energy demand by operating ODA and fund for East Asia Climate Partnership (EACP) and Initiative for ASEAN Integration (IAI). On the other hand, in the non-government perspective, bio-energy technology cooperation, hydroelectric generation and water resource cooperation, and integrated gasification combined cycle (IGCC) will be considered.

 

Environmental problems are a universal concern, but in the case of Africa they are problems which are directly related to survival. In various ways, the environmental problems of Africa are affecting diverse sectors and are increasing poverty. This research defines 5 major environmental problems facing Africa and aims at looking into their realities; water shortage, desertification, deforestation, environmental pollution, and loss of biodiversity; all of which are directly related to poverty.
The first problem comes from water shortage. Almost half the population of Africa is suffering from life-threatening water shortage and even "Water Wars" between nations and ethnicities erupt constantly. The causes of water shortage in Africa are diverse as to their causes; from climate change and droughts to population growth, and lack of water storage infrastructure such as reservoirs and dams.
The second risk is the acceleration of desertification. Despite international efforts such as the United Nations Convention to Combat Desertification (UNCCD), desertification in Africa is progressing rapidly and as a result many farmers are losing their pastures and arable land. As 70% of Africa’s population consists of farmers, they are vulnerable to damages resulting from desertification. There are concerns

A greater number of non-tariff barriers were recently adopted by major ASEAN nations in the wake of the global financial crisis of 2008-9 compared to previously, with the majority being technical regulations such as TBT’s. The responses to TBT range from relatively easy adjustment by companies in Thailand to significant difficulties experienced by firms in Indonesia. It is important that corporations find ways to accommodate themselves to these TBTs, and the government, for its part, needs to be active in drawing attention to TBTs in order to provide firms with accurate information on TBTs. In addition, Mutual Recognition Agreements between countries or MOUs concerning certification periods of different countries should receive strategic consideration.
Also cited as major impediments for companies were non-tariff barriers resulting from increases in trade remedy measures such as safeguards and antidumping/ countervailing measures, import licenses and strengthening of importing procedures that create difficulties with respect to customs, institutional loopholes such as subjective classification of HS codes. Along with encouraging firms to be outspoken about trade remedies, it is also necessary that official channels be established that would enable smaller firms to convey their opinions to countries concerned. The problems related to customs can be effectively dealt with if institutional system such as the ASEAN Single Window mechanism, to be established by 2015, is utilized actively. Institutional loopholes warrant careful assessment at the government level, followed by negotiation with the government of that country to remedy them.
When the Ad-Valorem Equivalents (AVEs) of NTBs against its small cars, one of Korea’s major export items, were approximated, the import licenses found in Malaysia had a AVE value of almost 0%; whereas AVE of Philippine’s import ban on smaller used cars was extremely high at 127%. The figures for technical regulations and quantitative restrictions such as tighter import procedures and pre-shipment inspection for hot rolled steel plate and tin plates produced in Indonesia, were relatively high at 29.5% and 35.9%, respectively. Depending on the country or item, the AVE exists at both extremes, from close to 0% to 127%. The most affected were products with high price elasticity, exhibiting more a greater import reduction effect as a result of NTBs.
The implications that can be drawn from the current situation and assessment of NTBs in ASEAN are as follows. First, it is imperative that a broad database on NTBs for ASEAN and Korea’s other major export destinations be established with a variety of encouragement measures from the government for its utilization. Second, a recognition of the fact that the government’s efforts to remove NTBs in ASEAN will facilitate exports by small and medium-sized firms is warranted. And as NTBs are increasing for a variety of products (such as newspaper printing paper, cardboard, used cars), the government should maintain focus on those items as well. Third, bilateral negotiations or pursuing FTAs would be a better option for dismantling NTBs of individual ASEAN countries, as opposed to utilizing the Korea-ASEAN FTA Implementation Committee, held only once or twice every year. Fourth, given that UNCTAD is investigating Korea for possible NTBs, and that the organization would list the results in a freely accessible database (TRAINS), Korea must effect a plan to prepare itself for potential demands for removal of NTBs in the future.

South Asia including India, Pakistan, Bangladesh, Sri-Lanka, Afghanistan, Nepal, Bhutan Maldives account for 23% of world population in 2009 and reached average 8.2% of GDP rate from 2004 to 2008. Furthermore, South Asia is expected to grow at above 5% by 2030 which growth faster than ASEAN so that Its GDP proportion accounts for 7.8% as well.
South Asia is pursuing more aggressive trade policies for economic growth and development and especially, focusing on FTA with other countries such as S. Korea and Japan, EU that completed or under the process of negotiation, etc. In addition, economic integration of South Asia is also being advanced in gradual and scheduled to use single tariff among South Asia countries in 2016. This trend would be more obvious by removing high trade cost and improving trade facilitation, building infrastructure which enhancing bother connectivity. Moreover, strong will of South Asia countries for economic integration would play a role for easing political conflicts and tension between countries.
The direction and strategy of Trade policy for South Asia should be in line with international economy policy and New Asia Foreign Policy of Korea. So, several core policies are suggested such as expanding FTA network, enhancing energy and resource, green growth cooperation, bilateral and multilateral trade cooperation, facilitating investment and development. Especially, for FTA with South Asia, following three fundamental strategies should be based: market preoccupancy strategy, progressive FTA strategy, flexible FTA strategy. Further- more, FTA strategies and roadmap for FTA by countries are also suggested. Korea-Pakistan FTA should be targeted in 2014 in priority, and then Korea-Bangladesh, Korea-Sri Lanka FTA should be targeted in 2017 at the same time. In addition, Korea and SAARC FTA should be considered after 2016.

 This research presents four (4) questions related to expanding economic cooperation between Korea and Central America, and then suggests answers for each question. First, what are the changes that have occurred recently in Central American economy and what impacts will they have on relations with Korea? The Central American economy has shown rapid growth recently and pulled the region’s countries out from the ranks of least developed countries. As income levels grow, the consumer market expands and the region assumes greater importance as an investment and export destination. The ongoing economic integration within and outside Central America, which aims to generate economies of scale and to connect the region to the world market, makes Central America an ideal bridgehead for market expansion to other regions.
Second, various strategies employed by different countries have bolstered mutual cooperation with Central America. What were the strategies that were implemented and what are their implications? Cases involving the Unites States, EU, China, Taiwan and Japan are analyzed. The results state that the actual cooperation and strategies vary depending on the country. Political, diplomatic or security concerns (rather than economic) provided the base rationale for such strategies. In addition, the countries focused on utilizing official development assistance (ODA). The cases suggest that Korea must adapt a cooperation strategy that accords with its own needs and capabilities, as different countries cooperate for different reasons. The various countries’ reasons for cooperation are: security (US), diplomatic (China/Taiwan) and ODA (EU). The example most pertinent and applicable to Korea is the economic and diplomatic approach taken by Japan. But although Korea has been engaged in activities similar to Japan’s there is, as of yet, been no clear measures that can actually be termed a strategy.
The third question concerns obstacles for the expansion of commerce between Korea and Central America. To provide an answer, chapter 4 explains the trade, investment and institutional relations between the two. It should be noted that a survey was conducted to assess the achievements and limits of bilateral trade and investment. Although bilateral trade between Korea and Central America has increased dramatically, it is not significant as a proportion of total world trade. Moreover, the two parties are not taking full advantage of the competitiveness of their products. For example, though Korea's electrical and electronic equipments are very much competitive in the world market, their exports to Central America, however, is lower than expected. Central America, as a region, has competitiveness in a range of products such as agricultural products, raw materials, animal and vegetable oils, fats and waxes, textile, rubber, paper, wood manufactures, etc. Nevertheless, products that are actively exported to Korea are limited to coffee, semiconductors and some raw materials.