Policy Analyses
PUBLISH
Policy Analyses
-
Korea's Implementation of the OECD Convention on Combatting Bribery of Foreign Public Officials
Korea's Implementation of the OECD Convention on Combatting Bribery of Foreign Public Officials Jong-Bum Kim As international economic interdependence grows, it is increasingly recognized that corruption in international business..
Jong-Bum Kim Date 1998.03.27
DownloadContentSummaryKorea's Implementation of the OECD Convention on Combatting Bribery of Foreign Public Officials Jong-Bum Kim As international economic interdependence grows, it is increasingly recognized that corruption in international business is undermining integration of the world economy. The OECD has rallied international efforts to combat corruption and has succeeded in concluding the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions on December 17, 1997. Once the OECD Convention enters into force and the South Korean government legislates domestic laws implementing OECD recommendations on combating international corruption, there will be significant changes in the commercial practices of Korean firms in the overseas markets. Bribes to foreign officials by Korean firms will now be subject to punishment by domestic law. Korean firms will operate in the overseas markets subject to the international norms stipulated in the OECD Convention.
The effect of ratifying the OECD convention and following the OECD recommendations on combating international bribery will have important consequences on domestic criminal laws dealing with bribery in the domestic market. The OECD Convention explicitly states that among others things, bribery distorts internationally competitive conditions. The purpose of the Convention is to establish a level playing field by criminalizing the bribery of domestic public officials. Implementing the OECD Convention, however, will have important consequences in the way the domestic criminal laws dealing with bribery of domestic public officials is interpreted. The usual interpretation of Korea's domestic criminal bribery law's aim is to protect the integrity of a public official's duty. In addition to the current interpretation, the protection of domestic competitive conditions should be incorporated in the interpretation of the aim of domestic criminal law against bribery. The protection of a level playing field in the domestic market is becoming increasingly important as current economic difficulties in Korea are attributed to the failing competitiveness of the Korean economy. Bribery and corruption in Korea have resulted in inefficiency in the economy.
Criminal punishment of those who bribe to domestic public officials stipulated in domestic criminal law is less severe than that of those who bribe to foreign public officials stipulated in the OECD convention. Korean criminal law should be amended to make the punishment of bribing domestic public officials on par with that of bribing foreign public officials. This study aims to analyze the process of covergence of domestic norms to international norms. This study looks at the integration of the Korean economy into the world economy with Korea's adoption of the OECD Convention as an illustrative example. -
China's Housing Market and Prospects for Foreign Investment
China's Housing Market and Prospects for Foreign InvestmentPrior to 1978, China's housing sector displayed typical characteristics of the country's planned economy, namely nationalization and resource allocation. Public housing, r..
Soo-Woong Choi Date 1998.03.24
DownloadContentSummaryChina's Housing Market and Prospects for Foreign Investment
Prior to 1978, China's housing sector displayed typical characteristics of the country's planned economy, namely nationalization and resource allocation. Public housing, representing 90% of urban housing, was allocated to workers by the government and work units for minimal rent. The prohibition of public housing sales consequently stunted growth in the housing market.
The Chinese government attempted to reform the housing sector during its modernization drive in 1979 by encouraging construction of commercial housing and permitting sales of public housing.
However, commercial housing has failed to exceed 10% of the housing market due to an insufficient legal framework.
The Chinese government plans to revamp the housing industry in the 21st century, particularly by improving housing conditions. In 1996, the average urban resident lived in an area less than 9m2, and 23.7% of households in Beijing were constricted to confines of 4-6m2. The government intends to have 3.3 billion m2 of housing constructed by the year 2000, expanding the average living space per capita to 18m2.
Considering China's housing reform program and vast urban population, demand for housing in urban areas is expected to grow rapidly. This vast market potential will undoubtedly attract foreign investment. However, China's depressed real estate market should serve as a warning for foreign investors to approach the housing sector prudently with sufficient market research and cost-benefit analyses. -
The Impediments and Facilitation of Foreign direct Investment into Korea
The Impediments and Facilitation of Foreign Direct Investment into Korea June-Dong Kim Foreign Direct Investment (FDI) is an important vehicle to overcome the IMF era by inducing stable foreign capital and enhancing the efficienc..
June-Dong Kim Date 1998.03.24
Foreign investmentDownloadContentSummaryThe Impediments and Facilitation of Foreign Direct Investment into Korea June-Dong Kim Foreign Direct Investment (FDI) is an important vehicle to overcome the IMF era by inducing stable foreign capital and enhancing the efficiency of the economy. Due to the various impediments, including government regulations and the lack of implementation of domestic reforms as well as the absence of proper investor relation management, FDI into Korea has been negligible.
In order to facilitate FDI, implementation of economic reforms such as corporate restructuring and labor market reform should be accelerated. The government should also be reformed to play a more supportive role. In addition, the irrational social structure, corporate practice, and the general public's anti-foreign perception should be amended. Besides opening restricted business categories, liberalization of foreign investment should also be expanded, particularly in the area of M&A and privatization. It is also urgent to establish a consolidated system for the investor relation management, including promotion, consultation, and provision of pre-establishment one-stop service and post-establishment service. The current incentive system also needs to be restructured to enhance employment and regional development. It is desirable to provide incentives to both the foreign invested and domestic firms.
To cope with the side-effects of these liberalization, appropriate measures, such as reinforcement of the competition policy and transfer-pricing regulation, must be taken. -
Korea's Overseas Direct Investment: Its Performance and Problems
Korea's Overseas Direct Investment: Its Performance and Problems Yunjong Wang Top-notch multinational corporations are actively undertaking overseas direct investment as a globalization strategy. With this global trend, Korean co..
Yun-Jong Wang Date 1998.03.23
Overseas direct investmentDownloadContentSummaryKorea's Overseas Direct Investment: Its Performance and Problems Yunjong Wang Top-notch multinational corporations are actively undertaking overseas direct investment as a globalization strategy. With this global trend, Korean companies have also earnestly started to pursue overseas operations since mid 1990s. However, their financial performance has not been satisfactory until now.
In general, domestic companies outperformed Korea's overseas subsidiaries in 1994-95. By region, financial performance of overseas companies was so bad in China, Europe, and the United States, while moderately successful in South East Asia and Latin America. By investment size, larger investment recorded worse performance. By manufacturing sector, performance was comparatively good in foods, textile and apparrel, woods and furniture, and non-metallic mineral, while red inked in footwear, leather, basic metals, and fabricated metals. By equity ratio, companies with majority shares performed worse than ones with minority shares. Early birds recorded even unsatisfactory, but relatively stable performance. Late entrants on the average did not make profits.
Korean companies abroad also showed similar, or even worse propensity to overborrow in their financial structures. In all regions except China, overseas companies recorded higher debt to equity ratios than domestic companies on the average. In particular, larger companies preferred to borrow from international or local financial markets because financial costs were cheaper there than in domestic financial markets.
Korean companies have been currently facing the difficulties to borrow as a result of downgrading of credit ratings, since Korea was hit by financial crisis. Korea's overseas companies now have to change their globalization strategy from expansion-oriented to efficiency-oriented in order to overcome many obstacles ahead. In order to enhance efficiency of overseas operations, following issues should be properly addressed: profit-based management; global networking; concerted overseas operations between Chaebols and small-and-medium sized companies; regional differentiation; localization of overseas subsidiaries; human resource management; reduction of credit guarantees by parent companies; requirement of consolidated balance sheets including overseas subsidiaries; database system and analysis of overseas direct investment statistics; and private coordinating agency for overseas companies. -
-
Economic of The Traid : Conflict and Cooperation among the United States, Japan and Korea
This book aims to assess how the economic linkages within the Triad are operating in terms of conflicts and cooperation, and to project how these linkages could work towards a positive-sum result in the future, so that economic gr..
YunSuk Kim et al. Date 1998.01.08
Economic cooperationDownloadContentSummaryThis book aims to assess how the economic linkages within the Triad are operating in terms of conflicts and cooperation, and to project how these linkages could work towards a positive-sum result in the future, so that economic growth and policy coordination progress with respect to the changing global economy. The editors of this volume contend that the discussion of the Triad economy might be a building block for a globally-oriented economy which complements the World Trade Organization and, in particular, the Asia Pacific Economic Cooperation (APEC). Put differently, economic linkages of the Triad would not only conform to the principles of the multilateral WTO and APEC, but should also produce a substantial improvement in the rules of those organizations which would harmonize their global and regional components successfully. -
Potential for Services Liberalisation between AFTA and CER
Christopher Findlay et al. Date 1997.12.30
Economic relations, Free tradeDownloadContentContents
Introduction
Services and the World Trade Organization
Asia Pacific Regional Agreements and Services
Architectural Initiatives
Sectoral Initiatives
Conclusions
References
국문 요약
Summary -
China's Banking Reform under Sustained Growth
Nicholas R. Lardy Date 1997.12.30
Economic reform, Financial policyDownloadContentContents
I. Presentation : China's Banking Reform under Sustained Growth
II. Supplementary Comments
국문 요약
Summary -
ASEAN : 30 Years of Existence and Challenges Ahead
Chia Siow Yue Date 1997.12.30
Economic cooperation, Political economyDownloadContentContents
I. Introduction
II. ASEAN Economies
III. ASEAN Political-Security Cooperation
IV. ASEAN Economic Cooperation
V. Expansion of ASEAN Membership
VI. External Linkages
VII. Conclusion
Bibliography
국문 요약
Summary -
Asia and Latin America : A New Partnership
Omar Martinez Legorreta Date 1997.12.30
Economic cooperation
공공저작물 자유이용허락 표시기준 (공공누리, KOGL) 제4유형
대외경제정책연구원의 본 공공저작물은 "공공누리 제4유형 : 출처표시 + 상업적 금지 + 변경금지” 조건에 따라 이용할 수 있습니다. 저작권정책 참조