Policy Analyses
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Policy Analyses
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Japan's Financial Liberalization and Internationalization of the Yen
Jae Jung Kwon Date 1993.12.31
Financial liberalization -
A New Direction for Asia-Pacific Economic Cooperation
Since its inception in 1989, Asia-Pacific Economic Cooperation (APEC) suggested the possibility for Asia-Pacific economic cooperation at the fifth summit in Seattle, USA, in 1993.APEC Leaders' meetings has discussed a broad vision..
Co-authors Date 1993.12.31
Economic cooperationDownloadContentSummarySince its inception in 1989, Asia-Pacific Economic Cooperation (APEC) suggested the possibility for Asia-Pacific economic cooperation at the fifth summit in Seattle, USA, in 1993.
APEC Leaders' meetings has discussed a broad vision of regional free trade and investment, and produced institutional ground pledging concerted efforts for trade liberalization, the encouragement of technology transfer and investment by establishing officially Committee on Trade and Investment.
APEC adopted the principle of open regionalism, namely, regional integration without trade discrimination against other economies. This open regionalism contrasts sharply with the approach taken in most regional cooperation agreement including the European Union (EU) and North American Free Trade Agreement (NAFTA).
APEC is expected to play a leading role in intra-regional economic cooperation and the creation of a new world economic order based on the multilateral trading system. -
Future Technological Cooperation between Korea and Japan
This study analyzes technological cooperation between Korea and Japan and outlines the desirable path for technological cooperation of the 21st country.The Japanese industry is experiencing a lull in trade for now, heading toward ..
Woo-Hee park et al. Date 1993.12.31
Technical cooperationDownloadContentSummaryThis study analyzes technological cooperation between Korea and Japan and outlines the desirable path for technological cooperation of the 21st country.
The Japanese industry is experiencing a lull in trade for now, heading toward a recession. This change means that the times of mass-producing cars, electric appliances and computers are at an end.
The major findings of the paper can be summarized as follows: Demand has shrunk due to the sudden development; Japan's international competitiveness is weakened due to the high yen; With environment pollution on the rise globally, there are warning signs on mass production and mass consumption in the long-term. Technological progress in terms of society is making problems, with Japan is faced with social issues such as transport, refuse disposal in urban, environment, city planning, the labor shortage, education, medical treatment and welfare. Accordingly, Korea and Japan should encourage closer cooperation and complete their role and responsibility for the desirable industrialization of ASEAN nations. -
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.
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