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The Rise of the Chinese Economy and Implications for Korea
The Rise of the Chinese Economy and Implications for Korea Chang-jae Lee, Chai-wook Chun, Hyun-jun Cho The Chinese economy is expected to mature into one of the largest economies in the world in the 21st century. It is likely to ..
Chang-Jae Lee et al. Date 1998.04.10
Economic opening, Economic reformDownloadContentSummaryThe Rise of the Chinese Economy and Implications for Korea Chang-jae Lee, Chai-wook Chun, Hyun-jun Cho
The Chinese economy is expected to mature into one of the largest economies in the world in the 21st century. It is likely to grow by 6 7 percent per annum for the next 20 years. This moderately optimistic estimate is mainly based upon specific characteristics of China. China, for example, with a large population and vast territory, can maintain its growth potential by utilizing the existing regional differentials in developmental stage, and it can also sustain a high growth rate despite deterioration of the external environment by depending upon growth in domestic consumption.
The rise of the Chinese economy will present both an enormous challenge and a great opportunity to the Korean economy. Should Korea fail to restructure its economy in time, Korean goods will lose their market shares in the international markets to increasingly competitive Chinese goods. However, if Korea succeeds in its economic restructuring and deepening of its economic relations with China, the Chinese economy will provide Korean firms with a rapidly growing market and diverse investment opportunities. -
The Political Economy of Korea-U.S. Trade Conflict: Developments and Challenges
The Political Economy of Korea-U.S. Trade Conflict：Developments and Challenges Yunjong Wang, Suyeob Na The Korea-U.S. trade conflict has centered on to what extent Korea would accept U.S. pressure for a market opening. Despite a..
Yun-Jong Wang et al. Date 1998.04.07
Trade disputeDownloadContentSummaryThe Political Economy of Korea-U.S. Trade Conflict：Developments and Challenges Yunjong Wang, Suyeob Na
The Korea-U.S. trade conflict has centered on to what extent Korea would accept U.S. pressure for a market opening. Despite a persistent trade surplus with Korea since the mid-1990s, the United States has continued to push for gaining market access in such areas as telecomunication equipment, automobiles and agriculture. In October 1997, trade tension culminated when the United States designated Korea's auto market as a Priority Foreign Country Practice.
Due to a financial crisis, Korea had to request emergency financial assistance from the IMF, and thus is currently undertaking structural reforms in various fields. If Korea successfully implements economic restructuring, many significant trade and investment barriers will be removed, thus alleviating a main source for trade conflict. However, during the period of structural adjustment, sluggish economic performance will entail a sharp decline of import demand, and the United States is likely to become more aggressive in pressuring Korea to open its market.
In order to avoid bilateral trade conflict with the United States in this critical time, the following tasks should be undertaken. First, Korea must implement the IMF program faithfully to enhance its credibility. Second, Korea must reorgainize its export strategy to reduce bilateral trade tension and gain further access to the U.S. market. Third, Korea's export promotion system must be restructured to the extent that it does not violate WTO rules. Fourth, a strong and skilled trade negotiation team must be formed. Fifth, Korea should take advantage of the Korea-U.S. Free Trade Agreement as a mechanism to facilitate trade and investment liberalization. And finally, relations with the U.S. businessmen doing business in Korea should be strengthened. -
Current Issues on Electronic Commerce and Policy Recommendations
Current Issues on Electronic Commerce and Policy Recommendations Chong-Wha Lee, Seong-Bong Lee Global electronic commerxce, driven by the development of the Internet, premises to be an important engine for growth for the world ec..
Chong-Wha Lee et al. Date 1998.04.07
E-tradeDownloadContentSummaryCurrent Issues on Electronic Commerce and Policy Recommendations Chong-Wha Lee, Seong-Bong Lee
Global electronic commerxce, driven by the development of the Internet, premises to be an important engine for growth for the world economy in the 21st century. Electronic commerce offers considerable new opportunities for businesses and citizens in all regions of the world by enhancing productivity across all sectors of our economies and encouraging trade in both goods and services.
Electronic commerce requires a coherent, coordinated approach internationally on key issues such as a tariff-free environment, tax administration, IPR(Intellectual Property Rights) protection, cryptography, privacy protection, content regulation and consumer protection.
In order to ensure the stable growth of electronic commerce in Korea, the government needs to construct a predictable legal and commercial environment, suitable to the situation in Korea, for business conduct on the Internet.
Among policy recommendations, taxation of electronic commerce seems the most important. Electronic commerce, which breaks down national boundaries and widens the gap between the place where services are performed and the place where they are consumed, requires a new paradigm when addressing principles of taxation and tax administration. -
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. -
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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
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