■ Central American Countries in the past decade have rapidly achieved democratic as well as economic stability. Sustained economic growth, increased foreign investment, exchange rate stability and low inflation rates have transformed the region's economic outlook in a strongly positive direction. Central America not only possesses abundant tourist resources, but also an advantageous geographic location at the crossroads of North and South America, and the Atlantic and Pacific. Central America also benefits from preferential tariff rates with the United States and EU, which are enhancing the position of Central America as a new and invaluable market of trade and investment.

■ The Central American Common Market (CACM), created in 1960, experienced a serious collapse of confidence in the 1980s due to the political and economic problems in the region. However, the CACM has reversed course and is now entering a new era of development, taking advantage of the political and economic stability in the region. The CACM is not only deepening the economic integration in the region, but is also strengthening its relations with the EU, and actively is promoting the formation of the Free Trade Area of Americas (FTAA).

■ Due to the geographical and cultural distance between Central America and Asia, the extent of cooperation between the two regions had remained relatively insignificant. However, relations between the two regions are now making remarkable progress owing to Central America's increasingly large potential for economic growth and development derived from its commitment to liberalize trade and investment, while maintaining macro-economic stability. In particular, Korea's cooperative relations with Central America will be strengthened by the establishment of Korea-Central America Forum for Dialogue and Cooperation, the brainchild of the 1996 Korea-Central America Summit, and by Korean firms increasing trade and investment in the region.

Foreword
Kyung-Tae Lee

Ⅰ. The New Central America: An Attractive Marketfor Investments and Trade
Ernesto Leal Sànchez, Secretary General, Central American Integration
System

Ⅱ. Central American Economic Integration and the Strategy for External Expansion
Humberto Arguello Chamorro, Professor, UAM, Nicaragua

Ⅲ. Asian Economic Interests in Central America
Carolina Alas De Franco, Analyst of Microeconomic Section, FUSADES

Ⅳ. Appendices
1. Welcoming Speech
Kyung-Tae Lee, President, Korea Institute for International Economic Policy
2. Opening Remarks
Doo-Hwoi Koo, President, Korean Council on Latin America & the Caribbean
3. Remarks at the Korea-Central America Seminar
Joun-Yung Sun, Vice-Minister, Foreign Affairs and Trade
4. Palabra de Congratulación
Ramòn E. Gonzàlez Giner, Ministro de Relaciones Exteriores de El
Salvador

5. Seminar Program

Abstract