This paper is a survey of some of the important issues in Korean trade during 1999. 1999 was an important year in Korean trade for several reasons. In 1999, Korea began its recovery from the Asian Financial Crisis, with its GDP growing by more than 10%. Much of the growth, especially in the latter half of the year, was due to a healthy export sector. Korea's exports to all major regions rose greatly. Korea's imports also rose greatly, but imports from some regions, such as Asia and North America, grew more quickly than imports from other regions such as Europe. The growth in exports was driven by such goods as semiconductors and automobiles. On the import side, the growth of imports was driven by increases in the import of capital goods due to Korea's recovery from the Financial Crisis and the recession which followed.

Such growth in exports could not help but generate trade disputes between Korea and its trading partners, most notably the United States. While the bilateral trade disputes were not as serious as they had been in the 1980s, there were some notable issues in 1999, particularly with regard to steel, semi-conductors, pharmaceuticals, and movies.
While many of these trade dispute issues were being dealt with bilaterally, between Korea and various complainant countries, the world was rapidly moving toward establishing a common multilateral rules on trade, and 1999 was an important year in the multilateral trade arena as well. On November 30 1999, the WTO Ministerial Conference was held in Seattle. The Conference was to signal the beginning of a New Round of trade negotiations designed to liberalize trade, as well as introduce multilateral rules with respect to several 'New Issues'. However, because of disagreements among member countries, the negotiations were 'suspended,' and except for certain 'built-in agenda' issues, the negotiations will not resume until the members can attain a wider agreement on various issues concerning the New Round negotiations.

Korea submitted 12 official position papers to the WTO on various topics concerning the New Round. These topics include agriculture, services, the anti-dumping agreement, market access for industrial goods, trade and investment, trade and competition policy, and transparency in government procurement.

Executive Summary

I. Introduction

II. Korea Trade in the 1990s and 1999
A. Overview
B. Korea Trade by Industry
C. Korean Trade by Region
D. Korean Trade with Major Trading Partners
E. Korean Trade Competitiveness
F. Outlook for the Year 2000

III. Korean Bilateral Trade Disputes in 1999
A. Overview
B. Current Trade Disputes by Item
C. Other Issues

IV. Korea's Position in the WTO New Round
A. Overview
B. Korea's Position on Individual Issues
C. Preliminary Results of the Negotiations

V. Prospects and Policy Implications

Appendix