Abstract
Purpose - The purpose of this study is to analyze Korea's trade relations centered on the Pacific Alliance (PA), a major economic integration in Latin America, and identify its problems and suggest measures that can be taken by the government and corporations to reinforce economic cooperation. Design/methodology/approach - To improve the level of contribution of the study, an empirical analysis is necessary. However, due to limited data access, the study will approach the topic of trade relations between Korea and the PA with various statistics and literature. Findings - First, there is an urgent need for changes in import-export goods between Korea and the PA, as trade is focused on specific items. Second, although foreign direct investment from Korea to the PA is centered in manufacturing and mining industries, there should be different investment strategies by countries and industries. Third, it is necessary to reinforce commercial cooperation. Korea currently has Free Trade Agreements with Chile, Peru, and Columbia, but not with Mexico, the largest trading partner among the PA. Therefore, Korea must take active measures to sign an FTA with Mexico, which has been put on hold. Research implications or Originality - Latin America has the most thriving market when it comes to Free Trade Agreements worldwide. With the official establishment of the Pacific Alliance (PA) in 2012, the economic integration of Latin America faced entirely new circumstances. Reinforcing economic cooperation with the PA is extremely important for Korea in terms of entering and dominating the Latin American market. However, there is still a lack of research on the Pacific Alliance, and corporations that aim to enter the Latin American market face difficulties due to lack of information. By investigating the Pacific Alliance and its prospects and analyzing the trade relations with Korea, this study will provide strategic measures for corporations that wish to enter the Latin American market.
