• Korea Trade Review
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• v.44 no.5
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• pp.17-28
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• 2019

Although brand love is a major interest in global business, very little is known about how the effects of brand love are affected by relevant constructs. This study examines how the brand love-loyalty link is moderated by shopping value (hedonic vs. utilitarian) and how the moderated moderation effect of gender difference influences the consumer-brand relationship. Based on a unique dataset of 254 Chinese consumers of Korean cosmetic brands in China, we tested our proposed hypotheses using Regression PROCESS macro (model = 3). One of our novel findings is that brand love has a positive influence on brand loyalty. However, this relationship is sensitive to moderators. Regarding the brand love-loyalty linkage, consumers who seek hedonic shopping value is higher than consumers who seek utilitarian shopping value. In particular, female consumers are more passionate and loyal than male consumers. Finally, male consumers seeking hedonic shopping value feature greater brand love-loyal linkage than other consumers; however, this effect is very limited.

• Korea Trade Review
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• v.44 no.2
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• pp.21-35
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• 2019

This study analyzes factors that affect the corporate value of Korean companies operating in Latin American countries. Primary factors are associated with characteristics of the host country, the parent company, and subsidiaries. Empirical results show that asset specificity is the main factor influencing firm value. This region is geographically far from Korea and culturally different. Therefore, the source of competitive advantage such as asset specificity should be large enough to offset liability of foreignness for successful entry into the region. This paper also found that joint ventures are more advantageous than direct investments. Joint ventures in Latin American can minimize risk, complement technology and information, and reduce trade barriers.

• Korea Trade Review
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• v.44 no.3
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• pp.73-84
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• 2019

This study focuses on previous research that explored the external knowledge reflecting the characteristics of SMEs and that should be considered because of the limited capacity of SMEs. This study examines the effects of open innovation and SMEs on export performance, focuses on government support as a way to supplement the limited capacity of SMEs, and analyzes the moderating effects of government support. An examination of 1,358 samples revealed that the breadth of external knowledge, depth of external knowledge, and government support had a significant impact on the export performance of SMEs. The effect of exploration of external knowledge (breadth and depth) of SMEs on the export performance of SMEs is significant both in breadth and depth when government support is provided, but only depth is significant when there is no government support.

• Korea Trade Review
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• v.44 no.2
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• pp.189-202
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• 2019

The Harmonized System comprises about 5,000 commodity groups; each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification. This study reviews the appropriateness of Korea Customs Service and Tax Tribunal's customs classification decisions concerning the interpretation and application of the Harmonized System for certain ITA goods. Korea Customs Service had classified arbitrary and had not applied in dubio pro reo principle. This paper finds that 57% of Korea Customs Service's classification decisions have erred. Korea government need to take measures to secure uniform interpretation of the HS and its periodic updating in light of developments in technology and changes in trade patterns. This paper suggest to amend customs law and regulation concerning classification committee.

• Korea Trade Review
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• v.47 no.5
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• pp.223-240
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• 2022

Anti-circumvention rules were discussed profoundly during the Uruguay Round and the DDA negotiations, although WTO members failed to reached an agreement to introduce it to the WTO Anti-Dumping Agreement. However, as the cases of circumvention of anti-dumping duties increase, a number of countries have enacted anti-circumvention regulations as part of their anti-dumping laws. This study aims to analyze anti-circumvention rules from the perspective of WTO law. After overviewing the object and purpose of anti-dumping and anti-circumvention regulations, it examines anti-circumvention regulations of the US, the EU, and India. Next, the study explores the possible WTO-inconsistent aspects of those regulations. Then, it discusses whether it would be preferable for countries not equipped with anti-circumvention regulations, such as Korea, to have one. Thereafter, this study proposes Korean government to introduce anti-circumvention rules into its anti-dumping law.

• Korea Trade Review
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• v.46 no.6
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• pp.225-238
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• 2021

This study analyzed the recent precedents of the Korean Supreme Court's Royalty and License fee on this issue and presented implications for future taxation of Royalty and License fee and digital content imports related to reproduction rights. If the price related to imported goods and the price not related to them are combined, it is necessary to revise the statutes to supplement the allocation method of royalty and license fee. In addition, if there is an agreement or a back contract for intellectual property rights through the headquarters or branch office other than the trading party, a method of inducing the importer to voluntarily report it when reporting imports should be considered. Whether Royalty and License fee is taxed or not must be determined after examining the various contract details and circumstances of the transaction.

• Korea Trade Review
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• v.46 no.1
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• pp.39-57
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• 2021

Developing countries are in competition to attract ODA and FDI in an effort to overcome poverty and development. This study tries to identify factors influencing the distribution of ODA and FDI resources and analyzes if ODA and FDI are in complementary relationship. We use a panel data for 53 African countries during early and middle of 2000 period. Factors affecting the ODA distribution include per capita GDP, physical infrastructure, good institutions of receiving countries. FDI was found to be positively affected by market size, trade openness, human capital accumulation, business-friendly regulatory environment. The impact of ODA is believed to be more effective and sustainable if it has a complementary relationship with FDI. Our result, however, did not confirmed the complementarity relation between the two.

• Korea Trade Review
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• v.45 no.2
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• pp.137-155
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• 2020

The purpose of this study is to examine the antecedents and consequences of host country managers (HCMs)' acculturative stress in multinational corporation (MNC) subsidiaries in Korea. We suggest that HCMs' national identification (NI) positively and organizational identification (OI) negatively influence on the HCMs' acculturative stress. In addition, we propose that HCMs' OI negatively moderate the relationship between HCMs' NI and acculturative stress. Moreover, we hypothesize a negative relationship between HCMs' acculturative stress and work engagement. To test these hypotheses, we performed hierarchical regression analysis and mediation analysis of 643 HCMs in 60 MNC subsidiaries that originate from 11 countries. Results of analyses revealed that all the hypotheses were supported except H1 (positive relationship between HCMs' NI and acculturative stress). The present findings provide theoretical and managerial implications, and we provide suggestion for future research.

• Korea Trade Review
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• v.45 no.1
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• pp.31-45
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• 2020

As FTAs are introduced, greater trade between the countries results in more disputes between parties to the agreement. Disputes in international trade have previously been settled mainly through international arbitration. However, with the recent rise in negative aspects of the arbitration system, the international community has begun to seek ways to utilize mediation for replacing the arbitration system. Mediation is a dispute settlement system that helps the parties settle their disputes on their own through negotiations. The UNCITRAL, which seeks to unify and develop international trade law, amended the Model Mediation Law in 2018 and adopted the 'United Nations Convention on International Settlement Agreements Resulting from Mediation' in August 2019 to enable the adoption of the international settlement agreement. This study analyzes the main contents of the 2018 Model Mediation Law and predicts the potential for the development of international commercial mediation as a dispute settlement procedure for future international trade.

• Korea Trade Review
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• v.45 no.4
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• pp.171-194
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• 2020

Although there is a lot of literature on the effectiveness of regional trade agreements(RTAs), it is usually analyzed only using trade-related theories and data. However, this paper has a differentiation in that we examine the linkage between international trade and financial markets through the stock markets reactions when the trade agreements related news arrived. Specifically, using an event study, we look into the Korea-US free trade agreement(KORUS FTA) which is the most commercially significant FTA in almost two decades for both the countries. Korean stock market generally responded more sensitively to FTA news than the US stock market, especially in 'Auto & Parts', 'Electrical Equipment' and 'Chemicals' industries. And the investors' perception toward the effect of KORUS FTA on Korean industries changed from negative to positive as negotiations proceed. Korea has a comparative advantage in the production of labor-intensive goods relative to US, but the economies of scale hypothesis does not hold.