• International Commerce and Information Review
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• v.18 no.3
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• pp.73-100
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• 2016

This study focused on the Korean Stock Market so as to recognize the actual Korea-China FTA effect in the firm level. The result are as follows. First, lifting embargo even before the FTA actually took into effect influenced negatively to the firms listed in Korean Stock Market unlike the expectations that effectuation could influence positively to Korean economy. Secondly, the industries that China has attracted more foreign investors than Korea have shown declining returns as they positioned comparative disadvantages in Korea. In this regard, foreign shares delivered signaling effects to domestic investors in Korea. Thirdly, information for effectuation(embargo lifting) has reflected in the stock prices immediately as it leaked in the industries expecting the negative impact, while investors showed the tenancy to retain the action until the FTA actually took into effect in the industries expecting the positive impact.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.5
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• pp.1043-1051
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• 2009

This study intends to discuss the influence on behaviors of won/dollar exchange rate after a FTA between Korea and US come into effect. The change of behaviors of won/dollar exchange rate has been looked into concerning other countries who have signed a FTA pact with the US, and these examples were compared with that of Korea so as to find similarities and differences. As a result of analyses, behaviors of exchange rate between FTA-pact countries were showed differently. Volatility and risk premium somewhat decreased after the FTA took effect except for Chile. As for Chile, showing intense volatility, foreign exchange risk premium rather increased. It can be concluded that the relationship between volatility and risk premium of individual exchange rate is established and FTA can influence change of these behaviors of exchange rate depending on the situation of individual country. This study will contribute to offer informations to Korea trading companies related to IT that will have to prepare for the uncertainties of change of exchange rate due to FTA between Korea and US.

• International Commerce and Information Review
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• v.14 no.3
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• pp.139-158
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• 2012

FTA is one of the most important trade policies for the motor car industry. Due to the large amount of employment and production the motor car industry provides in a country, in a lot of cases, the protective trade policies that countries employ are targeted for the motor car industry. In this point of view, it can be said that the Latin American FTA strategy such as the 'Korea-Columbia FTA', 'Korea-Peru FTA' and 'Korea-Chile FTA' has a large influence in the development of Korea's car industry. This paper analyses changes in factors influencing car export before and after the signing of the Korea-Chile FTA to forecast the export of motor cars to Latin America and aims to propose an action plan. Research shows that out of the variables 'exchange rate', 'GDP', and 'oil price, 'GDP' showed a strong corelation with export before and after the FTA. Regression analysis also showed that only 'GDP' has an impact on export rates and that its impact is most highest after the exhibition of FTA's effects. This suggests that FTA has an important effect in motor car export to Latin America but export is also strongly interlocked with the local country's economic condition which highlights the requirement for an action plan such as the establishment of local production systems.

• SUVANNABHUMI
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• v.15 no.1
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• pp.255-275
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• 2023

Trade between South Korea and Malaysia has been steadily increasing since the conclusion of the multilateral Free Trade Agreement (FTA) between the Association of Southeast Asian Nations (ASEAN) and South Korea. Bilateral FTAs such as Singapore-South Korea, Vietnam-South Korea, and Indonesia-South Korea came into effect to enhance the economic cooperation between South Korea and major ASEAN countries. However, the bilateral FTA between South Korea and Malaysia, known as Republic of Korea-Malaysia FTA, is still under negotiation. Therefore, this study aims to analyze the economic impact of a possible FTA between these two countries. To examine the economic effects of bilateral FTAs, this study analyzes the trade structure and change in the value of trade between Malaysia and South Korea using panel data analysis. Two significant findings were identified by the analysis. First, the Republic of Korea-Malaysia FTA is expected to promote trade and have a positive effect on the Gross Domestic Product (GDP) of South Korea. Second, the result of the calculated price elasticity based on substituting figures such as tariff, demand elasticity, and export value is that the value of manufacturing exports is expected to considerably get an increase. Therefore, an early FTA between South Korea and Malaysia would be beneficial for both national economies.

• Journal of Korea Trade
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• v.24 no.5
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• pp.1-17
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• 2020

Purpose - This paper tries to estimate the effects of China's and Japan's free trade agreement (FTA) by panel generalized least squares (GLS). Design/methodology - The GLS model includes the basic gravity theory and Difference in Difference (DD) method to divide FTA conclusion countries and non-FTA conclusion countries with China and Japan. In order to empirically research the difference between Chinese and Japanese FTAs, we use the Difference in Difference in Difference (DDD) method. Findings - This paper finds the distance variable has more influence on Japanese than Chinese trade. The exchange rate indicates that Chinese trade depends on export and Japanese trade has the structure of re-import; shows that the countries that concluded FTAs with China and Japan have more positive trade effects than those that did not; finds the Chinese FTA promotion effects greater than the Japanese FTA because China had pushed ahead with trade policy since joining the WTO in 2001. Originality/value - This study shows that a single country's FTA and trade policies are an important factor concerning not just the promotion of trade but also the issue of trade conflicts.

• 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.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.78
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• pp.119-143
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• 2018

This research aims to review every important academic research on risk management in FTA and to suggest a future area for further research. This research area seems to focus on conceptual study or fact finding rather than on theory development or empirical research on causal relationship or theory testing. The National Assembly Digital Library analyzed the results of 3,576 researches on thesis and journals fromthe results of the FTA. Research on FTA is analyzed in four major themes. First, there have been previous studies on business performance such as FTA export performance and economic effect. Second, analyzed the effects of FTA in product and service. The products are classified into agricultural, marine products, manufacturing, textiles and clothing, medicinal pharmaceuticals, cosmetics, and others. Services are classified into educational and cultural contents, service industry and financial industry. Third, research on the risk management of FTA Origin is broadly classified into the use of country of origin and the verification of origin, and the use of origin includes the study of rules of origin and systems of origin and management. Origin verification was divided into origin verification and origin risk management. Fourth, study on the conclusion area of the FTA, studies were conducted on areas such as Korea-US FTA, Korea-China FTA, Korea-EU FTA, Korea-Japan FTA, Korea-Chile FTA, and Korea-ASEAN FTA. Search results through the FTA, focused on analyzing the FTA area and concept research by research purpose. In addition, research methods are mainly focused on documentary survey, and research areas are concentrated on specific countries such as China and USA. This implies a necessity for a future development in that research area. Other areas for future research may include case research on actual failures in FTA, proactive risk management strategy, and integrated risk management for export companies. Risk management in FTA may help investment expansion, and that is why research on the issue matters.

• Journal of Korea Port Economic Association
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• v.32 no.3
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• pp.83-94
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• 2016

The primary purpose of this study is to analyze the impact of bilateral Free Trade Agreements on international trade volume of bulk shipment at the port of Busan in Korea using the Gravity Model. Most recently, the total of 15 Korea's FTAs have been enforced since Korea-Chile FTA in 2004 and more than 50 countries became member of Korea's FTAs. Therefore, aggregated trade volume of Korea's FTA members out of the total trade volume in Korea increased from 25% in 2011 to 67% in 2015. Five Korea's bilateral FTA members are concerned as experimental group while top 10 foreign countries base on trade volume of bulk shipment are applied to the model as control group and panel data was used in this study. According to the results, bilateral FTA, GDP and population have positive impacts on trade volume of bulk shipment at the port of Busan. On the other hand, distance between Korea and its trade partner has negative impact. In examining Hausman test and LR test, the random effect model is statistically more appropriate than the fixed effect model for this study.

• International Commerce and Information Review
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• v.9 no.1
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• pp.313-331
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• 2007

In a rapidly changing environment of international trade, the purpose of this study is to examine economic benefits and losses of each country involved in the negotiation on the Free Trade Agreement (FTA) in Northeast Asia and to prepare strategies for the negotiation in the FTA between Korea and China. Previous researches on FTA have been made mainly from the macroeconomic perspective. The approach in this study is a combination of regulatory, reviewing regulations, and economic making quantitative analysis of the economic effects of FTA, which are the basic background of FTA. In economic analysis, I estimated the macroscopic economic effects of FTA by examining the effects of FTA on the trade balance, GDP and production of focal countries through the Computable General Equilibrium(CGE) model using GTAP data set.

• The Journal of Information Technology
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• v.9 no.3
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• pp.15-25
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• 2006

Currently there is fast flow of America and South Korea FTA negotiation being issued. Aim of FTA, by having free trade between two countries to gain their economical benefit. Few benefits can be expected by Korea joining FTA with America It will increase export as well as increase in overseas investment and this will lead to booming of services industry. After America and Korea FTA Discussion being announced around the world, Australia and EU also has interest of doing FTA with South Korea, which mean that America and Korea FTA has effect of bring in the overseas interest of FTA to South Korea. Expectation of American can be, create the market in South Korea to gain benefit as well as able to check out the economical issue of north east Asia country such as China and Japan. Since American side has high agreement with the make FTA with South Korea, South Korea now has to make own decision about this matter. Since Korean economy highly influence by world trade, to survive from market competition with China and Japan, Korea must involve in Free trade with world.