• International Commerce and Information Review
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• v.16 no.5
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• pp.249-273
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• 2014

This study aims to find implications of Korean FTAs and to suggest policy recommendations to facilitate the utilization of FTAs based on the field survey of more than 1,000 trading firms According to the survey, most of the trading firms have utilized FTAs more than once and had agreed that the FTAs have contributed to expansion of their business and trade with partners. However, still a number of firms responded that they have never used FTAs. Even those who are utilizing FTAs expressed difficulties in conforming to the complex rules of origin verification processes and lack of practical information on how to use FTAs. Therefore, government policies need to be more focused on elevating FTA utilization rate and meeting the practical use of FTAs by trading firms. In addition, trading firms were found to express preference to potential FTA partners with large economies in the East Asia and were in the opinion that future FTA agreements should be approached in a way that can reflect the practical interest of the firms.

• Journal of Korea Trade
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• v.26 no.8
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• pp.58-76
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• 2022

Purpose - This study examined the Rules of Origin (RoO) as a factor affecting free trade agreements' (FTA) utilization and analyzed the causal relationship and the effects of these factors on the export performance of automobile parts companies. Design/methodology - We analyzed and verified the impact of FTA utilization and the export performance of automobile parts companies by dividing the characteristics of the RoO into complexity and uncertainty. Following which, various statistical analyses were conducted on the interrelationships among these variables. Findings - This research analyzed the effect of the RoO factors of complexity and uncertainty on the use of FTA and the export performance of automobile parts companies. We found that these characteristics of RoO were generally related to and affected the FTA use and export performance of these companies. Based on this, this study's investigation into the characteristics of the RoO would then help companies in better utilizing the FTA, as well as providing suggestions on how to effectively respond to the application of the FTA in the future. Originality/value - Companies that want to utilize FTAs in international trade must follow the RoO. In the Regional Trade Agreement (RTA), the country-of-origin is a key factor, with the RoO being an important requirement for the application of preferential tariffs. These regulations are a requirement for receiving FTA preferential treatment; however, they also cause difficulties to companies in using the FTA.

• Korea Trade Review
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• v.42 no.6
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• pp.87-110
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• 2017

The purpose of this paper is to investigate the roles and effects of FTAs (Free Trade Agreements) in agroindustrialization, and to navigate its implication for the government support for the utilization of FTAs in the agriculture sector. The paper, in particular, is based on a case of contract farming, which has often referred as the key factor of agroindustrialization. By doing this, this paper has the importance academically in enhancing the study of FTA utilization to the study of agroindustrialization, and practically in exploring the implication for the FTA implementation policy that provides fundamental solutions to the issues of agriculture sector. As the results of this study, it is highlighted that the role of government that intermediates, monitors, and controls the equal and the fair relationship between the agribusiness firms and farms is essential for the further progress of agroindustrialization under the keen competition created by FTAs.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.70
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• pp.159-179
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• 2016

Companies do not be resolved by the FTA services of external aid should be operational by assigning dedicated personnel inside the company. FTA is a choice, not an essential trade agreement requirements. If the exporter contracts to provide a certificate of origin in trade agreements, it shall issue a certificate of origin of goods originating management is performed. When considering the future trend of spreading wide FTA, it should be extended to one year to take advantage of the FTA Certificate of Origin environments utilizing a comprehensive environment for regional countries that require proof of origin between certain countries, such as current. FTA utilization of the future is to utilize the GVC(Global Value Chain) efficiently. In other words, the expansion of the consumer market and take advantage of an efficient production base across borders. These environmental changes are needed development of the FTA utilization promotion and FTA experts. The experts studying how to procure raw materials or intermediate goods exports in a variety of regional foreign countries, to meet the rules of origin is required for a successful FTA utilization. One of the objectives of Origin managers are qualified experts in the country of origin can take advantage of the FTA plan. Therefore, managers of origin shall collect their ability to expand the understanding and information about the industry as an international business perspective beyond the Certificate of Origin. In addition, it should be in their best learning expertise for the introduction and development of country of origin control system in an effort to effectively perform its international FTA utilization. Once the FTA is more widespread in the future and build a common origin information it must not be disconnected until the export enterprises from terminal manufacturers systematically. Therefore origin management is preferred by expanding the knowledge base of teaching and learning in the common sense to the universal subject of specialization from professional schools to promote the relevant departments so that they can be opened in a college or university. An FTA hub linking East and West, also need the confidence that in order to become a center of Glabal Supply Chain Using an FTA Certificate of Origin and stable environment for importers to import products from the country offers. Certificate of Origin and all of them thoroughly exporters and companies related to the administration of origin and should create an atmosphere that can effectively respond to the origin verification. Korea shall endeavor to elicit a geopolitical value (FTA Hub), as well as securing a competitive advantage in the global industry leverage, trading at a reasonable price competitive products thereby enhancing production and economic growth through the FTA.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.60
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• pp.257-279
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• 2013

Nine FTA like Korea-Chile FTA, Korea-Singapore FTA, Korea-EFTA FTA, Korea-ASEAN FTA, Korea-India CEPA, Korea-EU FTA, Korea-U.S.A. FTA, Korea-Peru FTA and Korea-Turkey have been concluded and implemented in 46 countries as of May, 2013. In addition to these nine FTA, Korea has been negotiating FTA or CEPA(Comprehensive Economic Partnership Agreement) with China and Vietnam and Indonesia. Now Korean government is about to conclude FTA agreement with Indonesia which is one of crucial trading partners in Asian countries so the objective of this paper is to suggest how to design ROO schemes properly in such upcoming FTA agreement since more activation of trade and more utilization of FTA can be depend on the details of ROO schemes. As a result, this paper suggests well-design of ROO schemes as follows ; First, self-issuance origin proof system can be considered because authority-issuance origin proof system may reduce the utilization ratio of FTA. Second, combination of indirect and direct verification system in terms of origin verification system will be more preferable because this will be more fitting to Asian countries as considering trading environments and characteristics of Asian market. Third, criteria to determine origin can be based on wholly obtained plus substantial transformation system which contains CTC plus VC along with some percentage of de minimis. In addition to this, the number of products stipulated in PSR should be minimized and applied similar manner to avoid complexity of deciding origin.

• Korea Trade Review
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• v.43 no.1
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• pp.153-176
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• 2018

Since entering into force on June 1st, 2007, the Korea·ASEAN FTA has had great strategic importance as it represents a massive export market for Korea. For more than 10 years since its implementation, the trade in both goods and services have greatly increased, and ASEAN has become the second largest export market for Korea. However, Korea's FTA utilization rate for exports is approximately 46%, which is far lower than the average rate of 72% for all FTAs, despite several revisions. In this study, we investigate the problems causing this low rate of FTA utilization for export by analyzing import clearance disputes faced by the counterpart. Our recommended countermeasures for such disputes are : Since form requirements for C/O (certificate of origin) are important considerations for ASEAN countries, C/O needs to be written accurately. Understanding of the administrative system and regulative procedures of ASEAN countries is also necessary. Accurate HS code of importing countries must be obtained. Korean government authorities should make diplomatic effort to ease the import clearance procedures in counterpart countries and contact customs offices to facilitate communication.

• International Commerce and Information Review
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• v.14 no.4
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• pp.459-490
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• 2012

The performance of FTA has a close relationship with the application of FTA by exporting companies. However, most existing literatures focus on the study of policies and economic results of FTA. Moreover, these researches based on a presupposition that exporting companies could make good use of FTA. Actually, these assumptions are clearly contrary to the reality of FTA application of exporting companies in Korea and the results are significantly differ from the performance of FTA. Based on the investigation of utilization of FTA, applied by export companies in Korea, this study tries to find out the most efficient strategies of the application of FTA. And the objective of this study is to propose some practical suggestions for export companies based on the case an alysis which will help them to improve performances of Korea-ASEAN FTA application. As the prior investigation of CEO's characters, application of FTA, and the implement of FTA, we got the fact that among lots of marketing strategies, Korea-ASEAN FTA is used extensively by large export companies. However, most of small and medium-sized export enterprises would like to choose conventional tariff, such as Lower tariffs and zero tariff as the main marketing strategies. In other words, because of lacking of human resources and infrastructure, the application of Korea-ASEAN FTA strategy is hard to achieve.

• International Commerce and Information Review
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• v.17 no.3
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• pp.177-201
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• 2015

Korea-China FTA was initialized in 2015. Korea has a high level of dependence on trade for its economic growth, especially to China. Technical Barriers to Trade(TBT) among various non-tariff barriers is becoming increasingly important. Elimination of TBT is one of the key issues in which the South Korean government is interested since technical barriers significantly affect trade between the two countries. MRA has been considered as an effective tool to relieve such technical barriers. Several studies and surveys showed that MRA would mitigate the barriers of import and solve the problems that many companies face in international market. This study tries to seek utilization plan of MRA for Korea-China FTA. It suggests suitable utilization plan of MRA considering the difference of technical regulations between two countries. This paper has value in that it provides specific MRA strategies targeting China while other prior studies have merely analyzed the necessity of MRA.

• Korea Trade Review
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• v.47 no.1
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• pp.199-214
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• 2022

This study aims to quantify the value of origin among CPTPP and Korea, under the assumption that the 'cumulation' clause has large economic effects in multilateral FTAs and increase the possibility of improving FTA utilization. Analysing the relationship between value-added exports and FTA utilization rate, there is a positive correlation between the two variables, and the cumulation of multilateral production of CPTPP is expected to increase Korea's value-added exports. In the GTAP-VA model, the target of cumulation is calculated as 'Domestic Value Added', and all value-added of CPTPP are cumulated in the form of value added exports of exporting country. When Korea participates in CPTPP, it is possible to cumulate additional 6.3~9.6% value added, and the agreements with low FTA export utilization rates such as New Zealand, ASEAN would have greater economic effects of cumulation. For the successful implementation of CPTPP in Korea, it is necessary to develop a new origin verification system that enables multilateral value-added cumulation. It is time to seek cooperation with countries currently participating in CPTPP to prove the value added inherent in CPTPP-originating products.

• Korea Trade Review
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• v.45 no.5
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• pp.181-200
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• 2020

The Korea-Canada FTA and the EVTA have adopted cross-cumulation clauses in their rules of origin, aiming at the enhancement of the value chains among the FTA parties. In fact, intricate rules of origin are often considered as the major cause that discourages the utilization of the agreement for the exporting firms. From this perspective, the correct understanding of cross-cumulation clauses in FTAs is an urgent mission for the Korean exporters as well, and the EVTA, which has recently introduced the cross-cumulation method in a linkage with the Korea-EU FTA provides the timely motivation. This paper first analyzes the Korea-Canada FTA of 2015 as for the case study, because this is a unique trade agreement for Korea that has already adopted the cross-cumulation clauses. It is concluded that the clause is rather vague, particularly in certifying the origins of the intermediate goods from the territory of an authorized third party. From this perspective, the recently-ratified EVTA is particularly important and meaningful with its clearer explanations for the utilization of the privileged rules of origin. The paper finalizes the study by making policy suggestions to the stakeholders, expecting more future FTAs to come equipped with similar cumulative rules of origin, and implies the possibility of the modification of the current clauses in the FTA with Canada.