• 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.27 no.1
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• pp.139-158
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• 2023

Purpose - The study of co-movements between stock markets is a crucial area of finance and has recently received much interest in a variety of studies, especially in international finance. Stock market co-movements are a major phenomenon in financial markets, but they are not necessarily independent of the real market. Several studies support the idea that bilateral trade linkages significantly impact stock market correlations. Motivated by this perspective, this study investigates whether real market integration due to trade agreements brings about financial market integration in terms of stock market co-movement. Design/methodology - Over the 10 free trade agreements (FTAs) signed by the United States, using a dynamic conditional correlations (DCC) multivariate GARCH (MGRACH) model, we empirically measure the degree of integration by finding DCCs between the US market and the partner country's market. We then track how these correlations evolve over time and compare the results before and after trade agreements. Findings - According to the empirical results, there are positive return spillover effects from the US market to eight counterpart equity markets, except Jordan, Morocco, and Singapore. Especially Mexico, Canada, and Chile have large return spillover effects at the 1% significance level. All partner countries of FTAs generally have positive correlations with the US over the entire period, but the size and variance are somewhat different by country. Meanwhile, not all countries that signed trade agreements with the United States showed the same pattern of stock market co-movement after the agreement. Korea, Mexico, Chile, Colombia, Peru, and Singapore show increasing DCC patterns after trade agreements with the US. However, Canada, Australia, Bahrain, Jordan, and Morocco do not show different patterns before and after trade agreements in DCCs. These countries generally have the characteristic of relatively lower or higher co-movements in stock markets with the US before the signing of the FTAs. Originality/value - To our knowledge, few studies have directly examined the linkages between trade agreements and stock markets. Our approach is novel as it considers the problem of conditional heteroscedasticity and visualizes the change of correlations with time variations. Moreover, analyzing several trade agreements based on the United States enables the results of cross-country pairs to be compared. Hence, this study provides information on the degree of stock market integration with countries with which the United States has trade agreements, while simultaneously allowing us to track whether there have been changes in stock market integration patterns before and after trade agreements.

• 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.

• International Commerce and Information Review
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• v.12 no.4
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• pp.193-211
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• 2010

These days, Korean government has been expanding Free Trade Agreement (FTA) with major countries. Expansion of FTA, which means opening up the markets, can be the opportunity to develop for those enterprises with global competency; however, it surely brings disadvantages to such small and medium enterprises which function as an outsourcing and a subcontracted to large enterprises. For Korean economy to overcome the national income of US$20,000 and to jump up to the level of advanced countries, it is imperative to perceive a limit to the large enterprises only. Not only the leading efforts of small and medium enterprises to double the exports, but also realizing the policy reform for the consistent and intimate policy between the government and companies have to be proceeded. Therefore, primarily in this study, first, it includes the overview of the change in trade-environment in an era of FTA, governmental system and policy to support export for the small and medium enterprises; secondly, examination of the export capacity and some problematic factors in export for small and medium enterprises. Ultimately, it is suggested both reinforcement for global competency of the small and medium enterprises and an alternative policy for the support system in the time expecting export expansion.

• Fashion & Textile Research Journal
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• v.17 no.6
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• pp.978-987
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• 2015

This study investigates the awareness levels of Korean textile companies and develops appropriate response plans for the Korea-US Free Trade Agreement. The study also explores practical and realistic directions that the Korean textile industry must initiate. A qualitative study was conducted on 10 individuals for a more in-depth and demonstrative understanding that provide a better awareness on the responses of the textile industry towards the Korea-US FTA. The results of this study are as follows. First, the effect of the Korea-US FTA on the textile industry was insignificant. Second, industry members determined that fabric sectors and specialized fabrics (such as industrial materials and finished clothing products) could realize benefits through the Korea-US FTA. Third, industry members emphasize that the current focus is on FTAs by countries that have solidified their positions as manufacturing and sewing bases for the US and Europe (such as Southeast Asia) and not the Korea-US FTA. Based on results acquired through this study, the response measures to enter the U.S. market are as follows. First, the industry must develop high-performance and high value-adding direct export products suited to the needs of the US market in order to realize the benefits of the Korea-US FTA. Second, the industry and government must cooperate to actively host and participate in overseas trade shows that can actively open sales channels within the US. Third, the self-sustainability of textile companies must be cultivated through continuous and focused government training.

• Journal of Arbitration Studies
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• v.30 no.3
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• pp.3-19
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• 2020

With the advent of the Free Trade Agreement between Korea and the U.S. and an increase in trade volume between the two countries, the possibility of commercial disputes has escalated among international merchants. It has been well-known that arbitration as an alternative dispute resolution is an efficient way to resolve international commercial disputes. When arbitral awards are enforced in the judicial system, the court will inevitably have to be involved with the enforcement procedures. The court is a typical legal entity to confirm arbitral awards. Through a confirmation process, the winning party obtains the same legal status of final judgment rendered by the court. However, a winning party in arbitration will have to overcome a legal hurdle in the enforcement process of arbitral awards. This article aims to investigate how the courts control the arbitration practices and what the basic legal issues in the enforcement of arbitral awards are. The US Federal Arbitration Act is investigated, while relevant cases are reviewed and updated for legal analysis.

• Journal of Korea Trade
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• v.25 no.8
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• pp.1-24
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• 2021

Purpose - This study categorizes factors that influence the utilization of preferential tariffs based on the characteristics of rules of origin (RoO) and identifies and analyzes the influence of these characteristics on the utilization of preferential tariffs and the trade performance of companies. Design/methodology - In this study, we categorized factors that have an influence on the utilization of preferential tariffs based on the characteristics of RoO and investigated and tested the influence of these characteristics on the utilization of preferential tariffs and the trade performance of companies. For empirical analysis, we categorized the characteristics of RoO into restrictiveness, complexity, and uncertainty. We then developed a research model and formulated hypotheses based on previous studies, and tested the hypotheses using statistical software-(SPSS 25.0 and AMOS 18.0.) Findings - Previous studies suggested that each characteristic of RoO is determined by unique features of a Regional Trade Agreement (RTA). This study conducted an empirical analysis on the influence of the characteristics of RoO on the utilization of preferential tariffs and trade performance. The results confirmed that, overall, the characteristics of preferential rules of origin (PRoO) are related to and influence Korean companies' utilization of preferential tariffs and trade performance. As for the degree of the influence, the characteristics were in the order of uncertainty> restrictiveness> complexity. Nevertheless, complexity turned out not to have an influence large enough to change a company's decision on the utilization of preferential tariffs. Based on these results, this study identified unique features of PRoO and related problems for Korean companies that want to utilize preferential tariffs and suggested countermeasures for their effective utilization of preferential tariffs in the future. Originality/value - Companies that want to use preferential tariffs in international trade have to satisfy PRoO. The issue of origin can be regarded as an essential part of an RTA and RoO, are a crucial criterion in using preferential tariffs. The rules are requirements to claim benefits of preferential trade agreements and are the primary reasons companies have trouble in utilizing preferential tariffs. In this sense, this study categorized the characteristics of RoO, which are a key part of an RTA, and surveyed working-level professionals in charge of international trade at Korean companies to investigate the relationship between these characteristics and the utilizations of preferential tariffs and trade performance of the companies.

• The Journal of Industrial Distribution & Business
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• v.8 no.6
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• pp.33-40
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• 2017

Purpose - This study attempted to discover the impact of the Korea-China FTA(Free Trade Agreement) on electronic products distribution industry. Strategies will be provided to expand both countries' trade after the Korea-China FTA. Research design, data, and methodology - This study analyzed the differences before and after the Korea-China FTA, using an RCA(Revealed Comparative Advantage) index, TC(Technology Sophistication Index) index and TSI(Trade Specialization Index) that considered the FTA tariff situation. Data was collected from the International Trade Statistics Database and Korea, China Customs Service. Results - The results indicate that following the Korea-China FTA, China and Korea's bilateral trade of electronic products is expected to expand, and both countries will experience net welfare gains from the markets' expansion. Korea is competitive in several key products, although it faces competition from China. China's electronic products' competitiveness have indicated an increasing trend. Conclusions - The two countries should closely cooperate and communicate with each other. Ultimately, Korea should focus on high-tech, sophisticated techniques to gain market advantage. On the other hand, with the tariff decrease as well as the labor cost and labor force base, China will greatly be able to benefit from the manufacturing of medium- to low-end products in the future.

• Korea Trade Review
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• v.41 no.1
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• pp.159-186
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• 2016

This study analyzes the degree of dependency and comparative advantage of each country for intermediate goods trade in East Asia, which predicts the comparative advantage of the intermediate goods trade and fragmentation in East Asia when the FTA arrangement in East Asia is implemented. The results are as follows. First, the share of intra-regional trade in the intermediate goods in East Asia has increased over time, implying the deepening of interdependency in intermediate goods trade within the East Asia. Second, Korea is a net exporter in intermediate goods trade for China and ASEAN, whereas it is a net importer for Japan. Japan is a high net exporter for all East Asia, while China is a net importer for Korea, Japan and ASEAN. If FTA arrangement in East Asia is implemented, Japan and Korea will be key suppliers of the intermediate goods for East Asia, while China and ASEAN will play a role of the manufacturing factory through the import of intermediate goods. Third, Korea has a comparative advantage in intermediate trade of electric and electronics and transport vehicle industry in East Asia. Japan has a comparative advantage in all of electric and electronics, transport vehicle, precision instrument, general machinery industry, whereas China has a comparative advantage only in electric and electronics intermediate trade in East Asia. The intra-industry trade of the intermediate goods in precision instrument, general machinery industry is expected to grow among Korea, Japan and China.

• Journal of the Korean Institute of Gas
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• v.23 no.1
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• pp.1-11
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• 2019

The Korean government has tried to introduce pipeline natural gas from Russia, instead of liquefied natural gas from Middle East Asia since 1990s. While this energy cooperation in North East Asia has been discussed in real politics and academic societies, the previous studies have shown the limits on policy implication because they just suggest necessity and possess the problems of weak theoretical frameworks. Therefore, this study tries to analyze the motivations, conditions, and stages for energy cooperation in this region from the viewpoint of economic integration theory. As a result of analysis, these countries in North East Asia have only one motivation, namely economic interest. On the contrary, they have several conditions including real benefit, complementation in economic structures, and convergence in policy goals. In conclusion, this study suggests that low level cooperation such as preferential trade agreement in the field of natural gas is possible and necessary in North East Asia.