• Journal of Korea Trade
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• v.26 no.1
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• pp.33-56
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• 2022

Purpose - This paper explains how free trade agreements (FTAs) work as a building block to achieve global free trade and be better than other trade regimes. Design/methodology - This paper utilizes a trade liberalization game setup. Three countries choose a trade agreement strategy based on a given trade regime. Trade agreement is made only when all member countries agree. The paper evaluates each trade regime concerning FTAs and customs union (CU) by area size of global free trade equilibrium on the technology or demand gap between countries. Findings - FTAs make global free trade easier. In this game, there are two main reasons for failure to reach global free trade. First, a trade regime with FTAs makes non-member face difficulties in refusing trade agreements in the existence of a technology gap than a trade regime without FTAs. Also, a trade regime with FTAs causes it harder to exclude non-members in the existence of a demand gap than a trade regime with only CUs. Therefore, a trade regime with FTAs can work better in reaching global free trade. Originality/value - The concept of "implicit coordination" was used, which assumes that FTA members keep external tariffs for non-members the same as before an FTA. Without this consideration, FTA members lower their tariffs to non-members, and it makes non-member refuse free trade easier. FTA can prevent it sufficiently only with implicit coordination. This makes the trade regime with FTAs more effective to reach global free trade.

• Journal of Korea Trade
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• v.23 no.3
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• pp.20-37
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• 2019

Purpose - The purpose of this paper is to analyze the trade structure and competitiveness of China's information technology (IT) industry in comparison to that of Korea and the United States, particularly in terms of quality. Design/methodology/approach - Indices such as trade specialization index (TSI), Revealed Comparative Advantage (RCA), and Market Comparative Advantage (MCA) are used. Further, an Intra-industry Trade (IIT) index is used to analyze qualitative changes in horizontal intra-industry trade and intra-industry trade of high- and low-quality goods. Findings - China's IT industry has a comparative competitive advantage over that of Korea and the United States, and mainly exports goods of inferior quality and imports goods of superior quality. Further, China's horizontal intra-industry trade has been decreasing, while its vertical intra-industry trade has been increasing and vertical trade of inferior quality goods outweighs that of superior quality goods. This shows that China is rapidly catching up with Korea and the United States, even though its qualitative competitiveness has not significantly improved. Research limitations/implication - This study has academic and political implications, as it analyzes changes in China's IT trade competitiveness. However, it is somewhat limited as factors determining qualitative aspects has not been considered. Originality/value - Most studies aggregate analyses of export competitiveness using methodologies such as TSI, RCA, and market share. However, the focus of these methods is price competitiveness. Hence, an examination of the objective and qualitative trade competitiveness of China's IT industry is necessary. this study the trade structure and quantitative competitiveness of the industry by analyzing intra-industry trade focusing on the quality of competitiveness. Therefore, the changes in China's IT industry in the USA and Korea and in foreign trade competitiveness and quality competitiveness are clarified. The results show that the academic and policy implications of these changes in the IT industry will be a useful resource. This is the first study in Korea to attempt such an analysis. This is the first study in Korea to attempt such an analysis.

• Journal of Information Technology Services
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• v.19 no.6
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• pp.177-189
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• 2020

The OECD has assessed Korea as the third highest in trade facilitation worldwide. The paperless trade of Korea is world class based on uTradeHub : national e-trade service's infrastructure for trade community. Over 800 trade-related document standards provide interoperability of message exchange and trade process automation among exporters, importers, banks, customs, airlines, shippers, forwarders and trade authorities. Most one-to-one unit processes are perfectly paperless & online; however, from the perspective of process flow, there is a lack of streamlining end-to-end trade processes spread over many different parties. This situation causes the trade community to endure repetitive-redundant load for handling trade documents. The trade community has a strong demand for seamless trade flow. For streamlining the trade process, processes with data should flow seamlessly to multilateral parties. Flowing data with an optimized process is the critical success factor to accomplish seamless trade. This study proposes four critical digital trade infrastructures as a platform service : (1) data-centric Intelligent Document Recognition(IDR), (2) data-driven Digital Document Flow (DDF), (3) platform based Digital Collaboration & Communication(DCC), and (4) new digital Trade Facilitation Index (dTFI) for precise assessment of K-Trade Digital Trade Framework. The results of new dTFI analyses showed that redundant reentry load was reduced significantly over the whole trade and logistics process. This study leads to the belief that if put into real-world application can provide huge economic gains by building a new global value chain of the K-trade eco network. A new digital trade framework will be invaluable in promoting national soft power for enhancing global competitiveness of the trade community. It could become the advanced reference model of next trade facilitation infrastructure for developing countries.

• Journal of the Korea Society of Computer and Information
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• v.3 no.3
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• pp.139-150
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• 1998

Due to development of science and telecommunication with wide-spread computer supply, it could be done through computer automatically instead of manpower-work for paper transportation & paper approval. It is developed to so-called Factory Automation. Further, it is developed to Office Automation. Trading companies & concerned trade authorities are interested in Trade Automation that such technique is applied to trade work. Generally, Trade Automation means to realize paperless trade by exchanging electronic papers through inter-computers after concerned trade operators transformed various papers to electronic papers that computer could read. In case Trade Automation fix in the trade business, it is expected one of innovations among traditional paper work of trade business, namely without going import-export authorities, Customs office, Banks. Shipping companies, Marine insurance companies on hand-carrying papers, it could be fast, simple, correct to finish every trade procedures such as commercial business, foreign currency, customs clearance, transportations, insurance. terms of payment, etc., with Electronic Data Interchange through computer facilities. Especially, telecommunication for trade form could be helpful to proceed trade paper with one-run-method Further we can anticipate 6 effects for Trade Automation as belows : First, as explained just above articles, with completion for Trade Automation, every trade procedures can be done by computer. so, time to work can be diminished. namely. logistics cost including accessory costs for trade procedures can be saved much. Second, viewing to private enterprise, effect of Office Automation can be maximized and rapid, correct exchange for various trade informations could raise efficiency of enterprise management establishing rational production, storage, transportation and could raise competition improving standard for consumers's service. Third, establishing Trade Automation systems makes it easier piling-up of harbor cargo by pre-transmission of electronic paper & trade informations make it possible to finish customs clearance in advance and can be dispatched upon cargo arrival. Fourth, most of concerned trade authorities such as import-export approval office. financial authorities, transport & insurance companies concentrated in Metropolitan area(Seoul, In -Cheon, Kyung-Ki). Therefore, in case Trade Automation could be realized. it is possible to proceed trade business instantly in every country area by computer facilities. Also. it contribute well-balanced development for suburb. region area by suburb dispersion of trading companies. Fifth, on the way to Trade Automation establishment & its enlargement process. producing enormous demand for over-all telecommunication such as hardware. software. network makes opportunity to progress telecommunication industry & concerned industries. Finally. Trade Automation accelerate change of employment structure leading unnecessary labors on the industries of office & logistics to manufacturing area.

• International Commerce and Information Review
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• v.6 no.2
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• pp.107-127
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• 2004

The rapid development of internet information technology has increased interest in e-Trade these days, but it is not activated greatly up to now. In order to promote e-Trade, it is essential to construct cooperative process such as connecting systems among trade related parties. Building e-Trade platform which is based on the infrastructure of the past trade automatic system is key point of promoting e-Trade. To do this, a study on the basic concept and specific components of e-Trade platform is needed absolutely. At this point of view, after this paper has examined domestic and foreign studies on the fundamental technologies about electronic commerce, it drew several key technologies that could be applied to e-Trade considering the current IT trend. Then it evaluates these technologies according to Technology Reference Model(TRM) of the National Computerization Agency. This will help us to show the operation strategy as well as the concept of future e-Trade platform and its composition. On the basis of the theoretical background, this paper classified NCA's technology model into 6 fields, which are application. data, platform, communication, security and management. Considering the key technologies, e-Trade platform has to be mutually connected and accept international standards such as XML. In the aspect of business side, trade relative agencies' business process as well as trading company's process has to be considered. Therefore, e-Trade platform can be classified into 3 parts which are service, infrastructure and connection. Infrastructure part is compared of circulating and managing system of electronic document, interface and service framework. Connecting service (application service) and additional service (application service) consist of service part. Connecting part is a linking mutual parts and can be divided into B2B service and B20 service. The organization operating this e-trade platform must have few responsibilities and requirements. It needs to positively accept existing infrastructure of trade automatic system and improving the system to complete e-trade platform. It also have to continuously develop new services and possess ability to operate the system for providing proper services to demanders. As a result, private sector that can play a role as TTP(Third Trust Party) is adequate for operating the system. In this case, revising law is necessary to support the responsibility and requirement of private sector.

• Journal of Information Technology Applications and Management
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• v.18 no.2
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• pp.39-59
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• 2011

Information Technology (IT) has been working as an engine of growth in Korea since early 1990's. For the next leap of Korean economy and to overcome worldwide financial crisis, Korea's IT industry needs to find a new breakthrough. In this viewpoint, we tried to empirically analyze the impact of Korea's IT trade on domestic industry. Since Korean government is trying to set up a few free trade agreements (FTA) with major trade partners, more accurate understanding of the impact of FTA is required to find the correct way to promote Korea's IT industry. We first looked at the current status of Korea's IT trade with major partners such as the US, Japan, and China to understand the competitiveness of Korea's IT industry. Having done this, we measured the impact of IT trade on domestic industry using Granger causality test. The results showed that the positive impact of trade is bigger on IT industry than on whole industry. Also, the impact of import turned out to be bigger than that of export. Among the major trade partner countries, the US’s and China's impacts are bigger than Japan's impact. Another notable thing is that IT product import from the US has especially big impact on domestic IT industry. Our findings may have certain implications to the FTA related policy.

• International Commerce and Information Review
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• v.17 no.1
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• pp.29-55
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• 2015

The purpose of this study is to look at the role of e-trade for trade facilitation, which was the conclusion of November 27, 2014 which is based on the main discussions and content of the WTO. This study examines the data collected based on previous research and literature data, and it proposed a policy direction using it. Trade facilitation agreement also contains a number of e-Trade related information and internet-based electronic documents can be sent very quick flow of information and it can save time and cost concerning parties. e-Trade is a very important basement and it is needed to continually develop and exchange for trade facilitation. To make easy trade facilitation, e-Trade is one of the means to achieve competitiveness of companies and countries under these circumstances. The conclusion of this study shows that it is necessary to steadily develop e-trade technologies for trade facilitation and to continuously exchange e-trade system for easy customs services in concerining countries to maximize these effects.

• International Commerce and Information Review
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• v.15 no.1
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• pp.333-356
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• 2013

The main purpose of this article is to find out the determinants of usage and performance of the uTradeHub system in Korean SMEs. To achieve the purpose of the study, the research model and the hypotheses were developed based on the previous research on uTradeHub and e-Trade. And to test the research hypotheses, empirical survey was conducted to Korean SMEs which were using uTradeHub services. The results of the empirical analyses are as follows. First, among the external factors, intra-industry competition and transaction intensity were significant determinants of uTradeHub usage level. Secondly, among the internal factors, only CEO's support was found to be a significant determinant. Thirdly, among the IT related factors, IT infrastructure and IT training were positively related to uTradeHub usage level. Finally, the uTradeHub usage level was found to have positive effect both on financial and non-financial export performance of the Korean SMEs.

• International Commerce and Information Review
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• v.11 no.2
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• pp.173-201
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• 2009

As a result of overemphasizing the goods sector in trade structure, Korea does not meet properly the global trend which has the key role of 'trade in services' as the service economy have been expanded. Hereafter, it is easily forecasted that trade in services will be one of the main factors for Korea's competitiveness and engine of growth. Nevertheless, because Korea does not equip the concreteness of governance for trade in services, it is possible that the efficiency deterioration of trade volume, confusion of Korea's trade policy, conflict among trading countries, and discordance between the interested parties may be occurred. This paper analyzes the governance system of Korea for trade in services in order to enhance the competitiveness reflecting the importance of trade in services and to draw some strategies for remodeling the service governance system. It is expected to raise the efficiency of Korea's trade policy by constructing the systematic governance for trade in services, and to remove lots of latent risks during global transactions by improving the imbalance between manufacturing and service part for the development of trade in services in Korea. Analysis revealed itself the result that Korea is weak enough to can not identify the governance system about trade in services. Except 'Extent of Services' article of the Foreign Trade Act, Korea has not prepared the governance system for trade in services so that governance system have been scattered overly or decentralized. Problems about trade in services are not limited to enterprise's side, but extended to all the players including government agency whole, academic world and research institute. Therefore, the governance of trade in services should be strengthened and systematized by making the model law for trade in services(provisional name : Master Law for Trade in Services or Promotion Law for Trade in Services) by formatting type of fundamental law or separate legislation. If the bill legislation does not meet the conditions, the Foreign Trade Act should be totally reformed to Omnibus Trade Act concept including trade in services.

• Asia-Pacific Journal of Business
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• v.2 no.1
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• pp.49-73
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• 2011

With the market evaluation of economic globalization exchanges between different cultures, cultural trade has been developing at an accelerated speed, and also playing an important role in East Asian intra-regional trade. In this research the author used gravity trade model to explain the causal relationship between dependent variable trade flows and several independent variables applying with five categories cultural goods which classified in HS codes. Firstly for cultural heritage trade flow, the results indicated that economic masses of bilateral countries have no significant influences on it; GDP per capita of host country and adjacency factor with partner country have significant negative influences on it; Internet coverage ratio has improved cultural heritages exchanges in East Asian regions. Secondly for printed matter cultural goods trade flow, the distance factor has significant negative influence but common language has significant positive influence on it. Thirdly for recorded media cultural goods, only economic masses and GDP per capita of bilateral countries can improved their trade flows. Fourthly for visual arts cultural products trade flows, almost all variables we tested have significant influences on it. Fifthly for cinema photography cultural goods trade flow, the influenced factor are same with cultural heritage products except they have strong positive interaction relationship with economic masses and common language. At last, the paper figured out some important and potential sectors for cultural goods trade in East Asia and gave some suggestions to government and cultural goods product enterprises.