• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.567-588
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• 2016

Korea-China FTA and Korea-U.S. FTA are the most significant FTA in volume and economic effect for Korea's perspective. Developed countries have dealt with environmental issues one of the main issues in FTA negotiation, while developing countries have been reluctant to it. Both Korea-China FTA and Korea-U.S. FTA have separate environment chapter respectively. A separate environment chapter was firstly introduced in Korea-U.S. for Korea's perspective. Both environment chapters provide high level of environment protection, recognition of multilateral environmental agreements, enforcement of environmental laws, and environmental cooperation. Both environment chapters require that each party make effort to improve environmental laws and measures. Korea-China FTA provides establishment a "Committee on Environment and Trade", and Korea-U.S. FTA provides establishment a "Environment Council" to oversee the implementation of environment clauses. Korea-China FTA and Korea-U.S. FTA have very similar provisions on environment and trade, and are expected to contribute to enhancing environment protection. However, a lot of provisions are somewhat declaratory rather than mandatory. Therefore, further environmental cooperation is encouraged to achieve the goals and objectives of the environment clauses and FTA.

• Journal of Arbitration Studies
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• v.23 no.1
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• pp.25-53
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• 2013

With the Korea-China FTA negotiations currently on the line, the importance of research into the FTA dispute settlement system has been increasing. In this paper, a comparison of Korea and China's FTA dispute settlement agreements concluded with ASEAN is contemplated, and implications for the future of the Korea-China FTA have been suggested. The FTA dispute settlement agreements with ASEAN concluded by both Korea and China provide perspectives on both sides. This agreement with ASEAN also provides a standard for the potential Korea-China FTA agreement. Specifically, the basis of these agreements with ASEAN is the same, although there are clear distinctions, described in a more detailed manner. A problem arises when there has been no discussion on dispute settlement agreements in Korea, especially of the agreement with ASEAN, whereas the opposite is true of the China counterpart. In this paper, Chinese academic FTA dispute settlement agreement studies have been also examined.

• Korea Trade Review
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• v.41 no.5
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• pp.41-62
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• 2016

This study made an analysis of the effects of performance and learning orientation for the existing FTA on the intention to use a trilateral FTA among Korea, China and Japan. The results of the empirical analysis of Small and Medium-sized Enterprises(SMEs) located in Gwangju and Jeonnam provinces are as follows. First, there is a positive correlation between the effects of performance for the existing FTA and intention of a trilateral FTA. This result suggests that SMEs' performance feedback can be used as an asset of corporate experience and will be helpful to increase the intention to use a trilateral FTA by contributing to have sustainable competitive advantage of companies. Secondly, there is a positive correlation between the SMEs' learning orientation about FTA and intention to use a trilateral FTA. This result indicates that SMEs have more learning orientation for FTA. They actively acquire and diffuse information. These activities can be helpful for having prior knowledge and absorptive capacity. In conclusion, this study is considered to provide useful theoretical and practical implications that can contribute to enhancing the using intention of a trilateral FTA by explaining the significance of performance feedback and learning orientation.

• 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.

• Korea Trade Review
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• v.45 no.4
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• pp.1-24
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• 2020

This study aims to analyze the export effects of Korea-Canada FTA's tariff reduction, which was launched on January 1, 2015. First, as a groundwork, this study reviewed trade creation and trade diversion by investigating all possible cases of both initial FTA and additional FTA. The review was done by using the simple model of three countries assuming FTA means elimination of tariff. The review suggested that additional FTA doesn't have any negative impact on import country's social welfare contrary to initial FTA. In additional FTA, Trade diversion could happen between FTA partner countries, but it always increases import country's social welfare. In this sense, it can be called favorable trade diversion. Second, this study analyzed the export effects of Korea-Canada FTA using Clausing's product level model based on Canadian government import data from Korea which is not open to the public. It turned out that Korea-Canada FTA's tariff reduction boosted Canadian import growth rate from Korea. On the other hand, Canadian import growth rate from rest of the world was not negatively affected by Korea-Canada FTA's tariff reduction. Rather, it increased as Canadian import growth rate from Korea was higher. These findings implied trade creation rather than trade diversion of Korea-Canada FTA when it comes to Korea's export to Canada.

• Korea Trade Review
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• v.43 no.3
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• pp.199-218
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• 2018

The force majeure in the international sale of goods has been widely used regarding liability and settlement of disputes in the event of breach of contract due to circumstances beyond the control of the parties. The purpose of this study is to examine the judgment criteria and cases concerning on force majeure in the application of FTA preferential tariffs. In order to achieve this purpose, this paper uses a literature review and case analysis on exceptional circumstances under the Korea·ASEAN FTA and the Korea·EU FTA. This study, this paper provides several implications for companies seeking preferential tariffs regarding the Korea·ASEAN FTA and the Korea·EU FTA. Korean companies are subject to the following: confirm the denial article of FTA preferential tariffs stipulated in the Korea·ASEAN FTA and the Korea·EU FTA, consider the judgment criteria on exceptional circumstances of customs authorities, confirm the extension criteria on the validity period of certificate of origin, confirm the reply criteria of verification result of the customs authorities of the exporting country, and confirm the violation of the principle of good faith for unrequested action on reply of verification result of customs authorities.

• International Commerce and Information Review
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• v.15 no.4
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• pp.171-192
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• 2013

The FTA utilization rate in Korea current, compared with the developed countries, utilization rate is low overall. In particular, in the case of Korea-ASEAN FTA, etc. remain at 30% level, improvement of FTA utilization has emerged as a matter of urgency. In addition, the proportion receiving the FTA preferential tariff trade companies have also been assessed as weak, improve the utilization ratio is in the policy issue of maximum. In this study, in order to increase the utilization of FTA trading enterprises, and analyzes were performed in reality. And to understand the FTA bottleneck matters of trade enterprises, and was also studied improvement plan consulting and education FTA utilization of trading partners. This has a purpose to provide data useful measures making to improve the utilization of FTA government. It is expected that the contribution of export expansion trade companies that take advantage of the FTA as a result of this study, enhancement of FTA policy, to strengthen the support base of FTA policy.

• Journal of Digital Convergence
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• v.14 no.12
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• pp.55-63
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• 2016

Recently, FTA may go beyond the agreement of the two countries, and also FTA is tinged aspects of Mega FTA between the economic sphere, under the situation that FTA and the business model are mutually intertwined in convergence industrial environments. Since South Korea came into force in 52 countries and 15 cases of FTA, South Korea have completed FTA network with the United States, as well as ASEAN and most of OECD member countries, and South Korea is now a critical time to take advantage of the FTA to determine the South Korea's economic performance. This paper examined the previous studies of FTA utilization and analyzed practical usages and problems of SMEs' FTA utilization. Through analysis, this paper suggests that the Training Plans of SMEs' Origin Management Specialist for the Improvement of FTA Utilization is as follows: to build up the effective management system of origin supports, to enrich the origin management competency, to reinforce the operation of supporting system, and to strengthen practical capacity of Origin administrative staff. Based on the results, it is expected to provide the policy implications for the FTA utilization in the future.

• 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.

• International Commerce and Information Review
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• v.17 no.1
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• pp.309-337
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• 2015

Recently, Korea had virtually reached an FTA deal with China on November 10, 2014 after the 14 rounds of negotiation during past two and half years. The two countries agreed to the FTA's 22 chapters, including products, services, investment, e-commerce, finance, communication, and other trade issues, but rice and several sensitive agricultural and fisheries products were excluded from the deal. Korea and China will remove their import tariffs on more than 90 percent of all products and more than 85 percent of imports by value within 20 years once the FTA is implemented. This paper intends to analyze the impacts of Korea-China FTA on the major industries in Daegu-Gyeongbuk region. Considering the statistics on the bilateral trade between China and Daegu-Gyeongbuk region, import tariff rates of the two countries, trade specialization indices of the major industries, and the package of Korea-China FTA deal, this study investigated the sectoral effects of Korea-China FTA on the four main industries, textiles, electrical-electronics, machinery and auto parts, and steel and iron industries in that region.