• Journal of Korea Trade
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• 제23권7호
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• pp.83-95
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• 2019

Purpose - This study analyzed the effect of the Trump Government's protectionist trade policies on foreign ownership. Specifically, this study empirically analyzes the hypothesis that foreign ownership will decrease after the Trump Government rather than before the Trump Government. Design/methodology - The hypothesis of this study is based on the expectation that US protection trade policy will negatively affect the profitability of Korean companies. The dependent variable in this study is the foreign ownership ratio, and the independent variable is a dummy variable representing before and after the Trump Government. Multiple regression analysis was performed, including the control variables suggested in previous studies related to foreign ownership. Findings - As a result, foreign ownership increased after the Trump Government rather than before the Trump Government. This study further analyzes whether the main variables affecting foreign investor's decision-making are differences before and after Trump Government. The export ratio, profitability and dividends did not differ before and after Trump Government. However, the level of information asymmetry decreased after the Trump Government than before the Trump Government. This suggests that US protection trade policies do not adversely affect the profitability of Korean companies. However, Korean firms are improving their information environment because US protectionist trade policies can lower profitability and negatively impact capital raising. In this regard, the foreign ownership ratio seems to differ before and after the Trump Government. Originality/value - This study contributes in that it presents data that US protectionist policies can affect Korean corporate governance. This study has implications from the short-term analysis of US protection trade policy.

• East Asian Economic Review
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• 제22권1호
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• pp.29-54
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• 2018

Using the indicators of economic policy uncertainty developed by Baker et al. (2016), this paper investigates the effects of the US economic policy uncertainty on the Korea economic uncertainty as well as Korea-US foreign exchange risk. The key findings are that: (i) the degree of spillovers of policy uncertainty from the US to Korea is considerable but not comparatively high; (ii) the US policy uncertainty plays a stronger and more consistent role in Korean currency risk than Korea policy uncertainty and other macro variables. It implies that the economic policy uncertainty in the US is an important contributor to Korea-US exchange rates.

• 아태비즈니스연구
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• 제14권4호
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• pp.319-330
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• 2023

Purpose - The purpose of this paper is to examine the connectedness between categorical economic policy uncertainty (monetary, fiscal, trade and foreign exchange policy uncertainty) indexes and option-implied volatility index in Korea, Japan and the US. Design/methodology/approach - This paper employs the Diebold-Ylmaz (2012) model based on a VAR and generalized forecast error variance decomposition. This paper also conducts regression analyses to investigate whether the volatility indexes are explained by categorical policy uncertainty indexes. Findings - First, we find the total connectedness is stronger in Korea and Japan relative to the US. Second, monetary, fiscal, and foreign exchange policy uncertainty indexes are connected to each other but trade policy uncertainty index is not. Third, the volatility index in Japan and the US is mainly associated with monetary policy uncertainty while the volatility index in Korea is explained by fiscal policy uncertainty index. Research implications or Originality - To our knowledge, this is the first study to investigate the connectedness among categorical policy uncertainty indexes and the volatility index in Korea, Japan, and the US. The empirical results on the connectedness suggest that transparent policy and communication with the market in one type of policy would reduce the uncertainty in other policies.

• KDI Journal of Economic Policy
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• 제44권4호
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• pp.43-78
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• 2022

The arena of strategic competition between the US and China is expandable from international politics, trade and commerce to finance. What would happen if financial sanctions against China are imposed by the US? Would US financial sanctions lead to a sudden outflow of foreign capital and a liquidity crisis in China? We try to address these questions by estimating China's capital flows-at-risk with the CDS premium on Chinese sovereign funds. We follow Gelos et al. (2019) in setting up a quantile regression model from which China's foreign capital flow-at-risks are estimated. Based on our analysis of China's monthly capital flow data, we find that a rise in the CDS premium has statistically significant negative impacts on China's foreign capital flows-at-risk, mainly in banking flows. However, the analysis also found that due to favorable global conditions, an increase in the CDS premium is unlikely to trigger a shift to a sudden outflow of foreign capital at the moment. Meanwhile, this study found no statistically significant correlation between Korea's capital flows-at-risk and the CDS premium, suggesting that the negative impact of US financial sanctions on China would not increase the probability of capital flight from Korea in a significant manner.

• Asian Journal for Public Opinion Research
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• 제11권4호
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• pp.327-357
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• 2023

Adopting the Tools of Liberalism and Clash of Civilizations theories of international relations, this study examines the perceptions of 25,406 Arabs in 11 Arab countries as expressed in an Arab Barometer survey exploring their perceptions of violence against the United States (US), American citizens as "good," President Donald Trump's foreign policy in the Middle East, increasing economic relations with the US, and welcoming American foreign aid. As aspects of the Clash of Civilizations theory, this study examines religiosity, religious ritual practices, and political Islam and, as aspects of liberalism, this study explores the roles of online media as well as perceptions about US foreign aid in the prediction of the criterion variables. The findings suggest that religious indicators, and aspects of the Clash of Civilizations generally, were negative predictors of the perceptions, while social media and motivations for US foreign aid as aspects of liberalism, positively predicted the perceptions. The study discusses the results in relation to implications for policy makers.

• 통상정보연구
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• 제9권2호
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• pp.399-422
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• 2007

Like in other trade negotiations covering comprehensive sectors, it is reported that KOREA-US FTA tried so-called 'package deal' at the last minutes, when telecom services sector was positioned at the forefront and expected to partly play a role in buffering US' market-opening pressure on other sectors. Before everything else, Korean negotiators had to enhance the value of foreign ownership deregulation in telecom services sector as a leverage in the course of KOREA-US FTA negotiations. In addition, since foreign ownership change, if any, is highly sensitive issue either politically or policy-wise, it seems very difficult to find a breakthrough. Focusing on foreign ownership regulation in telecom services sector, this paper seeks how Korea has developed its strategic reasoning for negotiations and evaluates the outcomes of KOREA-US FTA negotiations.

• 의정연구
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• 제24권2호
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• pp.5-38
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• 2018

문재인 정부 출범 후 한반도 외교지형에는 지각변동이 진행되고 있다. 무엇보다도 교착 상태에 빠져 있던 북핵 문제 해결, 그리고 한반도의 적대 상태 종식을 향한 새로운 동력이 생성되고 있다. 이러한 거대한 변화가 진행되고 있는데는 '운전자론'으로 표현되는 문재인 정부의 창의적인 외교정책에 힘입은 바가 크다. 하지만 문재인 정부의 외교정책은 과거 보수정권의 외교정책과의 연속성 또한 보이고 있다. 문재인 정부는 한미동맹의 중요성을 지속적으로 강조하면서 북핵문제 등의 해결에 있어 미국과의 굳건한 공조체제를 유지할 것임을공개적으로 천명하고 있다는 점에서 특히 그러하다. 사실 외교정책의 연속성 유지는 국내적 합의 기반 구축, 대외적 신뢰 제고, 기대-현실 간극의 부작용 완화 등에 기여할 수 있다는 점에서 긍정적인 효과를 수반할 것으로 기대된다.

• 의정연구
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• 제27권2호
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• pp.41-70
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• 2021

바이든 행정부의 동북아 정책은 트럼프 행정부의 정책과 어떤 면에서 유사하고 어떤 면에서 다를 것인가? 본 논문은 트럼프 행정부로부터 바이든 행정부로의 이행에 따라 미국의 동북아 정책에 다음과 같은 변화와 연속성이 나타날 것이라고 제시한다. 미국 외교의 전통적 원칙과 관행을 중시하는 바이든 행정부의 성향상, 트럼프 시기와는 달리 미국의 동북아 정책에 있어 높은 안정성과 예측 가능성이 예상된다. 강력한 대중 압박 정책은 바이든 행정부에서도 지속될 것이며, 이에 따라 미중 대립은 더욱 지속·심화될 것이다. 한편 북한에 대해 바이든 행정부는 파격적 '그랜드 바겐'을 시도한 트럼프와는 달리 보수적 상향식 접근법을 취할 것으로 예상되며, 북한 정권의 협상 의도 및 태도에 회의적 관점을 가지고 있어 극적인 북미관계 진전은 당분간 어려워 보인다. 한국과 일본에 대해 바이든은 트럼프와 달리 양국을 동맹으로 중시하고 존중하는 태도를 보일 것이나, 심화되는 미중 갈등 속에서 한일 양국이 중국 견제에 있어 더 큰 역할을 수행하길 요구할 가능성이 높다.

• International Journal of Advanced Culture Technology
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• 제11권3호
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• pp.277-296
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• 2023

The South Korean ethnic diaspora US lobby shows efficacy as an interest group in generating influence in American foreign and domestic public policy making. The persuasive portrayal of South Korea as a critical Cold War US ally reinforced US amenability to pro-South Korea lobbying. Also, the South Korean US diaspora is a comparatively recent immigrant group, thus its lingering resistance to assimilation facilitates its political mobilization to lobby the US government. One source of this influence includes the foundational legacy of proselytizing Western and particularly American religious social movement representatives in Korean religiosity and society. US protestant Christianity acquired a strong public association with emerging Korean nationalism in response to Japanese imperialism and occupation. Hostility towards Japanese colonialism followed by the threat from Soviet-sponsored, North Korean Communism meant Christianity did not readily become a cultural symbol of excessive external, US interference in South Korean society by South Korean public opinion. The post-Cold War shift in US foreign policy towards targeting so-called rogue state vestiges of the Cold War including North Korea enhanced further South Korea's influence in Washington. Due to essential differences in the perceived historical role of American influence, extrapolation of the South Korean development model is problematic. US hegemony in South Korea indicates that perceived alliance with national self-determination constitutes the core of soft power appeal. Civilizational appeal per se in the form of religious beliefs are not critically significant in promoting American polity influence in target polities in South Korea or, comparatively, in the Middle East. The United States is a perceived opponent of pan-Arab nationalism which has trended towards populist Islamic religious symbolism with the failure of secular nationalism. The pronounced component of evangelical Christianity in American core community nationalism which the Trump campaign exploited is a reflection of this orientation in the US.

• East Asian Economic Review
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• 제19권3호
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• pp.275-322
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• 2015

The key objective of this study is to investigate the return and volatility spillover effects among stock market, credit default swap (CDS) market and foreign exchange market for three countries: Korea, the US and Japan. Using the trivariate VAR BEKK GARCH (1,1) model, the study finds that there are significant return and volatility spillover effects between the Korean CDS market and the Korean stock market. In addition, the return spillover effects from foreign exchange markets and the US stock market to the Korean stock market, and the volatility spillover effect from the Japanese stock market to the Korean stock market are both significant.