Korea in Focus
concentrated on the developed world - mainly the United States, Japan and
the EU. In more recent years, however, it has rapidly expanded trade and
capital cooperation with Southeast Asia, former and present socialist
countries and Third World nations as well.
Especially since the 1988 Seoul Olympics, economic interactions with
the former Soviet republics have been brisk. The Republic of Korea is also
increasing its support of economic development efforts in the Third World
on the basis of its more than three decades’ experience with successful
domestic development.
The nation will continue to pursue expanded and more diversified
trade and to promote economic cooperation on a long-term basis with the
rest of the world, taking into consideration the individual economic
characteristics of each country.
With the United States, the Republic of Korea will pursue not only
expanded bilateral trade and increased mutual private investment and
technological cooperation but also government-to-government cooperation in
industrial technologies. As for Japan, the Republic will pursue Forward-
lookoing practical economic relations and will, in particular, strive to
attract Japanese investment more effectively. Since Korea does not have
serious trade issues with the EU it will focus on promoting overall
economic cooperation, including mutual investment and industrial and
technological cooperation.
With the dinamically growing Asian economies, such as China and
Southeast Asian Nations, the Republic of Korea will endeavor to continue to
expand two-way trade, especially by helping to meet their expanding needs
for capital goods and intermediate products to support their continuing
rapid development, while increasing imports from them as much as possible.
The nation will also encourage Korean business investment in these
countries and make efforts to build an industrial structure complementary
with theirs.
The Republic of Korea is increasing its official development
assistance to developing countries proportionate to its economic strength.
In this, efforts are being made to combine such assistance with private
Korean investment, with the aim of maximizing its effect, while developing
two-way trade and other economic ties on a long-term basis.
Economic ties with the Commonwealth of Independent States and East
European countries will continue to focus on commercial applications of
their high technologies and other forms of technological cooperation and
joint development of natural resources.
Korea Trade with and Investment in Various Countries and Regions
|Country or |Trade (US$ bil.) |Investment (US$ mil.) |
|Region | | |
| |1987 |1993 |1987 |1993 |
|U.S.A. |27.1 |36.1 |165.3 |380 (30.3) |
| |(30.7) |(21.7) |(40.3) | |
|Japan |22.1 |31.6 |1.4 (0.3) |6 (0.5) |
| |(25.0) |(19.0) | | |
|EU |11.2 |19.6 |6.5 (1.6) |157 (12.5) |
| |(12.7) |(11.8) | | |
|China |1.7 (1.9) |9.1 (5.5) |6.0 (1.5) |260 (20.7) |
|Southeast Asia |8.9 (10.1)|27.8 |130.5 |179 (14.3) |
| | |(16.7) |(31.8) | |
Note: Figures in parenthesis represent percentage of the total.
Active Participation in Multilateral Economic Forums
Korea has actively participated in virtually all major multilateral forums.
During the Uruguay Round of trade talks, finally concluded in December
1993, Korea tried to make conrtibutions commensurate with its capabilities
as a major world trading power, and play a mediating role between the
developed and developing countries. Korea introduced various proposals in
the Uruguay Round negotiations to reduce tariffs, eliminate non-tariff
barriers, liberalize the textile trade, improve safeguards and reduce
subsidies and countervailing duties.
The Republic of Korea is actively participating in global efforts to
protect the environment, a crucial task facing all of humanity. In recent
years it has joined the Convention on Climate Change, the Basel Convention
on the Control of Transboundary Movements of Hazardous Wastes and their
Disposal, the Convention on the Prevention of Marine Pollution by Dumping
of Wastes and Other Matter, also called the London Dumping Convention, the
Convention on International Trade in Endangered Species of Wild Fauna and
Flora, and the Convention on Biological Diversity.
Korea has also begun an informal dialogue with the Organization for
Economic Cooperation and Development (OECD) and has expanded participation
in its various committees . Korea hopes and intends to improve its economic
systems to the level of advanced countries so as to join the OECD in 1996.
One organization in which the Republic of Korea has played a
particularly critical role has been the Asia-Pacific Economic Cooperation
(APEC) forum, a forum for multilateral discussions on economic issues
concerning the Asia-Pacific region.Two examples of Korea’s valuable efforts
have been the “Seoul Declaration” adopted at the third APEC Ministerial
Meeting hosted by the Republic which laid the foundation for the
institutionalization of APEC, and its diplomatic role in bringing China,
Taiwan and Hong Kong, three key regional economic powers, into the APEC
fold, giving the forum a new impetus. Subsequently, the Republic played a
leading role at the first APEC Leaders Economic Meeting in Seattle in
November 1993, which coincided with the fifth APEC Ministerial Meeting, and
was elected the chair member of the Committee on Trade and Investment
(CTI).
Conclusion
The rise of the Korean economy over the past several decades, often
called the “Miracle of the Han”, has been an inspiring model of modern
economic development. The rapid pace with which the Koeran economy rose
from the ashes of war and expanded stunned the outside world. However, this
rapid growth was not unaccompanied by growing pains which began to manifest
themselves in all sectors of society particularly during the late 1980s.
Excessive wage hikes, high capital costs and an overly bureaucratic
administration, not to mention institutionalized corruption, served to
weaken Korea’s international competitiveness, and this was aggravated by
unfavourable external circumstances. In the past year, though, strenuous
efforts have been made to overcome these impediments and through this, as
well as improving international economic climate, it appears that the
Korean economy is regaining its former vigor. The upcoming years pose
severe challenges for the Republic in light of the December 1993
conclusion of the Uruguay Round and the rise of the Asia-Pacific region as
the new global economic center, but with the increasing emphasis in both
the public and private sector on globalization and internalization, the
Republic seems braced to meet these challenges.
REFORM TOWARD A NEW KOREA
The Basic Goals and Reform Process of the Kim Young Sam Administration
What are the vision and goals of the Administration of Kim Young Sam,
inaugurated on February 25, 1993. In a nutshell, the answer is the
“creation of a New Korea” through “Reform Admist Stability.” This concept
was the keynote of the President’s inaugural address as well as the main
slogan of his presidential election campaign in December 1992.
“I have a dream. It is the creation of a New Korea in which a new
politics, a new economy and a new culture will bloom. This is my dream and
vision; it is the dream and vision of all our people.” This quotation
appears in the book, “Kim Young Sam: New Korea 2000,” published in Korea in
October 1992 prior to the presidential election.
In his inaugural speech on February 25, 1993, President Kim Young Sam
defined the three major priorities of his policies to create a New Korea:
the eradication of social injustice and corruption, the revitalization of
the national economy and the establishment of official discipline and
public order.
The President declared that the eradication of corruption was a vital
foundation for reforms in every sector of the country, and that there would
be no sanctuary from the investigation of misconduct. The movement to
establish official discipline and public order, which began with high-
ranking government officials, is intended to ensure integrity and high
