A Study for Improving Trade and Commerce between Korea and Russia

This paper attempts to provide a way to improvement in trade & commerce between Korea and Russia, analyzing the influence of the circumstances of the Russian economy on economic relations between the two countries. The study briefly reviews the current situation of the Russian economy, and tries to examine the strong points to be considered as leverage for cooperation and the weak points to be overcome. Previous studies have determined that the Russian economy has unlimited potential for growth, because it is endowed with abundant resources, and has a government willing to reform for the opening of the economy, as well as high-quality labor. However, the economic structure is vulnerable to impact of the worldwide financial crisis. It is not possible to overlook its institutional fragility and vulnerability such as a corrupt bureaucracy or a relatively large black market. These undesirable factors may not only undermine the basis of Russia economy but also a hindrance to economic cooperation by increasing economic uncertainty. This paper attempts to analyze comprehensively the socio-economic factors that influence the open-economy of Russia, and to illustrate strategies for improvement in trade and commerce through the viewpoint of Korean firms that are already in business or are trying to enter in the near future. Some measures to improve their economic cooperation are suggested at the end.