• Korean Management Science Review
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• v.30 no.1
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• pp.25-41
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• 2013

This paper presents a supply chain framework with the ODM (Original Design Manufacturing)-OEM (Original Equipment Manufacturing) hybrid production of textile industry in FTA (Free Trade Agreements) environments between Korea and other countries. The proposed supply chain framework with ODM-OEM hybrid production is a unique supply chain that has both domestic production with non-tariff advantages in FTA environment and oversea production with low labor costs. To investigate the validity of the proposed supply chain, we first construct its strategic profit model and supply chain planning and then show that each member of supply chain network-yarn manufacturer, fabric manufacturer, and apparel manufacturer-can maximize their own profits without conflicts among the members. The efficiency of the ODM-OEM hybrid production system is analytically verified in comparison with the general OEM and ODM production model using profit models. Comprehensive numerical examples are provided to illustrate the advantages of the proposed system.

• International Commerce and Information Review
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• v.16 no.5
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• pp.249-273
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• 2014

This study aims to find implications of Korean FTAs and to suggest policy recommendations to facilitate the utilization of FTAs based on the field survey of more than 1,000 trading firms According to the survey, most of the trading firms have utilized FTAs more than once and had agreed that the FTAs have contributed to expansion of their business and trade with partners. However, still a number of firms responded that they have never used FTAs. Even those who are utilizing FTAs expressed difficulties in conforming to the complex rules of origin verification processes and lack of practical information on how to use FTAs. Therefore, government policies need to be more focused on elevating FTA utilization rate and meeting the practical use of FTAs by trading firms. In addition, trading firms were found to express preference to potential FTA partners with large economies in the East Asia and were in the opinion that future FTA agreements should be approached in a way that can reflect the practical interest of the firms.

• Journal of Korea Technology Innovation Society
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• v.8 no.spc1
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• pp.391-409
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• 2005

Free trade agreements have fast grown into a global phenomenon and their impact and repercussions are felt more strongly everyday. Korea, joining this large trend of the global economy, is currently pressing ahead with its negotiation rounds for FTA. In this paper, we focus on the e-commerce sector affected by the Korea-Singapore FTA, and the main issues and the future countermeasure directions of e-commerce on FTA has been analyzed. In conclusion, FTA is not an option even though there are still many remaining issues to be discussed regarding its effects. We identified countries excluding themselves from FTA are losing international competitiveness, and moreover, the losing competitiveness will end up more serious problems since the importance of FTA is especially high for e-commerce, as e-commerce accounts for a growing share of international trade. This paper also discusses the far-reaching potential consequences of the content of an international agreement at a government-to-government level on the economy and industry of a country by presenting past examples from. Korea, and recommends that policy-makers should exercise extreme vigilance in their negotiation of terms and conditions for FTA.

• Journal of Korea Port Economic Association
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• v.31 no.3
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• pp.187-201
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• 2015

The purpose of this study is to examine the current situation of Korean shipbuilding industry and the effects of free trade agreements (FTAs) in this field. This paper uses empirical research models including a panel gravity model based on trade, gross domestic product, purchasing power parity, population, distance, and implementation of FTA. According to the results of the analysis, FTAs have a positive influence on the Korean shipbuilding industry. Therefore, the Korean government needs to work positively in order to sign FTAs and provide support for the industry and related businesses to grow.

• East Asian Economic Review
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• v.25 no.1
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• pp.33-71
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• 2021

Many different approaches and databases have been developed for the evaluation of non-tariff measures (NTMs) and free trade agreements (FTAs). This paper is devoted to the EU-South Korea agreement, which is the first 'second-generation' FTA of the EU, addressing a wide array of non-tariff policies. We review the evolution of NTM types applicable to the EU-South Korea trade relationship and the role of NTMs in ex-ante and ex-post analyses of the agreement. Subsequently a structural gravity model is employed to assess the value added of information on different aspects of FTAs and types of NTMs by evaluating their ability to predict the trade effects of the EU-South Korea FTA. Our results show that, when accounting for information on the components common in modern deep trade agreements, no additional trade effect is attributable to the EU-South Korea FTA. The evolution of NTMs differs considerably across indicators used, but trade predictions are hardly affected. Most specifications point towards a negative effect of bilateral differences in the number of technical barriers to trade (TBT) applied and sanitary and phytosanitary measures (SPS) against which trading partners issued complaints at the WTO.

• Korea Trade Review
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• v.46 no.3
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• pp.99-117
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• 2021

Korea's FTA e-commerce regulations are evolving into a standardized norm. However, "location of computing facilities", which was not covered by Korea's existing FTA, was newly established in Korea's first Mega FTA, RCEP. China, a member of RCEP, restricts data movement and requires data localization through its Cybersecurity law. These facts have led to start this study with interest in data-related regulations. It examined country-specific and regulatory characteristics in the process of forming digital trade norms, using the TAPED established by Burri et al. (2020). It also analyzed the current status of introducing norms related to 'data flow', 'data localization' and 'data protection' of the EU, USA and China, which are leading the formation of e-commerce trade norms. Finally, the legal review was conducted to compare the exact meaning of the wording expressed in each agreement for the six recently enacted Mega FTAs and Digital Economic Agreements. These findings are meaningful in that they provided implications for the effectiveness of RCEP and the direction of negotiations on Korea's digital trade norms.

• Journal of Korea Trade
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• v.27 no.3
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• pp.199-216
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• 2023

Purpose - This study aims to identify the internal capabilities that export companies need to possess in order to utilize FTAs and to propose ways to expand their export performance through them. To achieve this goal, the study analyzed the internal factors that affect FTA utilization from a resource-based perspective, such as Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export, based on prior research on corporate capabilities in the field of management and FTA-related research. The study ultimately aims to confirm whether a company's FTA utilization contributes to its export performance through the management and response to its internal factors for FTA utilization. Design/methodology - To achieve the research objective, this study conducted a literature review related to FTA utilization and identified the internal factors of companies that affect FTA by classifying them into Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export Based on this, a final research model was developed, hypotheses were set through a preliminary study survey, and conclusions were drawn by analyzing the data of 312 companies. Findings - The empirical analysis results indicate that Origin Management Competency and Contract Management Competency have a positive impact on FTA utilization, while Information Acquisition Competency and Commitment to Export do not have a statistically significant impact on FTA utilization. Based on these findings, this study suggests measures for efficient FTA utilization for companies that want to utilize FTAs. Additionally, FTA utilization has a positive impact on export performance. In other words, the extent to which companies utilize the signed agreements has a positive impact on their performance. Based on these results, this study identifies the characteristics of companies that want to utilize FTAs and proposes measures for future efficient FTA utilization. Originality/value - This study has confirmed that in order for companies to utilize FTAs, they must meet the requirements of the FTA. To this end, the study has concluded that it is important to manage and address internal factors such as Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export to increase FTA utilization. Based on these results, it can be confirmed that it is essential for companies to have an understanding and management of the internal factors that satisfy the requirements of the FTA in order to utilize the FTA.

• Journal of Korea Trade
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• v.24 no.7
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• pp.107-124
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• 2020

Purpose - We assess the trade remedies rules in a host of Korea's FTAs to explore the trade policies for the effective implementation of FTA trade remedies rules. Also we develop the strategies of the future FTA negotiations of trade remedies rules. Design/methodology - After we review the key features of FTA trade remedies rules, we examine whether the rules are WTO-consistent or not. Next, we touch upon the WTO-plus characteristics of some provisions. Our main methodology is to compare the trade remedies rules in the numerous Korea's FTAs. Another methodology is to link those rules to the relevant WTO agreements and WTO dispute cases with a view to drawing lessons for trade policies and FTA negotiations. Findings - We find that most of the trade remedies rules are WTO-consistent. Moreover, we find that notification and consultation requirment, mandatory lesser duty rule, explicit prohibition of zeroing method, and public interest clause are WTO-plus. We also find that there are limitiations in the application of some global safeguard exclusion rules because of their non-mandatory nature. Originality/value - While most of previous studies focus mainly on the unique aspects of specific FTAs, our study analyzes comprehensively the trade remedies rules in the various Korea's FTAs. Based on the comprehensive analysis, we figure out the areas to be clarified and improved for the effective implementation of FTAs and the strategies for the future FTA trade remedies negotiations. As a consequence, our paper is expected to contribute to the academic research on FTA policies as well as the national economy.

• Journal of Korea Trade
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• v.24 no.6
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• pp.82-100
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• 2020

Purpose - This paper attempts to compare five free trade agreements with gender chapters ratified by Chile and Canada and derives lessons for Korea in terms of gender-aware trade policy. While Chile and Canada have three and two FTAs with gender chapter respectively, Korea has none so far, although it has already ratified an FTA with the two countries. Design/methodology - This study first investigates all the gender-provisions with the gender chapters, conducts a comparative analysis on the five chapters as well as a case study of one target FTA's implementation and achievements, and finally suggests policy implications for Korea's trade administration as well as trade-related agencies. Findings - According to the analysis, there are three phases in terms of advancement in gender-related trade policy. As Chile is in phase two and Canada is in phase three, Korea remains in phase one. It has a ministry related to gender within the government, but not within the OMT. It has statistics on female business, but not of women traders. It has a few gender-related provisions in its FTAs, but not a gender chapter. In this sense, new mandates related to gender-aware trade policy for OMT, KITA, and KOTRA should be provided to realize the concrete economic benefits resulting from empowering women traders and policies promoting them. Originality/value - Existing studies only focus on introducing gender-related international commitments and Korea's participation in them. This paper is the first attempt to compare actual gender chapters of five FTAs ratified by two countries with the most advanced gender chapters in the world. To gain benefits from the positive gender impact of trade agreements, negotiating and signing gender responsive FTA with future partners is one of the most efficient, as well as inclusive, trade policies urgently needed for Korea.

• International Commerce and Information Review
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• v.8 no.1
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• pp.337-356
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• 2006

The Korea-US dispute on telecom standards has shown the inability of existing trade rules that can be applicable to standardization policy in telecom services sector. It has entailed plenty of dissenting but unsolved trade issues, including legal jurisdiction over technical standards on telecom services and their compatibility with WTO agreements. Question remains how US will cope with this tricky trade puzzle. This paper points out that Korea-US negotiations on telecom standards have provided US with a momentum to think seriously over the necessity of further rule-setting on telecom standards, and FTAs are the rescue train for US to ride on for that purpose. That is to say, US is taking advantage of FTA as a means to promote its national commercial goals by creating trade rules, which seek to deprive its trading partners of regulatory autonomy in telecom standardization. Based upon the research output, it is very important for Korean government in the upcoming Korea-US FTA negotiations to ensure facilitating public policy objectives in telecom standardization as possible as it can, and not to adopt the provision of international standards in the existing US' FTAs.