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131. Progress and Implications of the China-Korea FTA

Author:
Li Si-qi, Tu Xin-quan, and Liu Bin
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The article focuses on the China-Korea FTA, analyzing the background of China-Korea bilateral economic relations, the characteristics of the China-Korea FTA and more importantly, the implications and future prospect of this free trade pact. So far, the China-Korea FTA is considered to be the most comprehensive compared with China's previous FTAs and may be the largest in trade terms among all the FTAs concluded by Korea and China, playing a positive role in advancing economic integration in the Asia-Pacific region. However, with lots of exceptions to tariff elimination and market access, as well as a 20-year transition period, the present version of the China-Korea FTA is far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment rules. The recent bilateral diplomatic tensions due to the decision of deploying the THAAD missile system by the Korean government may also jeopardize bilateral economic ties between China and Korea, and further increase uncertainties of the China-Korea FTA. It remains to be seen whether the Chinese and Korean governments will handle this issue smoothly under the present sensitive political atmosphere and achieve substantial progress in follow-up FTA negotiations on services and investment.
Topic:
Diplomacy, Economics, Bilateral Relations, and Regional Integration
Political Geography:
China, Asia, South Korea, and Korea

132. Korea's Economic Relations with Japan

Author:
Kim Gyu-Pan
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Korea's economic relations with Japan, which were re-established as a result of the diplomatic normalization between the two countries in 1965, have transformed from dependent to interdependent. The extraordinary economic growth that Korea accomplished during the post-war period was largely due to intermediate goods imported from Japan, and technical cooperation and joint ventures with Japanese enterprises. However, in the 21st century, the dependence of Korean firms on Japanese technology has somewhat declined as global enterprises have appeared in Korea. In contrast to the post-war economic boom, Japanese companies now prefer to cooperate with their Korean counterparts, resulting in joint business ventures between Korean and Japanese firms being continuously developed. This reversal in the economic ties between Korea and Japan can be attributed to several reasons including: the rise of China; Japan's two lost decades; and Korea's push for domestic structural reform as well as economic globalization after the Asian Currency Crisis of 1997. Nonetheless, the issue of Korea's trade imbalance with Japan, which was established during the post-war period, still remains thereby serving as a serious impediment to FTA negotiations between Korea and Japan as well as Korea's TPP negotiations.
Topic:
Economics, History, Bilateral Relations, and Trade
Political Geography:
Japan, Asia, South Korea, and Korea

133. Korea-Mongolia Economic Relations: Current Status and Cooperation Measures

Author:
Lee Jae Young
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Since the establishment of diplomatic relations in 1990, Korea and Mongolia have broadened cooperation in various areas such as politics, economy, society, and culture given their geographical proximity and cultural similarities. However, the progress of economic cooperation which has been identified as one of the pillars of Korea-Mongolia cooperation is still weak in comparison with other areas. Thus, it is important to analyze achievements and limitations of economic cooperation with Mongolia, which has emerged as a burgeoning new market of Eurasia, and find new measures to elevate their economic relations to a new high moving forward. In this context, the main objective of this research lies in looking back upon the past 26 years and developing a new strategy on economic cooperation measures. Korea needs to formulate a new strategy that provides a coherent, systematic framework for cooperation with Mongolia and implement it consistently. Holding bilateral summit meetings and Korea-Mongolian forums on a regular basis, strengthening high-level networking, and concluding free trade and visa exemption agreements are necessary.
Topic:
Diplomacy, Bilateral Relations, Trade, and Economic Cooperation
Political Geography:
Mongolia, Asia, South Korea, and Korea

134. Strategies for Development of Transport Infrastructure in North Korea for Unification and Beyond

Author:
Kwon Young-in, Na Hee Seung, and Kim Kyoung-Sik
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
It has been reported that passenger transport and logistics between regions in North Korea are very difficult due to deterioration and imperfect maintenance of transport infrastructure and limited investment in the facilities for several decades. If South Korea and North Korea are unified, massive investment in the development of transport infrastructure is inevitable. This investment would mainly be supported by South Korea as well as through cooperation with Multilateral Development Banks such as the World Bank Group (WBG), Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB). In addition, special and efficient plans for transporting people and goods need to be established in case of reunification considering the current transport environment in North Korea. Thus, well-prepared strategies should be in place for short, mid, and long-term perspectives.
Topic:
Development, Infrastructure, Banks, and Peace
Political Geography:
Asia, South Korea, North Korea, and Korea

135. Present Conditions of North Korean Industry and Possible Reconstruction Plans

Author:
Lim Soo-ho and Hong Seok-ki
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Since the collapse of industry during the 'Arduous March' (1995-1997), Pyongyang has continuously launched reconstruction plans but has failed to see a rebound. The key is to restore industrial linkages; however, the DPRK allocated a majority of state investment to the defense industry under the 'Military First Economic Policy.' As long as the 'strategic sector' retains priority, a sound outcome seems to be out of reach. In reality, North Korea's comparative advantage lies on labor-intensive business, with abundant labor forces at a low cost. After unification, such industries will have bright prospects with technology and capital not only from South Korea, but also from China and Japan. The economic integration scenario of the two Koreas -- whether radical or gradual -- will decide industrial policies for the upper half of the peninsula in the post-unification era.
Topic:
Economics, Science and Technology, History, Reconstruction, and Industry
Political Geography:
Japan, China, Asia, South Korea, North Korea, and Korea

136. History, International Relations, and Public Health - The Case of the Democratic People's Republic of Korea 1953-2015

Author:
John Grundy
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The historical legacy of North Korea is characterized by occupation and conflict, and economic rehabilitation and then collapse, with tragic and widespread consequences for population health. From the standpoint of the historical determinants of health, this paper reviews the health system in North Korea between 1953 and 2016. Ideology and political relations have been dominant forces in determining the evolution of the health care system and population health. Despite the development of an extensive primary health care system in the country from the early 1960s following the establishment of the DPRK state in 1948, the public health system experienced a major decline in the 1990s, with catastrophic implications for the health and survival of the population. In recent years, evidence has emerged of some important public health gains, particularly through immunization, women's and children's health, and communicable disease control initiatives. This experience demonstrates that, within the overall policy context dominated by the historical and political determinants of health, there remains the capacity for implementation of public health programs that can yield both tangible health benefits for the population in North Korea, as well as assist the health system to edge closer to a regional standard.
Topic:
International Relations, History, Ideology, and Public Health
Political Geography:
Asia, South Korea, North Korea, and Korea

137. Soap Operas and Socialism: Dissecting Kim Jong-un’s Evolving Policy Priorities through TV Dramas in North Korea

Author:
Jean Lee
Publication Date:
11-2017
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Romance, humor, tension — everyone loves a good sitcom, even North Koreans. But in North Korea, TV dramas are more than mere entertainment. They play a crucial political role by serving as a key messenger of party and government policy. They aim to shape social and cultural mores in North Korean society. And in the Kim Jong-un era, they act as an advertisement for the “good life” promised to the political elite. Through TV dramas, the North Korean people learn what the regime says constitutes being a good citizen in Kim Jong-un’s North Korea today: showing loyalty to the party, using science and technology to advance national interests, thinking creatively in problem-solving, and facing the nation’s continued economic hardships with a positive attitude. The soaps and sitcoms reveal a shift in social priorities: Viewers are encouraged to put their families first, to nurture and elevate the next generation, and to be bold in thinking outside the box rather than settling for the status quo. These contrast with themes popular in films made during the Kim Jong-il era, which emphasized putting the state before family, the military above the party, and conformism over originality. The props in today’s dramas, including laptops, drones, fashionable clothes, and gold wristwatches, are prominently positioned in such settings as elevators, computer labs, and newly built high-rise apartment buildings. These consumer products are the arsenal of the new generation of Kim Jong-un elites — not the tanks and rifles of his father’s era of filmmaking.
Topic:
Media, Kim Jong-un, and Elites
Political Geography:
South Korea, North Korea, and Korea

138. Korean Firms' Sustainability Practices and Their Role in the Green Economy

Author:
Younsung Kim
Publication Date:
11-2017
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Companies in industrialized nations have embraced environmental protection and sustainability as part of their international competitive strategies. The trend toward proactive environmental management has also grown in Korean firms, as consumers, investors, local policy networks, and the Lee Myung-bak administration’s green growth policy initiatives have provided an impetus for the greening of South Korean firms. However, despite heightened firm interest in environmental responsibility, there is little understanding of which types of sustainable activities Korean firms have implemented. Analyzing sustainability reports from 30 large Korean firms, this study finds that Korean firms are more likely to employ lower-order sustainability practices that can help prevent pollution and modify existing processes and products to reduce environmental impact. However, their focus on innovating clean technologies seems to be limited. To transition to a low-carbon, green economy, the Korean government should consider green growth policies that foster firms’ investments in higher-order sustainability strategies and scale up corporate sustainability more broadly in the Korean business community.
Topic:
Economics, Energy Policy, Environment, Renewable Energy, Sustainability, and Domestic Policy
Political Geography:
Asia, South Korea, and Korea

139. The Czech Foreign Policy in the Asia Pacific

Author:
Rudolf Furst, Alica Kizeková, and David Kožíšek
Publication Date:
12-2017
Content Type:
Book
Institution:
Institute of International Relations Prague
Abstract:
The Czech relations with the People’s Republic of China (PRC, hereinafter referred to as China) have again generated more interest than ties with other Asian nations in the Asia Pacific in 2017. A disagreement on the Czech-China agenda dominated the political and media debate, while more sophisticated discussions about the engagement with China were still missing. In contrast, the bilateral relations with the Republic of Korea (ROK) and Japan did not represent a polarising topic in the Czech public discourse and thus remained largely unpoliticised due to the lack of interest and indifference of the public regarding these relations. Otherwise, the Czech policies with other Asian states in selected regions revealed balanced attitudes with both proactive and reactive agendas in negotiating free trade agreements, or further promoting good relations and co-operation in trade, culture, health, environment, science, academia, tourism, human rights and/or defence.
Topic:
International Relations, Foreign Policy, and Bilateral Relations
Political Geography:
China, Asia, South Korea, Czech Republic, and Asia-Pacific

140. 100 Days of Trump: What Should Asia Do?

Author:
Brendan Taylor, Greg Fealy, David envall, Bates Gill, Feng Zhang, Benjamin Zala, Michael Wesley, Shiro Armstrong, Anthony Bergin, David Brewster, Robin Davies, Jane Golley, Stephen Howes, Llewelyn Hughes, Frank Jotzo, Warwick McKibbin, Rory Medcalf, Tessa Morris-Suzuki, Steven Rood, and Matthew Sussex
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
Australian National University Department of International Relations
Abstract:
Once again, Trump has broken the mould. The 100-day mark is traditionally used to assess a new administration’s progress in advancing its policy agenda. With Trump, that’s impossible. In foreign policy at least, it’s more appropriate to ask whether at the 100-day mark the Trump administration is any closer to actually having a policy agenda. In no region is this question more pressing than in the Asia Pacific. The Asia Pacific is home to two-thirds of the world’s population, two-thirds of the global economy, and provides two-thirds of all global economic growth. It is the arena for the most serious challenge to America’s international role since it emerged as a global power a century ago. It is also the region that hosts six of the world’s nine nuclear states, and four of those have the fastest growing stockpiles and the most unpredictable nuclear doctrines. Few would dispute that for over 70 years, the United States has both stabilised the Asia Pacific’s fractious strategic affairs and underpinned its rapid economic development. And so the possibility of a radically different American role in the region instituted by the least conventional President in living memory is of vital interest not only to the residents of the region, but to the world as a whole. We asked experts from across the ANU College of Asia and the Pacific to watch and assess the impact of Trump on the Asia Pacific during the first hundred days of his Presidency – and how the region, and Australia should respond. It’s the sort of exercise that the largest and most comprehensive collection of expertise on the Asia Pacific on the planet can do with relish – and with a customary policy eye. The result is a fascinating and varied portrait of how the new administration has affected the world’s most dynamic region, and how the region is likely to react. When viewed together, these essays allow us to reflect on three questions that will be crucial for this region and the world over the next four years and perhaps beyond. What have we learned about Trump and his administration? What do the region’s reactions to Trump tell us about the regional role of the United States in the future? And what do these responses tell us about the Asia Pacific, and its likely trajectory in the near- and mid-term future?
Topic:
International Cooperation, Nuclear Weapons, Military Strategy, and Geopolitics
Political Geography:
United States, Japan, Indonesia, Asia, South Korea, North Korea, and Australia