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11. The Evolution of the North Korean Nuclear Program: from Survival Strategy to Ideological Legitimization

Author:
Marco Milani
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In recent years the North Korean nuclear program has increasingly become a major concern for East Asian security. Pyongyang has repeatedly demonstrated its advancements in both missile and nuclear technology, with the final goal of acquiring a credible nuclear deterrent. To achieve this goal, the regime has committed a vast amount of state resources and has jeopardized relations with neighboring countries and major powers. This dangerous situation has created instability in the region and has hindered the possibilities of inter-Korean dialogue and cooperation. The traditional interpretation of the North Korean nuclear program focuses on the survival of the regime and emphasizes the military aspect of security. While these factors play a significant role, over the last twenty-five years new roles have emerged for the nuclear program. Survival remains the priority, but in addition to the military level of nuclear deterrence this paper introduces two different aspects directly connected to the security of the regime: economic security and domestic ideological legitimization. The development of nuclear weapons has been repeatedly used by Pyongyang as leverage in negotiations and to strengthen its political legitimacy. Understanding the complexity and the different factors behind this strategy is crucial to design and implement a viable and effective strategy aimed at limiting or eliminating the North Korean nuclear threat.
Topic:
Security, Diplomacy, Nuclear Weapons, Bilateral Relations, and Denuclearization
Political Geography:
East Asia, Asia, South Korea, North Korea, and Korea

12. 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

13. 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

14. 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

15. An Assessment of the Korea-China Free Trade Agreement

Author:
Jeffrey Schott, Eujiin Jung, and Cathleen Cimino-Isaacs
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Of all the free trade agreements (FTAs) concluded by Korea with its major trading partners since the turn of the century, the Korea-China FTA may be the largest in trade terms. It is, however, far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment policies. Korea and China agreed to liberalize a large share of bilateral trade within 20 years, but both sides incorporated extensive exceptions to basic tariff reforms and deferred important market access negotiations on services and investment for several years. Political interests trumped economic objectives, and the negotiated outcome cut too many corners to achieve such a comprehensive result. The limited outcome in the Korea-China talks has two clear implications for economic integration among the northeast Asian countries. First, prospects for the ongoing China-Japan-Korea talks will be limited and unlikely to exceed the Korea-China outcome. Second, Korea and Japan need to strengthen their bilateral leg of the northeast Asian trilateral and the best way is by negotiating a deal in the context of the Trans-Pacific Partnership.
Topic:
Economics, International Trade and Finance, Politics, and Bilateral Relations
Political Geography:
United States, China, Asia, and Korea

16. An Assessment of the Korea-China Free Trade Agreement

Author:
Jeffrey Schott, Euijin Jung, and Cathleen Cimino-Isaacs
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Of all the free trade agreements (FTAs) concluded by Korea with its major trading partners since the turn of the century, the Korea-China FTA may be the largest in trade terms. It is, however, far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment policies. Korea and China agreed to liberalize a large share of bilateral trade within 20 years, but both sides incorporated extensive exceptions to basic tariff reforms and deferred important market access negotiations on services and investment for several years. Political interests trumped economic objectives, and the negotiated outcome cut too many corners to achieve such a comprehensive result. The limited outcome in the Korea-China talks has two clear implications for economic integration among the northeast Asian countries. First, prospects for the ongoing China-Japan-Korea talks will be limited and unlikely to exceed the Korea-China outcome. Second, Korea and Japan need to strengthen their bilateral leg of the northeast Asian trilateral and the best way is by negotiating a deal in the context of the Trans-Pacific Partnership.
Topic:
Economics, International Trade and Finance, Markets, Treaties and Agreements, and Bilateral Relations
Political Geography:
Korea

17. Should Korea Join the Trans-Pacific Partnership?

Author:
Jeffrey J. Schott and Cathleen Cimino
Publication Date:
09-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The negotiation of the Trans-Pacific Partnership (TPP), a megaregional agreement to lower barriers to trade and investment and promote economic integration in the Asia-Pacific region, has been a dynamic process with a number of countries joining the talks in midstream. Since negotiations began in March 2010, participation in the TPP talks has expanded several times to include Malaysia (October 2010), Vietnam (December 2010), Canada and Mexico (October 2012), and Japan (July 2013). In November 2013, Korea announced its interest in participating in the TPP and began consulting with the countries involved. The TPP now has 12 participants. Korea is still considering whether to become lucky 13.
Topic:
Economics, International Trade and Finance, and Bilateral Relations
Political Geography:
Malaysia, Canada, Asia, Vietnam, Korea, and Mexico

18. Parsing China's power: Sino-Mongolian and Sino-DPRK relations in comparative perspective

Author:
Jeffrey Reeves and Ramon Pacheco Pardo
Publication Date:
11-2013
Content Type:
Journal Article
Journal:
International Relations of the Asia-Pacific
Institution:
Japan Association of International Relations
Abstract:
This article draws on Michael Barnett and Raymond Duvall's power typology to examine Chinese power in Sino-Mongolia and Sino-North Korean relations. Using compulsory, institutional, productive, and structural power to frame these bilateral relations, this article looks at the means by which China obtains power and how it utilizes power in relation to Mongolia and the Democratic People's Republic of Korea. This article also examines Mongolian and North Korean perceptions and responses to Chinese power. Concurrently, the article considers the Barnett/Duvall model's applicability to China's relations with other periphery developing states.
Topic:
Bilateral Relations
Political Geography:
China, Mongolia, and Korea

19. The Microeconomics of North-South Korean Cross-Border Integration

Author:
Stephan Haggard and Marcus Noland
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
Economic integration between North and South Korea occurs through three modalities: traditional arm's-length trade and investment, processing on commission (POC) trade, and operations within the Kaesong Industrial Complex (KIC). In order, these three modalities are characterized by decreasing exposure of South Korean firms to North Korean policy and infrastructure. Through a survey of 200 South Korean firms operating in North Korea we find that these modalities of exchange matter greatly in terms of implied risk. For example, firms operating in the KIC are able to transact on significantly looser financial terms than those outside it. We find that direct and indirect South Korean public policy interventions influence these different modalities of exchange and thus impact entry, profitability, and sustainability of South Korean business activities in the North. In effect, the South Korean government has substituted relatively strong South Korean institutions for the relatively weak Northern ones in the KIC, thus socializing risk. As a result, the level and type of cross-border integration observed in the survey is very much a product of South Korean public policy.
Topic:
Foreign Policy, International Trade and Finance, Bilateral Relations, and Infrastructure
Political Geography:
Israel and Korea

20. The Last Living Fossil of the Cold War The two Koreas, the Dragon and the Eagle: towards a new regional security complex in East Asia?

Author:
Erik Beukel
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The divided Korean peninsula is a flashpoint in the regional security complex in East Asia. The central issue is the threat posed by North Korea and how to meet it. After a review of North Korea as an international actor and of two important incidents in 2010 (the sinking of the South Korean naval ship Cheonan and North Korea's shelling of the South Korean coastal island of Yeonpyeong), the rationality underlying the country's military efforts is considered. South Korea's Nordpolitik is reviewed and the rise and decline of its sunshine policy and the role of its alliance with the United States is described. Two non-Korean great powers, China and the United States, are important actors in the region, and their relations with North Korea, goals and priorities, and implementation strategies are outlined. The report concludes with reflections on the potential for changing the present security complex, which is marked by a fear of war, into a restrained security regime, based on agreed and observed rules of conduct.
Topic:
Conflict Resolution, Security, Foreign Policy, Cold War, Communism, Weapons of Mass Destruction, and Bilateral Relations
Political Geography:
United States, China, Israel, East Asia, Korea, and Island