Win-win regional trade pact choices for Korea

First published in The Korea Herald. After dillydallying for several years, China has thrown the cat among the pigeons by aggressively pushing for the Free Trade Area of the Asia-Pacific at the recently concluded APEC summit in Beijing.Threatened by China’s urgency, the United States, which has been driving its own Trans-Pacific Partnership minus China, was seen making backroom maneuvers to dilute any reference to the FTAAP in the Leaders’ Declaration. It did manage to take out the deadline of 2025 that was in the draft and what was finally released had no real specifics, except that a collective feasibility study will be concluded by 2016. The final declaration noted: “we decide to accelerate our efforts on realizing the FTAAP on the basis of the conclusion of the ongoing pathways,...

Read more »

Shady projections on Korea-China FTA

First published in The Korea Herald. Now that the dust has settled, and the free trade deal between Korea and China has been sealed, it is time to look at the validity of various claims being made on its economic impact once it is implemented sometime next year. I am not referring to the merits or demerits of the FTA and the bruises to the agricultural sector, but to the economic projections that are being thrown around by the government officials. There is no denying the high expectations for the trade deal compared to the FTAs with the U.S. and the European Union, since China is Korea’s largest trading partner, with a massive market. Moreover, it is bang next door, and offers a definite advantage compared to other economic blocs. Under the deal, Korea will eliminate its tariffs on 79...

Read more »

Doing business in Korea ― going beyond ranking

First published in The Korea Herald. A World Bank report released last week ranked South Korea as having the fifth-best business environment among 189 countries this year. Commendably, the country also topped the Group of 20 emerging and advanced countries and came in third among Organization for Economic Cooperation and Development member countries. Between June 2013 and June 2014, “Doing Business 2015: Going Beyond Efficiency,” which measures 189 economies worldwide, documented 230 business reforms, with 145 aimed at reducing the complexity and cost of complying with business regulations, and 85 reforms aimed at strengthening legal institutions. Only Singapore, New Zealand, Hong Kong and Denmark ranked higher than South Korea. Not surprisingly, the Finance Ministry was elated. In an...

Read more »

Should South Korea join China-led AIIB?

First published in The Korea Herald. South Korea, Australia and Indonesia were conspicuous by their absence in Beijing on Oct. 24, when China, India and 19 other countries signed a memorandum of understanding to launch the Asian Infrastructure Investment Bank ― set to become one of the Asia-Pacific’s biggest lenders in the years to come. While there is still time for the three countries to make a decision ― the AIIB will be operational only next year ― and they are keeping their options open, there is a real danger that they may not enjoy the same clout as they would have if they had joined the other Asian countries in Beijing. The case is more so for South Korea, whose economy is closely linked to other emerging Asian economies. The Finance Ministry has officially stated that it has been...

Read more »