This study aims to conduct a multifaceted observation on the necessity of a ‘Road Map for Korea-United States Economic Cooperation’ in the changing relationship between Korea and the American states since 1960s.
The United States can be divided into the following areas; the Northeast known as center of politics and economics; the South Central serving as the center of agricultural production; the South holding the lowest average income per capita in contrast to the highest level of population density; and the Western recording second highest average income after the Northeast and attracting gigantic sizes of R&D. While the Southwestern economy grew by a 56% increase during the 70s, the average economic growth after the 80s was more than 30%, especially in New England and the East in Central Pacific.
Korea and U.S. established a relationship of cooperation in the late 70s, but the rationales in their motives are slightly different. For Korea’s part, it will have to come up with cooperative schemes that can help revitalize American local economies and improve employment in order to make a profound entry in the American market. Meanwhile, Korean investments appear to be concentrated on the Northeast and Southwest, especially on New York and Los Angeles. In this context, there is a necessity for an understanding of each regional economy and development of appropriate response measures. In order to be prepared for the problems of unequal investment that can arise during full-scale competition in the American market, Korea will have to carry out active investment diplomatic policies with state governments, diversify investments, and exert efforts to lighten current regulations. It will also have to invest in local subsidiaries capable of recognizing the regions’ advantages and exert efforts to share markets. It will have to expand the insurance system of risk bearing, foster international management specialists, exert efforts on sales, and build a rapid evaluation and approval system.
As of 1986, Korea is promoting economic cooperation with developed countries including the United States and the United Kingdom. Actively building economic development ties with 74 countries, the country has moved on from receiving aid from international organizations. 17 corporations have established overseas branches in the US between 1984 and 1987, and this is expected to gain momentum. In 1962, Korea brought in technology from Pfizer, adopting 13 technologies in 1966, 61 between 1967 and 1971, 90 in 1976, 302 in 1981, and 99 in 1984, which accounts for 23.2% of the entire amount of technology brought in. Having recorded an amount of $4.7 billion, 491 technology services were brought in between 1968 and 1986, reflecting the high level of technological dependence on the US. Various factors including America’s sensitive response on the outflow of its technologies abroad, technologies being adopted in the form of projects, development in Korean technology, and a focus on manufactured product sales shown in recent years all point out to the changing economic cooperation between both countries. In the face of rapid and extensive change, Korea will have to promote a different kind of economic cooperation by introducing distinctive advanced technology according to each region, combining technology and production, and identifying the states’ relative competitive edge and feasibility of their adoption.
To respond to the US and their expansion in complementary exchange of technology, reinforcement of intellectual property protection schemes, prohibition of disclosure of research results to foreigners and other reinforcements in regulations, Korea will have to recognize the importance of Korea-US cooperative relations, play an active role in international organizations, strengthen and improve technology diplomacy with Western Europe asides from US.
In order to be able to maintain sustainable ties based on cooperation, there is a necessity for the countries’ ties to be developed to partners in the world economy, and recognize the importance of maintaining consistency in its economic cooperation. More efforts will be necessary in expanding cooperation with local corporations in each state and the federal government so as to increase the level of mutual cooperation between both countries.
한, 미간 지역별 경제협력증진방안(A road map of Korea-United states economic cooperation by region)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|
|Holding||산업연구원; KDI 국제정책대학원|