This study surveys equipped Korea’s trade environment is to adapt to the changing industrial structure, international economic order, and trade patterns worldwide, with the goal of enabling policymakers to devise feasible and effective plans for the qualitative and structural improvement of Korea’s exports.
Now in the process of achieving economic growth at an unprecedented rate, Korea crucially relies on exports to increase the national output, income level, and number of jobs. However, despite the eagerness to manufacture and export more goods abroad, Korea lacks the financial resources required, and therefore remains highly dependent on foreign investment.
Nevertheless, Korea has seen remarkable growth of its businesses, significant technological progress, and a noticeable increase in the level of consumption. Fortunately, Korea has had enough capital and investment to fuel its economic growth, and has safely entered into a course of export-oriented economic development. Exports exert varied and far-reaching influences throughout the Korean economy, and Korean policymakers have outgrown their focus on increasing quantities of exports, working to provide measures instead to ensure the improvement of quality of the exported goods, and also to diversify markets abroad.
Despite the work of the stakeholders concerned with improving the quality of Korea’s exports through the reform of the export structure and the diversification of markets abroad, Korea’s exports are still concentrated in a few categories of goods and markets. However, there is still a great deal of room for pioneering new markets around the world, and for a continuing increase in Korea’s exports.
One key question that must first be answered is how Koreans should reduce their dependence on the importation of capital goods from abroad to sustain and fuel their export economy. The goal of transforming the structure of Korea’s exports therefore involves transforming the policies on exports, imports, and even industries.
The government can facilitate the transformation of Korea’s export structure primarily by establishing a pricing policy that will ensure the stability of prices in the long run. The government should then support industries only indirectly by adjusting foreign exchange rates, ensuring the improvement of Korea’s trade balance the protection of Korean industries.
한국수출의 구조적 전환방향 및 장기전망(Structural transformation and long-term prospects of Korea’s exports)
|Series Title; No||연구 조사보고|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade|
|Holding||KDI; KDI School|