The purpose of this study is to explore the cooperative relationships can be formed between Korea and China, and Korea and Japan, and to determine the best way forward for the multilateral relationship between the three countries.
Regionalism is becoming more prominent, as evidenced by creation of the EU, NAFTA and APEC. Of the major trading economies, Korea, China, Japan and Taiwan are among those that have not established any free trade agreement (FTA). After the East Asian financial crisis of 1997, countries in the region determined a necessity for a joint response for future economic events, and now economic cooperation with neighboring countries is considered a key strategy for national survival.
Making Yen an international currency is a plan of the Japanese government, in order to improve Japan’s profile internationally and to solve domestic economic issues. China is opening up to international standards in order to join the WTO and to attract foreign investment for developing the western region. Compared to these two countries, Korea’s influence in the international arena is relatively weak in terms of politics, diplomacy, and economy and is therefore disadvantaged in the trilateral relationship.
Policy directions of the Korean government should be aimed at eliminating hurdles of intra-regional investment and trade, rather than formulating an exclusive economic block and coordinating state policies between the three countries. Concerning the Chinese market ventures of multinational American companies, Korea should aggressively attract foreign investment so that these corporations can establish future business in China. To this end, Korea should nurture a knowledge-intensive production environment.
Moreover, Korea should adopt multilateral approaches to pursue regional cooperation in the economy, which is closely related to national security. Korea may propose a North East Asian energy and environment cooperation agreement, which includes cooperation plans for energy transportation safety, responsible energy usage, environmental technology development, and so on, and this cooperation in the fields of energy and the environment may help initiate cooperation in other areas.
Against growing pressure on liberalizing the transportation market, unnecessary regulations and barriers should be removed in intra-regional transportation and logistics so that a competition system can be established. Moreover, regional common markets should be created as a multilateral cooperation plan, and relevant institutions and facilities should be standardized. An integrated transportation system should be established linking air, ground and sea transportation so that regional transportation networks can be linked.
As electronic transaction is widely used, the Korean government is also advised to examine the possibility of establishing a regional development bank so that necessary funding can be secured for the connecting companies of different countries, and to develop regional public goods in other countries in the region.
한 중 일 경제협력의 추진방안과 주요부문별 과제(Plans and major implementation tasks for Korea-China-Japan economic cooperation)
|Series Title; No||연구보고서 / 2000-05|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|
|Holding||KDI; KDI School|