Korea’s Trade Policy Beyond Free Trade Agreements

Abstract

Korea’s trade policy has proven to be effective in establishing a mutually beneficial relationship between international trade and economic growth. During the past several decades, Korea has evolved its trade approach from a bilateral (export-oriented) focus to a multilateral strategy that adheres to the rules of General Agreement on Tariffs and Trade (GATT) and WTO. Since the turn of the century, Korea has prioritized expanding its Free Trade Agreement (FTA) network, which has become a hallmark of its trade policy. This approach has helped the country to build stronger relationships with key trading partners and increase access to new markets. In response to the evolving global environment, Korea has implemented various measures to address new challenges while maintaining openness and fairness in global trade. Given its high trade-to-GDP ratio, it is crucial for Korea to maintain a stable and resilient economic environment. Currently, Korea’s trade policy centers on strengthening supply chains and integrating itself into the reshaping global value chains (GVC). The country is also contributing to global rule-making, with a particular focus on digital transformation and the net-zero transition. Moreover, Korea is committed to deepening and upgrading existing FTAs while expanding and complementing them, recognizing their significance as platforms for cooperation and communication with other countries. Korea’s trade policy, FTA, WTO, GVC, Supply Chain