Abstract

China, being the first trade partner of South Korea, is expected to further increase trading volume with South Korea amidst an FTA environment. In previous studies, China’s trade clearance difficulties have been legally researched. In this study, China’s trade clearance difficulties have been categorized as follows: export and import declaration, cargo inspection, customs collection and customs clearance completion. Seventy three korean trading companies in China directly affected by Chinese clearance difficulties were included in the study. The purpose of this study is to suggest countermeasures by analyzing empirically China’s trade clearance difficulties that influence company performance. Results revealed that Export-import declaration and customs collection have effects on company performance. However, there are likewise trade clearance difficulties in cargo inspection and the customs clearance completion process. Therefore, Korea trading companies must take corresponding measures to share the experience based on the Chinese customs environment. Since only a small sample size was used, futher studies should focus on a larger sample to validate the findings of this study.

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