Korea in a Changing Global Trade Landscape: Korea
Selected Issues Papers, March 5, 2025
Source details
- Canonical URL
- Korea in a Changing Global Trade Landscape: Korea
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Bibliographic details
- Authors: Hua Chai, Hyeryoun Kim
- Published: March 5, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229003384.018
Summary
- The global trade landscape is being reshaped by geoeconomic fragmentation and the rise of industrial policies.
- This paper studies the impact of these trends on the export-oriented Korean economy.
- It documents both positive and negative effects of U.S.-China trade tensions, technology and supply chain restrictions, and industrial policies of major economies on Korea's trade and FDI, particularly that of its strategic sectors.
- To navigate the changing global trade landscape, Korea needs to focus on promoting innovation to maintain competitiveness, diversifying export destinations and supply chains, and expanding exports of services.
Findings on trade and FDI effects
- U.S.-China trade tensions have produced both positive and negative effects on Korea's trade and FDI.
- Technology and supply chain restrictions affect Korea's trade and FDI, with particular implications for strategic sectors.
- Industrial policies of major economies influence Korea's trade and FDI flows, including sectoral impacts on manufacturing and strategic industries.
Policy recommendations
- Promote innovation to maintain competitiveness.
- Diversify export destinations and supply chains.
- Expand exports of services.
Content in this bundle
- PDP-Working Paper