## 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](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/03/04/korea-in-a-changing-global-trade-landscape-korea-562945)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2025/03/04/korea-in-a-changing-global-trade-landscape-korea-562945/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2025/03/04/korea-in-a-changing-global-trade-landscape-korea-562945/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2025/03/04/korea-in-a-changing-global-trade-landscape-korea-562945/bundle-manifest.json)

## Bibliographic details
- Authors: Hua Chai, Hyeryoun Kim
- Published: March 5, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229003384.018

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### 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.

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## Content in this bundle

- **PDP-Working Paper**
  - [PDP-Working Paper (Markdown version)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025014.pdf.md){rel="alternate" type="text/markdown"}
  - [PDP-Working Paper (PDF)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025014.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/03/04/korea-in-a-changing-global-trade-landscape-korea-562945_