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Trade policy of South Korea. In 1945 Korea got liberation from the Empire of Japan at the end of the World War II. A destructive drought in 1958 forced Korea to import large amounts of food grains. In 1950, the Korean war (a war between the Republic of Korea and the Democratic People's Republic of Korea) broke out, which destroyed more than two-thirds of the nation's production facilities and most of its infrastructure. Trade policy of South Korea has taken many shifts, from import substitution to globalization and there has been significant impact on the economy for the same. ==Post Independence – Asian Financial Crisis== Throughout the 1950s Korea was underdeveloped and its 60 percent of the population was employed in farming activities. Foreign policy during that time focused on securing maximum foreign aid. Foreign aid comprised almost half the national budget through 1960. Foreign assistance was allowed only for the import of basic goods which was necessary for economy to survive, while exports were minimal. During that time, U.S. aborted its plans to provide $500 million in investment for development because of the political turmoil. Reduction in foreign aid hit import - dependent industries by cutting the supply of raw materials leading to economic downturn. Materials which were essential for rehabilitation of country like cement and steel were produced domestically to reduce dependence on imports. To earn foreign currency Korea also sold few natural resources overseas. But the earnings were small. There was no formal trade policy that time. In 1962, Korea embarked on a massive industrialization based on exports.〔Doo-yun, H. (2001). Korea's International Trade Policy in the Global Age. East Asian Review , 13 (3), 3-20.〕 An export centric development strategy was introduced, and exports of labor - intensive, light manufactured goods were aggressively promoted. Financial incentives such as tax - free imports of raw materials encouraged the production of export goods, stimulating the growth in textile and electrical machine industries. Korea had comparative advantage in these industries which absorbed well educated and highly motivated workers at low wages. The primary goal of export promotion was to earn foreign currency, obviously imports were discouraged. Trade grew from US$500 million in 1962 to US$2.8 billion in 1970. In percentage point trade grew at 40.8 percent during the 1960s. In the early 1970s, third five-year plan focused on heavy and chemical industries.〔Susan M. Collins, W. A. (1988, May). External Debt and Macroeconomic in South Korea. NBER Working Paper No. 2596 , pp. 1-32.〕 Hence new engine of growth shifted from light manufacturing to heavy manufacturing. Meanwhile Korea continued with its export promotion and import restriction policies. Auto cars took off; also imported cars virtually disappear from the market. Increase in exports was roughly 45 percent a year. In the late 1970s because of increase in oil prices, the cost of its oil imports increased by 200 percent in a year. In the early 1980s, exports in heavy industries reached UD$17.5 billion. Soon by the mid-1980s, Korea's economic growth was recognized internationally and world criticized its export intensive economy. Unfavorable global conditions hit Korea's export intensive economy. Korean policy makers realized the need to open markets and create more competition and to boost the international competitiveness of domestic industries. An important transformation occurred in Korea's trade policy in the sixth five-year plan, which witnessed the change in trend from heavy industry toward export - oriented consumer products, including electronics and high tech. foreign investment policies were relaxed in response to a decrease in domestic investment, cross border capital movement increased significantly. Restrictions on imports were removed, but a variety of non tariff barriers complicated trade structure. In 1986, Korea for the first time achieved a favorable trade balance, a trade surplus of US$4.2 billion. However the transformations in the trade policy eventually lead to challenges in the 1990s. In 1990's domestic consumption of luxury goods increased including high tech and electronics products which reduced exports which resulted in Korea's trade deficit and current account deficit.〔http://docsonline.wto.org/imrd/gen_searchResult.asp?RN=0&searchtype=browse&q1=%28%28+%40meta%5FTitle+Korea%29+or+%28%40meta%5FCountries+Korea%29%29+and+%28+%28+%40meta%5FSymbol+WT%FCTPR%FCS%FC%2A+%29+or+%28+%40meta%5FSymbol+WT%FCTPR%FCG%FC%2A+%29%29&language=1〕 In mid-1990's Korea reduced tariff rates and import restriction on autos, high tech products and financial services. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Trade policy of South Korea」の詳細全文を読む スポンサード リンク
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