S-Space College of Social Sciences (사회과학대학) Center for Social Sciences (사회과학연구원) Korean Social Sciences Review (KSSR) Korean Social Sciences Review (KSSR) Vol.02, No.01-02 (2012)
Economic Assessment of the KOREA–US FTA
- Cheong, In Kyo
- Issue Date
- Korean Social Sciences Review(KSSR), Vol.2 No.1, pp. 33-94
- KOREA-US FTA; Market Access; FTA Roadmap; Trade Policy; CGE JEL Classification: F15, F55, F13, and F11; Korea
- Translated from an article published in the Journal of Korean Economic Analysis
14(2): 213-283, 2008 with permission from the Korea Institute of Finance.
- Discussions about the KORUS FTA began in the mid-1980s; however, due to the immaturity
of domestic motivation to push forward, full-scale talks didnt begin until 2004. The KORUS
FTA, the negotiations for which began in June of 2006, with additional negotiations in 2007,
was officially signed in late June of 2007. The KORUS FTA is expected to have a major
impact on the Korean economy relative to the other FTAs that have already been established.
It is also expected to have a significant impact on trade by Korea and on FTA policies as a
Within the framework of the KORUS FTA, there are sensitive issues, but the general
consensus is that it is considerably in agreement with Koreas national interests through
its coverage and its high level of market access. It is generally viewed that the agreement
was improved in many aspects and that the risks of implementing the sensitive points were
minimized by way of exceptions and added terms. However, based on differing perspectives
on establishing an FTA with the US, some radical evaluations have begun to appear.
This paper aims to evaluate the KORUS FTA by analyzing the process involved, the main
issues raised during the negotiations, and its economic impact. In the conclusion section, the
author points out the need to strengthen the Korean trade policy system with the beef crisis
as the stimulus for this, so as to foster the growth of communications between civic groups
and interested parties and to solidify the convergence of opinions. Also discussed is the
need for the early ratification and execution of a reasonable agreement to realize the gains
expected from the KORUS FTA.