Multilevel liberalization in Korea, or why the Korean market remains diffi cult to penetrate

I. Korgun
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I. Korgun: The Institute of Economics RAS, Moscow, Russia

Journal of the New Economic Association, 2023, vol. 58, issue 1, 157-164

Abstract: For Russia's "turn to the East" to be successful it is necessary to promote export of Russian products to East Asian markets. This is rather a complex task, because despite a progressive liberalization of the last three decades East Asian markets remain relatively protected. The current paper deals with a case of the Republic of Korea. It reveals a multi-level approach to market liberalization in the Korean trade policy that step up from elements of preserved nationalism. The multi-level approach allows Korea to protect weak national companies and at the same time create opportunities for international expansion for stronger sectors of its economy. As a result, domestic companies get extra-support that distorts competition. Non-tariff barriers and monopolistic product markets are yet other factors that complicate successful positioning of foreign businesses in Korea. Using an example of a free trade agreement with the European Union research shows that such agreements are more effective for unlocking the Korean market. Besides, Korean government prefers FTAs over multilateral liberalization within WTO because they make it possible to take into account strategic economic interests of each trading partner. The paper concludes with some general recommendations on penetrating into the Korean market that can be useful for Russian companies that are making strategies to enter Korea.

Keywords: protectionism; market liberalization; Republic of Korea; turn to the east; the Korean market (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2023:i:58:p:157-164

DOI: 10.31737/22212264_2023_1_157

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