Korea’s FTA Source: Customs, Korea Korea’s Trade with FTA Partners (2013)

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Korea

Korea’s FTA

Source: Customs, Korea

Korea’s Trade with FTA Partners (2013)

In the post Crisis Period: Globalization & Challenges

Korea actively participated bilateral free trade agreement as well as mega-regional trade agreement such as RCEP or TPP

Shifting Korea’s Trade Policy paradigm

Why?

To reduce costs associated with the Spaghetti Bowl Effect
Asia is the most active in Global Supply Chain Management

Need to help firms to improve efficiency in production

To counteract the possible trade diversion effect of mega-trading blocs such as EU,NAFTA, MERCOSUR etc.
To Tone down regional security threats

Can Korea-Kazakhstan be Partners in the era of FTAs and Mega FTAs?

Changes in Korea’s Trade Paradigm and Strategies

Korea’s Economic Development

How Did Korea Achieve it?

7.5% p.a. Economic Growth Rate (1953-2014)
With a fairer income distribution

Gini Coefficient: 0.344 (1965) => 0.307 (2012)

Significant Structural Changes

From Primary to Industry
From Light Manufacturing to Capital Intensive and Technology Intensive

Why?

Leaders Committed to Economic Growth and Development
Accountability and transparency in International Economic and Trade Policy

Outward Orientation
Globalization through a main level of openness
Strategic, Pro-active Policy makings

Competitive Macroeconomic Policy
Promoting Competition

Economic Development of Korea: Growth Path and Challenges

Rapid economic growth

Accompanied a Fair Income Distribution: Gini Coefficient

Significant structural changes

In Outputs

Agriculture-Industry-Service

In exports

Primary – Manufacturing
L-intensive-K-intensive-Knowledge-intensive

1965	1970	1976	1982	1990~1997	1998	1999	2000	2001	2006	2012
0.344	0.332	0.391	0.357	0.281~0.295	0.316	0.32	0.317	0.319	0.306	0.307

Export Share (%)	1962	1972	1977	1982	1987	1991	2001	2011	2014
Primary	27.5	10.3	13.8	7.9	6.0	3.5	2.7	2.8	2.2
Light Manufacturing	63.4	56.3	52.2	43.5	42.3	36.5	16.4	6.2	6.4
Heavy and Chemical Manufacturing	9.1	33.4	34.0	48.6	51.7	60	80.9	91	91.4
IT						15.4	27	22.4	23.9
Others						44.6	53.9	68.6	67.5

GDP by Economic Activities(%)

	1953	1962	1971	1981	1991	2001	2011	2014
Primary(Agriculture, Forestry & Fishery)	30.1%	25.9%	16.6%	9.8%	4.9%	3.3%	2.3%	2.3%
Mining	2.0%	3.5%	2.7%	1.8%	0.7%	0.3%	0.2%	0.2%
Manufacturing	2.8%	4.9%	9.3%	16.9%	20.9%	25.1%	31.6%	32.0%
Electricy, Gas and Water	0.1%	0.2%	0.5%	0.9%	1.6%	2.1%	2.2%	2.1%
Construction	3.9%	5.5%	10.0%	10.6%	12.1%	6.8%	4.7%	4.4%
Services	61.1%	60.0%	60.9%	59.9%	59.8%	62.4%	59.0%	59.1%

Source: nso.kr
Gov’t
Business
People
Gov’t
Business
People
Gov’t
Business
People
<1960s-Mid1980s>

Gov’t Entrepreneurial Leadership
Gov’t Leadership
& Business Power
Gov’t Leadership
& Business Power & People Power

Korea-kazakhstan: a quick review

Kazakhstan and Korea: Now
	Kazakhstan	Korea
Area (km2) (ranking)	2,724,900 (9th)	99720 (109th)
Agricultural Land (%)	77.4	18.1
Population (million; 2015) (ranking)	18.2(61th)	49.1 (28th)
65 and overs (%)	7.17	13.00
Life Expectancy (years)	70.6	80
Population Growth Rate (%; 2014)	1.14	0.14
Birth Rate (per 1000 popltn) (ranking)	19.15 (19th)	8.19 (220th)
Fertility Rate(child born per woman) (ranking)	2.31 (92th)	1.25 (220th)
GDP (US$)	212.3 billion	1.41 trillion
Exports (US$)	87.3 billion	572.7 billion
Major Export Products	oil and oil products, natural gas, ferrous metals, chemicals, machinery	semiconductors, petrochemicals, automobile/parts, ships, wireless communication equipment, flat display, steels,
Imports (US$ Billion)	46.7 billion	525.5 billion
Major Import Products	machinery and equipment, metal products, foodstuff	crude oil, petroleum products, semiconductors, coal, steel
Major Natural Resources Reserves (ranking)	Crude Oil: 30 billion barrel (12th)	Crude oil: 0 barrel
	Natural Gas: 2.407 trillion m3 (15th)	5.748 billion m3 (89th)
Mobile Phone (2014)	28 million	57.2 million
Internet Users (2014) (ranking)	10.6 million (45th)	44.9 million (13th)
% of Population	59.3	91.5
Military Expenditure (% of GDP) (2012)	1.21	2.8

Source: ciafactbook
(USB$)
Source: Korea Customs
Source: Korea Customs
Source: Koreaexim Bank
Source: Koreaexim Bank

Korea –Kazakhstan Trade (1992-2014)

Year	Export (USM$)	Import (USM$)	Total Trade (USM$)
1993	41	47	88
1998	104	31	135
1999	57	51	108
2000	82	49	131
2005	273	242	515
2010	604	334	938
2013	1,074	249	1,323
2014	907	561	1,468

Source: kita.net

Korea-Kazakhstan Diplomatic Relationship

January 28, 1992
Korea-Kazakhstan Trade has expanded rapidly

US$88 million (1993) to US$1468 million(2014)

Exports

US$41million(1993) to US$907 million (2014)

Imports

US$ 47 million (1993) to US$ 561 million (2014)

But still remained below its potential

Korea –Kazakhstan Trade (1992-2014)

Source: kita.net

Korea’s Top 10 Imports from Kazakhstan (2014)

Source: kita.net

	Products (SITC 2 digit)		Imports	Growth Rate (%)
		Total	560,771	209.9
1	33	Petroleum and Petroleum Products	372,193	-
2	67	Steel and Iron	95,808	0.1
3	52	Inorganic Chemicals	72,228	2.9
4	68	Non-ferrous Metal	13,022	5.0
5	29	Non specified Unprocessed meat and vegetables	6,948	-0.1
6	89	Miscellaneous n.e.s	155	75.2
7	59	Chemical Products, n.e.s.	137	-54.7
8	77	Electrical Apparatus and Machinery	80	-30.2
9	26	Textile and Textile Waste	49	-
10	74	Industrial Machinery and Equipment	46	-

Source: kita.net

Korea’s Top 10 exports to Kazakhstan (2014)

	Products(SITC2 digit)		Exports (US’000)	Growth Rate (%)
		Total	906,958	268.6
1	78	Automobile	388,723	267.4
2	57	Plastics(Materials)	62,270	34.1
3	76	Communication and Recording Equipment	61,692	52.3
4	77	Electrical Machinery and Equipment	53,077	131.2
5	87	Other Scientific and Control Apparatus and Equipment	46,981	32.6
6	72	Special Industrial Machinery	46,832	28.3
7	67	Steel and Iron	36,308	108.7
8	74	Industrial Machinery and Equipment	35,129	68.8
9	82	Furniture, Bedding, Mattress etc.	18,418	-4.2
10	09	Other Food and Food stuffs	16,906	6.2