韓·日 FTA의 주요 懸案과 展望 - 韓國의 視覺

The Issues and Prospects of the Korea-Japan FTA : A Korean Perspective

In spite of the fact that the negotiation on a Korea-Japan FTA (KJFTA) kicked off in December 2003, following a long period of discussions among governments and industries of both countries on the subject, a skepticism still seems to remain unabated in Korea. It is because most of the empirical studies undertaken so far have shown a negative static effect of the KJFTA on Korea, owing mainly to the big tariff differences and technological gap existing between Korea and Japan. In light of the low FDI stocks in Korea, its dynamic effect is unlikely to be significant, either. What should be stressed in this context is the strategic significance of the KJFTA. A number of FTAs are under discussion in Asia, with some of them being currently negotiated, as influenced by the world-wide trend of the regionalism. It is worth noting here that East Asia which is composed mainly of Korea, China, Japan and ASEAN, emerges as an axis of various intra-Asian FTAs, thanks to its high degree of economic and political interdependence. Under circumstances, Korea needs to consider the KJFTA as a strategic stepping stone for the establishment of an East Asia FTA. This is why Korea should not ignore China and ASEAN as its future FTA partners even when it is currently engaged in negotiations with Japan. In order to materialize fully the strategic significance of KJFTA, it is vital to stick to the principle of pursuing the balance of benefits between Korea and Japan. Otherwise, the Korean public would not be convinced of this strategic rationale of the KJFTA. In this sense, Japan is required to exert a strong political leadership as the world-second economic power so as to conclude FTA as planned.