SEOUL, KOREA --- “Korea escaped the ranks of newly emerging countries, which is a starting point to establish a Korean trade model for sustainable growth.”
Korea`s trading volume reaching USD 1 trillion this year will be an opportunity for Korea to step forward to be a main player in the global trade stage, and at the same time, it will be a starting point to establish a `Korean trade model` by highlighting Korea`s independent status and its influence all over the world.
On the 5th of December, IIT(Institute for International Trade: http://iit.kita.net, Director Lee Kyung-Tae) of KITA published `Korea`s Achievement of One Trillion Dollars in Trade and its Meaning`, explaining that the fact that Korea passed the one trillion mark proves the power of Korea`s trade amid uncertainty of the global economy that continuously plagued the world since the 2008 global financial crisis.
According to the report, 8 countries joined the One-Trillion-Dollar Trade Club before Korea, accounting for half of the global trade volume and dominating the global trade order. Under the circumstance, Korea`s recent accession to the club implies that Korea lays a solid foundation to stand shoulder to shoulder with developed countries in terms of trade and to play a major role with an independent voice in the world`s trade order.
In addition, Korea has been recognized as one of the emerging nations, being called one of the `four dragons in Asia.` However, upon joining the One-Trillion-Dollar Trade Club, it is no doubt that Korea joined the ranks of advanced trading nations. Now Korea is acknowledged by the international society as a benchmarking model for its economic growth through an increase in trade, and it is expected to become a role model for late comers including developing countries.
The report also assesses the trade status of One-Trillion-Dollar Trade Club and points out that Korea`s major export items are six; ships, petroleum products, semiconductor, LCD, car, cellphone. The export structure centered on small number of major trading items is vulnerable to global enviornmental changes.
The report also says that to address this, small but strong export companies with technological power and creativity should be nurtured and supported in various fields.
Meanwhile, the report explains that Korea should brace itself for China`s emergence in the future by taking dominant position in terms of technology and nurturing next generation new growth industries, given that Korea`s export structure is very similar to that of China. Moreover, it suggests that Korea need to secure a source technology, find new markets through FTA and employ win-win strategies by taking advantage of the structure of division of labor among Korea, Japan and China.
