Country or Region
|
Trade (US$ bil.)
|
Investment (US$ mil.)
|
|
1987
|
1993
|
1987
|
1993
|
U.S.A.
|
27.1 (30.7)
|
165.3 (40.3)
|
380 (30.3)
|
Japan
|
22.1 (25.0)
|
31.6 (19.0)
|
1.4 (0.3)
|
6 (0.5)
|
EU
|
11.2 (12.7)
|
19.6 (11.8)
|
6.5 (1.6)
|
157 (12.5)
|
China
|
1.7 (1.9)
|
9.1 (5.5)
|
6.0 (1.5)
|
260 (20.7)
|
Southeast Asia
|
8.9 (10.1)
|
27.8 (16.7)
|
130.5 (31.8)
|
179 (14.3)
|
Note:
Figures in parenthesis represent percentage of the total.
Active Participation in Multilateral Economic Forums
Korea has actively participated in virtually all major multilateral
forums. During the Uruguay Round of trade talks, finally concluded in December
1993, Korea tried to make conrtibutions commensurate with its capabilities as a
major world trading power, and play a mediating role between the developed and
developing countries. Korea introduced various proposals in the Uruguay Round
negotiations to reduce tariffs, eliminate non-tariff barriers, liberalize the
textile trade, improve safeguards and reduce subsidies and countervailing
duties.
The Republic of Korea is actively participating in global
efforts to protect the environment, a crucial task facing all of humanity. In recent years it
has joined the Convention on Climate Change, the Basel Convention on the
Control of Transboundary Movements of Hazardous Wastes and their Disposal, the
Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other
Matter, also called the London Dumping Convention, the Convention on
International Trade in Endangered Species of Wild Fauna and Flora, and the
Convention on Biological Diversity.
Korea has also begun an informal dialogue with the
Organization for Economic Cooperation and Development (OECD) and has expanded
participation in its various committees . Korea hopes and intends to improve
its economic systems to the level of advanced countries so as to join the OECD
in 1996.
One organization in which the Republic of Korea has played
a particularly critical role has been the Asia-Pacific Economic Cooperation
(APEC) forum, a forum for multilateral discussions on economic issues
concerning the Asia-Pacific region.Two examples of Korea’s valuable efforts
have been the “Seoul Declaration” adopted at the third APEC Ministerial Meeting
hosted by the Republic which laid the foundation for the institutionalization
of APEC, and its diplomatic role in bringing China, Taiwan and Hong Kong, three
key regional economic powers, into the APEC fold, giving the forum a new
impetus. Subsequently, the Republic played a leading role at the first APEC
Leaders Economic Meeting in Seattle in November 1993, which coincided with the
fifth APEC Ministerial Meeting, and was elected the chair member of the
Committee on Trade and Investment (CTI).
Conclusion
The rise of the Korean economy over the past several
decades, often called the “Miracle of the Han”, has been an inspiring model of
modern economic development. The rapid pace with which the Koeran economy rose
from the ashes of war and expanded stunned the outside world. However, this
rapid growth was not unaccompanied by growing pains which began to manifest
themselves in all sectors of society particularly during the late 1980s.
Excessive wage hikes, high capital costs and an overly bureaucratic
administration, not to mention institutionalized corruption, served to weaken
Korea’s international competitiveness, and this was aggravated by unfavourable
external circumstances. In the past year, though, strenuous efforts have been
made to overcome these impediments and through this, as well as improving
international economic climate, it appears that the Korean economy is regaining
its former vigor. The upcoming years pose severe challenges for the Republic
in light of the December 1993 conclusion of the Uruguay Round and the rise of
the Asia-Pacific region as the new global economic center, but with the
increasing emphasis in both the public and private sector on globalization and
internalization, the Republic seems braced to meet these challenges.
REFORM TOWARD A NEW
KOREA
The
Basic Goals and Reform Process of the Kim Young Sam Administration
What are the vision and goals of the Administration of Kim Young
Sam, inaugurated on February 25, 1993. In a nutshell, the answer is the
“creation of a New Korea” through “Reform Admist Stability.” This concept was
the keynote of the President’s inaugural address as well as the main slogan of
his presidential election campaign in December 1992.
“I have a dream. It is the creation of a New Korea in which
a new politics, a new economy and a new culture will bloom. This is my dream
and vision; it is the dream and vision of all our people.” This quotation
appears in the book, “Kim Young Sam: New Korea 2000,” published in Korea in
October 1992 prior to the presidential election.
In his inaugural speech on February 25, 1993, President Kim
Young Sam defined the three major priorities of his policies to create a New
Korea: the eradication of social injustice and corruption, the revitalization
of the national economy and the establishment of official discipline and
public order.
The President declared that the eradication of corruption
was a vital foundation for reforms in every sector of the country, and that
there would be no sanctuary from the investigation of misconduct. The movement
to establish official discipline and public order, which began with
high-ranking government officials, is intended to ensure integrity and high
ethical standards by “purifying the upper reaches of the stream,” i.e., the
upper levels of government and society.
The main purpose of these reforms is to revitalize the
nation and elevate the overall standard of living. President Kim Young Sam has
thus pushed ahead with firm determination since his inauguration, bringing
about enormous changes in this country.
From the very start of his Administration, President Kim
Young Sam concentrated on eliminating corrupt practices and behavior which
arose from decades of authoritarian rule. This kind of housecleaning was unhead
of in the past. President Kim believes, and popular opinion supports him on
this, that such reform must be carried on without letting up in the interest of
the long-term stability and economic development of Korea.
The
Concept of a New Korea
The creation of a New Korea means the building of unified,
fully mature democratic state. To that end, drastic changes and reforms are
being pursued to raise the quality of life for all those who were sacrificed in
the blind quest for rapid growth over the past 30-odd years.
What will the future New Korea be like? Korea’s first
non-military President since 1961, President Kim in his inaugural address said
the New Korea will be:
· A freer and more mature democratic society.
· A community where people share, work and live
together in harmony. A higher quality of life will flourish and the dignity of
the individual will be upheld.
· A state where justice flows like a river
throughout the land. In other words, it will be a just society in which honest
and earnest individuals live well.
· A new country in which human dignity is
respected and culture is valued.
· A unified land where the presently divided
people live in peace as one.
· And, it will stand tall and proud on the
center stage of the civilized world, making vital contributions to global peace
and progress.
Curing
the Korean Disease
The problems which are widespread in Korea
today are often referred to as the Korean disease: (1) Korean industriousness
and ingenuity - long the envy of the world - seem to be evaporating, (2) values
continue to erode, due to injustice, corruption, lethargy, bigotry, inertia,
strife and confrontation, and narrow self-interests, and (3) self-confidence
has been lost and defeatism has set in.
To create a New Korea, the new Administration has been
vigorously addressing these symptoms through drastic change and reform. The
President outlined the goals of these changes and reforms in his inaugural
address: (1) the establishment of a new era of courage and hope by shaking off
frustration and lethargy, (2) the replacement of bigotry and inertia with
openmindedness and vitality, strife and confrontation with dialogue and
cooperation, mistrust with trust, and (3) the building of a society which sees
all citizens not only living together but also truly carring about one another,
discarding narrow self-interests.
Three
Tasks
The
President outlined three essential tasks in his inaugural address.
First, misconduct and corruption must be rooted out. He
defined misconduct and corruption as the most terrifying enemies attacking the
foundation of society, and called for an end to all manner of impropriety and
graft, allowing no sanctuary. He called for immediate reform starting from the
very top.
Second, the economy must be revitalized. He vowed that the
new Administration would do away with unwarranted controls and protection and
instead guarantee self-regulation and fair competition. “Private initiative and
creativity will thus be allowed to flourish”. He went on to say. “The
Administration will be the first to tighten uts belt. Our citizens must also
conserve more and save more. Extravagance and wastefulness must be
eliminated... Only when the Government and the people, and labor and business
work together with enthusiasm will it be possible to turn our economy
around...”
Third, national discipline must be enhanced. “Respect for
authority must be reestablished... Freedom must serve society... The true
meaning of freedom is in using it to plant a flower in the park rather than
picking a flower from the park.” The President also said, “Ethics... must be
made to prevail. To this end, education must henceforth cultivate wholesome
character and unwavering democratic belief, as well as equip our young people
for the future with knowledge and skill in science and technology...”
Four
majot Goals of the New Administration
The four major goals of the Administration are clean
government, a sound economy, a healthy society and peaceful unification.
Clean government means a government free of corruption and
injustice. There is a saying that the lower reaches of a river will be clean
only when the upper reaches are kept clean. The President is determined to keep
the upper reaches of the stream clean, and all the Cabinet members and
high-ranking public officials will join in this effort so that the public will
have confidence in the Government.
The campaign to keep the upper reaches of the stream clean
means reforms from the top. The new Government has required high-ranking public
officials to register and make public their personal assets to discourage the
illegal accumulation of wealth under the Public Officials’ Ethics Law. The President
himself has made public his own assets and has said that he would not accept
political contributions.
A sound economy means a New Economy free of unwarranted
controls and protection - an economy which guarantees self-regulation and fair
competition and encourages the private initiative and creativity necessary for
economic revitalization. The economy has been marked by quantitative growth in
the past three decades; now it needs qualitative development. In order to
develop New Economy, Korea must (1) establish a liberal market system, (2)
liberalize financing, (3) decentralize economic power and (4) promote economic
reforms.
The New Economy emphasizes concentrated efforts for the
renovation of science and technology. In the 21st century, the strength of
nations will be measured by the development of science and technology. It is
for this reason the new Administration is sharply raising research and
development expenditures.
President Kim Young Sam announced on August 12, 1993,
implementation of real-name system for all financial transactions to assist in
the realization of economic justice and clean government. The new
Administration also has a firm position to control speculation in real estate
and institute tax reforms.
By effecting all these changes, it is predicted that the
inflation rate as measured by the consumer price index will fall to the 3-4
percent range by the end of 1994 from the usual past level of nearly 6
percent, while the balance on current account will shift into the black. The
economy as a whole should grow at an average annual rate of 6.9 percent, boosting
per capita GNP to US$14,076 in 1998 from US$7,466 in 1993.
A healthy society means a society in which all people work
hard and receive just rewards. It is obvious that a clean government and sound
economy alone cannot create a New Korea. A healthy society is absolutely
required as well. Everyone must spontaneously take responsibility for keeping
society healthy. Each and every person must be honest, courageous and
dignified.
Peaceful unification is the supreme task for Koreans. the
Republic’s Korean national Community Unification Formula envisages a Korean
Commonwealth, an interim arrangement designed to build political, economic and
military trust and restore national homogeneity, leading to full national
integration through free general elections throughout the Korean Peninsula. President
Kim will consistently pursue this unification formula, widely regarded as being
very realistic. He will, however, flexibly adapt it to changes in the
international situation. In a Liberation Day speech on August 15, 1994, he thus
prpoposed South-North joint projects for national development, including
light-water nuclear reactor construction in the North, once the North Korean
nuclear issue is resolved.
Reform
backed by the Korean people
The Korean people’s deep support of President Kim’s
comprehensive reform agenda has been reflected in the Korean leader’s strong
public approval rating. President Kim has fared consistently well in public
opinion polls which indicate that his reform policies continue to enjoy the
support of a solid majority of Koreans.
Ethics Reform
To maintain the public’s trust, President Kim has pledged
to create a corruption-free political environment by establishing high ethical
standards for the members of his administration and political party.
Symbolizing his strong commitment to this goal on February 27, 1993, just two
days after his inauguration President Kim disclosed all of his financial assets
to the public, and encouraged all senior cabinet and ruling party figures to do
the same. A number of his government’s newly appointed officials were forced to
resign for their past unethical financial conduct and President Kim declared
that there would be “no sanctuary” from his clean-up campaign. He stressed that
the new ethical standards “must be internalized and become a way of life” for
all Koreans.
In order to institutionalize the disclosure of public
officials’ assets, the existing Public Officials’ Ethics Act as revised in June
1993, and ranking government officials are now required to register and
disclosure their assets under this law. As a result of the clean-up drive
resulting from the asset disclosure, 1,363 public officials were dismissed for
malfeasance and 242 were forced to resign due to improperly acquired wealth.
President Kim’s inauguration brought to an end the deep
involvement of the military in Korea’s political arena. Corruption in the armed
forces, long a taboo subject, became a focus of the new reform drive. Promotion
kickback scandals were uncovered, and a number of senior military officers have
been removed from their posts. The Administration has also investigated and
taken legal action against defense procurement irregularitites. At the same
time, Prsident Kim has moved to depoliticize the government bureaucracy. In
particular, he has reformed the nation’s intelligence apparatus, ending its involvement
in domestic politics and directing it to focus solely on Korea’s national
security concerns.
President Kim has taken steps to reform the Office of the
President itself. The President’s residence and office complex, Chong Wa Dae,
better known as a Blue House, has been made more accessible to the public. For
the first time in decades, the avenue in front of the Blue House is now open to
traffic, as are the scenic mountain hiking trails adjacent to the presidential
residence. Gone are the lavish Blue House meals once served to staff and
guests. Instead, everyone, including the President himself, dines on simple yet
traditional Korean cuisine.
Financial Reform
Following this reform to require the disclosure of personal
assets by public officials, President Kim Young Sam boldly introduced a
real-name financial transaction system in order to achieve fundamental
structural reform that will greatly assist in the realization of economic
justice and clean government.
This real-name financial transaction system, which was put
into effect by an emergency presidential decree on August 12, 1993 is the core
of the entire reform movement, “the reform of all reforms.” This reform is helping
eradicate misconducts and realize economic justice by rectifying the distorted
economic structure and income distribution caused by underground economic
activities and real estate speculation and by cutting shady financial ties
between politicians and businessmen. In order to join the ranks of advanced
countries, Korea must eradicate the corruption and irregularities stemming from
certain aspects of past administrations’ pursuance of rapid growth-oriented
economic development.
With the introduction of the real-name financial
transaction system, all financial dealing have become transparent, underground
economic dealings have diminished, and nonproductive land speculation has been
curbed. The funds that were channeled into political circles in the past as a
result of government-business collusion are now being invested in business
activities.
As a result drastic changes are occurring in political,
economic and social activities in virtually every sector of Korean society.
Business investment is actively increasing, and the past distorted economic
structure and income distribution is being rectified.
President Kim’s declaration not to receive any money from
businesses so as to maintain a clean government and to build a clean society,
combined with his political philosophy, laid the foundation for the
introduction of the real-name financial transaction system. The success of the
real-name financial transaction system is serving as a stepping-stone to a New
Korea.
Under the new Local Autonomy Law, four kinds of local
elections are scheduled to be conducted on June 27, 1995, to choose 15
provincial governors and metropolitan mayors, 866 members of provincial and
metropolitan councils, 260 city mayors, country executives and municipal
district chiefs, and 4,304 members of lower-level local councils - for a total
of 5,445.
In line with the key goals of President Kim’s political
reform, the enforcement of these new laws will enhance the ability of Korean
citizens from all walks of life to more fully participate in the democratic
political process.