Author: / Political Geography: Korea / Publication Year: within 25 Years

1. The World After Taiwan’s Fall

Author:: David Santoro, Ralph Cossa, Ian Easton, Malcolm Davis, and Matake Kamiya
Publication Date:: 02-2023
Content Type:: Special Report
Institution:: Pacific Forum
Abstract:: Let us start with our bottom line: a failure of the United States to come to Taiwan’s aid—politically, economically, and militarily—would devastate the Unites States’ credibility and defense commitments to its allies and partners, not just in Asia, but globally. If the United States tries but fails to prevent a Chinese takeover of Taiwan, the impact could be equally devastating unless there is a concentrated, coordinated U.S. attempt with likeminded allies and partners to halt further Chinese aggression and eventually roll back Beijing’s ill-gotten gains. This is not a hypothetical assessment. Taiwan has been increasingly under the threat of a military takeover by the People’s Republic of China (PRC) and, even today, is under attack politically, economically, psychologically, and through so-called “gray zone” military actions short of actual combat. The U.S. government, U.S. allies, and others have begun to pay attention to this problem, yet to this day, they have not sufficiently appreciated the strategic implications that such a takeover would generate. To address this problem, the Pacific Forum has conducted a multi-authored study to raise awareness in Washington, key allied capitals, and beyond about the consequences of a Chinese victory in a war over Taiwan and, more importantly, to drive them to take appropriate action to prevent it. The study, which provides six national perspectives on this question (a U.S., Australian, Japanese, Korean, Indian, and European perspective) and fed its findings and recommendations into the second round of the DTRA SI-STT-sponsored (and Pacific Forum-run) Track 2 “U.S.-Taiwan Deterrence and Defense Dialogue,”[1] outlines these strategic implications in two alternative scenarios. In the first scenario, China attacks Taiwan and it falls with no outside assistance from the United States or others. In the other scenario, Taiwan falls to China despite outside assistance (i.e., “a too little, too late” scenario).
Topic:: Security, Conflict, Crisis Management, and Regional Politics
Political Geography:: Japan, China, Europe, India, Taiwan, Asia, Korea, and United States of America

2. Government Courtesans in the Northern Military Areas -- A Lecture with Hyun Suk Park

Author:: Hyun Suk Park and Jungwon Kim
Publication Date:: 04-2023
Content Type:: Video
Institution:: Weatherhead East Asian Institute, Columbia University
Abstract:: A 45-50-minute talk followed by Q and A. Professor Hyun Suk Park will discuss the courtesan culture of Chosŏn Korea by reflecting upon the intersections between state power, gender politics, and literary culture through travel writings and literary works.
Topic:: Politics, History, Culture, State, Literature, Power, Gender, and Military
Political Geography:: Asia and Korea

3. Carving Status at Kŭmgangsan – A Book Talk by Maya Stiller

Author:: Maya Stiller and Seong Uk Kim
Publication Date:: 03-2023
Content Type:: Video
Institution:: Weatherhead East Asian Institute, Columbia University
Abstract:: A 50-minute talk followed by Q and A with Maya Stiller, Associate Professor of Korean Art History & Visual Culture in the Art History Department at the University of Kansas, on Dr. Stiller’s recent book, "Carving Status at Kŭmgangsan," winner of the American Historical Association’s 2021 Patricia Buckley Ebrey Prize. Dr. Stiller’s book focuses particularly on elite graffiti in late Chosŏn Korea (17th to 19th centuries).
Topic:: History, Arts, and Graffiti
Political Geography:: Asia and Korea

4. Does Station Name Matter?: Rent Seeking Behavior and Its Impact on Housing Prices

Author:: Hwiwon Seo and Minsik Choi
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:: The purpose of this study is to investigate the effect of rent-seeking behavior for public goods on housing prices. To do so, we analyzed the case of renaming the Sinchoeon station to Jamsilsaenae station for the Seoul Metro Green line by applying the rent seeking theory and estimated the effect of the event on the housing prices of the affected neighborhood. The hedonic pricing model adopted by related studies does not produce unbiased estimates due to the endogeneity resulted from omitted variables including compounding macroeconomic variables. By developing a new dataset, we used the difference in differences regression method that produces more precise and unbiased estimates. Our results show that the housing prices affected by the renaming event increased by around 5% compared to those of non-affected neighborhood. Our analytical results can shed light on understanding related rent seeking behaviors for public goods provision.
Topic:: Economy, Macroeconomics, Housing, and Rent-seeking
Political Geography:: Asia and Korea

5. Next steps for the US-China strategic nuclear relationship

Author:: David Santoro, David C. Logan, Vahid Brown, Heather Williams, and Duyeon Kim
Publication Date:: 10-2022
Content Type:: Special Report
Institution:: Pacific Forum
Abstract:: Conducted with the generous support of the Carnegie Corporation of New York, this study seeks to provide an in-depth analysis of strategic nuclear issues of significance to the bilateral relationship to pinpoint the challenges to, and opportunities for, improving the current state of affairs between Washington and Beijing. The study, in other words, aims to propose an assessment of key issues and, insofar as possible, solutions or mitigation measures to address US-China strategic nuclear problems, including those that are seemingly intractable. It is motivated by the idea that even (or perhaps especially) when stark pessimism dominates, it is essential to be clear about what is in “the realm of the possible” to improve the situation, and to act on it.
Topic:: Security, Nuclear Weapons, Bilateral Relations, Nonproliferation, Strategic Competition, and Strategic Interests
Political Geography:: China, Asia, North America, Korea, and United States of America

6. Korean Newspapers, Korean Sovereignty over Dokdo and Ulleungdo, and Early Japanese Intrusions

Author:: Kyu-hyun Jo
Publication Date:: 04-2022
Content Type:: Journal Article
Journal:: International Journal of Korean Studies
Institution:: International Council on Korean Studies
Abstract:: Contrary to the Japanese Foreign Ministry's claim that Koreans never demonstrated any clear basis for its claims that it had taken effective control over Dokdo (Takeshima) before 1905, the Ministry ignores the critical role of the Korean media, especially major Korean newspapers such as the Hwangsŏng Newspaper and Dongnip Sinmun (Independent), in publicizing and mobilizing Korean nationalism through a sustained assertion of Korean sovereignty over Dokdo. By publishing articles which officially denounced Japanese intrusion into Dokdo or the Japanese government's feigned ignorance and disregard for such an act, or articles which explicitly discussed the long history of Korea's recognition of Dokdo and Ulleungdo as her nascent territories, Korean newspapers not only expressed Korean nationalism by incorporating anti-Japanese sentiment. They also emphasized Korea's ancient consciousness of national unity by clearly declaring that at the heart of such nationalism and rhetoric was a strong identification of Dokdo and Ulleungdo as Korea's historic territories. Korean newspapers were instrumental in publicizing Korean consciousness about Dokdo and Ulleungdo by not only reporting on Japanese intrusions into Dokdo, educating the Korean public on the ancient history of Dokdo and Ulleungdo, but also serve as crucial evidence proving that Japan willfully ignored Korea's national sovereignty and judicial authority to wrest away Korean sovereignty over Dokdo and Ulleungdo.
Topic:: Sovereignty, History, Newspapers, and Intrusion
Political Geography:: Japan, Asia, and Korea

7. Transitional Justice and Reconciliation in Asia: Lessons Learned from Korea, Sri Lanka, and Taiwan

Author:: Hun Joon Kim
Publication Date:: 07-2022
Content Type:: Commentary and Analysis
Institution:: East Asia Institute (EAI)
Abstract:: In this issue briefing, Dr. Hun Joon Kim, professor of Political Science and International Relations at Korea University, provides an overview and analysis of the ADRN’s Working Paper Series on Transitional Justice and Reconciliation in Asia. He finds that in Sri Lanka, Korea, and Taiwan, past instances of human rights violations were complex and unique; perpetrators, international dynamics, and the inevitable “politicization” of justice efforts have each created unique obstacles to and nuances in the pursuit of justice. Kim argues, however, that a few conclusions can be drawn from the three cases: first, that the trend in Asia is towards justice and away from impunity; second, that the transitional justice process is gradual, winding, and cannot be solved in one fell swoop; and third, that transitional justice is not simply a state-led process-the pursuit of reconciliation involves the entire nation: government, civil society, and civilians.
Topic:: Human Rights, Transitional Justice, Accountability, Reconciliation, and Reparations
Political Geography:: Taiwan, Asia, Sri Lanka, and Korea

8. Limits of Public Diplomacy and Soft Power: Lessons from the THAAD Dispute for South Korea's Foreign Policy

Author:: Maximilian Ernst
Publication Date:: 04-2021
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: This paper examines South Korea’s foreign policy towards China before, during, and after the Terminal High Altitude Area Defense (THAAD) missile defense dispute to investigate the limits of South Korea’s public diplomacy and soft power. South Korea’s official public diplomacy has the objective to “gain global support for Korea’s policies,” following Joseph Nye’s narrow definition of soft power. South Korea furthermore ranks high in the most relevant soft power indices. Based on the case of Chinese economic retaliation against South Korea in response to THAAD deployment, this paper argues that public diplomacy and soft power only work in the absence of traditional security contentions, but fail in the presence of such security contentions. The THAAD case also demonstrates the utility of traditional diplomacy, based on high-level summits and negotiations, to solve the very disputes that South Korea’s latent public diplomacy and soft power were unable to alleviate.
Topic:: International Relations, Foreign Policy, Diplomacy, Economics, and Weapons
Political Geography:: China, Asia, South Korea, and Korea

9. Northeast Asia Defense Transparency Index 2020-21

Author:: M. Patrick Hulme and Tai Ming Cheung
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: University of California Institute on Global Conflict and Cooperation (IGCC)
Abstract:: Growing distrust in East Asia, especially in the security arena, is increasingly critical as new and long-standing hotspots— including the Taiwan strait, Korean peninsula, East China Sea, and South China Sea—become more volatile. The need for confidence-building measures is clear, and a central tool of confidence building is defense transparency. The Defense Transparency Index (DTI), a project of the University of California’s Institute on Global Conflict and Cooperation, ranks six countries on their efforts to promote transparency in defense and national security, including the People’s Republic of China, Japan, the Democratic People’s Republic of Korea (DPRK), the Republic of Korea, and the major external powers most involved in the region—the United States and Russia.
Topic:: Security, Defense Policy, Geopolitics, and Transparency
Political Geography:: Russia, Japan, Taiwan, East Asia, Asia, North Korea, Korea, East China, and United States of America

10. Developing Effective Benchmark-Based Allocation for Industrial Sectors: The Case of the Korean ETS

Author:: Dong-Hyeok Kwon and Alistair Ritchie
Publication Date:: 06-2021
Content Type:: Working Paper
Institution:: Asia Society
Abstract:: Emissions trading systems (ETS) are increasingly being introduced as a way of cost-effectively reducing greenhouse gas emissions to meet ambitious national climate change targets, including Nationally Determined Contributions and net-zero long-term goals under the Paris Agreement. A key concern for governments and industry, however, is how to protect industry’s global competitiveness and prevent “carbon leakage”, that is, the transfer of production to world regions with less ambitious climate policies that would lead to an increase in total emissions. To address this concern, ETS allowances are typically allocated for free to greenhouse gas (GHG)-intensive or trade-intensive industries at risk of carbon leakage. The type of free allocation design is important because it directly impacts on the financial performance of companies. It also determines how companies are rewarded. Those that have invested more in GHG reduction technologies will be rewarded better under a benchmark (BM)-based allocation approach, where allocation is based on the level of production multiplied by an emissions intensity benchmark. Those that have invested less in such technologies will be rewarded better under a grandfathered approach, where allocation is based on historic emissions. However, while BM-based allocation is generally regarded as a fairer method, it is also considered more difficult to design and implement. This Asia Society Policy Institute issue paper, Developing Effective Benchmark-Based Allocation for Industrial Sectors: The Case of the Korean ETS, shows how BM-based allocation has been successfully implemented for some of Korea’s most important industrial sectors, steel and petrochemicals. It provides valuable insights and recommendations for other countries to develop an effective allocation system in a timely and efficient way.
Topic:: Climate Change, Trade, Carbon Emissions, and Paris Agreement
Political Geography:: Asia, South Korea, and Korea

11. The New Southern Policy Plus: What’s New and What’s Next?

Author:: Moe Thuzar
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Building on the New Southern Policy (NSP) implementation experience, and in recognition of the uneven impact of the Covid-19 pandemic on different populations in ASEAN, the ROK may consider the following operational dimensions of implementing the NSP Plus’ strategic thrusts. First, consultation of ASEAN’s collective and individual needs on each of the core strategy areas, leveraging on the ROK’s willingness to share and adapt its successful practices to meet the needs of its ASEAN partners. Second, synchronizing or aligning the NSP Plus’ regional thrusts with the ROK’s bilateral programs in the ASEAN countries, to ensure a seamless continuity of matching regional-level support with in-country requirements. Third, instituting a periodic or mid-term review mechanism for the NSP Plus implementation may help early identification of areas or priorities to adjust or revise, taking into account emerging needs and concerns. Ultimately, the ROK’s NSP niche will be the quality of its impact, in areas where the ROK’s strengths speak most to its “new southern neighbors.”
Topic:: Economy, ASEAN, and Regional Economy
Political Geography:: Asia and Korea

12. Field-by-Field Changes in China since Covid-19 and Implications for Korea

Author:: Jai Chul Heo
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: China has been able to escape from the Covid-19 outbreak relatively quickly compared to other countries. Nevertheless, it still remains greatly influenced by the Covid-19 pandemic across its politics, economy, society, culture, and other areas, which has led to various changes throughout China. Therefore, this study comprehensively examined the impact of the Covid-19 outbreak on various aspects of Chinese politics, economy, society, and culture. And in response to these changes in Chinese society, the study explores new strategies toward China in the post-Covid-19 era.
Topic:: Politics, Culture, Economy, COVID-19, and Society
Political Geography:: China, Asia, and Korea

13. The Effects of Free Trade Agreements on SMEs’ Direct and Indirect Exports

Author:: Kyong Hyun Koo
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: FTAs have been known to have large positive effects on trade creation between member countries. However, it is relatively unexplored how much small/medium-sized enterprises (SMEs) accounted for in the trade creation due to FTAs compared to large-sized enterprises (LEs). We find that Korean FTA policies have significantly increased SMEs’ direct exports to FTA partner countries between 2005 and 2017, although the effects were as much as a half of those for LEs, which indicates a considerable LEs’ premium in the direct export effects of FTAs. We further find that the FTAs also significantly increased the indirect exports of Korean firms, i.e., the domestic input supplies through in-dustrial input-output linkage, and that SMEs have benefited more from the indirect export effects of FTAs than LEs. Considering the direct and indirect export effects together, the LEs’ premium in the total export effects of FTA is found to become smaller.
Topic:: Treaties and Agreements, Economy, Free Trade, Exports, Trade, and Industry
Political Geography:: Asia and Korea

14. The Determinants and Welfare Implications of Labor Share

Author:: Sungbae An, Minsoo Han, Subin Kim, and Jinhee Lee
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: The decline in labor share is recognized as a global phenomenon. Concerns have been raised that this trend will exacerbate the income inequality between business owners as capitalists and households as the labor suppliers, prompting a decline in household income and consumption, which are major driving forces for sustainable growth. Meanwhile, various policy measures have been introduced to raise the labor share, with the aim of correcting inequality and boosting growth. This study explores the determinants of labor share and analyzes the effects of these factors on the economy and social welfare, offering various interpretations and policy alternatives according to economic conditions.
Topic:: Labor Issues, Inequality, Economy, Business, and Welfare
Political Geography:: Asia and Korea

15. What’s in the New Southern Policy Plus? An ASEAN Perspective on Building Niche-based Pragmatic Cooperation with South Korea

Author:: Chiew-Ping Hoo
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: It is clear that the NSP started off with the right messages and many Southeast Asian countries have been receptive to the initiatives. Despite the pandemic bringing a lot more challenges in implementing the policy initiatives, the NSP Plus has envisioned an innovation-oriented cooperation by transforming the traditional face-to-face operations to electronic and digitalized management. Public health cooperation is understandably the immediate focus, but such cooperation should be also seen as long-term fulfilment of the cooperation on the People pillar in the NSP. Infrastructure connectivity and South Korea’s cooperation in the building of an evolving East Asian regional architecture respectively enhance the Prosperity and Peace pillars. With patience, dedication, and commitment, the NSP Plus will be a long-lasting foreign policy legacy of Moon that brings benefits to Korea, ASEAN, and regional stability.
Topic:: Foreign Policy, Regional Cooperation, Political stability, Public Health, and ASEAN
Political Geography:: Asia, Korea, and Southeast Asia

16. Twenty Years of One Country Two Systems in China: Evaluation and Future Prospects

Author:: Jai Chul Heo
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study evaluated China's model of “One Country, Two Systems” (一國兩制) 20 years into operation and the bilateral relationship between Taiwan and Mainland China ‒ focusing on Hong Kong, Macau, and Taiwan ‒ and examined future prospects. The study is meaningful in that it conducts a more objective evaluation than the previous studies by empirically analyzing data accumulated over the past 20 years of implementation of the One Country Two Systems principle from various perspectives. In addition, it is also a timely study in that it analyzes how the One Country Two Systems arrangement is likely to develop in the future, and what impact this would have, making considerations for changes in China's national strategy during the Xi Jinping period and the competition for hegemony between the U.S. and China. The results of the analysis indicate that over the past 20 years China has been experimenting with the possibility of coexisting different systems in one country, and that the One Country Two Systems arrangement, as a new form of unification which has never been attempted in the history of mankind, has actually shown the possibility of success. However, in recent years, various political contradictions have been exposed in the process of implementing the arrangement, mostly in the Hong Kong society, and the resulting conflict has gradually intensified. While maintaining the current capitalist system for 50 years, Macau is expected to gradually progress in its “Sinicization,” with continuing active economic and social exchanges and cooperation with mainland China. As a result, Macau is expected to be fully incorporated into China's socialist system in 2049, 50 years after the return, but it is likely to remain a city of special character considering Macau's region and its economic structure. On the other hand, the One Country Two Systems arrangement with Hong Kong is expected to undergo a difficult process in the future. In the midst of various conflicts surrounding Hong Kong, the guarantee for Hong Kong’s autonomy is expected to end in 2047 amid efforts on the part of the mainland government to sinicize Hong Kong. And China wants to apply the philosophy of “One Country, Two Systems” to its reunification with Taiwan as well, but in reality this remains very low in possibility.
Topic:: Foreign Policy, Politics, Bilateral Relations, Hegemony, and Strategic Competition
Political Geography:: China, Taiwan, Asia, Korea, Hong Kong, and Macau

17. Labor Market Impact of Immigration in the European Union

Author:: Dong-Hee Joe
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Immigration is one of the factors often considered as the causes of Brexit. Researchers find evidences that regions with more immigrants from the new member states of the European Union (EU hereinafter) in eastern Europe tended to vote more in favor of Brexit in the 2016 referendum. Similar relations between the size of immigrant population and anti-immigration attitudes or far-right voting are found in other richer EU member states. A common explanation for this relation is the concern that immigrants negatively affect the outcome in the host labor market. Immigration is drawing attention in Korea too. Although immigrants' share in population is still substantially smaller in Korea than in the EU, its increase is noticeable. Also, certain industries in Korea are known to be already heavily reliant on immigrant labor. Recently, as entry into the country was tightened due to the COVID-19 pandemic, firms and farms are reported to have faced a disruption in production. This trend of increasing presence of immigrants in population and in the labor market, vis-à-vis the low fertility rate and rapid aging in Korea, is raising interest and concern on the socioeconomic impact of immigration. To offer some reference for the debates related to immigration in Korea, KIEP researchers (Joe et al. 2020 and Joe and Moon 2021) look at the EU, where immigrants' presence was much higher from much earlier on, and where the greater heterogeneity among the immigrants allows for richer analyses. This World Economy Brief presents some of their findings that are salient for Korea.
Topic:: Immigration, European Union, Brexit, and Labor Market
Political Geography:: Britain, Europe, Asia, and Korea

18. China’s FDI in Europe and Europe’s Policy Response

Author:: Pyoung Seob Yang, Cheol-Won Lee, Suyeob Na, Taehyn Oh, Young Sun Kim, Hyung Jun Yoon, and Yoo-Duk Ga
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: China’s investment in the European Union (EU) increased significantly during the European financial crisis, but has been on the decline in recent years. The surge of Chinese investment has raised concerns and demands for analysis on the negative effects it could have on the EU companies and industries. In this context, the present study aims to analyze the main characteristics of Chinese investment and M&A in Europe, major policy issues between the two sides, the EU’s policy responses, and prospects of Chinese future investment in Eu-rope, going on to draw important lessons for Korea. To summarize the main characteristics of China's investment in Europe, the study found that the EU's share of China's overseas direct investment has continued to increase until recently. Second, investment in the Central and Eastern European Countries (CEECs) is gradually increasing, although it is still insignificant compared to the top five destinations in the EU: Netherlands, Sweden, Germany, Luxembourg and France. Third, China's investment in the EU is being made in pursuit of innovation in manufacturing and to acquire high-tech technologies. When it comes to China's M&A in Europe, the study found that the proportion of indirect China's M&As (via third countries (e.g. Hong Kong) or Chinese subsidiaries already established in Europe) was relatively higher than direct ones. Empirical factor analysis of investment also shows that China's investment in the EU is strongly motivated by the pursuit of strategic assets. Other factors such as institutional-level and regulatory variables are found to have no significant impact, or have an effect contrary to expectations. This suggests that China's investment in the EU is based on the Chinese government's growth strategy, and accompanies an element of national capitalism Today, It is highly expected that the COVID-19 pandemic will have a reorganizing effect on the global value chain (GVC) and Foreign investment regulation in the high-tech sector motivated by national security is emerging as a global issue as the US and the EU are tightening their control. As Korean companies are not free from the risk of falling under such regulations, a thorough and careful response is required. And for the Korean government, it is necessary to prepare legal and institutional measures regulating foreign investment in reference to the US and the EU.
Topic:: Foreign Direct Investment, Financial Crisis, European Union, Economy, Economic Growth, Global Value Chains, and COVID-19
Political Geography:: China, Europe, Asia, Korea, and United States of America

19. Changing Environment for Opening of Chinese Financial Sector and Implications

Author:: Sangbaek Hyun, Suyeob Na, Young Sun Kim, Koun Cho, and Bongkyo Seo
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: The opening of China's financial sector has progressed at a very slow pace, unlike the manufacturing and trade sectors that have pushed for an active opening to the outside world. The Chinese economy has been growing rapidly while serving as a global production base, but since 2012, it has become necessary to modify its approaches to achieve growth as it enters an era of medium-speed growth. Recently, new reform and opening measures have been taken in various fields to improve the quality of the Chinese economy, and the need for reform and opening in the financial sector has also increased. Internally, the financial system centered on China's state-owned commercial banks has focused on indirect financing, which has served as a major obstacle to upgrading China's economy and industry to the next level, further increasing the need for reform and opening of the financial sector. Moreover, externally, the U.S.-China conflict which began in earnest in 2018, is applying strong pressure toward reform and opening in China’s financial sector. The Chinese government began to show a proactive attitude toward financial opening amid such internal needs and external pressure, and an important development was seen in China’s financial opening when President Xi Jinping declared further opening measures at the Boao Forum in April 2018. The Chinese financial authorities have prepared follow-up measures related to financial opening, and the Chinese government’s efforts toward financial opening in the three years from 2018 to 2020 yielded more results than the ten-year opening period since its accession to the WTO. Against this backdrop, this study examines the main contents of China’s financial opening process, which has been accelerating recently, and derives evaluation and implications.
Topic:: Finance, Economy, Economic Growth, and Banks
Political Geography:: China, Asia, and Korea

20. A Comprehensive Evaluation on Korea’s ODA to Rwanda’s Agriculture Sector and Its implications for Strategic Approaches

Author:: Young Ho Park, Minji Jeong, and Soo Hyun Moon
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: There has been a growing consensus in the national and international aid architecture that sporadic or scattered aid modality should be avoided. This study conducted a comprehensive cluster evaluation on Korea’s agricultural ODA to Rwanda between 2013 and 2017, with two newly devised indexes: Cluster Performance Index (CPI) and Resource Allocation Index (RAI). Every Korean agricultural ODA project was categorized into five clusters and numerically evaluated against criteria widely used in the evaluation of development projects: relevance, efficiency, effectiveness and sustainability. Our cluster evaluation reveals that projects are mostly planned appropriately, but in some clusters, large amounts of the budget have been invested in poorly planned projects. Regarding efficiency, there was considerable room for improvement in all clusters. Particularly, in the Monitoring and Evaluation (M&E) category, all clusters scored below average. Concerning performance evaluation, all clusters scored relatively high in effectiveness, specifically in goal achievement. Lastly, in terms of sustainability, risk management was found to be relatively inadequate in all clusters. Based on the lessons from the aforementioned observations and analysis results, this study suggests ODA quality can be improved by optimizing budget allocation, improving monitoring efficiency, creating synergistic effects through cluster linkage, and developing agricultural value chain program.
Topic:: Agriculture, Foreign Aid, Economy, and Value Chains
Political Geography:: Africa, Asia, Korea, and Rwanda

21. Economic Policies of GCC Countries in the Era of Low Oil Prices and Their Policy Implications for Korea

Author:: Kwon Hyung Lee, Sung Hyun Son, Yun Hee Jang, and Kwang Ho Ryou
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Over the past several decades, the six member countries of the Gulf Cooperation Council (GCC) have implemented economic policies for industrial diversification to lessen severe dependence on the oil industry. Such policy efforts have been driven by their awareness of macro-economic and structural risks from heavy volatilities in international oil markets in terms of fiscal and trade sectors. For instance, the drop in international oil prices reduces export performance in the oil and natural gas sectors, which in turn results in a decline in the stability of fiscal revenue. The recent trends of low oil prices since 2014, as well as high unemployment rates, have strengthened the policy regime for industrial diversification and job creation supported by mid- to long-term economic plans of the GCC countries. This report reviews what has been emphasized in the areas of industrial, employment, trade and investment policies. We then derive implications for Korean companies and policymakers for sustainable cooperation between Korea and the Middle East.
Topic:: Oil, Economy, Diversification, and Trade
Political Geography:: Asia, Korea, and Gulf Nations

22. The Effects of US-China Rivalry on Latin America and Their Implications

Author:: Sungwoo Hong, Yeo Joon Yoon, Jino Kim, Jeewoon Rim, and Jimin Nam
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: The conflict between the United States and China may be the issue of most importance as well as interest to the world, prior to COVID-19. This conflict between the two countries is appearing not only in the economic sector, but also in various field such as politics, diplomacy, and military affairs. Such competition between the two countries is likely to escalate further as multilateral systems such as the WTO are threatened and protectionism intensifies in the post-COVID-19 world. Even within Latin America, the competition between the two countries frequently appears in a variety of forms. Conflicts between the United States and China in Latin America tend to occur mainly in the infrastructure sectors. Furthermore, the United States pressured Latin American countries to choose between the United States and China, with the results of this pressure depending on the political orientation of the ruling government. In order to investigate the impact of retaliatory tariffs between the two countries on Latin American countries’ exports and welfare, we employ an event analysis for exports and computational general equilibrium (CGE) model for welfare, with Argentina, Brazil, Mexico, and Chile as the subject of our analysis. Based on the outcome of the event study, Brazil’s exports to the United States moderately increased due to the tariff imposition, and such an effect persisted for short term. Its exports to China rose considerably immediately after the tariff imposition, and then the impact tended to decrease over time. By contrast, it is difficult to conclude that the tariff imposition had a statistically significant and lasting effect on the exports of the remaining three countries to the United States and China. As a result of the analysis using the CGE model, meanwhile, the tariffs imposed between the United States and China trivially increased the welfare of Latin American countries.
Topic:: Foreign Policy, Economy, Tariffs, Exports, Trade, and Rivalry
Political Geography:: China, Asia, South America, Latin America, Korea, and United States of America

23. Five Insights into the ‘Comfort Women’ Protest Movement in South Korea: 2018-2020

Author:: Jihyeon Won and Josh Satre
Publication Date:: 03-2021
Content Type:: Commentary and Analysis
Institution:: Armed Conflict Location & Event Data Project (ACLED)
Abstract:: Protesters have been gathering in front of the former Japanese Embassy in Seoul, South Korea every Wednesday since January 1992. They call on the Japanese government to officially apologize to Korean victims who were coerced to render sexual services to Japanese military personnel before and during World War II (The Korean Council, 2021). The surviving victims and their supporters advocate for a just resolution to the sexual violence against ‘comfort women’ — those women forced to provide sexual services to Japanese officers and soldiers (Asian Women’s Fund, 2021). As one of the longest-running protest movements in South Korea, the ongoing demonstration movement has gathered broader support over time; has expanded geographically; and, despite obstacles, has continued to be a barometer for Japan-South Korea relations. This report examines five key elements of these demonstrations between January 2018 and December 2020, including the leading role of the Korean Council, the other main actors involved in the movement, the geographic spread of the demonstrations, increased counter-protests, and rising anti-Japan sentiment. As the issue of ‘comfort women’ remains unresolved despite nearly three decades of demonstrations, the movement is likely to persist due to broad support across Korean society, resilience in the face of counter-protest movements, and tense relations between Japan and South Korea.
Topic:: Bilateral Relations, Social Movement, Protests, and Comfort Women
Political Geography:: Japan, Asia, and Korea

24. Partnering for Africa’s digital future: Opportunities for the United States, South Korea, and India

Author:: Aleksandra Gadzala Tirziu
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Atlantic Council
Abstract:: Technological competition between the United States and China poses a special dilemma for African nations, whose prosperity depends on doing business with both Beijing and Washington. Although President Joe Biden is expected to assume a softer policy stance toward China—one couched in the language of human rights and liberal values, rather than power and strategic capabilities—competition will persist, driven by Beijing’s ambition to control the key technologies of the future. Rising US-China tensions may eventually force African nations to take sides. Speaking at the 2020 Munich Security Conference, then-US Defense Secretary Mark Esper warned allied nations that the use of Chinese company Huawei’s fifth-generation (5G) technology could compromise future intelligence cooperation with the United States. That’s a real problem for Africa because, together, Huawei and Chinese phone maker ZTE have built nearly 80 percent of Africa’s third-generation (3G) network infrastructure, while Huawei has built 70 percent of all fourth-generation (4G) networks and is competing to build all the future 5G networks in Africa. Chinese mobile-phone maker Transsion Holdings controls 64 percent of Africa’s feature phone market, and more than 40 percent of its smartphone market, and social media platforms such as TikTok and Vskit are fast becoming popular among Africa’s connected youth. For African leaders, disassociation from Beijing is becoming less and less feasible—or attractive. So too is closer alignment with the United States. Washington simply cannot match the large volumes of funding that Beijing extends to the continent. Recent conduct by leading US technology companies, including by Facebook and Google following the 2020 US presidential election, has additionally prompted a global pushback against US “big tech” that could make it harder for the US public and private sectors to compete and hold sway in African markets. Fortunately, there is a third way, both for African countries looking to avoid the crossfires of US-China competition, and for US policymakers seeking to bolster US competitiveness and influence in the region. The solution hinges on closer cooperation with emerging powers, notably South Korea and India, which have recently demonstrated their determination to better understand Africa’s challenges and prospects, and to figure out how their citizens could collaborate with African businesses and governments. For example, in his 2018 address to Uganda’s parliament, Indian Prime Minister Narendra Modi outlined “ten guiding principles for India-Africa engagement” that center on cooperation in digitalization, clean-energy technologies, and cybersecurity—a marked detour from the policies that have historically shaped India-Africa ties. South Korea-Africa relations under President Moon Jae-In have also entered a new phase, with an emphasis on commercial linkages and people-to-people collaboration. Both South Korea and India are rapidly expanding their technological capabilities, and their foreign policies also align well with US interests in the region, and vis-à-vis China. For Washington, cooperation with these emerging powers could keep the door open to US influence in Africa, and could help ensure that Beijing’s strategic foothold in the continent does not deepen. For African countries, such partnerships could help bypass the “either-or-ism” implicit in US-China competition, while encouraging greater diversity and agency in their foreign affairs. There is real opportunity for African states to realize the potential that such alliances could create, and to become significant multilateral actors, able to leverage their distinct assets and pursue their own interests. This report explores how.
Topic:: Science and Technology, Economy, Business, Space, and Innovation
Political Geography:: India, Korea, and Africa

25. The Special Role of US Nuclear Weapons

Author:: Matthew Kroenig
Publication Date:: 09-2021
Content Type:: Policy Brief
Institution:: Atlantic Council
Abstract:: This issue brief is based on Dr. Matthew Kroenig’s written testimony at a hearing on “Nuclear Deterrence Policy and Strategy” before the Strategic Forces Subcommittee of the Armed Services Committee of the United States Senate, conducted on June 16, 2021. US nuclear weapons play a special role in underpinning international peace, global security, and the US-led, rules-based international system. The nuclear threat to the United States and its democratic allies is growing: nuclear-armed, revisionist, autocratic powers (Russia, China, and North Korea) are relying more on nuclear weapons in their strategies, and they are modernizing and expanding their arsenals. In this new issue brief, the Scowcroft Center’s Matthew Kroenig explains why the United States needs to retain a robust, flexible, and modernized nuclear force to meet its national security objectives.
Topic:: Defense Policy, Nuclear Weapons, Science and Technology, Missile Defense, and Deterrence
Political Geography:: Russia, China, Iran, Asia, Korea, and United States of America

26. Nuclear priorities for the Biden administration

Author:: John Harvey and Robert Soofer
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: Atlantic Council
Abstract:: How can the administration of President Joseph R. Biden both address the deteriorating international security environment and follow through on campaign promises to reduce the role of nuclear weapons? Former nuclear deterrence policymakers John R. Harvey and Robert Soofer, from Democratic and Republican administrations, respectively, contend in this issue brief that the Biden administration can address the increasing nuclear threat to the United States, meet its commitment to reduce the role of nuclear weapons, and maintain bipartisan support for US nuclear policy.
Topic:: Defense Policy, Nuclear Weapons, Science and Technology, Nonproliferation, Missile Defense, and Deterrence
Political Geography:: Russia, China, Iran, Asia, Korea, and United States of America

27. The Implications of Korea’s Experience Supporting Democracy as a Global Narrative

Author:: Taekyoon Kim
Publication Date:: 10-2021
Content Type:: Commentary and Analysis
Institution:: East Asia Institute (EAI)
Abstract:: With many developing countries in need of help in settling democratization processes and systems, Korea is in a position to act as a bridge between developed and developing countries by sharing its knowledge and experience in democracy and political reform. Taekyoon Kim, a professor at Seoul National University, describes the main contents of Korea’s democratic aid, how to share the Korean democracy experience and the challenges and strategies for Korean democracy in the future. Through this, the author states that the direction of Korea’s democracy should move forward based on its experience and that Korea should use its democratic aid as an asset so that Korea can be recognized as a symbol of peace and democracy in East Asia.
Topic:: Democratization, Development, Reform, Democracy, and Peace
Political Geography:: South Korea and Korea

28. The Economic Effects of Multinational Corporation Withdrawal and Policy Implications

Author:: Minsoo Han, Hyuk-Hwang Kim, Hyelin Choi, Danbee Park, and Jisu Kim
Publication Date:: 03-2020
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: The shutdown of the GM Koreas Gunsan plant in May 2018 heightened social interest in the withdrawal of mutlinational corporations (MNCs). Against this backdrop, the forthcoming research The economic effects of multinational corporation withdrawal and policy responses studies the previous cases of MNC withdrawal, estimates the effects on labor market., and provides policy directions to address to the withdrawal. This note summarizes some of its important results.
Topic:: International Trade and Finance, Economy, Multinational Corporations, and Economic Policy
Political Geography:: Asia and Korea

29. Has the Ghost that Ruined the Country Been Resurrected? The Puzzle of South Korea’s Domestic and Foreign Policies

Author:: Jimmyn Pare
Publication Date:: 01-2020
Content Type:: Journal Article
Journal:: Revista UNISCI/UNISCI Journal
Institution:: Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:: Under changing dynamics such as US-China relations, the domestic and foreign policies of South Korea’s new government under President Moon Jae-in have shown favor to China and North Korea, which is somewhat contrary to previous administrations that maintained pro-American policies. This situation is very similar to the geopolitical circumstances of the Joseon Dynasty during the late nineteenth and early twentieth centuries before Korea was occupied by Japan. This article analyzes and compares the geopolitical situations and Korea’s domestic and foreign policies of the two periods. By doing so, this article argues that policy makers should be more prudent when deliberating what should be achieved in order to enhance the future of Korea, rather than how to ensure their own personal legacy or ambition for political power.
Topic:: Treaties and Agreements, Belt and Road Initiative (BRI), and Reunification
Political Geography:: Asia, South Korea, North Korea, and Korea

30. Understanding and Reducing Military Vulnerabilities of Civilian Nuclear Plants: The Case for the Northeast Asia

Author:: Jungmin Kang
Publication Date:: 05-2020
Content Type:: Case Study
Institution:: Nonproliferation Policy Education Center
Abstract:: A Fukushima-like nuclear accident does not have to be caused by nature. Similar results could be wrought by military attack that disabled its safety systems, including cooling and power systems of nuclear power plants (NPPs). This study shows hypothetical releases from a core meltdown or spent fuel pool fire of NPPs occurred by military attack such as missile attacks in some of Northeast Asia countries, with atmospheric dispersion and deposition calculations using the HYSPLIT code with historical meteorological data for the region.
Topic:: Energy Policy, Science and Technology, Nuclear Power, and Crisis Management
Political Geography:: Japan, Asia, and Korea

31. A New Horizon for the Korea-India Strategic and Sustainable Partnership under Korea's New Southern Policy

Author:: Choong Yong Ahn
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: India and South Korea, Asia’s third- and fourth-largest economies, respectively, established a Comprehensive Economic Partnership Agreement (CEPA) in 2010 and upgraded their relationship to a special strategic partnership in 2015. South Korean President Moon Jae-in’s “New Southern” policy and Indian Prime Minister Narendra Modi’s “Act East” policy share important objectives and values through which Korea and India can maximize their potential to pursue high tech-oriented, win-win growth. Both countries face the great challenge of diversifying their economic partners in their respective geo-economic domains amid newly emerging international geo-economic dynamics as well as rapidly changing Fourth Industrial Revolution technologies. Given the two countries’ excessive dependence on the Chinese market and potential risks and uncertainties involved in the U.S.-China trade war and related security conflicts, South Korea and India need to deepen bilateral linkages in trade, investment, and cultural contacts. South Korea-India cooperation is crucial in promoting plurilateralism, prosperity, and harmony in East Asia. This paper suggests a specific action agenda to fulfill mutual commitments as entailed in the “Special Strategic Partnership” between these two like-minded countries of South Korea and India.
Topic:: International Relations, Foreign Policy, Science and Technology, Bilateral Relations, and Industry
Political Geography:: United States, China, South Asia, India, Asia, South Korea, and Korea

32. Framing an Indo-Pacific Narrative in India-South Korea Ties

Author:: Jagannath P. Panda
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Both India’s and South Korea’s strategic choices are deeply influenced by the rapidly evolving Indo-Pacific construct, particularly amid a mounting U.S.-China rivalry. With India’s “Look/Act East” policy and South Korea’s “New Southern Policy” offering a perfect stage for deepened mutual cooperation, both nations need to further their relations to build Asia’s future while advancing their respective national interests. With both countries following stringent foreign policies as a result of the actions of their immediate neighbors, they present a geopolitically strategic complementarity for their relationship to prosper and emerge as one of the most important relationships in the region. Seoul’s hesitation to overtly embrace the “Indo-Pacific” concept is not really a barrier; rather a geo-political overture to discard the balance of power politics and pursue an autonomous foreign policy. India’s preference for the “Indo-Pacific” is equally based on strategic autonomy, imbibing universal values and an inclusive regional order. Both countries emphasize a free and rules-based Indo-Pacific and have immense potential to establish security and connectivity partnerships as the keystone of their bilateral ties. With India and South Korea understanding the economic importance versus security ramifications of China, and with Japan’s reemergence as a key regional, if not global actor, both countries need to bring serious strategic intent to their relationship. Making use of the ASEAN platform and bilateral dialogues, South Korea and India have the potential to become one of the strongest Indo-Pacific partners of the 21st century
Topic:: International Relations, Foreign Policy, Bilateral Relations, Partnerships, and Geopolitics
Political Geography:: China, South Asia, India, Asia, South Korea, Korea, United States of America, and Indo-Pacific

33. Taking stock: Where are geopolitics headed in the COVID-19 era?

Author:: Jeffrey Cimmino, Matthew Kroenig, and Barry Pavel
Publication Date:: 06-2020
Content Type:: Policy Brief
Institution:: Atlantic Council
Abstract:: The COVID-19 pandemic is a strategic shock, and its almost immediate, damaging effects on the global economy constitute a secondary disruption to global order. Additional secondary strategic shocks (e.g., in the developing world) are looming. Together, these developments pose arguably the greatest threat to the global order since World War II. In the aftermath of that conflict, the United States and its allies established a rules-based international system that has guaranteed freedom, peace, and prosperity for decades. If the United States and its allies do not act effectively, the pandemic could upend this order. This issue brief considers the current state of the pandemic and how it has strained the global rules-based order over the past few months. First, it considers the origins of the novel coronavirus and how it spread around the world. Next, it examines how COVID-19 has exacerbated or created pressure points in the global order, highlights uncertainties ahead, and provides recommendations to the United States and its partners for shaping the post-COVID-19 world.
Topic:: Security, Defense Policy, NATO, Diplomacy, Politics, European Union, Economy, Business, Coronavirus, and COVID-19
Political Geography:: Russia, China, South Asia, Eurasia, India, Taiwan, Asia, North America, Korea, United States of America, and Indo-Pacific

34. Democracy under siege: Advancing cooperation and common values in the Indo-Pacific

Author:: Kharis Templeman
Publication Date:: 01-2020
Content Type:: Policy Brief
Institution:: Atlantic Council
Abstract:: Over the past three decades, democracy has put down roots in many seemingly unlikely places across Asia, from Mongolia to Indonesia. At a time when democracy is in global retreat, the majority of these Asian regimes have demonstrated surprising resiliency, though many continue to suffer from glaring flaws: weak state capacity and accountability institutions, the absence of impartial rule of law, and uneven protection of political rights and civil liberties. This issue brief, “Democracy under Siege: Advancing Cooperation and Common Values in the Indo-Pacific,” by Dr. Kharis Templeman, examines challenges and opportunities for advancing cooperation and common values in the Indo-Pacific as the region faces an increasing challenge from China.
Topic:: Civil Society, Corruption, Diplomacy, International Organization, Politics, Reform, Elections, Democracy, Rule of Law, Norms, and Transition
Political Geography:: Japan, China, Taiwan, East Asia, Asia, Australia, Korea, and Indo-Pacific

35. Normalization by Other Means—Technological Infrastructure and Political Commitment in the North Korean Nuclear Crisis

Author:: Christopher Lawrence
Publication Date:: 07-2020
Content Type:: Journal Article
Journal:: International Security
Institution:: Belfer Center for Science and International Affairs, Harvard University
Abstract:: The 1994 Agreed Framework called for North Korea to dismantle its plutonium-production complex in exchange for civilian light water reactors (LWRs) and the promise of political normalization with the United States. Today, scholars look back at the Agreed Framework as a U.S. offer of “carrots” to bribe the regime, but this framing overlooks the credibility challenges of normalization and the distinctive technical challenges of building LWRs in North Korea. Political and technical analysis reveals how the LWR project helped build credibility for the political changes promised in the Agreed Framework.
Topic:: Nuclear Weapons, Politics, Science and Technology, History, Infrastructure, Crisis Management, and Normalization
Political Geography:: Asia, North Korea, North America, Korea, and United States of America

36. A Roundtable on Monica Kim The Interrogation Rooms of the Korean War: The Untold History

Author:: Mitchell Lerner, Judy Tzu-Chun Wu, Arissa H. Oh, Zachary M. Matusheski, Peter Banseok Kwon, and Monica Kim
Publication Date:: 09-2020
Content Type:: Commentary and Analysis
Institution:: The Society for Historians of American Foreign Relations (SHAFR)
Abstract:: A Roundtable on Monica Kim The Interrogation Rooms of the Korean War: The Untold History
Topic:: International Relations, Cold War, War, History, Military Affairs, United States, Korean War, and Diplomatic History
Political Geography:: South Korea, North Korea, Korea, and Korean Peninsula

37. Why Canada Must Embrace a Free and Open Indo-Pacific

Author:: Jonathan Berkshire Miller and Stephen Nagy
Publication Date:: 10-2020
Content Type:: Policy Brief
Institution:: Japan Institute Of International Affairs (JIIA)
Abstract:: How has Canada viewed the scope of its engagement in Asia? The traditional lens to look at such engagement has been through the Asia-Pacific framing – defining the region largely through our experience in the multilateral architecture such as the Asia Pacific Economic Cooperation (APEC) on the trade side, and the Association of Southeast Asian Nations (ASEAN) Regional Forum (ARF) on the political-security side. Canada was a founding member of APEC in 1990 and has been a dialogue partner in the ARF since its formation in 1994. Aside from these two main vehicles, Canada has been active in the international development space over the years through and is member of the Asian Development Bank, and more recently joined – while not before considerable internal debate – the Chinese-led Asian Infrastructure Investment Bank in 2017.
Topic:: Bilateral Relations, International Development, Multilateralism, Investment, Trade, and ASEAN
Political Geography:: Japan, China, Canada, Asia, North America, Korea, and Indo-Pacific

38. Americans Positive on South Korea Despite Trump’s Views on Alliance

Author:: Karl Friedhoff
Publication Date:: 10-2020
Content Type:: Special Report
Institution:: Chicago Council on Global Affairs
Abstract:: The Trump presidency has strained relations with several Asian allies, including South Korea. But the 2020 Chicago Council Survey results show that President Donald Trump’s repeated threats and bullying tactics on defense and trade issues with Seoul have done little to soften support among the American public for the alliance with South Korea. In fact, favorable views of South Korea are now at an all-time high.
Topic:: International Relations, Defense Policy, and Trade
Political Geography:: South Korea, North America, Korea, and United States of America

39. Defined Contribution Funded Social Security and Labor Supply: Focus on Mexican Social Security Reform in 1997

Author:: Sungwoo Hong
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Countries adopting a defined benefit pay-as-you-go (DB PAYG) regime have two options to solve the issue of financial unsustainability: (1) a parametric reform, which alters policies within DB PAYG regime, and (2) a structural reform, which changes the regime from DB PAYG to a defined contribution funded (DC) system. In this study, focusing on the structural reform of Mexico in 1997, I investigate whether structural social security reform affects labor supply. The findings suggest that the change in the social security regime increased both labor force participation and work hours per week. However, in the case of the elderly, the intensive margin effect on labor supply was not statistically significant.
Topic:: Reform, Tax Systems, Social Security, and Labor Market
Political Geography:: Asia, Korea, and Mexico

40. Bargaining and War: On the Communication Equilibrium in Conflict Games

Author:: Youngseok Park and Colin Campbell
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: We present a version of Baliga and Sjostrom’s (2012a) conflict games with two asymmetric players. The players contemplate whether to take an active engagement action to compel the leader of a neighboring state (an extremist) to give up his risky weapons. We show that a player with greater damage from the extremist is more likely to choose an active engagement action than a player with lesser damage. Furthermore, we examine cheap-talk communication equilibria with the extremist. The likelihood of both players choosing the active engagement action decreases by a hawkish extremist who can send a provocative message, if both players are coordination types. If both players are opportunistic types, a dovish extremist can send an appeasement message that causes one player to be more active while another to be more inactive. Lastly, we show that there does not exist any other communication equilibrium for either kind of extremist, for any other combination of player types.
Topic:: Political Economy, International Security, and Conflict
Political Geography:: Asia, Korea, and Global Focus

41. Determinants of Korean Outward Foreign Direct Investment: How Do Korean Firms Respond to the Labor Costs of Host Countries?

Author:: Hanbyul Ryu and Young Sik Jeong
Publication Date:: 09-2020
Content Type:: Working Paper
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Low cost of labor has been one of the major incentives that foreign firms invest in many developing countries. Yet, many developing countries including China and ASEAN have recently experienced a rapid increase in labor costs. Using the wage information provided by JETRO, this study examines how Korean FDI outflow is affected by the increase in labor costs of the manufacturing industry in host countries. The results indicate that the worker’s and engineer’s wages in Asian developing countries, who accumulated at least 3 and 5 years of work experience, have generally a negative impact on Korean FDI outflow. However, there exist positive relationships between the wages and FDI when the wages stay at very low levels. We do not find evidence that labor costs make a significant impact on Korean FDI outflow to European or Developed countries.
Topic:: Development, Foreign Direct Investment, and Labor Market
Political Geography:: China, Asia, and Korea

42. Development of the Russian Far East in 20 Years of the Putin Era: Seeking New Directions for Deepening Cooperation between Korea and Russia

Author:: Joungho Park, Seok Hwan Kim, Boogyun Kang, Pavel A. Minakir, Artem G. Isaev, Anna B. Bardal, and Denis V. Suslov
Publication Date:: 12-2020
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study is the outcome of a joint research project commemorating the 15th anniversary of the establishment of the cooperative relationship between the Korea Institute for International Economic Policy (KIEP) and the Institute for Economic Research of the Far Eastern Branch of the Russian Academy of Sciences (ERI). As is well known, the year 2020 marks the 30th anniversary of diplomatic relations between Korea and Russia. Therefore, it is time for the two countries to prepare for the “2.0 Era of Korea-Russia Cooperation” while comprehensively evaluating existing achievements and tasks. In particular, in order to build a sustainable relationship between the two countries, it is necessary to establish a strategic contact point between Korea’s New Northern Policy and Russia’s New Eastern Policy, which can be realized through bilateral and multilateral cooperation in the Far East. In this regard, the main purpose of this study is to understand the main directions, key objectives, and political and economic implications of Russia’s policies in the Far East, which have been strategically pursued since the launch of Putin’s fourth term, and to explore new opportunities and possibilities for development cooperation in the Far East. We hope that this book will serve as a useful guide to open a new path for Far East development cooperation marking the 30th anniversary of Korea-Russia diplomatic relations.
Topic:: International Cooperation, Politics, Bilateral Relations, Economy, and Putin
Political Geography:: Russia, Asia, and Korea

43. Approaches to Labor Demand Forecast in Developing Economies and Their Implications for Korea's ODA

Author:: Young Ho Park, Yejin Kim, and Minji Jeong
Publication Date:: 08-2020
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study aims to develop systematic labor forecast methods, thereby contributing to increasing the efficiency of TVET ODA. This study suggests a new labor demand forecast methodology that combines quantitative and qualitative analyses and applies it to Vietnam, estimating labor demand by occupations in the country’s wireless communication equipment industry. This methodology starts with a statistical projection of Vietnam’s future labor market and industry. Subsequently, this study uses an enterprise survey and stakeholder interviews to complement missing information, as Vietnam's statistical system, like that of many other emerging economies, lacks some detailed data. Currently, the “element occupations” group takes the largest portion in the labor demand by industry and occupation. According to our results, however, the “plant and machine operators and assemblers” group is expected to gradually increase, thus becoming the largest occupation group in the wireless communication equipment industry in the near future. Given the various circumstances surrounding the labor market in developing countries, other alternatives in addition to our hybrid method of combining quantitative and qualitative analysis can also produce well-founded labor force projections. This study suggests analytical methodologies using global value chain (GVC) and big data as innovative alternatives, which can complement the shortcomings of traditional evaluation methods. ODA implementing agencies would benefit from paying attention to the labor forecasting methods presented in this research, and devising policies supporting these methods in order to properly apply them in reality.
Topic:: Communications, Labor Issues, and Economy
Political Geography:: Asia, Vietnam, and Korea

44. Integrating Climate Change into Development Cooperation – Korea's Experience

Author:: Jione Jung and Jihei Song
Publication Date:: 08-2020
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Korea has reached milestones in development cooperation over the past two decades. At the same time, it has sought for various measures to better incorporate climate consideration in its cooperation activities. However, a number of challenges remain and further action is required in improving the system and practices to better integrate climate change into Korea’s development cooperation. We aim at providing an overview of Korea’s progress in integrating climate change into its development cooperation to share the experiences and to highlight some achievements. In doing so, we first review how other developed countries have promoted climate change integration. Through comparison with Germany, the United States, and Switzerland, we summarized several achievements made by Korea in the area of development cooperation. In addition, we identified areas for further improvement to better integrate climate change into development cooperation, as well as projections for the next phase of Korea’s development cooperation to begin in 2021.
Topic:: Climate Change, Development, and International Cooperation
Political Geography:: Asia and Korea

45. Foreign Aid to Fragile States: How Effective Does It Work?

Author:: Yul Kwon, Jisun Jeong, Yoon Sun Hur, Jihei Song, Aila Yoo, and Mi Lim Kim
Publication Date:: 09-2020
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Korea has put much effort into providing aid for fragile states in efficient and effective ways. As a part of such efforts, Korea established the Fragile States Assistance Strategy in 2017. However, there is still room for improvement in terms of the effectiveness of Korea’s Official Development Assistance (ODA) implementation under fragile and conflict-affected situations. Accordingly, the study aims to suggest policy suggestions for Korea’s development cooperation in fragile states by comparing and analyzing the current status, policies, and characteristics of aid to fragile states in major donor countries, including Germany, Australia, Denmark, and Japan. In addition, we review Korea’s case and draw following policy implications to tackle the remaining challenges. First, it is requisite for Korea to consolidate the whole-of-government approach and reciprocal coordination mechanisms to support for fragile states for overcoming fundamental causes of fragilites. Second, Korea should choose proper types of aid and sectoral aid allocation suitable for overcoming vulnerabilities and development challenges efficiently and effectively in fragile and conflict-affected states. Lastly, the Korean government should conduct a fragility analysis and manage projects systematically.
Topic:: Development, Foreign Aid, Fragile States, and Donors
Political Geography:: Asia and Korea

46. U.S.-China Technological Rivalry and Its Implications for Korea

Author:: Wonho Yeon
Publication Date:: 11-2020
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Recent developments in advanced technology are changing the concept of hegemonic competition. The key feature of technologies in the 4th Industrial Revolution is dual-use. Emerging technologies such as 5G, AI, big data, robotics, aerospace, supercomputers, and quantum computer-related technologies can be used for both civilian and military purposes. The more you invest in the development of advanced technologies, the closer you will be to economic and military hegemony. Therefore, it is no wonder that the U.S. harbors great concerns facing the rise of China in these advanced technologies. To estimate and compare the innovation productivity of the U.S. and that of China, this study constructs a structural estimation model in which each country produces international patents using R&D expenditures and R&D researchers. Empirical results have presented novel findings indicating that China’s innovation productivity has surpassed that of the U.S. since 2015. At the same time we can observe that the U.S. has the world’s largest intellectual property surplus and keeps expanding it, while China’s intellectual property deficit has been growing every year. Given the two contradictory facts - China’s high innovation productivity and low intellectual property balance - we can conclude that China is strong at “innovation” but weak at “invention.” Knowing this, the U.S. eventually began to target this vulnerability. This is the U.S.’ Tech-Decoupling strategy. To achieve U.S.-China tech decoupling, the U.S. has been strengthening trade and investment sanctions against China. In specific, the U.S. has been utilizing the Export Control Reform Act (ECRA), Section 889 of the 2019 National Defense Authority Act, and the Foreign Investment Risk Review Modernization Act (FIRRMA). In return, China is responding to the U.S. sanctions with the new “Long March” strategy rather than a tit-for-tat strategy. In other words, China has been setting long-term aims and responding to the U.S. sanctions by improving institutional arrangements, refining industrial policies, and developing its own technologies such as “Dual-circulation strategy” and “New Infrastructure Plan.” Ironically, increasing pressure from the U.S. is expected to further strengthen China’s R&D capabilities in advanced technology and accelerate its competitiveness in emerging industries. With the onset of the 4th Industrial Revolution, China is rapidly closing the quality gap and technology gap in major industries where Korea has a comparative advantage. If Korea does not adequately respond to changes, it may be difficult to maintain a comparative advantage over China. Thus, now that U.S.-China tensions are intensifying, Korea is facing a pivotal moment in determining the future path of its economy.
Topic:: Science and Technology, Sanctions, Investment, Innovation, Trade, and Strategic Competition
Political Geography:: China, Asia, North America, Korea, and United States of America

47. Special Commentary: COVID-19 and Indo-Pacific Strategy: Korea is Up, China is Down, and the US (For Now) is Out

Author:: John Schaus and Mr. Nathan P. Freier
Publication Date:: 05-2020
Content Type:: Commentary and Analysis
Institution:: The Strategic Studies Institute of the U.S. Army War College
Abstract:: The COVID-19 pandemic has led to over three million confirmed infections and more than one hundred thousand dead globally. In the United States, over sixty thousand people have died and more than 1 million have been infected. According to epidemiologists, this is only the first phase. Thus, near-term “success” against the outbreak reflects a current snapshot in time, not necessarily a permanent outcome. In light of our very preliminary understanding of the long-term impact of the outbreak and national-level responses, there are discernible trends about how countries’ responses are impacting their standing in key regions and around the world. Few regions offer such stark contrast in stories as the Indo-Pacific. In that region, South Korea is up, China is down, and the United States is out. These shifts may or may not endure. What is increasingly clear, however, is that ineffective responses—perceived at home or abroad—will limit policymakers’ freedom of action for some time to come.
Topic:: Foreign Policy, Military Strategy, Armed Forces, Pandemic, and COVID-19
Political Geography:: China, Korea, United States of America, and Indo-Pacific

48. The Origins of the Korean Language: A Linguist’s Perspective

Author:: J. Marshall Unger
Publication Date:: 04-2019
Content Type:: Journal Article
Journal:: International Journal of Korean Studies
Institution:: International Council on Korean Studies
Abstract:: On the basis of the comparative method, developed over more than two centuries of empirical study, the best results to date are that the presentday Korean and Japanese languages had a common source, called protoKorean-Japanese. Korean and Japanese are more similar to one another than either is to any of the languages spoken in adjacent parts of Asia. That is as far as pure linguistics takes us at present. Other scientific disciplines must be utilized to determine when and where proto-Korean-Japanese was spoken, when its speakers separated into pre-Korean and pre-Japanese groups, and when the descendants of those groups resumed contact on the Korean peninsula prior to the migration of most pre-Japanese speakers to Japan.
Topic:: Migration, History, Linguistics, and Language
Political Geography:: Japan, Asia, and Korea

49. Parameters VOL. 48 NO. 3 Autumn 2018

Author:: Antulio J. Echevarria II, Eric B. Setzekorn, Richard G. Malish, Kelly A. Grieco, Vinay Kaura, Paul E. Vera Delzo, Richard Milburn, and Brandon T. Euhus
Publication Date:: 01-2019
Content Type:: Special Report
Institution:: The Strategic Studies Institute of the U.S. Army War College
Abstract:: The Autumn issue of Parameters opens with a forum featuring two contributions that highlight some important Challenges for USCivil-Military Relations. The first contribution, “Policy Revolt: Army Opposition to the Korea Withdrawal Plan” by Eric Setzekorn, argues senior US Army leaders adopted a Fabian strategy of indirect resistance to Carter’s desire to reduce the number of troops stationed in Korea. The strategy worked. But the author leaves us wondering whether that success was a positive development for US civil-military relations. The second article, “The Walter Reed Scandal and the All-Volunteer Force” by Richard Malish, provides intriguing evidence that the American public might have put the AVF on a pedestal high enough that it harms civil-military relations. Our second forum, On Alliances and Coalitions, offers three essays addressing the importance of integrating disparate perspectives under a common strategy. The first article, “Fighting and Learning in the Great War: Four Lessons in Coalition Warfare” by Kelly Grieco, describes the key insights the United States and its allies drew, or ought to have drawn, during the First World War. All of these, as Grieco shows, have immediate relevance today. The second contribution to the forum, Vinay Kaura’s article “India-US Relations: From Distant Partners to an Alliance” suggests American and Indian interests are converging in a manner that makes an alliance between them, hitherto inconceivable, now a worthy objective. Paul Vera Delzo’s “Toward a Whole-of-Government Approach: Revamping Peru’s Strategy Process” describes how Peru can obtain greater efficiency and effectiveness from its strategies by integrating all government agencies. The final forum, On Clausewitz, presents two articles that challenge nontraditional interpretations of On War. Richard Milburn’s “Reclaiming Clausewitz’s Theory of Victory” takes on Emile Simpson’s “Clausewitz’s Theory of War and Victory in Contemporary Conflict” (Parameters Winter 2017–18). Milburn rejects Simpson’s view and maintains Clausewitz’s theory of victory remains relevant in the twenty-first century. Brandon Euhus’s “A Clausewitzian Response to ‘Hyperwarfare’ ” urges military planners to remember the human dimension of war, as expounded upon by military writers from Thucydides to Mao Zedong, is ultimately the decisive one.
Topic:: Security, International Affairs, Armed Forces, Military Affairs, and Army
Political Geography:: India, North America, Korea, and United States of America

50. The Missing Link in Understanding South Korea’s Foreign Policy: Panmunjom Declaration and Beyond

Author:: Jong-hwa Ahn
Publication Date:: 10-2019
Content Type:: Working Paper
Institution:: Pacific Forum
Abstract:: The Republic of Korea has chosen its alignment strategies and policy actions based on international dynamics and domestic constraints. South Korea’s domestic politics have had different effects on the recent administrations. Park Geun-hye had to accept the discontinuity of her foreign policy when she faced impeachment. Moon Jae-in, however, has pursued his dreams for inter-Korean relations despite systemic and domestic obstacles. In the spirit of neoclassical realism, this study identifies state-society relations and domestic institutions as key interventions in the calculus of foreign policy behavior amidst the critical influence of systemic variables. Whereas the Park administration disregarded the dynamics of domestic politics by putting state security above all else, the Moon administration has pursued a détente policy with a deep awareness of domestic politics. In a restrictive strategic environment, South Korea’s policy options are limited and the optimal choices are not necessarily the ideal ones. Foreign policy actions based on the dynamics of systemic structures and domestic politics have significant implications for Northeast Asia. State-society relations and domestic institutions have implications for the US-South Korea-Japan strategic triangle. Different strategic interests in the region place the triangle at risk in dealing with the North Korean security problem.
Topic:: Diplomacy and Peace
Political Geography:: South Korea and Korea

51. Concerning and Anticipating: A Struggling Korea for The Belt and Road Initiative

Author:: Feng Zhu, Haibao Wu, and Li Yue
Publication Date:: 04-2019
Content Type:: Special Report
Institution:: Pangoal Institution
Abstract:: The Belt and Road Initiative refers to the Silk Road Economic Belt and 21st Century Maritime Silk Road, firstly proposed by Chinese President Xi Jinping in late 2013. During Boao forum for Asia 2015, on March 28th, the Chinese government officially issued Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road, in which the Chinese government advocates peace and cooperation, openness and inclusiveness, and mutual learning and benefit. The Belt and Road Initiative is a way for win-win cooperation that promotes common development and prosperity amongst all the countries it spans. It is a road towards peace and friendship by enhancing mutual understanding and trust, and strengthening all-round exchanges. It promotes practical cooperation in all fields, and works to build a community of shared interests, destiny and responsibility featuring mutual political trust, economic integration and cultural inclusiveness.
Topic:: Diplomacy, Belt and Road Initiative (BRI), and Economic Development
Political Geography:: Asia, South Korea, Korea, and United States of America

52. Deter and Normalize Relations with North Korea

Publication Date:: 12-2019
Content Type:: Policy Brief
Institution:: Defense Priorities
Abstract:: The U.S. is strong and safe—North Korea is weak, deterred by U.S. power, and desperate for economic relief.
Topic:: Diplomacy, Nuclear Weapons, International Security, Sanctions, and Negotiation
Political Geography:: United States, Asia, North Korea, and Korea

53. UN Human Rights Council Elections for 2020-2022 and the Responsibility to Protect

Author:: Global Centre for the Responsibility to Protect
Publication Date:: 10-2019
Content Type:: Commentary and Analysis
Institution:: The Global Centre for the Responsibility to Protect
Abstract:: Today the UN General Assembly elected Armenia, Brazil, Germany, Indonesia, Japan, Libya, Marshall Islands, Mauritania, Namibia, Netherlands, Poland, Republic of Korea, Sudan and Venezuela to the Human Rights Council (HRC) for the 2020-2022 term. With the elections of Germany, Japan, Marshall Islands, Netherlands and Republic of Korea, 20 of the 47 Council members during 2020 will also be members of the Group of Friends of the Responsibility to Protect in Geneva.
Topic:: Human Rights, Ethnic Cleansing, Responsibility to Protect (R2P), and Atrocities
Political Geography:: Japan, Sudan, Indonesia, Poland, Libya, Brazil, Germany, Armenia, United Nations, Venezuela, Korea, Netherlands, Mauritania, Namibia, and Marshall Islands

54. Economic Relations between Russia and South Korea in the New Northern Policy

Author:: Liudmila Zakharova
Publication Date:: 12-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The New Northern Policy, proclaimed by the South Korean President Moon Jae-in in Vladivostok in September 2017, is designed to boost economic cooperation between Russia and South Korea. However, two years after a special presidential committee was created to plan and coordinate joint economic efforts, few results have been achieved. Bilateral trade has continued to increase with limited change to its structure: Russia mostly sends its mineral resources to South Korea and receives industrial products in return. New ROK investment in the Russian Far East has yet to occur, despite South Korea’s efforts to assist its businesses in finding profitable Russian projects. Seoul tried to convince Moscow that concluding a free trade agreement in the near future is necessary for intensified cooperation, but Russia prefers a more gradual approach to trade liberalization. InterKorean rapprochement in 2018 laid a foundation for further progress in the implementation of multilateral economic projects involving Russia if the international sanctions against North Korea were to be eased. Therefore, bilateral relations between Russia and the ROK can also be viewed from the perspective of promoting regional cooperation with North Korean participation.
Topic:: International Relations, Economics, and Bilateral Relations
Political Geography:: Russia, Asia, South Korea, North Korea, and Korea

55. South Korea’s Migrant Policies and Democratic Challenges After the Candlelight Movement

Author:: Darcie Druadt
Publication Date:: 10-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: South Korea’s deliberate liberalization of migration controls has facilitated the entry and stay of new types of residents from various ethnic, political, and national backgrounds. With this demographic shift comes new questions for the South Korean polity in terms of its expectations of rights and duties of residents in the country. South Korean citizenship has, until the past decade, been largely premised on belonging in two fields: shared ethnic descent and contributions to the nationstate development project. However, new residents, who are ethnically diverse and who contribute to the national project, are seeking greater rights and social welfare provisions just as Korean nationals are ambivalent about their inclusion in the democratic body politic. As a result, the migrant policies bring into sharper relief the contours of democratic discourse in South Korea today. Drawing from six months of immersive fieldwork conducted in South Korea, this paper analyzes the relevance of migrant rights and expectations in understanding the broader democratic challenges in South Korea. Examining the government’s institutionalization of certain migrant “categories”—namely, temporary labor migrants and so-called “marriage migrants”— the paper argues that South Korea’s treatment of diversity and the protection of individual rights should be analyzed more deeply to understand current trends in South Korean civil society and democracy.
Topic:: Civil Society, Demographics, Migration, Immigration, and Democracy
Political Geography:: Asia, South Korea, and Korea

56. Finding an Advocate: The Role of the Private Sector in Korea-Japan Relations

Author:: Jiwon Nam and Kristin Vekasi
Publication Date:: 06-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Tensions between South Korea and Japan are frustratingly persistent. Despite the shared interests of both countries, such as economic development in Southeast Asia, and keeping a robust alliance with the United States, South Korea and Japan maintain a bellicose relationship because of unresolved historical misunderstandings and territorial disputes. Inconsistent diplomatic policies and lack of strong leaders have made it difficult to prevent unnecessary hostility between South Korea and Japan. Fear of losing support has prevented politicians from pursuing friendly policies towards each other. Businesspeople, too, have been reluctant to pursue friendly policies towards each other, because of preconceived risks of being targeted for backlash. An examination of economic data shows these risks are minimal, and political tensions do not affect business or consumer behavior. Current efforts from both Korean and Japanese business organizations to improve cooperation include student exchange programs, recruitment processes, and public diplomacy. We urge the business community to advocate more to improve bilateral relations. Economic relations alone are insufficient to handle the task of improving a difficult relationship; there is also a need for leadership. In South Korea-Japan relations, the business community should step in and provide that role.
Topic:: Economics, Bilateral Relations, Business, and Private Sector
Political Geography:: Japan, Asia, South Korea, North America, Korea, and United States of America

57. From Failed Economic Interfaces to Political Levers: Assessing China-South Korea Competition and Cooperation Scenarios on North Korean Special Economic Zones

Author:: Théo Clément
Publication Date:: 06-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: While North Korea has developed Special Economic Zones for several decades now, these zones have attracted little attention from foreign investors, due to a mix of lack of economic reforms in the DPRK, the tense geopolitical situation, and China’s peculiar economic engagement towards North Korea. With the denuclearization process and North-South dialogue moving forward, this situation could change as South Korea’s announced policy of economic engagement with the North could provide Pyongyang the opportunity to play Beijing against Seoul to maximize its interests and attract foreign investment in Special Economic Zones from partners keen to maintain close ties with the DPRK.
Topic:: Economics, Bilateral Relations, Investment, Trade, and Denuclearization
Political Geography:: Asia, South Korea, North Korea, and Korea

58. Hypothesizing Kim Jong-un: A Framework for Analyzing North Korean Behavior

Author:: Bryan Port
Publication Date:: 06-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: A coherent North Korea strategy must proceed from a theory of North Korean politics, strategy, and decision-making. Structured analytic techniques, particularly the analysis of competing hypotheses (ACH), are instrumental in developing a theory and strategy. North Korea’s nuclear and missile programs serve a blend of internal and external purposes. A successful strategy that renders North Korean denuclearization must account for both types of purposes, determining which of the two are predominant. Applying ACH can assist in making such an assessment, setting a level of confidence, designing a strategy, and determining measures to assess the analytic foundation of the strategy and the measures used in executing the strategy. This paper tees up four potential hypotheses intended to explore North Korean intentions and assist in developing strategy. However, the intention of the paper is not primarily to make a case for a given hypothesis, but rather to explore the method in the hope that others may find the method useful and apply it to the important undertaking of North Korean denuclearization.
Topic:: International Relations, Weapons, Kim Jong-un, and Denuclearization
Political Geography:: Asia, North Korea, and Korea

59. Is Pyongyang Different in Washington and Seoul? English and Korean Language Policy Discourse on North Korea

Author:: Jeffrey Robertson
Publication Date:: 04-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: During 2017-18, international attention turned to the Korean Peninsula as the threat of conflict reached new heights. This led to an explosion in the growth of “North Korea watchers”— the community of scholars, analysts, government officers, NGO advocates, and journalists who commit a portion of their lives to following events in North Korea. Divides emerged in overlapping regional, professional, institutional (political), and linguistic differences that saw individuals take conflicting positions on key issues. This paper investigates just one of these divides—how language and culture impact policy discourse on North Korea. The study explores language as a source of division in the North Korea watching community. It uses Einar Wigen’s argument that international relations should be conceptualized as inter-lingual relations, which suggests that despite the narrowing of political vocabularies, residues of politico-cultural differences remain in how concepts are contextualized into discourse, even between close partners. The study assesses compatibility between English and Korean language conceptualizations of North Korea, through an assessment of core inputs into policy discourse. The study then discusses the implications for U.S.-South Korea relations, and ongoing efforts to strengthen Korean Peninsula security.
Topic:: International Relations, Security, Foreign Policy, Bilateral Relations, and Conflict
Political Geography:: Asia, North Korea, Korea, and United States of America

60. Converting Maximum Pressure to Maximum Leverage: The Role of Sanctions Relief in Negotiations with North Korea

Author:: Daniel Wertz
Publication Date:: 04-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The Trump administration’s maximum pressure campaign has led to the imposition of a nearly comprehensive international sanctions regime targeting North Korea and its nuclear weapons program. With negotiations underway, the question of whether to provide North Korea with partial sanctions relief in exchange for limited concessions on its nuclear program has been a major point of dispute between Washington and Pyongyang. This paper looks at sanctions as a form of coercive bargaining and examines the logic and challenges behind a strategy of incrementally exchanging relief from pressure for compliance with the sanctioner’s demands. It argues that taking an “all-or-nothing” approach to sanctions relief risks missing an opportunity to reduce the threat of North Korea’s nuclear program and squandering hard-won negotiating leverage, and outlines a framework for how a step-by-step approach might proceed.
Topic:: International Relations, Nuclear Weapons, Sanctions, and Denuclearization
Political Geography:: Asia, North Korea, North America, Korea, and United States of America

61. Renewable Energy in Trade Wars: Solar Power in South Korea’s Energy Mix and the Impact of Protectionism

Author:: June Park
Publication Date:: 01-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: This paper examines the impacts of global competition in solar panel production and the conflict of domestic interests among solar-related industries in the U.S. on South Korea’s solar-focused renewable energy policy. Examining the Moon Jaein administration’s energy policy amid the impact of the U.S. safeguard on South Korean solar panels, the paper argues a) the U.S. safeguard is a hindrance to South Korea’s path forward on solar panel production, and b) Moon’s sole focus on sustainability and his ambitious solar energy target will result in further adoption of lower-cost Chinese solar panels, foregoing the opportunity to upgrade South Korean panels. As South Korean firms announce their decisions to relocate to the U.S. to avoid U.S. safeguard tariffs, the paper recommends the destinations of South Korean solar panel exports be diversified and the goals of South Korean energy policy be centered on balancing cost, stability, and sustainability. The paper does not necessarily recommend a full-fledged drive on expanding solar energy use in South Korea; rather, it calls for the strategic reevaluation of energy policy upon which a clear and sound strategy for solar energy should be formulated.
Topic:: Energy Policy, Bilateral Relations, Trade Wars, Renewable Energy, and Solar Power
Political Geography:: Asia, South Korea, North Korea, Korea, and United States of America

62. The Case for Kaesong: Fostering Korean Peace through Economic Ties

Author:: International Crisis Group
Publication Date:: 06-2019
Content Type:: Special Report
Institution:: International Crisis Group
Abstract:: The Kaesong Industrial Complex, closed since 2016, was the most successful joint economic venture undertaken by North and South Korea. Reopening the manufacturing zone, with improvements to efficiency and worker protections, could help broker wider cooperation and sustain peace talks on the peninsula. What’s new? In 2016, South Korea shuttered the Kaesong Industrial Complex, breaking a modest but productive connection between the two Koreas. Crisis Group’s analysis sheds new light on the economic performance of firms operating at the Complex, demonstrating that the benefits for the South were greater than previously understood. Why does it matter? Beyond helping restart the stalled peace process, a deal to reopen the Complex in exchange for a proportionate step toward denuclearisation by North Korea could produce mutual economic benefits that help sustain South Korean support for talks and encourage Pyongyang’s commitment to peaceful relations. What should be done? As part of any deal to reopen the Complex, Seoul and Pyongyang should take steps to address problems that previously kept it from reaching its potential. The more efficiently, profitably and fairly it works, the better the Complex can help foster and maintain stable, peaceful relations between the Koreas.
Topic:: Economics, Bilateral Relations, Negotiation, and Peace
Political Geography:: Asia, South Korea, North Korea, and Korea

63. More than meets the eye in ROK ceding developing economy status

Author:: Dong Yan and Ma Tao
Publication Date:: 11-2019
Content Type:: Policy Brief
Abstract:: A large number of farmers in the Republic of Korea took to the streets of Seoul on Wednesday, protesting the government's recent decision to give up its developing country status at the World Trade Organization in future trade negotiations and thus lose the benefits accruing out of it. The protesters were worried that the decision would eventually lead to a drastic cut in state agriculture subsidies and tariffs. …… Given that countries could experience uneven development, gaining undue advantages in some areas while being weak in others, the WTO has prevented some developing countries from enjoying some of the special and differential treatments in certain fields. For instance, it has restricted the ROK and India from using measures to promote balance of payment. Besides, the Agreement on Trade-Related Aspects of Intellectual Property Rights, revised in 2003, allows countries that lack production capability to import nonproprietary medicines, which is opposed by the developed countries－and 11 countries including China, the ROK, Mexico and Turkey have agreed to implement the agreement only in emergencies.
Topic:: International Trade and Finance, Treaties and Agreements, World Trade Organization, and Trade
Political Geography:: China, India, Asia, and Korea

64. Can Memories of the Japan-Korea dispute on “Comfort Women” Resolve the Issue?

Author:: Gabriel Jonsson
Publication Date:: 10-2019
Content Type:: Journal Article
Journal:: International Journal of Korean Studies
Institution:: International Council on Korean Studies
Abstract:: About 80 percent of the estimated 70,000 to 200,000 ”comfort women” Japan took by coercion from 1932 to 1945 were Korean. The issue was long neglected by both countries for pragmatic reasons. When Korean women raised the issue around 1990 and the former comfort woman Kim Hak-sun came out in 1991, it emerged as a point of dispute. Solidarity organizations in both countries have contributed to raise the visibility of the issue. Museums in Seoul and Tokyo educate the public on victims’ suffering. However, increased awareness has not succeeded in producing a solution to the issue that satisfies both countries given their fixed positions. Japan has given no official apology to the victims. The crucial issue of legal responsibility remains unresolved. On December 28, 2015, Japan expressed an apology and agreed to provide $8.3 million for a foundation to be established by South Korea to support the victims. However, the issue remains unresolved since the victims were not consulted in advance of the agreement, as well as disagreement also on other issues.
Topic:: Human Rights, War, Women, History, Memory, Sexual Violence, and Comfort Women
Political Geography:: Japan, Asia, and Korea

65. How Does Protectionist Trade Policy Interact with FDI?

Author:: Jongduk Kim and Moonhee Cho
Publication Date:: 12-2019
Content Type:: Working Paper
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: In this study, we investigate the question whether importing countries’ implementation of protective trade measures, such as antidumping duties, leads to changes in foreign direct investment from trading partners. That is, we examine the prevalence of “ADP-jumping FDI” across countries. We use more recent and organized non-tariff measure data provided by the WTO I-TIP and Ghodsi et al. (2017), which can be matched with other trade-related variables. Using econometrically sensible identification strategies, the Tobit and the Heckman two-stage selection models, we find out that ADP-jumping FDI to importing countries prevails rather consistently around the world. These results are also consistent with those using Poisson and linear fixed effects models.
Topic:: Foreign Direct Investment, Trade, and Protectionism
Political Geography:: Asia, Korea, and Global Focus

66. Buying Allies: Payment Practices in Multilateral Military Coalition-Building

Author:: Marina Henke
Publication Date:: 04-2019
Content Type:: Journal Article
Journal:: International Security
Institution:: Belfer Center for Science and International Affairs, Harvard University
Abstract:: Many countries serving in multilateral military coalitions are “paid” to do so, either in cash or in concessions relating to other international issues. An examination of hundreds of declassified archival sources as well as elite interviews relating to the Korean War, the Vietnam War, the Gulf War, the Iraq War, the North Atlantic Treaty Organization operation in Afghanistan, the United Nations–African Union operation in Darfur, and the African Union operation in Somalia reveals that these payment practices follow a systematic pattern: pivotal states provide the means to cover such payments. These states reason that rewarding third parties to serve in multilateral coalitions holds important political benefits. Moreover, two distinct types of payment schemes exist: deployment subsidies and political side deals. Three types of states are most likely to receive such payments: (1) states that are inadequately resourced to deploy; (2) states that are perceived by the pivotal states as critical contributors to the coalition endeavor; and (3) opportunistic states that perceive a coalition deployment as an opportunity to negotiate a quid pro quo. These findings provide a novel perspective on what international burden sharing looks like in practice. Moreover, they raise important questions about the efficiency and effectiveness of such payment practices in multilateral military deployments.
Topic:: Security, National Security, Regional Cooperation, International Security, Military Strategy, Military Affairs, and Alliance
Political Geography:: United States, Iraq, Kuwait, Vietnam, Korea, and Somalia

67. Chinese, Russian, Japanese, and Korean Strategies for Northeast Asian Cross-Border Energy Connectivity

Author:: Gaye Christoffersen
Publication Date:: 07-2019
Content Type:: Journal Article
Journal:: Joint U.S.-Korea Academic Studies
Institution:: Korea Economic Institute of America (KEI)
Abstract:: In 2018, research was underway in Northeast Asia on several trilateral and multilateral initiatives for cross-border infrastructure connectivity involving China, Russia, both Koreas, and Japan. Infrastructure included railway lines, cross-border oil and gas pipelines, and power grids. Although most discussions of infrastructure group energy and railroad infrastructure together, energy infrastructure differs from rail transport due to a greater potential for asymmetrical dependence. Reviewing these projects, this chapter analyzes and compares the strategies of the five parties in the region that are exploring new connectivity.
Topic:: Energy Policy, Regional Cooperation, and Infrastructure
Political Geography:: Russia, Japan, China, Asia, and Korea

68. Hidden Memory and Memorials The Monument in Memory of the Korean Victims of the Atomic Bomb and the Remembrance of Korean Victims

Author:: Olga Barbasiewicz
Publication Date:: 01-2019
Content Type:: Journal Article
Journal:: Polish Political Science Yearbook
Institution:: Polish Political Science Association (PPSA)
Abstract:: During World War II, Americans dropped the atomic bomb on Hiroshima. Due to this atrocity, around 140,000 human beings lost their lives. Almost 20% of them were Koreans. It resulted in the sudden capitulation of Japan and caused the so called higaisha ishiki (awareness of being a victim) among Japanese society. Unfortunately, the question of Korean atomic blast victims has been forgotten and the Monument raised in Memory of the Korean Victims of the Atomic Bomb was placed in the peripheries of the Park. The aim of this paper is to analyze Hiroshima Memorial Park monuments, as locations that serve as political tools, with special emphasis on the issue of the Monument in Memory of Korean Victims of the A-bomb, which characterizes Japanese politics of remembrance towards Korea.
Topic:: Nuclear Weapons, Military Strategy, Memory, World War II, and Remembrance
Political Geography:: Japan, Asia, South Korea, and Korea

69. The Image of the North Korean in Contemporary South Korean Cinema

Author:: Roman Husarski
Publication Date:: 01-2019
Content Type:: Journal Article
Journal:: Polish Political Science Yearbook
Institution:: Polish Political Science Association (PPSA)
Abstract:: Confidential Assignment (Kongjo, Kim Sung-hoon), released on January 18, 2017 between DPRK nuclear tests, tells a story of two special agents. One is from North Korea and the other one from South Korea, and they unite to fight against a common enemy. Extraordinarily, the North Korean agent is portrayed as more formidable than his South Korean counterpart who is unable to match him in every field. Also, the North Korean agent is portrayed by a Korean super star, Hyun-Bin. In this paper, I analyze two other similarly themed movies: The Net (Kŭmul, Kim Ki-Duk) and Steel Rain (Kangch’ŏlbi, Yang Wooseok). All of them were released recently and were huge commercial successes in South Korea. The aim of the following paper is to show and analyze the evolution of the image of North Korean characters in South Korean cinema. During the analysis, the question of how the change from villain to super hero was possible is answered. The way in which the movies talk about inter-Korean relations and how they portray both countries is particularly important to understand the current political sentiments in the Peninsula and how it can affect the Moon Jae-in presidency.
Topic:: Mass Media, Media, Conflict, Theater, and Cinema
Political Geography:: Asia, South Korea, North Korea, and Korea

70. The Role of Official News Releases of the Korean Ministry of Culture, Sports, and Tourism in the Success of the Korean Wave

Author:: Jisung Yoo
Publication Date:: 10-2018
Content Type:: Journal Article
Journal:: International Journal of Korean Studies
Institution:: International Council on Korean Studies
Abstract:: This study investigates the South Korean government’s role in the success of the Hallyu [Korean Wave] and the growing global interest in Korean popular culture by examining official news releases on Hallyu issued by the Korean Ministry of Culture, Sports, and Tourism from 2007 to 2017. The author argues that the domestic news releases had a supporting role for artists and cultural products in South Korea; they didn’t directly contribute to Korean industrial economic growth. In contrast, the international news releases tended to play a leading role in promoting Korea’s positive image; they contributed to Korea’s industrial economic growth by means of cultural diplomacy and soft power. Statistical analyses were conducted to determine whether a significant relationship exists between domestic news releases and industrial economic growth. To provide evidence of the Korean Ministry of Culture, Sports, and Tourism’s leading role in promoting artists and cultural products abroad, the author examined and qualitatively analyzed English, Chinese, and Japanese language news releases. The findings revealed that the number of releases had no significant relationship with increased annual economic growth, which seems to come from the power of Hallyu itself, not the government’s support. The qualitative analysis shows that international releases were used as a tool to achieve foreign policy goals and advance a positive national image. This study contributes to the growing literature on Hallyu by discussing the dual role of official news releases.
Topic:: Government, Culture, Soft Power, popular culture, and Cultural Diplomacy
Political Geography:: South Korea, Korea, and Global Focus

71. K-pop Fans’ Reaction Videos and Their Implications for Korean Language Learning

Author:: Soojin Ahn
Publication Date:: 10-2018
Content Type:: Journal Article
Journal:: International Journal of Korean Studies
Institution:: International Council on Korean Studies
Abstract:: As social media platforms such as YouTube have become important access points for Korean popular music (K-pop), international fans have enjoyed recording and sharing their responses to K-pop music videos on social media. In particular, reaction videos have been the most convenient and popular way for many international fans to share their opinions on and reactions to K-pop songs with others. This study aims to investigate the unique characteristics of reaction videos to share K-pop fans’ cultural experiences through YouTube videos and discuss the potential use of such fans’ learner motivation and learning environment for Korean language education. Four YouTube reaction videos were investigated through thematic analysis and through a discourse analysis informed by interactional sociolinguistics. The findings show how the reaction video creators build a community with other fans by establishing familiarity through agreement, considering the audience, and exchanging information, not only about a specific song, but also about K-pop in general and Korean Wave genres. These creators also demonstrated multiliteracies by expressing their opinions and feelings through facial expressions, visuals, and dance. These creators make their reaction videos regularly, proving their long-term enthusiasm for K-pop and the Korean Wave. This research offers important implications for future Korean language education, which will embrace diverse groups of international learners who actively participate in K-pop fan activities online.
Topic:: Culture, Social Media, Language, Music, and YouTube
Political Geography:: Europe, Asia, South Korea, Korea, and United States of America

72. Will North Korea Denuclearize after the Singapore Summit? Lessons from the past

Author:: Naoko Aoki
Publication Date:: 07-2018
Content Type:: Working Paper
Institution:: Center for International and Security Studies at Maryland (CISSM)
Abstract:: Policy-makers, scholars, and analysts disagree about whether North Korea will take any meaningful denuclearization steps after its leader Kim Jong Un met with U.S. President Donald Trump in Singapore in June 2018. Many believe that the breakdowns of the 1994 Agreed Framework and the Six Party Talks process in the 2000s show that North Korea’s nuclear weapons program cannot be constrained through cooperation. According to this view, Pyongyang violated its previous commitments once it received economic and political benefits, and it will do so again. The underlying assumption is that Washington was fully implementing its own commitments until Pyongyang broke the deal. But is this true? This paper discusses three key findings drawn from an analysis of U.S. implementation of past denuclearization agreements with North Korea. The first is that the United Stated did not always follow through with its cooperative commitments because of domestic political constraints, even when North Korea was fulfilling its commitments. This makes it difficult to determine whether North Korea ultimately did not honor its obligations because it never intended to or because it was responding to U.S. actions. The second is that some parts of past deals were more susceptible than others to being undercut by domestic opposition because they received insufficient political attention. The third is that such domestic interference could be minimized by obtaining the widest possible coalition of domestic support from the negotiation stage. The roadmap for North Korea’s denuclearization is unclear, as the Singapore summit did not determine concrete steps toward that goal. Secretary of State Mike Pompeo’s visit to Pyongyang in early July also did not yield specifics such as the scope and timeline of denuclearization. But based on the findings from past agreements, this paper argues that the only way for the United States to find out if engagement will work this time is to test North Korea’s intentions by carrying out Washington’s own cooperative commitments more consistently than in the past.
Topic:: Diplomacy, Nuclear Weapons, Military Strategy, Nonproliferation, and Deterrence
Political Geography:: United States, Japan, China, Asia, South Korea, North Korea, and Korea

73. North Korea’s Military Strategy, 2018

Author:: Chun In-bum
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: As the focus shifted from North Korea’s military advances in 2017 to its diplomatic offensive in 2018, we should not lose sight of the strategic thinking behind gaining the maximum time to develop the capacity to extend its military threat. At present North Korea needs time to perfect its nuclear strike capability. It has been very successful in developing missile capabilities, but it needs additional time to achieve its goals. Starting with high-level North-South talks on March 5, 2018, the DPRK has just gained what it needs most: time. Whenever the first talks begin with the United States and the DPRK, there should be no surprise if the DPRK comes with an improved capability to threaten the alliance. Thus, for an extended period in 2018, as diplomacy proceeds, we should expect a subdued North Korean approach: not flaunting its nuclear weapons and missiles, while striving to boost capabilities for the struggle ahead. In the seven years since Kim Jong-un officially inherited the leadership of the DPRK, his stated policy has been byungjin ( 병진, 竝進), the pursuit of both economic and military development. In conjunction with purges and efforts to eliminate rivals, byungjin may, in part, derive from Kim’s efforts at the outset of his tenure to consolidate political power. Through it, Kim displayed moderate economic flexibility, thereby gaining favor with the North Korean people through facilitating an improvement in living standards. It is tempting to see byungjin as a sign of the regime’s weakness, or as an indication of moderation, either of which would prompt the eventual collapse of the Kim regime. Correspondingly, one might see it as a reflection of Kim’s immaturity, inexperience, and lack of political and strategic acumen. These viewpoints reflect mirror imaging more than a sophisticated understanding of North Korea. Byungjin may be more of a political device and a strategic communications element of a grand strategy, as opposed to the regime’s strategy. It may be a significant instrument in the regime’s effort to maintain elite cohesion and focus the energies of the North Korean people toward productive pursuits that likewise add to the regime’s legitimacy and staying power. It by no means suggests any diminishing of the priority of making advances in nuclear and missile development in order to pose a more serious threat. Since taking power, Kim’s regime has fired close to one hundred missiles of wide variety and range compared to thirty-one for his father and grandfather combined. He has also conducted four nuclear tests, boasting of a thermal nuclear capability. During his 2018 New Year’s address, Kim Jong-un proclaimed that the DPRK had perfected its nuclear and intercontinental missile capabilities, supporting North Korea’s constitutional claim to be a nuclear power. Despite an upsurge in diplomacy after this address, we should keep our eyes on its military advances.
Topic:: Diplomacy, Economics, International Security, Military Strategy, and Weapons
Political Geography:: Asia, North Korea, and Korea

74. North Korea’s Economic Strategy, 2018

Author:: William B. Brown
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: This chapter takes the perspective of North Korea’s leadership as it confronts difficult economic problems in the remaining months of 2018. The major current and potential issues are listed and prioritized. Short and longer-term remedies are presented, each with trade-offs that affect other economic and policy issues. Given the absence of direct reporting from North Korea, the issues and debates presented are speculative, designed to give the reader a more comprehensive understanding of North Korea’s current problems than is ordinarily presented in western media. Kim Jong-un’s recent diplomatic offensive, reaching out to South Korea, China, and the United States is, in this view, suggestive of these internal economic troubles in addition to the nuclear security issues. The troubles are both short-term—the collapse in trade with China in just the past few months—and long-term, the slow-motion collapse of the communist country’s “command” economy. And much more than in the past, the problems relate to the regime’s unusual and dangerous monetary system, money being a normal issue for most governments but a relatively new one for this still partially rationed, or planned, oriented system. The leadership may have little choice but to let the domestic economy move further from the plan—allowing decentralized market and private activities more sway—than ever before. This would help cushion the central government from losses due to the sanctions and open the door to a much more prosperous future. Without major moves in this direction, inflation and unemployment may cascade into social crisis. It should be noted, that the recent Assembly Meetings, which annually focus on the economy, gave little official indication of policy changes, only a sense of digging in further to protect the regime from outside forces. But just a week later, Kim may have telegraphed an upcoming sea change when, in his address to the Party Central Committee plenum, that he is instituting a new Party Line, socialist economic construction, as the total focus of the Party and the country. Major changes, if they are to occur, will likely come after the upcoming important summits with South Korea and the U.S.1 There is little doubt that the economy in 2018 is in very poor condition, delivering one of the worst productivity rates—productivity in terms of labor and of capital—in the world, but it is important to recognize that this is due not to natural circumstances but to decisions the government has made over the years, and trade-offs it has already made. This suggests that astute government policy can create solutions and restore growth. Remedies of the sort expressed here, for example in liquidating, that is selling or leasing state assets to private buyers, raising fixed prices for state delivered electricity and for water and other utilities, and giving large pay raises to the millions of state workers who now rely on rations, while culling their numbers, would require difficult economic and social trade-offs; one might say there is no free lunch for Kim and his regime although no doubt they are looking for one, even in these summits. The chapter discusses just what kinds of decisions might be made and the likely consequences. Negotiations being set with South Korea and with the United States, and likely more discussions with China, may weigh heavily in how far Pyongyang will be willing to go in these respects. In my view the regime will be looking for: outright aid, payments for pushing back the nuclear weapons program, and premature relief from sanctions, which would only give the regime time to avoid the hard choices needed to permanently fix the broken economic system.
Topic:: Diplomacy, Economics, Sanctions, Services, and Trade
Political Geography:: China, Asia, North Korea, and Korea

75. North Korea’s Diplomatic Strategy, 2018

Author:: Mark Tokola
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: With an outbreak of diplomacy under way for the Korean Peninsula, a review of North Korea’s approach to negotiations is timely. A summit between North Korean leader Kim Jong-un and South Korean President Moon Jae-in was held on April 27. President Trump has accepted an invitation to meet with Kim Jong-un.1 The secretive nature of the North Korean state makes it difficult to assess how it will engage with and what it expects to gain from talks with the international community—not just with the United States and South Korea, but with China, Japan, Russia, the EU, and others. However, its past behavior, official statements, the testimony of defectors, and the expert opinion of North Korea watchers can provide helpful insights. This chapter presents a brief history of talks and agreements with North Korea prior to the inauguration of Trump, followed by an overview of North Korea’s diplomatic outreach in 2018 to date. It then presents indicators as to what North Korean diplomacy may look like through the rest of the year based on assessments of its stated and implicit objectives—ends it would wish to attain in any event, either through diplomacy or by coercion. I conclude with a list of key upcoming dates and scenarios describing how North Korean diplomacy may play out for the remainder of 2018. North Korea’s recent diplomatic moves mark an abrupt policy change. During 2017, it carried out in defiance of UN Security Council resolutions three test flights of intercontinental ballistic missiles (ICBMs); conducted its fifth and sixth underground nuclear tests, the latter being the most powerful to date and almost certainly thermonuclear; threatened an “unimaginable attack” against the United States;2 and officially announced that it would “never give up its nuclear weapons.”3 If North Korea is indeed now willing to negotiate denuclearization with the United States and South Korea, its diplomacy can at least be described as agile.
Topic:: Security, Diplomacy, Nuclear Weapons, and Weapons
Political Geography:: Asia, South Korea, North Korea, and Korea

76. North Korea’s Public Relations Strategy, 2018

Author:: Eun A Jo
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Tension on the Korean Peninsula had reached a boiling point by the time Kim Jong-un delivered his New Year’s address—a tradition set by his grandfather that he had revived in 2013. Beyond the talk of a “nuclear button,” which triggered another round of fiery exchanges with Donald Trump, Kim devoted a considerable segment of his speech to calling for improved inter-Korean relations. Though signaling an ambiguous friendly overture to the South has become an annual exercise for Kim, this year’s speech was uncharacteristically specific in that he offered to send a delegation to South Korea’s highly anticipated Pyeongchang Winter Olympics. But sports diplomacy is hardly new to Kim; an avid sports fan himself, Kim is acutely aware of its propaganda value and utility as a channel for diplomacy. For Kim, the Pyeongchang Olympics presented a timely opportunity to remake the regime’s flailing image at home and abroad. In this chapter, the Pyeongchang Olympics are used as a case study to understand Kim’s public relations strategy. Before exploring the strategic intentions behind Kim’s diplomatic campaign, both the old and new features of his image-making efforts are examined, focusing in particular on his use of sports diplomacy. How Kim’s charm offensive in Pyeongchang is communicated internally and received externally is then analyzed, yielding important insights about the prospects of reconciliation between the two Koreas post-Olympics.
Topic:: Diplomacy, Weapons, Public Relations, Olympics, and Kim Jong-un
Political Geography:: South Korea, North Korea, and Korea

77. Japan in the Driver’s Seat? Reshaping the Regional Trade Order without the United States

Author:: T. J. Pempel
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: On January 28, 2018 representatives from eleven countries, following the strong leadership of Japan, agreed to a modified version of the Trans-Pacific Partnership (TPP). This new pact —renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP), or TPP-11—was formally signed in Chile on March 8. The treaty will take effect once ratified by at least six member countries. Japan is planning to push the treaty through the Diet within 2018 and anticipating that it will come into force sometime in 2019. The agreement represented a major recovery by the eleven countries following initial expectations that TPP was dead after the election of Donald Trump. Trump, as an early follow through on his xenophobic and unilateral campaign promises, signed an executive order pulling the United States out of the TPP within one hundred hours of his inauguration. With that stroke of his pen, Trump wiped out 10 years of work on the so-called “Pacific” route to regional trade integration, anchored on the U.S. market. It also defied multiple analyses demonstrating the strong economic benefits that TPP would provide for the United States. Turmoil immediately prevailed among the remaining eleven signatories. Japanese prime minister Abe, for example, only weeks after Trump’s election announced, “TPP is meaningless without the U.S.” Singaporean prime minister Lee Hsien Loong argued, “if the TPP does not go ahead, it would be a great loss for the rest of the member economies.” The National Interest was typical in its skepticism about both the survival of TPP and the long-term implications for the Asia-Pacific. In an article entitled “TPP is Dead; Now What?” it observed: “The United States’ withdrawal not only throws away the potential for a trade agreement but may cause countries that expended significant political capital for the TPP to retreat from free trade for the foreseeable future.” That China will be the primary beneficiary of Trump’s withdrawal was a widespread conclusion.5 In fact, as the signing of the CPTPP indicated, all eleven countries were prepared to recommit themselves to the deal and to continue to advance the goals of a liberal trading order in the region.
Topic:: Treaties and Agreements, Economy, Trans-Pacific Partnership, and Donald Trump
Political Geography:: Japan, China, Asia, North America, Korea, and United States of America

78. Advancing the Regional Trade Order in East Asia with a Less Engaged United States

Author:: Korea Economic Institute of America
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: In the aftermath of Donald Trump’s election and immediate pullout from the TPP, a scramble ensued over how to proceed with constructing a regional trade order centered on East Asia. For China this brought closer scrutiny of its pursuit of the Belt and Road Initiative (BRI). In the case of Japan, questions followed about what to do with the residue of TPP. Others, notably countries in Southeast Asia, were left contemplating the balance between eastern exclusive regionalism and the western presence in regionalism. In the background were efforts in South Asia aimed at advancing economic integration with East Asia. A kind of free-for-all was in progress without the moorings that had been lost after the paradigm of competition between a U.S.-led TPP and a China hub-and-spokes BRI no longer was guiding the strategic calculations of Asian countries. Then, in March 2018 came Trump’s disruptive tariffs, threatening to set a trade war in motion. Four chapters explore the challenge of advancing a regional trade order in East Asia in the new circumstances of 2017-18. Tu Xinquan in Chapter 10 questions whether BRI is a path toward regionalism, delving deeply into the Chinese strategy for BRI. T.J. Pempel follows in Chapter 11 by exploring Japan’s thinking about TPP and the process of refocusing on TPP- 11 following the U.S. withdrawal. Chapter 12 by Sanchita Basu Das offers a hopeful ASEAN perspective on economic regionalism. Finally, in Chapter 13 Pradumna Bickram Rana traces thinking about re-energizing economic integration between South Asia and East Asia. With no finality to the RCEP talks and the recently concluded TPP-11 pact still taking shape and Trump’s “America First” trade policy casting a dark shadow, we aim to capture signs of a new trade order at a time of flux.
Topic:: Economics, Regional Integration, and Trade
Political Geography:: Japan, China, East Asia, Asia, and Korea

79. Chinese Views of Korean History in the Late 19th and Early 20th Centuries

Author:: Kirk W. Larsen
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: In July 2014, Ambassador Qiu Guohong in preparation for Xi Jinping’s visit to Seoul stated that the “relationship between South Korea and China couldn’t be any better.”1 Among the many reasons for this—economic, geostrategic, cultural—was a shared sense of history. China and Korea, officials and commentators in both nations claimed, were close because of their agreement regarding the significance of their experiences as victims of foreign, particularly Japanese, imperialism in the 19th and 20th centuries. History, that constellation of memories, stories, and notions about the past, has often been deployed to reinforce conceptions of identity, to support certain courses of action, and to demarcate between the in-group and the other. But history is ever malleable and protean. Not only do individuals, institutions, and ideas change but so does the understanding of them. When one draws on the past, one inevitably focuses on a limited set of events or narratives that best serve one’s interests—to the exclusion of potentially equally valid candidates. Their utility can vary over time; one need only think of how figures such as Zheng He or Confucius have been imagined and re-imagined over the last century. This has been the case with the history of relations between China and Korea from the latenineteenth to the mid-twentieth centuries. For many Chinese, Korea has served first as a subject of contestation as China’s position in Korea was challenged by both Western and Japanese powers. Then, when it became increasingly clear that China (or the Qing Empire) was losing this contest, Korea became an omen of China’s own fate absent significant course changes. As Japan’s growing empire engulfed Korea and subsequently threatened parts of China, resistance served to bring China and Korea closer; many in China celebrated what they saw as courageous resistance to Japan—such as when An Chunggun assassinated Ito Hirobumi in 1909. Shared status as victims of Japanese imperialism in an age of “humiliation” brought the two closer, and the mutually shared memory of “humiliation” has been deployed by contemporary Chinese and South Korean leaders—Xi Jinping and Park Geun-hye—to foster greater levels of cooperation. However, past conceptions of China, Korea, and the Sino-Korean relationship have sometimes ranged far afield from the cherished tropes of humiliation and the struggle for independence. Even seemingly universally agreed upon symbols, such as An’s heroic 1909 assassination, find themselves subject to changing interpretations such as recent emphasis by some on his pan-Asian vision of Sino-Korean-Japanese cooperation rather than his bold anti-Japanese act. As interests and priorities change, so does the utility of any particular historical narrative.
Topic:: International Relations, Diplomacy, Imperialism, and History
Political Geography:: China, Asia, South Korea, North Korea, and Korea

80. Chinese Views of Korean History to the Late 19th Century

Author:: Gilbert Rozman
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: In the tradition of imperial China and communism, Chinese publications see history as a morality tale. In the case of Korean history to the late decades of the nineteenth century there are essentially three actors: virtuous China, evil Japan, and variable Korea. There are three critical periods which receive the bulk of attention: the 7th century, the late 16th century trailing into the 17th century change of dynasty in China, and the last decades of the 19th century. The narrative advances the notion of competing visions of regional order, contrasting Chinese and Japanese frameworks and examining Korean policies in light of the choices made between these options. Official Chinese narratives couch today’s opportunities in historical context. A battle rages between socialism and capitalism, offering China a unique prospect to tip the balance. This is not only a present-day challenge; it is a struggle over consciousness of history—a campaign against “historical nihilism” that disagrees with orthodoxy in support of communist party legitimacy and the rectitude of Chinese civilization. A speech given by Xi Jinping in July 2010 at the Central Party School and only recently made available leaves no doubt about the tight censorship imposed on publications about history. South Korea’s history is especially sensitive as the poster-child for the benevolence of the imperial Chinese regional order, the battleground for the key war fought by China to maintain its surroundings against capitalist encroachment, and a chief testing grounds for the rejuvenation of China against U.S. hegemonism and Western civilization. Premodern history is an inseparable part of this agenda.
Topic:: Imperialism, Politics, History, Capitalism, and Socialism
Political Geography:: China, South Korea, North Korea, and Korea

81. The U.S.-Japan-ROK Trilateral: Better at Deterrence than Diplomacy?

Author:: Sheila A. Smith
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Once more, the United States, South Korea, and Japan have confronted a crisis with North Korea. The pattern is now well established. First, there is a provocation—a missile test, a nuclear test, and even worse, the use of force. Next, the United States and its allies in Northeast Asia muster their forces, strengthen their trilateral policy coordination, and sanction the belligerent Pyongyang. The three nations advocate for the accompanying effort by the United Nations Security Council to condemn North Korea’s behavior. Setting aside their political differences, Seoul and Tokyo intensify their military cooperation and Washington calls for greater trilateral unity in confronting a shared security challenge. In 2017, policymakers in Seoul, Washington, and Tokyo found themselves in a similar cycle but with the threat of war ever more real. The dramatic escalation of tensions between President Donald J. Trump and the North Korean leader Kim Jong-un seemed to bring the region to the brink of a second Korean conflict. But today, just as dramatically, an accelerated series of high-level summits suggests that the Korean Peninsula could be on the brink of peace. President Moon Jae-in met with Kim at Panmunjom, and both Kim and Moon stepped across the line of demarcation at the Demilitarized Zone (DMZ) between North and South Korea. The two leaders have embraced a “new era of peace,” with the promise of ending the state of war on the peninsula. Trump has also said he is willing to meet Kim to discuss denuclearization. CIA director Mike Pompeo visited Pyongyang on April 1 to test out that proposition, and as secretary of state, Pompeo had the lead in setting the stage for a meeting in Singapore. The Moon-Kim meeting set up the premise of a negotiated denuclearization process. Trump and Kim will define the contours of that path forward.
Topic:: International Relations, Security, Diplomacy, Nuclear Weapons, and Peace
Political Geography:: Japan, Asia, South Korea, North America, Korea, and United States of America

82. The Candlelight Mandate & Moon Jae-in’s Inter-Korean Dilemma

Author:: John Delury
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The question of the proper relationship between domestic sentiment and foreign policy is a vexed one. Historically, statesmen and strategists have tended to distrust or disparage the role of the demos in the elite enterprise of foreign affairs. In the immortal words of the then vice president Richard Nixon: “If we indulge in the kind of thinking which assumes that foreign policy decisions should be made on the basis of public opinion polls we might as well decide now to surrender our position of world leadership to the communists.” Yet from even the most condescending foreign policy establishment perch, it is hard to dispute the significance of securing public support for key foreign policy moves. Nixon as president was fully aware of this, carefully stage-managing his most dramatic maneuver, the visit to China in February 1972, in a way that would maximize support back home. And of course, Nixon’s loss of public trust over the Watergate scandal brought about the abrupt end of his influence on everything, including foreign affairs. Nixon’s impeachment, after years of public opposition to the war in Vietnam, strengthened the view in the United States that unsupervised elites were in fact the worst possible stewards of the instruments of national power, and that popular, democratic checks were critical ingredients in wise and prudent foreign policy. Once the public is accorded a decisive role in foreign affairs deliberation, we have to grapple with the problem of determining what “the public” thinks in the first place. Who represents “the public”? How can we assert “it” thinks one way or another? What do we mean by expressions such as “the public seems to have changed its mind”? French theorist Pierre Bourdieu, for example, challenged the validity of statistical representations of “public opinion” based on polling data. Bourdieu argues that public opinion so constructed is an “artefact” of the pollsters, rather than a reflection of an actual thing in the world. Polling data creates a false sense of certainty about public preferences—the illusion of a static and knowable thing, “the public,” where one does not exist. Despite the epistemological limitations and political biases embedded in the art of polling, public sentiment must be brought into the equation of foreign policy analysis. Particularly in a South Korean context, given the highly participatory nature of political culture, it would be foolish to adopt an elitist premise that the public factor can be ignored. South Korean president Moon Jae-in, for one, emphasizes the critical importance of democratic legitimacy and public input in all aspects of governance, including foreign policy.
Topic:: Foreign Policy, History, Governance, and Public Policy
Political Geography:: Asia, South Korea, North Korea, and Korea

83. Doubling Down on the U.S.-South Korea Alliance: Olympics Diplomacy Did Not Breach Trust, but TrumpMoon Confidence Is in Jeopardy

Author:: Leif-Eric Easley
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The U.S.-ROK alliance faced a quickening pace of North Korean provocations in 2016-17, with Pyongyang violating UN Security Council resolutions dozens of times. Those violations included a fourth nuclear test in January 2016, fifth in September 2016, and sixth in September 2017, as well as numerous missile tests of various trajectories from different platforms. North Korea tested intermediate-range missiles overflying Japan and missiles of intercontinental range on lofted trajectories, while developing road-mobile and submarinelaunched ballistic missiles. As policymakers in Seoul and Washington coordinated responses to those provocations, changes in national leadership and domestic political preferences brought into question the bilateral trust the alliance needs to deter conflict, reassure publics, and promote regional cooperation. Elections have consequences, even before votes are cast. Enduring international security alliances are based on shared national interests and a track record of diplomatic commitments and military cooperation. For allies with highly integrated defense policies, such as the United States and South Korea, it is natural for policymakers and citizens to keenly observe the national elections of the other country. Will the next government be a reliable partner, or will it fail to honor existing agreements? Will the incoming leadership improve relations, or will it downgrade cooperation? These questions were being asked before Donald Trump and Moon Jae-in were elected. The search for answers inevitably involves speculation, feeding expectations that are often overly optimistic or pessimistic. Ahead of Trump’s election, his campaign rhetoric questioned the terms and intrinsic value of the alliance to an extent not seen since Jimmy Carter’s 1976 campaign promise to withdraw U.S. troops from the Korean Peninsula. President Moon came to power on the heels of conservative president Park Geun-hye’s impeachment and removal for corruption. Moon’s politics are notably more progressive than Park’s or Trump’s, including a record of pro-engagement policies toward North Korea. Against this backdrop, Kim Jong-un delivered his 2018 New Year’s Day address claiming that North Korea has the ability to hit any U.S. city with a nuclear-armed missile, but that Pyongyang is ready to re-engage Seoul via participation in the Winter Olympics.
Topic:: Security, Diplomacy, Bilateral Relations, Elections, Alliance, Olympics, and Donald Trump
Political Geography:: Asia, South Korea, North America, Korea, and United States of America

84. Salvaging the Sunshine Policy

Author:: David Straub
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Shortly before his election as South Korea’s president in May 2017, candidate Moon Jaein issued his most detailed North Korea policy statement. As president, he declared, he would “inherit” the engagement-based, inducements-oriented Sunshine Policy approach of Korea’s only other progressive presidents, Kim Dae-jung (1998-2003) and Roh Moohyun (2003-2008)1. Moon judged the North Korea policies of his immediate predecessors a failure; Presidents Lee Myung-bak (2008-2013) and Park Geun-hye (2013-2017), both conservatives, had disagreed with key aspects of the Sunshine Policy and suspended the major inter-Korean projects undertaken by Kim and Roh. Moon’s emphasis on incentives to Pyongyang contrasted with United Nations Security Council resolutions adopted during the preceding decade; far from offering inducements, the UNSC had imposed increasingly stringent sanctions on the regime in response to its accelerating pursuit of a full-fledged nuclear weapons capability. Moon also struck quite a different tone than the new Trump administration in Washington, which had only recently concluded a North Korea policy review and characterized its approach as one of “maximum pressure and engagement. This chapter assesses Moon’s North Korea policy, its implementation during his initial year in office, and its prospects under difficult circumstances. It begins by reviewing the Sunshine Policy concept, its practice by previous progressive governments, and the significantly different approach of South Korea’s succeeding conservative administrations. It then argues that Moon and many progressives continue to believe in the basic Sunshine Policy approach, even though, unlike when the policy was first formulated, North Korea now already has a limited nuclear weapons capability and may soon be able to credibly threaten the United States homeland with nuclear attack. It reviews how Moon, as president, has attempted to salvage the policy and how North Korea and other concerned countries have responded. The chapter concludes by considering the prospects for Moon’s North Korea policy and offering recommendations to modify it to maximize the interests of both the ROK and the international community as a whole.
Topic:: Government, Politics, Governance, and Public Policy
Political Geography:: Asia, South Korea, North Korea, and Korea

85. South Korea's Diplomatic Options Under Moon

Author:: Korea Economic Institute of America
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: During his first year as president, Moon Jae-in faced a challenging strategic environment and divergent advice on how to manage it. He could cater to his progressive base and act in accord with his political lineage by renewing the Sunshine Policy toward North Korea. Alternatively, he could strive for consensus at home by reconciling the differences with conservatives in foreign policy. In diplomacy with the great powers, he also had important choices to make. He could double down on the U.S. alliance or, going further, he could agree to trilateralism with Japan. Yet, he also could be tempted by the option of balancing dependence on the United States with a closer relationship with China. Impacting all of his choices was the question of how Kim Jong-un would focus in 2018, shifting from provocations aimed at military leverage to diplomacy linked to his outlook on Moon’s policies. In the following five chapters authors explore each of these options. This introduction reviews some of their findings and points to linkages among them as part of an overall assessment of how Moon has navigated among the choices he was facing. The following chapters set forth the options that Moon Jae-in has before him. Chapter 1 by David Straub seeks to grasp the appeal of a renewed Sunshine Policy to Moon, while spelling out the implications of taking that route, warning of a breach in trust with the United States if not a temporary welcome from Donald Trump eager for a Nobel Peace Prize. Leif Eric-Easley’s analysis in Chapter 2 assesses the prospects of Moon doubling down on the ROK alliance with the United States and argues that, so far, trust between allies has been sustained, including in 2018 as diplomacy intensified with summitry on the agenda. In Chapter 3 John Delury examines the domestic political environment, pointing to the impact of the Candlelight movement, which offers opportunities for Moon as well as constraints on policies he might adopt. Chung Jae Ho in Chapter 4 explores Sino-ROK relations and the prospects of Moon drawing closer to China with consequences for relations with the United States. A fifth chapter by Sheila Smith focuses on Japan-ROK relations, newly strained by different approaches to diplomacy with Kim Jong-un. Each chapter views Moon’s policies and proclivities in the context of the dynamics of bilateral ties, while following closely what has been happening to those ties during the tumultuous course of Moon’s first year in office, notably in the first third of 2018 as diplomacy intensified.
Topic:: Diplomacy, Government, and Politics
Political Geography:: Asia, South Korea, and Korea

86. Unification in Action? The National Identity of North Korean defector-Migrants: Insights and Implications

Author:: Christopher Green and Stephen Denney
Publication Date:: 10-2018
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: What can the resettlement of North Korean defector-migrants into South Korean society today tell us about Korean national identity and the likely challenges of integrating the two Koreas tomorrow? In this paper, we report findings from a 2016 national identity survey of 334 North Korean defector-migrants currently residing in South Korea. It compares responses to that of native South Koreans and considers in-group differences of opinion. Overall, we find no substantive identity divergences between those from North Korea and native South Koreans. We do, however, find evidence of significant in-group identity differences, namely cohort effects. Older defector-migrants are more likely to see their “Koreaness” as defined by ethnocultural traits, feel closer to South Korea, and be more “patriotic” than younger migrants.
Topic:: Demographics, Migration, Refugees, and Domestic Politics
Political Geography:: Asia, South Korea, North Korea, and Korea

87. The Evolution of the North Korean Nuclear Program: from Survival Strategy to Ideological Legitimization

Author:: Marco Milani
Publication Date:: 06-2018
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: In recent years the North Korean nuclear program has increasingly become a major concern for East Asian security. Pyongyang has repeatedly demonstrated its advancements in both missile and nuclear technology, with the final goal of acquiring a credible nuclear deterrent. To achieve this goal, the regime has committed a vast amount of state resources and has jeopardized relations with neighboring countries and major powers. This dangerous situation has created instability in the region and has hindered the possibilities of inter-Korean dialogue and cooperation. The traditional interpretation of the North Korean nuclear program focuses on the survival of the regime and emphasizes the military aspect of security. While these factors play a significant role, over the last twenty-five years new roles have emerged for the nuclear program. Survival remains the priority, but in addition to the military level of nuclear deterrence this paper introduces two different aspects directly connected to the security of the regime: economic security and domestic ideological legitimization. The development of nuclear weapons has been repeatedly used by Pyongyang as leverage in negotiations and to strengthen its political legitimacy. Understanding the complexity and the different factors behind this strategy is crucial to design and implement a viable and effective strategy aimed at limiting or eliminating the North Korean nuclear threat.
Topic:: Security, Diplomacy, Nuclear Weapons, Bilateral Relations, and Denuclearization
Political Geography:: East Asia, Asia, South Korea, North Korea, and Korea

88. Making Korea Grow Again: Rebalancing the Moon Jae-in Economic Agenda

Author:: Choong Yong Ahn
Publication Date:: 05-2018
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The Moon Jae-in administration in South Korea has taken a two-pronged approach to ensure urgently needed job creation and inclusive growth. Although measures towards each set of economic policies have been implemented since Moon took office in May 2017, what’s often referred to as “incomeled growth” has been prioritized over innovative growth. The income-led growth model is largely driven by domestic consumption through pro-labor distributional policies including a wage hike to raise the disposable income of low- and middleincome individuals, thereby triggering equity with growth. Focused more on the supply side, the innovative growth model encourages startups to create jobs and innovate. It is a great challenge for Korea to pursue growth and equity through both sets of policies. After a year in office, the Moon administration’s economic agenda, often referred to as J-nomics, has not fully produced the intended policy objectives in terms of job creation and growth. To mitigate a declining potential growth rate and pursue robust and inclusive growth, the twin policies need to be rebalanced, reprioritized, and interconnected in a mutually reinforcing manner to empower the private sector to play a bigger role. As a mid-sized open economy, Korea requires global market competitiveness on the supply side to create decent jobs by buoying entrepreneurship and innovation. Structural reforms in the labor market combined with deregulations necessary for the advent of disruptive 4th-industrial-revolution technologies must be expedited. Furthermore, a new business ecosystem in which win-win collaborations between globally-oriented conglomerates and small businesses must be encouraged to replace a zero-sum business culture.
Topic:: Economics, Science and Technology, Global Markets, and Economic Growth
Political Geography:: Asia, South Korea, and Korea

89. The Economic Importance of the KORUS FTA: A Case Study of the Korean Beef Market After Renegotiations

Author:: Jin Kyo Suh
Publication Date:: 05-2018
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Beef trade was a major sticking point between the United States and South Korea in ratifying the KORUS FTA. The outcome of the renegotiations that led to the March 2018 agreement in principle did not impact sections pertaining to beef in the agreement, though looking at how beef trade would have been affected should the talks have failed highlights the importance of the agreement to both countries, but particularly the United States. This paper estimates the demand for imported beef in South Korea by source and product by using the production version of the Rotterdam demand system and assesses what the potential impact of U.S. withdrawal from the KORUS FTA would have been on beef trade between the U.S. and South Korea. The results suggest U.S. withdrawal from the KORUS FTA would have resulted in a considerable increase in Australian beef exports to South Korea, largely at the expense of U.S. beef. This is because there is significant price competition between beef imports from the United States and Australia. Furthermore, Korean consumers substitute American beef for Australian beef when the relative price of U.S. beef rises.
Topic:: Economics, Treaties and Agreements, Exports, and Trade Policy
Political Geography:: Asia, South Korea, North America, Korea, and United States of America

90. A Way Out of the North Korean Labyrinth

Author:: Stephen Blank
Publication Date:: 03-2018
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The sudden announcement of a North Korea-U.S. summit in March 2018 upended all previous diplomacy concerning North Korea’s nuclear program. In return for a bilateral presidential summit, Pyongyang has agreed to suspend testing of its nuclear and missile programs and accepted the continuation of scheduled U.S.-South Korea exercises as planned. While this unexpected development reduces tensions and opens up a political path to a solution on the Korean Peninsula, it also imparts increased urgency for a well-conceived U.S. diplomatic strategy so that the summit and any ensuing negotiations lead to positive outcomes for Washington and Seoul and the other interested parties, thus ensuring its sustainability. In this context, the author advances an assessment of the current situation and a proposal for a U.S. program that could reduce military tensions in and around Korea, lead to the stabilization of a new and legitimate equilibrium in Northeast Asia, and advance shared American, South Korean, and Japanese objectives.
Topic:: International Relations, Security, Foreign Policy, Weapons, and Denuclearization
Political Geography:: Asia, South Korea, North Korea, North America, Korea, and United States of America

91. Redefining Liquidity for Monetary Policy

Author:: Kyunghun Kim, Il Houng Lee, and Won Shim
Publication Date:: 01-2018
Content Type:: Working Paper
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This paper proposes a monetary aggregate “Liquidity” that could serve as a useful indicator for gauging the appropriateness of monetary policy. If liquidity rises above a certain threshold, it is signaling that monetary policy is losing traction due to structural and other impediments even when the inflation gap remains open. This indicator supplements the financial cycle approach but adds value by providing a benchmark that is derived from the national account, and not based on its own trend. Over the last two decades, each time this measure rose above the threshold range, it was followed by a decline in GDP growth. The latter was greater when accompanied by a high physical asset value to GDP, e.g., an elevated property market.
Topic:: Monetary Policy, GDP, Economic Growth, Property, and Liquidity
Political Geography:: Asia, Korea, and Global Focus

92. Advancing the U.S.-Korea Economic Agenda

Author:: Wendy Cutler and Hyemin Lee
Publication Date:: 01-2018
Content Type:: Special Report
Institution:: Asia Society
Abstract:: For nearly 70 years, the United StatesRepublic of Korea (hereafter, Korea) alliance has remained strong, built mainly on shared strategic and national security interests. While the North Korean nuclear threat has long dominated political discussions and media headlines, today the economic pillar of the relationship is no less important. Economic engagement and cooperation have been strengthened since the U.S.-Korea Free Trade Agreement (KORUS) went into effect in 2012, which in turn helped solidify the overall bilateral relationship.
Topic:: International Political Economy
Political Geography:: America and Korea

93. Chinese Views of Korean History in the Late 19th and Early 20th Centuries

Author:: Kirk W. Larsen
Publication Date:: 04-2018
Content Type:: Journal Article
Journal:: Joint U.S.-Korea Academic Studies
Institution:: Korea Economic Institute of America (KEI)
Abstract:: In July 2014, Ambassador Qiu Guohong in preparation for Xi Jinping’s visit to Seoul stated that the “relationship between South Korea and China couldn’t be any better.”1 Among the many reasons for this—economic, geostrategic, cultural—was a shared sense of history. China and Korea, officials and commentators in both nations claimed, were close because of their agreement regarding the significance of their experiences as victims of foreign, particularly Japanese, imperialism in the 19th and 20th centuries. History, that constellation of memories, stories, and notions about the past, has often been deployed to reinforce conceptions of identity, to support certain courses of action, and to demarcate between the in-group and the other. But history is ever malleable and protean. Not only do individuals, institutions, and ideas change but so does the understanding of them. When one draws on the past, one inevitably focuses on a limited set of events or narratives that best serve one’s interests—to the exclusion of potentially equally valid candidates. Their utility can vary over time; one need only think of how figures such as Zheng He or Confucius have been imagined and re-imagined over the last century. This has been the case with the history of relations between China and Korea from the latenineteenth to the mid-twentieth centuries. For many Chinese, Korea has served first as a subject of contestation as China’s position in Korea was challenged by both Western and Japanese powers. Then, when it became increasingly clear that China (or the Qing Empire) was losing this contest, Korea became an omen of China’s own fate absent significant course changes. As Japan’s growing empire engulfed Korea and subsequently threatened parts of China, resistance served to bring China and Korea closer; many in China celebrated what they saw as courageous resistance to Japan—such as when An Chunggun assassinated Ito Hirobumi in 1909. Shared status as victims of Japanese imperialism in an age of “humiliation” brought the two closer, and the mutually shared memory of “humiliation” has been deployed by contemporary Chinese and South Korean leaders—Xi Jinping and Park Geun-hye—to foster greater levels of cooperation. However, past conceptions of China, Korea, and the Sino-Korean relationship have sometimes ranged far afield from the cherished tropes of humiliation and the struggle for independence. Even seemingly universally agreed upon symbols, such as An’s heroic 1909 assassination, find themselves subject to changing interpretations such as recent emphasis by some on his pan-Asian vision of Sino-Korean-Japanese cooperation rather than his bold anti-Japanese act. As interests and priorities change, so does the utility of any particular historical narrative.
Topic:: International Relations, History, and Bilateral Relations
Political Geography:: China, Asia, South Korea, North Korea, and Korea

94. Chinese Views of Korean History to the Late 19th Century

Author:: Gilbert Rozman
Publication Date:: 04-2018
Content Type:: Journal Article
Journal:: Joint U.S.-Korea Academic Studies
Institution:: Korea Economic Institute of America (KEI)
Abstract:: In the tradition of imperial China and communism, Chinese publications see history as a morality tale. In the case of Korean history to the late decades of the nineteenth century there are essentially three actors: virtuous China, evil Japan, and variable Korea. There are three critical periods which receive the bulk of attention: the 7th century, the late 16th century trailing into the 17th century change of dynasty in China, and the last decades of the 19th century. The narrative advances the notion of competing visions of regional order, contrasting Chinese and Japanese frameworks and examining Korean policies in light of the choices made between these options. Official Chinese narratives couch today’s opportunities in historical context. A battle rages between socialism and capitalism, offering China a unique prospect to tip the balance. This is not only a present-day challenge; it is a struggle over consciousness of history—a campaign against “historical nihilism” that disagrees with orthodoxy in support of communist party legitimacy and the rectitude of Chinese civilization. A speech given by Xi Jinping in July 2010 at the Central Party School and only recently made available leaves no doubt about the tight censorship imposed on publications about history. South Korea’s history is especially sensitive as the poster-child for the benevolence of the imperial Chinese regional order, the battleground for the key war fought by China to maintain its surroundings against capitalist encroachment, and a chief testing grounds for the rejuvenation of China against U.S. hegemonism and Western civilization. Premodern history is an inseparable part of this agenda.
Topic:: Foreign Policy, Imperialism, History, and Narrative
Political Geography:: China, Asia, and Korea

95. Chinese Views of Korean History

Author:: KEI
Publication Date:: 04-2018
Content Type:: Journal Article
Journal:: Joint U.S.-Korea Academic Studies
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The way Chinese officials and writers view the history of Korea—from ancient times to the post- Cold War developments in South Korea—matters for at least three reasons. It is a commentary on Chinese national identity since Korea bears importantly on multiple dimensions of how that identity has recently been constructed. It is likewise a window on how Chinese view the order they seek to forge in East Asia, linking it to the earlier Sinocentric order. Finally, Chinese views of Korea’s history offer valuable insight into China’s vision of the future of the Korean Peninsula and its relationship to China. It is commonplace to regard historical narrative as a lens on views of the present and plans for future policies, but this is even more the case for a country with the tradition of Confucian historiography with its extraordinary stress on correct thinking about the past, and communist historiography redolent with socialist realism insistent on a zero-sum understanding of the past. We read in Chinese historical writings on Korea a morality tale with undoubted relevance to how China constructs both its identity and its international relations. The Korean Peninsula has significance for Chinese national identity beyond that of any foreign country except Russia and the United States with the possible exception of Japan. It is where ideology was honed as China sent the PLA to prevent the fall of North Korea after Mao had given his blessing along with Stalin to the North’s attack on the South. As ideology has grown again in importance, the significance of North Korea’s socialist pedigree and shared origins in the crucible of revolution against imperialism has risen. In the historical dimension of national identity, China’s leaders in the 1990s weighed allowing candor about the origins of the Korean War at a time when de-ideologization was fitfully taking place and there was no established narrative on history. Some saw sensitivity to North Korean reactions as the key to why China did not go further, but the resistance inside China proved more tenacious than they assumed. Historical purity toward Japan intensified apart from a short-lived interval with “new thinking” in 2003. With South Korea on the frontlines in China’s quest for demonization of Japan over history, its own history became a test case for the national identity gap between it and China. The history of Korea is so interwoven with that of China and it can reveal much about recent views.
Topic:: Foreign Policy, Cold War, History, and Identity
Political Geography:: China, Asia, and Korea

96. What Lies Ahead? Korea's Long- and Short-Term Challenges

Author:: Edda Zoli
Publication Date:: 06-2017
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: For decades Korea has had a remarkable track record of economic performance. But growth has now declined, and Korea may find it difficult to move quickly to the OECD income frontier. Moreover, Korea faces serious structural challenges, many of which will imply a further decline in potential growth. These include demographic shifts, export dependence, structural weakness and corporate vulnerabilities, and the labor market. With the economy facing major structural headwinds, a comprehensive set of measures are needed in a number of areas, including corporate restructuring, labor market reform, and productivity enhancement.
Topic:: Demographics, Labor Issues, Economy, and Economic Growth
Political Geography:: South Korea and Korea

97. Corporate Debt Market in Korea

Author:: Paul Moon Sub Choi
Publication Date:: 07-2017
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: This report conducts an analysis of the corporate bond market in Korea and the changes in interest rates and term structure since the 1997 Asian financial crisis. The potential risks and solutions for stabilizing the corporate debt market are discussed. Corporate bonds not only play an important role in financing long-term corporate investments but also have a positive and persistent influence on enhancing the capital markets. Thus, the authorities in Korea have attempted to increase the proportion of corporate bonds, which is a means of direct financing, rather than bank loans. Implementing specific plans to stabilize the corporate debt market that are mentioned in this report are critical to sustaining the Korean capital markets as a means towards continued economic growth and prosperity.
Topic:: Debt, Markets, Financial Crisis, Economy, and Investment
Political Geography:: Asia, South Korea, and Korea

98. Progress and Implications of the China-Korea FTA

Author:: Li Si-qi, Tu Xin-quan, and Liu Bin
Publication Date:: 07-2017
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The article focuses on the China-Korea FTA, analyzing the background of China-Korea bilateral economic relations, the characteristics of the China-Korea FTA and more importantly, the implications and future prospect of this free trade pact. So far, the China-Korea FTA is considered to be the most comprehensive compared with China's previous FTAs and may be the largest in trade terms among all the FTAs concluded by Korea and China, playing a positive role in advancing economic integration in the Asia-Pacific region. However, with lots of exceptions to tariff elimination and market access, as well as a 20-year transition period, the present version of the China-Korea FTA is far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment rules. The recent bilateral diplomatic tensions due to the decision of deploying the THAAD missile system by the Korean government may also jeopardize bilateral economic ties between China and Korea, and further increase uncertainties of the China-Korea FTA. It remains to be seen whether the Chinese and Korean governments will handle this issue smoothly under the present sensitive political atmosphere and achieve substantial progress in follow-up FTA negotiations on services and investment.
Topic:: Diplomacy, Economics, Bilateral Relations, and Regional Integration
Political Geography:: China, Asia, South Korea, and Korea

99. Korea's Economic Relations with Japan

Author:: Kim Gyu-Pan
Publication Date:: 07-2017
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Korea's economic relations with Japan, which were re-established as a result of the diplomatic normalization between the two countries in 1965, have transformed from dependent to interdependent. The extraordinary economic growth that Korea accomplished during the post-war period was largely due to intermediate goods imported from Japan, and technical cooperation and joint ventures with Japanese enterprises. However, in the 21st century, the dependence of Korean firms on Japanese technology has somewhat declined as global enterprises have appeared in Korea. In contrast to the post-war economic boom, Japanese companies now prefer to cooperate with their Korean counterparts, resulting in joint business ventures between Korean and Japanese firms being continuously developed. This reversal in the economic ties between Korea and Japan can be attributed to several reasons including: the rise of China; Japan's two lost decades; and Korea's push for domestic structural reform as well as economic globalization after the Asian Currency Crisis of 1997. Nonetheless, the issue of Korea's trade imbalance with Japan, which was established during the post-war period, still remains thereby serving as a serious impediment to FTA negotiations between Korea and Japan as well as Korea's TPP negotiations.
Topic:: Economics, History, Bilateral Relations, and Trade
Political Geography:: Japan, Asia, South Korea, and Korea

100. Korea-Mongolia Economic Relations: Current Status and Cooperation Measures

Author:: Lee Jae Young
Publication Date:: 07-2017
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Since the establishment of diplomatic relations in 1990, Korea and Mongolia have broadened cooperation in various areas such as politics, economy, society, and culture given their geographical proximity and cultural similarities. However, the progress of economic cooperation which has been identified as one of the pillars of Korea-Mongolia cooperation is still weak in comparison with other areas. Thus, it is important to analyze achievements and limitations of economic cooperation with Mongolia, which has emerged as a burgeoning new market of Eurasia, and find new measures to elevate their economic relations to a new high moving forward. In this context, the main objective of this research lies in looking back upon the past 26 years and developing a new strategy on economic cooperation measures. Korea needs to formulate a new strategy that provides a coherent, systematic framework for cooperation with Mongolia and implement it consistently. Holding bilateral summit meetings and Korea-Mongolian forums on a regular basis, strengthening high-level networking, and concluding free trade and visa exemption agreements are necessary.
Topic:: Diplomacy, Bilateral Relations, Trade, and Economic Cooperation
Political Geography:: Mongolia, Asia, South Korea, and Korea

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COLUMBIA UNIVERSITY PRESS