China Will Benefit Korea: US Expert
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Korea Times
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2006-05-10 00:00
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China Will Benefit Korea: US Expert
By Park Hyong-ki
Staff Reporter
Korea often thinks of China as a threat to its economy. So do a lot of other countries. But a U.S. expert disagrees with this assumption.
"Korea is well positioned to take advantage of the continuing rapid expansion of the Chinese economy, which is already the single largest export market with a 22 percent share," said Charles Dallara in a seminar in Seoul on Wednesday. Dallara is managing director of the Institute of International Finance (IIF), a Washington-based financial advisory center.
He said that the main beneficiaries from China's expansion are Korean exporters in such fields as information technology, automobiles and household appliances. Dallara spoke about Korea's economic situation at the seminar hosted by the Institute for Global Economics.
Despite rising energy rates and won appreciation, Dallara, also the former assistant secretary of the U.S. treasury for international affairs, noted that the Korean economy is likely to grow by 5.5 percent this year after rising 4 percent in 2005.
Korea's financial structure is becoming stronger with the government's continuous efforts to implement foreign exchange liberation and reform plans such as the Capital Market Consolidation Act or the "Financial Big Bang."
However, he said the country needs to do more with "confidence and serious commitment" on easing several issues such as labor and foreign investment policy in order to become a regional financial hub.
"Korea needs to stare down and tackle longstanding difficulties," he said. "The top of the listis the labor market issue. To move to the next level of prosperity, this must be flexible so that it can result in high productivity to high technology."
He added that given the dark history of Korea, the country has the right to be defensive, nationalistic and protectionist against foreign presence. But it must leave the negative past behind and look to future possibilities.
Seoul's business and financial sectors need to be "service oriented" to closely interact with foreign investors. Also, the government needs to refrain from too involved in the national economy.
"Korea can compete with any global challengers," he commented. "If it does not overcome barriers, Korea will be seen as a rather challenging environment for foreign investors to play in the country."
Regarding the proposed bilateral free trade agreement (FTA) between Seoul and Washington, Dallara welcomed the process saying that the agreement will bring the two long-time partners closer together in economy as well as security.
"Although it will take time, Korea must seek every advantage it can while engaging in the negotiations," according to Dallara, "Market share almost doubled for Korean automobiles in the U.S market; this can be enhanced through a balanced FTA."
He said the bilateral FTA will boost "productivity, efficiency and competitiveness" for both countries and serve as a platform for other bilateral agreements in the world.
He believes that if Korea keeps its momentum, it can achieve a single digit economy ranking, closer to the world's top five powers.
phk@koreatimes.co.kr
05-10-2006 18:33
By Park Hyong-ki
Staff Reporter
Korea often thinks of China as a threat to its economy. So do a lot of other countries. But a U.S. expert disagrees with this assumption.
"Korea is well positioned to take advantage of the continuing rapid expansion of the Chinese economy, which is already the single largest export market with a 22 percent share," said Charles Dallara in a seminar in Seoul on Wednesday. Dallara is managing director of the Institute of International Finance (IIF), a Washington-based financial advisory center.
He said that the main beneficiaries from China's expansion are Korean exporters in such fields as information technology, automobiles and household appliances. Dallara spoke about Korea's economic situation at the seminar hosted by the Institute for Global Economics.
Despite rising energy rates and won appreciation, Dallara, also the former assistant secretary of the U.S. treasury for international affairs, noted that the Korean economy is likely to grow by 5.5 percent this year after rising 4 percent in 2005.
Korea's financial structure is becoming stronger with the government's continuous efforts to implement foreign exchange liberation and reform plans such as the Capital Market Consolidation Act or the "Financial Big Bang."
However, he said the country needs to do more with "confidence and serious commitment" on easing several issues such as labor and foreign investment policy in order to become a regional financial hub.
"Korea needs to stare down and tackle longstanding difficulties," he said. "The top of the listis the labor market issue. To move to the next level of prosperity, this must be flexible so that it can result in high productivity to high technology."
He added that given the dark history of Korea, the country has the right to be defensive, nationalistic and protectionist against foreign presence. But it must leave the negative past behind and look to future possibilities.
Seoul's business and financial sectors need to be "service oriented" to closely interact with foreign investors. Also, the government needs to refrain from too involved in the national economy.
"Korea can compete with any global challengers," he commented. "If it does not overcome barriers, Korea will be seen as a rather challenging environment for foreign investors to play in the country."
Regarding the proposed bilateral free trade agreement (FTA) between Seoul and Washington, Dallara welcomed the process saying that the agreement will bring the two long-time partners closer together in economy as well as security.
"Although it will take time, Korea must seek every advantage it can while engaging in the negotiations," according to Dallara, "Market share almost doubled for Korean automobiles in the U.S market; this can be enhanced through a balanced FTA."
He said the bilateral FTA will boost "productivity, efficiency and competitiveness" for both countries and serve as a platform for other bilateral agreements in the world.
He believes that if Korea keeps its momentum, it can achieve a single digit economy ranking, closer to the world's top five powers.
phk@koreatimes.co.kr
05-10-2006 18:33
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