Korea: New Frontiers in the Asia-Latin America Relationship
Trade between Korea and Latin America and the Caribbean (LAC) experienced an unprecedented boom beginning in the early 2000s. Following the broader course of Asia-LAC relations, this trade surge was driven by strong resource complementarity between the two economies and fast growth in Asia, which led to a commodities-for-manufacturing trade pattern typical of the region’s trade with Asia. At the same time, the Korea-LAC relationship distinguishes itself from the overall Asia-LAC pattern in several important respects. First, the region’s exports to Korea have included a higher share of manufacturing products and are more diversified overall than is the case with China or Japan. In addition, the trade surge of the early 2000s was followed by a strong inflow of Korean FDI in LAC, which has overwhelmingly targeted manufacturing sectors, helping to further diversify the relationship. Finally, Korea has established an extensive network of free-trade agreements (FTAs) in the region, beginning with the first Asia-LAC FTA with Chile in 2004, alongside a robust cooperation agenda in diverse policy areas. Investment and cooperation thus helps further diversify the economic relationship beyond the commodities-for-manufacturing pattern of trade. This document reviews the evolution of Korea-LAC economic ties since the early 2000s, highlighting how the relationship stands out from the broader Asia-LAC story and identifying the key challenges to strengthen the relationship moving forward.
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| Format: | Monographs biblioteca |
| Language: | English |
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Inter-American Development Bank
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| Subjects: | Trading Cost, Trade Facilitation, Foreign Direct Investment, Free Trade Agreement, |
| Online Access: | http://dx.doi.org/10.18235/0000877 https://publications.iadb.org/en/korea-new-frontiers-asia-latin-america-relationship |
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