The economic structure of the Korean economy has been partially paralyzed by the East Asian financial crisis since 1997 and is now taking a road to recovery. This paper attempts to find measures to revitalize the Korea's effort to boost its economic g...
The economic structure of the Korean economy has been partially paralyzed by the East Asian financial crisis since 1997 and is now taking a road to recovery. This paper attempts to find measures to revitalize the Korea's effort to boost its economic growth by resuming its active external relations, trade and foreign direct investment, to the Southeast Asian economies. Considering the high dependence of the Korean economy on trade and investment, especially with the Southeast Asian economies, suitable commercial policies should be implemented for the economy to be revitalized in addition to the economic reform policies adopted. As a possible commercial policy for Korea, this paper suggests policy coordination to boost domestic economy and to maintain stable exchange rate between the two regions. In addition to the policy coordination, this paper evaluates macroeconomic effects of Korea-ASEAN free trade agreement scenario, on participating economies with a trade-linked multi-sector and multi-country CGE model.