The Korean government needs to do its utmost to maximize the effects of the subsequent negotiations on services of the Korea-China FTA, which will be commenced in two years. In order to lead China to open its market in a comprehensive way, it is first...
The Korean government needs to do its utmost to maximize the effects of the subsequent negotiations on services of the Korea-China FTA, which will be commenced in two years. In order to lead China to open its market in a comprehensive way, it is first necessary to clearly understand the contents and problems of the past negotiations on services of the said FTA. For example, the scope of China’s liberalization in entertainment services is very narrow and similar sectors were not liberalized, hence little effect of a comprehensive liberalization. Second, Korean entertainment companies in China need to expand their business into broader regions and diversify the mode of such expansion. Most performance management agencies are currently supplying services in Beijing only through Mode 3, but they need to give preferential consideration to supplying services through Mode 1. It should also be understood that China has different supportive policies by region depending on the types of cultural services industries. Although China opened its market for Mode 3 under the Korea-China FTA, its domestic regulations are still in place on the entry of foreigners into China’s entertainment services markets. Even though China opened some entertainment services sectors under the abovementioned FTA, further discussion is needed on China’s domestic laws and systems which may act as an obstacle. At the subsequent negotiations, it is considered that, particularly regarding entry into China through Mode 3, the Korean side can request for relaxation of procedures to enter the Chinese markets and improvement of transparency in the assessment and authorization system. Lastly, it is also needed to provide legal and institutional frameworks for stable entry into China of Korean entertainers by linking Mode 3 and Mode 4. Without ensuring free entry into China of Korean entertainers, which is a fundamental part of Korea’s entertainment industry, the inherent limitations in such entry cannot be overcome. Therefore, a protocol on cultural cooperation should be adopted as part of the Korea-China FTA, like the Korea-EU FTA, to supplement the defects in entry into China through Mode 4. China has been very reluctant to open its services markets so far, but the nation is now recognizing the importance of promoting development of trade in services for continued economic growth and opening its markets. Since 2005, China has adopted a series of measures to accelerate development of services industries acknowledging the potential of services sectors to contribute to enhancing the nation’s competitiveness. Therefore, services negotiations with China will not be conducted in a favorable way only to Korea. In addition, the Korean side should also keep in mind during the negotiations that Korea will have to compete with Hong Kong and Taiwan in the Chinese entertainment services markets.