WORLD TRADE WT/MIN(98)/ST/105
20May1998
ORGANIZATION(98-2110)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
KOREA
Statement Circulated byH.E. Mr.HanDuck-soo,
Minister ofState forTrade
Iwould liketoexpress myappreciation tothechairs oftheMinisterial Conference, tothe
Swiss Government andtotheDirector-General forthegood preparation ofthismeeting. Ontheeve
oftheCommemoration ofthe50thAnniversary ofthemultilateral trading system, thisMinisterial
Conference oftheWTO takes onaspecial significance. Halfacentury haspassed since leaders of
theworld firstmettodraw theblueprints ofwhat became amajor institution ofglobal economic
policy making. Today, wearegathered heretoreflect together onthepastachievements ofthis
institution anditsnewhorizons. Undeniably, we,asacongregation ofeconomically interdependent
communities, haveaccomplished agreat dealinpromoting international trade andworld economic
growth. Theinauguration oftheWTO in1995 wasaremarkable example. Buttheworld mustkeep
awatchful eyeontheroadahead ifitwishes tocontinuously benefit from thisinterdependence.
Thepastdecade haswitnessed tremendous progress ontheworld trade scene. Thelaunch of
theWTO notonly produced anunprecedented increase inmarket access butalsosuccessfully
incorporated suchpivotal sectors asservices, intellectual properties andagriculture inthemultilateral
trading system. TheWTO hasalsointroduced anewefficient mechanism ofdispute settlement tothe
multilateral trading system. Korea believes that,byguaranteeing astable andrule-based operation
ofthetrading system, thedispute settlement mechanism hasbecome acentral element oftheWTO.
Building onthismomentum, intensive negotiations heldinrecent years havealsobrought
major developments: ahistoric pactonbasic telecommunications, anagreement oninformation
technology products andanother agreement involving more than100countries toliberalize global
financial services. TheSingapore Ministerial Conference provided another breakthrough byinitiating
deliberations onnewissues suchascompetition policies andinvestment andbyencouraging new
accessions totheWTO. Ascertaining theincidence ofthese newissues andensuring WTO 's
universality foster far-reaching advances intrade liberalization.
However, these bright achievements, ifnotproperly sheltered andgiven forward momentum,
could soonbeovershadowed bydarkening skies. Indeed, many fearthataturmoil likethecurrent
Asian financial crisis mayexert upward pressure onthedemand forprotection. Re-emergence of
protectionism would notonlydelay aspeedy recovery oftheaffected countries inAsia, itwould also
undermine theprinciples guiding theWTO, thereby jeopardizing sound world economic growth atthe
dawn ofthenextmillennium. Theaffected Asian countries, including Korea, areimportant trading
nations oftheworld; thesooner their economies recover from thecurrent difficulties, themore
trade-related benefits willaccrue totheirtrading partners.
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Facing adversity, theKorean Government hasbeen taking aboldcourse inaddressing its
current economic difficulties. Ithasundertaken anambitious programme toreform thewhole
structure oftheeconomy including thefinancial sector, andincrease transparency andopenness inall
economic activities. Regulations onforeign investment arealsoundergoing radical changes asmergers
andacquisitions ofKorean businesses byforeigners havebeencompletely liberalized. Moreover, laws
arebeing revised toenable foreigners toacquire landsoastoensure anoptimal environment for
investment.
These stepsbyindividual countries, however, mustbecombined withconcerted efforts bythe
international community toovercome thecurrent crisis. Inorder toprevent asimilar crisis anda
possible re-emergence ofprotectionism from seriously denting global welfare, wemust allstand by
ourshared commitments tofreer flows ofgoods, services andcapital. Enhancing thecoherence
between theWTO, theIMF andtheWorld Bank istherefore essential toguaranteeing greater
coordination inglobal economic policy making.
Looking ahead, Korea joins those Members whoareoftheview thattoday'seconomic
realities callforanewround ofmultilateral trade negotiations withamuch broader scope thanthe
built-in agenda. Korea believes thatextensive multilateral tradenegotiations willsubstantially increase
market access opportunities andthussecure future growth intheworld economy.
Indiscussing themodalities offorthcoming trade liberalization activities, afewimportant
considerations must beweighed. Substantial support from bothdomestic andinternational fronts is
aprerequisite foraproductive round. Equally important ismaintaining astable balance ofinterests
among allparticipating countries. Inparticular, wemust seetoitthatduecareistaken toavoid the
marginalization ofdeveloping countries intheprocess. TheUruguay Round hasshown usthemerits
ofmultilateral trade negotiations ofacomprehensive nature inaddressing these concerns.
Inconcluding, theRepublic ofKorea wishes toreaffirm itscommitment totheunderlying
principles oftheWorld Trade Organization. Thecurrent difficulties inAsiaprovide anadditional
incentive toinject anewconfidence inthemultilateral trading system astheymake itnecessary tolift
oursights tothechallenges theyhavebrought fortheworld economy. Through revived andsustained
growth fuelled bymutually beneficial rule-based tradeliberalization, countries willbuild abridge over
thetroubled waters andpavethewaytoaprosperous future. Inthisvein, thisMinisterial Conference
provides animportant opportunity tosolidify thepillars ofthisinstitution andlaythefoundations
necessary foranother halfcentury ofevolution inourmultilateral trading system. Itiswithsuchfirm
conviction thatKorea willparticipate inthejointexercise ofWTO members topromote harmonious
development ofworld trade intheearly phase ofthecoming millennium.
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