WORLD  TRADE  
ORGANIZATION  WT/TPR/S/204/Rev.1 
4 December 2008  
 
(08-5891) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
REPUBLIC OF KOREA 
 
Revision 
 
 
 
 
This report, prepared for the fifth Trade Policy Review of the Republic of Korea, 
has been drawn up by the WTO Secretariat on its own responsibility.  The 
Secretariat has, as required by the Agreement establishing the Trade Policy 
Review Mechanism (Annex 3 of the Ma rrakesh Agreement Establishing the 
World Trade Organization), sought clarification from the Republic of Korea on 
its trade policies and practices. 
 
Any technical questions arising from this report may be addressed to 
Mr. Sergios Stamnas (tel:  022 739 5382). 
 
Document WT/TPR/G/204 contains the policy statement submitted by the 
Republic of Korea. 
 
 
 
 Republic of Korea WT/TPR/S/204/Rev.1 
 Page iii 
 
 
  CONTENTS 
    Page 
SUMMARY OBSERVATIONS vii 
 (1) E CONOMIC ENVIRONMENT  vii 
 (2) T RADE POLICY FRAMEWORK  vii 
 (3) T RADE POLICY DEVELOPMENTS  viii 
 (4) S ECTORAL POLICY DEVELOPMENTS  x 
 (5) O UTLOOK  xi 
I. ECONOMIC ENVIRONMENT 1 
 (1) I NTRODUCTION  1 
 (2) R ECENT ECONOMIC DEVELOPMENTS  3 
 (3) M ACROECONOMIC POLICIES  5 
 (i) Monetary and exchange rate policy 5  (ii) Fiscal policy 6 
 (4) M
AIN STRUCTURAL POLICY DEVELOPMENTS  7 
 (i) Tax reform 7  (ii) Financial and capital markets reform 7 
 (iii) Privatization 8 
 (iv) Labour 8  (v) Corporate governance 8 
 (vi) Pension reform 9 
 (5) B
ALANCE OF PAYMENTS  9 
 (6) D EVELOPMENTS IN TRADE  11 
 (i) Composition of trade 11 
 (ii) Direction of trade 11 
 (7) T RENDS AND PATTERNS IN FOREIGN DIRECT INVESTMENT  14 
 (8) O UTLOOK  16 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 17 
 (1) I NTRODUCTION  17 
 (2) G ENERAL CONSTITUTIONAL AND INSTITUTIONAL FRAMEWORK  17 
 (3) S TRUCTURE OF TRADE POLICY FORMULATION  18 
 (i) Executive branch es of government 18 
 (ii) Advisory, planning, and other bodies 19 
 (4) T RADE POLICY OBJECTIVES  19 
 (5) T RADE LAWS AND REGULATIONS  19 
 (6) T RADE AGREEMENTS AND ARRANGEMENTS  22 
 (i) Korea and the WTO 22 
 (ii) Regional agreements 24 
 (iii) Bilateral agreements 27  (iv) Unilateral and other trade preferences 30 
 (7) F
OREIGN INVESTMENT REGIME  30 WT/TPR/S/204/Rev.1 Trade Policy Review 
Page iv 
 
 
      Page 
III. TRADE POLICIES AND PRACTICES BY MEASURE 37 
 (1) I NTRODUCTION  37 
 (2) M EASURES DIRECTLY AFFECTING IMPORTS  38 
 (i) Customs procedures 38 
 (ii) Customs valuation 42 
 (iii) Tariffs 43  (iv) Tariff quotas 52 
 (v) Other levies and charges 53 
 (vi) Import licensing, quotas, and prohibitions 54  (vii) State trading 55 
 (viii) Contingency measures 55 
 (ix) Standards and other technical requirements 58  (x) Government procurement 65 
 (3) M
EASURES DIRECTLY AFFECTING EXPORTS  67 
 (i) Registration, documentation, and clearance 67 
 (ii) Export prohibitions, restrictions, and licensing 68 
 (iii) Export subsidies 68  (iv) Duty and tax concessions 69 
 (v) Export finance, guarantees, and insurance 69 
 (vi) Export promotion and marketing 69 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  70 
 (i) Taxation 70 
 (ii) Financial assistance 73 
 (iii) Price controls and monitoring 76  (iv) State-owned enterprises and privatization 76 
 (v) Competition and consumer policy 78 
 (vi) Intellectual property rights 82 
IV. TRADE POLICIES BY SECTOR 89 
 (1) I
NTRODUCTION  89 
 (2) A GRICULTURE  90 
 (i) Features 90 
 (ii) Policy developments 90 
 (iii) Selected activities 97 
 (3) F ISHING   100 
 (4) E NERGY   102 
 (i) Petroleum and petroleum products 103 
 (ii) Other energy 103 
 (5) M ANUFACTURING  106 
 (i) Automobiles 107  (ii) Shipbuilding 108 
 (6) S
ERVICES  109 
 (i) Features 109 
 (ii) Overall commitments under the GATS 109  (iii) Banking and finance 110 
 (iv) Insurance 116 
 (v) Telecommunications 117  (vi) Transport 120 
 (vii) Distribution services 123 Republic of Korea WT/TPR/S/204/Rev.1 
 Page v 
 
 
      Page 
REFERENCES   125 
APPENDIX TABLES  129 
 
 
CHARTS 
 
I. ECONOMIC ENVIRONMENT 
 
I.1 Product composition of merchandise trade, 2003 and 2007 12 
I.2 Direction of merchandise trade, 2003 and 2007 13  
III. TRADE POLICIES AND PRACTICES BY MEASURES 
 III.1 Average applied MFN and bound tariff rates, by HS section, 2004 and 2008 45 
III.2 Distribution of MFN tariff rates, 2004 and 2008 46 
III.3 MFN tariff escalation by 2-digit ISIC industry, 2004 and 2008 47 III.4 Anti-dumping cases, 2003-07 57 
 
IV. TRADE POLICIES BY SECTOR 
 
IV.1 Interest spreads and profits, 2003-07 113 
 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 I.1 Selected macroeconomi c indicators, 2003-07 1 
I.2 Basic economic and soci al indicators, 2003-07 4 
I.3 Balance of payments, 2003-07 10 I.4 Inflows of foreign direct investment, 2003-06 14 
I.5 Outflows of foreign direct investment, 2003-06 15  
 II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 
II.1 Latest WTO notifications, end-June 2008 21 II.2 Involvement in the WTO dispute settlement mechanism, 2004-08 23 
II.3 Summary of FDI tax incentives, 2008 33 
II.4 FDI restricted sectors, 2008 35 
 
III. TRADE POLICIES AND PRACTICES BY MEASURES  
III.1 Structure of MFN tariffs, 2004 and 2008 44 
III.2 Preferential trading arrangements, 2008 51 III.3 Anti-dumping measures , end-31 December 2007 58 
III.4 Structure of direct and indirect tax revenue, 2001-07 70 
III.5 State involvement in the economy, 2008 77 
 WT/TPR/S/204/Rev.1 Trade Policy Review 
Page vi 
 
 
      Page 
IV. TRADE POLICIES BY SECTOR  
 
IV.1 Agricultural support by commodity, 1986-88 and 2004-06 93 IV.2 Direct payments to agriculture, 1986-88 and 2004-06 95 
IV.3 Structure of the financial system, 2003 and 2007 111 
IV.4 Government and foreign ownership of commercial banks, end 2006 112 IV.5 Use of public funds for financial sector restructuring, June 2007 112 
IV.6 Financial sector indicators, 2003-06 114 
IV.7 Sub-standard and below loans, 2003-06 114 IV.8 Ownership structure of major telecom operators, December 2006 118 
 
 
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
AI.1 Merchandise exports by product group, 2003-07 131 
AI.2 Merchandise imports by product group, 2003-07 132 
AI.3 Merchandise exports by destination, 2003-07 133 
AI.4 Merchandise imports by origin, 2003-07 134  
III. TRADE POLICIES AND PRACTICES BY MEASURES 
 AIII.1 MFN tariff averages by HS chapter, 2004 and 2008 135 
AIII.2 Non- ad valorem  (alternate) MFN applied tariffs, 2008 139 
AIII.3 MFN applied tariff escalation, 2004 and 2008 141 AIII.4 Adjustment tariff, 2007 143 
AIII.5 Tariff quotas on agricultural products, 2007 144 
AIII.6 Fill ratios for main agricultural tariff-rate quotas, 2006 149 AIII.7 Autonomous tariff quotas, first half of 2007 151 
AIII.8 Domestic agricultural support notified to the WTO, 2004 153 
 
 Republic of Korea WT/TPR/S/204/Rev.1 
 Page vii 
 
 
  SUMMARY OBSERVATIONS 
 
(1) ECONOMIC ENVIRONMENT  
1. Since it's previous Trade Policy 
Review in 2004, Korea's prudent 
macroeconomic policies together with ongoing 
structural reforms, including liberalization of its trade and investment regimes, have contributed to stable economic growth.  
Growth has averaged 4.8% annually, much of 
it attributable to exports.  Consequently, GDP per capita rose from US$14,173 in 2004 to over US$20,000 in 2007.  At the same time, the unemployment rate declined to 3.2%, although income inequality rose.  However, 
Korea's growth potential is undermined by 
relatively low labour productivity and declining total factor productivity growth in the services sector, whose rising share of GDP is now nearly 58%.   
2. During most of the period under 
review, a relatively tight monetary policy contained inflation within the Bank of Korea's target range of 2.5%-3.5%.  Inflation reached a nine-year high of 5.5% in June 2008, however, owing to recent rises in energy and food 
prices.  Korea has reco rded fiscal surpluses in 
each of the past four years.  Budgetary reform has been focused on reducing expenditures and raising tax collection with a view to addressing, inter alia , income inequality and a 
rapidly aging population.  Expenditures are 
also being shifted from infrastructure and public administration to the social safety net, education, and research and development.  The main objective of Korea's tax reform is to 
increase tax revenue, more by broadening the 
tax base than raising tax rates.    
3. Korea's current account surplus 
declined from 4.1% in 2004 to 0.6% of GDP in 2007, reflecting the narrowing of the gap between gross national savings and gross 
domestic investment.  Additionally, after 
peaking in 2006, the external capital account surplus declined significantly in 2007 due to the repatriation of foreign investments in Korean stocks and a sharp rise in stock investments abroad by Korean residents.  
Nonetheless, with both the capital and current accounts in surplus, foreign exchange reserves rose from US$199.1 billion in 2004, to 
US$258.2 billion at the end of May 2008;  the 
latter is equivalent to more than 170% of both public and private external short-term debt, and over eight months of import coverage. 
4. Korea's economy has continued to 
become more outward oriented, with trade in 
goods and services rising from 83.7% of GDP in 2004 to approximately 90% in 2007.  Manufactured exports account for the bulk of exports (88.9% in 2007), though their share has declined, possibly due to increased 
competition from China.  Korea's main export 
destinations are China, the EC, the United States, and Japan. 
5. Inward foreign direct investment 
(FDI) has declined from 1.2% of GDP in 2004 
to 0.4% of GDP in 2006, which is low by 
OECD country standards.  This was despite incentives available to foreign-invested firms and a more liberal foreign investment regime, although three sectors remain completely closed to foreign investors and 24 are partially 
restricted.  The low level and decline of 
inward FDI in relation to GDP are thought to be due to, inter alia , the increasing cost of 
doing business in Korea, unduly burdensome regulation, and perhaps the won's appreciation 
against the U.S. dollar until March 2008, 
although since then it has depreciated considerably.  
(2) T
RADE POLICY FRAMEWORK  
6. Korea is an original Member of the 
WTO.  It grants at least MFN treatment to all 
its trading partners and, as a developing country, it receives the special and differential treatment provided for in the WTO Agreements.  The structure of trade policy formulation, implementation, and evaluation in 
Korea has remained largely unchanged since 
its previous Trade Policy Review in 2004.   WT/TPR/S/204/Rev.1 Trade Policy Review 
Page viii 
 
 
  7. Korea has maintained its support for 
and commitment to the strengthening and liberalization of the multilateral trading system and the successful conclusion of the Doha 
Round negotiations.  Nevertheless, Korea has 
pursued intensively free-trade agreements (FTAs) with its major trading partners (e.g. Singapore and the United States), including regional groups (i.e. ASEAN, EFTA), and is 
continuing or planning negotiations to 
establish FTAs with some of its other main trading partners (the EC) as well as with newly emerging economies.  These agreements, which have been notified to the WTO and cover, inter alia , goods, services, and 
investment, are seen as a means for reforming 
the economy and raising competitiveness through further liberalization and deregulation in certain sectors.  Korea extended its unilateral preferential duty-free access to more 
items from least developed countries as of 
January 2008 and is an active participant in the GSTP.  
8. Korea attaches a high priority to 
making its laws transparent and readily accessible, including by foreigners;  many 
laws are available in English on Internet sites 
maintained by relevant ministries and agencies.  Regulatory reform has progressed with emphasis shifting from reducing of regulations to improving their quality.  Korea 
has taken steps to meet its transparency 
obligations at the multilateral level by, inter alia,  meeting most of its WTO 
notification requirements, though state-trading activities have not been notified since 1998.  
(3) T
RADE POLICY DEVELOPMENTS  
9. The customs tariff is Korea's main 
trade policy instruments as well as a major, albeit declining, source of tax revenue (4.6% of total tax revenue in 2007).  The 2008 customs tariff remains relatively complex, 
involving a multiplicity of rates 
(83 ad valorem , 41 alternate duties) often 
having small rate differences and involving decimal points.  No tariff cuts were undertaken during the period under review;  the applied MFN rate averaged 12.8% in 2008, the same 
as in 2004.  This is high by OECD country standards, thereby requiring tariff concessions or drawbacks (to ensure that tariffs levied on 
intermediate inputs do not feed through as 
taxes on exports), adding to the complexity of border taxation.  Peak ad valorem  rates have 
also remained unchanged and concentrated in agricultural items (WTO definition);  applied 
MFN tariff rates range from zero to 887.4% 
(manioc);  some 86.6% of rates were 10% or below in 2008.  Tariff rate quotas apply under Korea's multilateral agricultural market-access commitments, with in-quota rates ranging from zero to 50% (2007) compared with 
out-of-quota rates up to 887.4%, and with 
average fill rate of 68.3%.  Other measures (e.g. "autonomous" tariff quotas, usage tariffs, and duty concessions) selectively reduce tariffs on inputs.  The average applied customs 
duty on agricultural products (WTO 
definition), at 53.5%, remains more than eight times higher than the average for non-agricultural goods (6.5%).  Korea has bound 90.8% of its tariff lines:  98.7% of agricultural lines (excluding mainly rice) (WTO definition) 
and 89.5% of its non-agricultural lines.  The 
average gap of 4.3 percentage points between the average bound and applied MFN tariff rates still imparts a degree of unpredictability to the tariff regime and provides scope for the 
authorities to raise applied rates within the 
bindings.  Korea has continued to use this gap to apply higher MFN duties (e.g. adjustment duties) termed as "flexible tariffs", which the authorities maintain are within WTO bindings; 
product coverage under "flexible tariffs" 
dropped from 203 (2004) to 101 (2007). 
10. During the period under review, Korea 
streamlined and modernized its customs procedures by moving further towards an "intelligence oriented customs administration".  
As a result of the expanding network of its 
preferential arrangements, customs clearance has become more complicated, particularly due to rules of origin requirements of individual agreements.  Korea, which is 
considered to be at the cutting edge of 
international best practice in customs matters, Republic of Korea WT/TPR/S/204/Rev.1 
 Page ix 
 
 
  publishes worldwide its advanced customs 
techniques.  An early warning system for undervalued customs declaration of agricultural, forest, and fisheries products was 
introduced in August 2007 to block their 
under-invoiced importation into Korea. 
11. Rice remains the only item subject to 
import quotas.  Import licensing requirements and prohibitions are maintained mostly for the 
protection of public morals, human health, 
hygiene and sanitation, animal and plant life, environmental conservation or essential security interests in compliance with domestic legislation requirements or international commitments.  Korea has used anti-dumping 
provisions against imports involving mainly 
chemicals, machinery, wood articles, paper and paperboard;  it initiated 47 cases and had final measures on imports from 10 countries.   
12. Korea periodically restricts or 
monitors exports of certain products (e.g. rice) 
to ensure adequate domestic supplies, and thereby possibly assisting downstream processing of these products;  quantitative export restrictions for rice have been in place since 2007.  Export prohibitions are aimed at 
protecting animal rights and endangered 
species, and conserving natural resources.  Direct export subsidies are maintained to reduce marketing costs for certain agricultural products (e.g. fruit, vegetables, flowers, 
kimchi, ginseng, and livestock);  they totalled 
W 25.59 billion in 2004.  In addition to the tariff drawback scheme, excises and VAT are rebated at the border.  Exporters benefit from export credit insurance, finance, and the 
promotional activities provided by state-owned 
institutions. 
13. Various measures, involving grants, 
tax concessions or concessional loans, are used to support production and trade of a range of agricultural, forestry, fishing, and 
manufactured products as well as to encourage 
R&D, SMEs, and environmental protection.  Although sunset clauses were to terminate tax incentives automatically at the end of 2003, many were extended.  SMEs, whose eligibility criteria were streamlined in 2006, are among 
the beneficiaries of these measures, especially those engaged in information technology activities.  Certain agricultural producers and 
manufacturers that could be adversely affected 
by a bilateral FTA may receive certain types of support. 
14. Korean industrial standards have 
doubled over the last five years;  work is under 
way to harmonize Korean standards to 
international standards (including those on new technology products), and for cooperation in global standardization activities.  Food labelling standards continue to be reviewed so that they better reflect international 
requirements.   
15. Korea is a party to the WTO 
Government Procurement Agreement.  Some government procurement is still not covered by Korea's commitments under the GPA;  for 
example, procurement from SMEs, for which 
private (non-competitive) tendering prevailed until 2007.  Government procurement has become more decentralized;  70% of the procurement market involves purchases undertaken directly by public institutions.  
Despite the lack of domestic price preferences, 
government procurement is still seemingly used as an instrument of economic policy, including regional and industrial development;  new legislation has required priority to be 
given to environment-friendly products.  
Foreign suppliers appear to be losing ground in the government procurement market, due to the highly sophisticated and increasingly competitive domestic suppliers of 
manufactures and construction services, as 
well as the discontinuation of government purchases financed by international public loans, which require international competitive tendering.  Foreign suppliers accounted for 3.1% of the Public Procurement Service's total 
business receipts in 2005. 
16. Korea's extensive intellectual property 
rights (IPRs) legislation has been further strengthened with the amendment of, inter alia , the copyright legislation, the WT/TPR/S/204/Rev.1 Trade Policy Review 
Page x 
 
 
  reinforcement of border enforcement, and the 
signing of several FTAs, particularly the Korea–US FTA, which provides for extended terms of copyright protection (i.e. life of the 
author plus 70 instead of 50 years) on a 
reciprocal basis. 
17. During the period under review, Korea 
completed the implementation of its three-year Market Reform Roadmap by establishing and 
revising competition laws and regulations, and 
strengthening institutions in this area.  Chaebols  (large conglomerates) are subject to 
special regulation, including ceilings on shareholdings in other domestic firms;  cross-shareholdings were banned for the top 
62 chaebol  as of late 2007.  Liner shipping 
conferences remain exempt from competition legislation.  New legislation was passed and institutional changes were made to strengthen consumer protection. 
(4) S
ECTORAL POLICY DEVELOPMENTS  
18. Despite persisting, though more 
market-oriented, government intervention, agriculture's GDP share has continued to fall and labour productivity has remained little more than half of the national average.  
Although self-sufficiency has been attained for 
some major products (e.g. rice), the volume of imports of agricultural products has risen.  Tariff protection for agricultural goods has remained high.  Tariff rate quotas (with a fill 
ratio of more than 68%), are administered or 
allocated by state-trading entities or industry associations.  Quantitative import restrictions for rice were relaxed (i.e. by progressively increasing the quota volume) and are to remain 
in force until 2014;  by that date, rice imports 
are expected to double to cover 8% of domestic consumption.  Korea has made use of the special safeguard provisions under the WTO Agreement on Agriculture.  Sensitive agricultural items from FTA liberalization 
commitments are exempt.  Agriculture 
receives substantial domestic financial assistance, involving product-specific market price support, in line with the relevant WTO provisions;  whereas in 2006 net support for agriculture (3.3% of GDP) exceeded its 
contribution to GDP (3.2%), in 2007 they were virtually the same (3%).  Domestic support distorts agricultural production and trade, and 
results in Korean consumers paying much 
higher prices (on average well over double world levels).  Support through direct payments has increased significantly, especially since their introduction for paddy 
fields in 2005.  The government purchasing 
system for rice was replaced by a public stockholding system in 2005.  A differentiated pricing system for surplus milk has reduced its volume.  Action has been taken to, inter alia , 
facilitate farm enlargem ent, farmland mobility, 
land conservation and environmentally 
friendly farming.  Measures are envisaged to cope with rising food prices.  Steps have been taken to reduce over-fishing, despite retaining fisheries-related subsidies and increasing total 
allowable catch in Korean waters;  adjustment 
duties have been raised for nine fish species to protect domestic seafood producers. 
19. During the period under review, steps 
to reduce oil dependence and cope with rising energy demand include recourse to renewable 
energy and investment projects overseas.  
State involvement persists in the gas and electricity sectors.  Since 2005, some industries have obtained licences to import gas directly for their own use rather than 
purchasing it from the state monopoly firm, 
which now adjusts regularly the price of the commodity to world prices.  Domestic coal production, mainly destined for power plants, continues to be subsidized.  The power 
exchange pool sets power generation prices;  
cross-subsidies between consumers distort prices, with agricultural and industrial users being the main beneficiaries. 
20. Despite its declining shares of GDP 
(27.8%) and employment (17.6%) (and 
consequent high labour productivity), 
manufacturing remains heavily outward-oriented;  information and communications technology, as well as shipbuilding and cars, activities dominated by large chaebols,  
maintain a leading global position.  Border Republic of Korea WT/TPR/S/204/Rev.1 
 Page xi 
 
 
  protection, which is almost entirely confined 
to tariffs and adjustment  duties, has remained 
unchanged since the previous Review.  Several tax and non-tax incentives are intended to 
assist R&D and SME activities.  In 2007, 
investigations on the pricing of imported motor vehicles were initiated.  Domestic support to the shipbuilding industry, which was to be phased-out at end 2006 has been 
extended to the end of 2009. 
21. The services sector remains 
characterized by relatively low labour productivity (little more than half the level in manufacturing) and declining growth in total factor productivity; this is due, inter alia , to 
insufficient competition as a result of unduly 
burdensome regulation, predominance of state-owned enterprises, and low foreign presence.  Despite some decline, state-ownership persists in financial, 
telecommunications, and transport services.  In 
addition, there are foreign ownership ceilings in several sectors, notably telecommunications, air transport, and coastal maritime services, and a prohibition in radio and television broadcasting.  On the other 
hand, services have benefited from regulatory 
reforms, including progressive liberalization in line with Korea's existing GATS commitments.  Moreover, in all Korea's FTAs its commitments in the services sector exceed 
those under the GATS.  In 
telecommunications, Korea has unilaterally liberalized foreign ownership beyond its GATS commitments.  Increased competition in banking, partly due to FDI, together with 
consolidation and restructuring have 
significantly improved banks' balance sheets (and thus reduced their non-performing loans) 
as well as their productivity and profitability; as a result, labour productivity in the banking sector is much higher than in most other 
services and is comparable to the national 
level. 
(5) O
UTLOOK  
22. Korea's economic fundamentals are, 
by and large, sound.  Nonetheless, sustained 
growth depends on the Government 
proceeding with structural reforms, especially those aimed at improving the investment climate, thereby making Korea more attractive to foreign direct investment, addressing labour market rigidities, and the likely decline in the 
labour force owing to a rapidly aging 
population.  These and related reforms, including privatization and continued regulatory reforms, would increase the flexibility of the Korean economy to respond 
competitively to growing external competition.  
Sustained growth also depends to a considerable extent on Korea's success in substantially raising pr oductivity in services, 
by, for example, opening them up to domestic and foreign competition through these 
structural reforms.  In this regard, despite the 
emphasis placed on FTAs, a successful outcome to the ongoing negotiations at the WTO would improve the outlook for the Korean economy, by helping Korea to further 
liberalize its trade and investment regimes and, 
through the resulting increase in competition, improve the productivity and thus the competitiveness of Korean producers, who would then be in a better position to take 
advantage of greater access to export markets.