earticle

영어

America was Korea's number one export country until 2002, but since 2003, China became the most important export country for Korea. Recently, the proportion of the import from China in the overall import has increased as well. Also, China is a huge market whose population takes more than 20.5% of the world's population, and taking the regional proximity into account, the profit of economic integration is expected to increase. However, due to many factors such as the features of the industrial structure, differences in the average income, agricultural problems, a variety of regulations, etc are holding back further study. This paper will compare and analyze the industry of Korea and China, evaluate their national competitive powers through various trade indexes, and analyze the overall economic effects in preparation for FTA between two countries. The negative effects of Korea-China FTA include the base-weakening of domestic agricultural and fishery industry and other incompetent industries, and many people worry that their market share will substantially decrease. Therefore, this study focused on analysis of agricultural and manufacturing industries, reviewed the pervasive economic effects of Korea-China FTA, and suggested possible countermeasures.