FTA Business Models for Competitive Industries in Gangwon Province, Korea

초록

Focusing on the unique problems of small and medium businesses that are engaged ininternational trade, this paper constructed strategic Free Trade Agreement (FTA)implementation models for the four top most competitive industries namely food, cosmetics,automotive parts and accessories, and biomedical instruments in Gangwon province. Thisstudy found that for all of these industries, where applicable, undergoing a Change in TariffClassification (CTC) is the easiest method of gaining a tariff reduction. Where this is notapplicable, meeting either Wholly Obtained Criterion (WO) or Value Added Criterion (VAC)is usually a possible alternative. This study further determined that in some industries, alogistics hub strategy will reduce both tariffs and transport costs. It is hoped that thisresearch will increase the utilization of Korea's various FTAs among Gangwon province’ssmall and medium businesses. Furthermore, this research could also be done in otherprovinces of Korea so that the FTA provisions could be utilized more across the country.

키워드