Transcript PowerPoint 프레젠테이션

Northeast Asian Business Hub
Thought on Korean Initiatives
October 29, 2004
Soonhoon Bae
The Korea Advanced Institute of
Science and Technology, Seoul, Korea
－韓国科学技術院教授、元韓国情報通信相
Current Picture of Northeast Asia
International
Relations
Economy
Culture
-Lack of full reconciliation
-North Korean nuclear issue
-Competition on leadership
-Surge of China as the World’s
factory and market
-Japan’s high-tech capacity
-No FTA yet
-No sense of common identity
as Northeast Asian community
-Collision of nationalism
No foundation for
sound competition
and cooperation
Common
ground for
Northeast Asia
Economic Environment for Korea
Stagnant domestic
consumption
Stagnant job market
Burdens of social cost
Government(60%)
Companies(40%)
World market share
Competition with
China
Competition with
Japan
China’s export increase
1991
(year 2003: increase by 30%)
Korea 2.0% 2.5%
China 2.0% 5.0%
Gap in R&D investment
(Korea: less than 1/10 of Japan)
2002
Increased imports
of intermediate goods
from Japan
Deteriorated competitive edge
loss of jobs
(Labor market shrinks
for new entrants)
Comparison among Economic Blocs
Pop. (100 mil.)
Kor · Chn · Jap
14.5 (23.6%)
EU
3.8 (6.2%)
NAFTA
4.1 (6.8%)
Area (10thou. ㎢)
1,007 (7.5%)
324 (2.4%)
2,174 (16.3%)
GDP (tril. US$)
Trade Volume
5.8 (18.6%)
7.9 (25.2%)
11.5 (36.7%)
1.7 (12.6%)
2.4 (18.3%)
2.7 (20.8%)
(tril. US$)
* ( ) : share of the world total
NEA 3 countries
(GDP 5.8 tril.US$, T.V.1.7tril.US$)
APEC (21)
• Pop. 2.6 bil. (42%)
• GDP 20 tril. US$ (60%)
• T.V. 6.4 tril. US$ (48%)
NAFTA
(GDP 11.5tril.US$, T.V. 2.7tril.US$)
ASEM (26)
• Pop. 2.2 bil. (38%)
• GDP 15 tril. US$ (49%)
• T.V. 6.3 tril. US$ (55%)
Trans-Atlantic Market Place
• Pop. 0.65 bil (11.2%)
• GDP 20 tril.US$ (60%)
• T.V. 5.5 tril.US$ (50%)
EU
(GDP 7.9tril.US$, T.V. 2.4tril.US$)
Korea’s Role for Common Prosperity in NE Asia
Market-customization
Inbound
Outbound
Investment
Technology
EU
NAFTA
Business Hub
Republic of Korea
Investment
Technology
Northeast Asia
Gateway
Products
&
Services
Products
Material
Logistics
Finance
Marketing
Hub Strategy of Korea
Cooperation by differentiation
Korean Business Hub
Technology of Japan
Manufacturing of China
Market focus
(Intermediary roles)
Northeast Asian market
World market
Korea’s competitiveness as a hub in NE Asia
• Geographic proximity to China with huge domestic market & low labor cost
• Geographic proximity to Japan with high technologies
• Highly educated labor force and entrepreneurial skills
• Strategic Advantages such as well-developed national infrastructure, overall superior
technological platform, etc.
• Advanced Information Technology
Business Hub (Regional Logistic Support for Manufacturing and Distribution)
 Logistic hub - Vertical integration
Trans-Shipment
Stand-alone transportation
JIT Supply
Parts and raw material
SCM
Sub-assembly
Business Hub (Specialized Regional Financial Hub)
Financial hub - Northeast Asian(Regional) focus
· Commercial banking – Reform by global practice
· Investment banking – Asset Management
(Industry restructure through M&A)
· Consultancy and project financing – Open service market
Business Hub (Regional Industrial Cluster)
Emerging market focus
Market Integration through FTAs – Pursuing economies of scale &
economies of network
FDI - Regional (global) corporations
Japan
Korea
China
National goal-oriented
market economy
Brokerage
Private profit-motivated
market economy
Balanced development
Business Hub
(Finance, management,
and technology)
Fast track
industrialization
Possible Areas for Cooperation
Projects of infrastructure
construction that would contribute
to peace in the region
1. Development of nodes for
Projects leading to a Northeast
Asian community
6. East Asia FTA (EAFTA)
inter-Korean economic cooperation
7. Regional financial cooperation
2. Linking of inter-Korean and
Trans-Asian railroads
3. Development of regional energy
resources
4. Cooperation in ICT and other leading
edge technologies
5. Exploration of financial
resources for regional development
8. Cooperation on environment
9. Social and cultural exchanges
Thank you.