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Structural Change in International Value Chain and International Status of Korea

Author Youn , Woo-Jin Date 2014.04.24 Issue No 587
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Today, the international status any country or enterprise gains in the global trade, is determined depending on which status they are maintaining in the international value chain.  


 
Looking over the change in the status of individual countries based on international value chain income, the decline of advanced countries is in a sharp contrast to the emergence of developing countries while what is outstanding is a dramatic growth of China.

 

The international value chain income of Korea accounts for more or less than 2% in the chain, remaining at a stable level, which implies that Korea has been playing a bridge role between advanced and developing countries.

 

International value chain is evolving into a form where globalization and regionalization are mixed as China, India and Eastern European countries are actively participating in the chain.

 

International value chain which is being divided largely into 4 regions, is developing into a overlapping globalized framework through the connecting link between regions.

 

In the international trade, China has raised its international status comparable enough to that of the U.S or Germany by having been involved in the chain more deeply than any other countries.   

 

Korea which is included in the Asian value chain, along with Japan and China, has seen its competitiveness improving as the contribution of its export substantially increased due to the China effect.

 

Korean government and enterprises should solidify their status more in the international value chain through a trinity strategy in which trade, investment and technology are associated with one another.