Research On Sino - Korean Economic And Trade Cooperation

Since diplomatic relations were established between South Korea and China in 1992, the relationship between the two countries has developed rapidly, becoming important trade partners to each other. Under the new paradigm of Korea’s economy, studying SWOT and countermeasures about international trade between China and Korea is important for further development. This article analyzes Korea, Sino-Korean economy and trade cooperation on the basis of theories of international trade and economy. In addition, using SWOT analysis to analyze the environment of the Sino-Korean economy and trade cooperation, to suggest countermeasures in the level of government and cooperations.This study concludes that the strength of the Sino-Korean international trade, its cultural and geographical condition is very similar between the two countries, they strongly complement each other economically and politically. The weakness is that China has recordeda staggering trade deficit, frequent trade frictions, imbalance of FDI while Korea’s economy heavily depends on the Chinese Economy. On the other hand, both China and Korea’s governments regard the service industry as important, as well as willingness to co-develop the regional economic cooperation space. Considering the political tension between Japan and China, Korea can be considered as an opportunity of development for Sino-Korean economic and trade. As technical gaps between Korea and China keep narrowing, China’s policy of expanding the domestic market and restrictions of processing trade became the focus of Sino-Korean trade development. For sustainable development of Sino-Korean trade and economic cooperation, the Korean government has to support export companies to develop new techniques and offer information about Chinese market situations as well as helping companies to open new marketing channels. At the same time, the government must discover new markets to decrease dependence on China, protect domestic enterprises and find a balance between the relationships of U.S. and China. Enterprises have to strengthen their R&D, improve industrial competitiveness.In summary, at the Sino-Korean government level, the following are important: Promotion of technical cooperation between China and Korea, establishment of a mutually beneficialtrade regime, development of E-commerce market, using Sino-Korean FTA and Development of a new cooperation market.