The Effect Of Yuan Globalization On Korean-Chinese Trade

Recent, East Asia’s Trade dependency on China is being in a large scale, enhancing on theYuan Globalization of the world. China has traded with its neighboring countries by Yuan since2009; later a number of ‘Pre-Yuan Trade Payment zones’ and major enterprises have graduallyincreased. Further, the recent deregulation of Yuan trade business enables yuan to be vitallytraded between in China inter-regions, and China-lived-in companies.South Korea as one of the high influenced nations by China for both geographically andeconomy, has nearly25%of its export proposition against China; which already exceeded over100billion dollars. Now that the yuan globalization largely attracts world economy South Koreais also in process of studying the outlook on yuan globalization. This study suggests theunderstanding of the yuan trade payment system as its first step and shows its ripple effects ifKorean-Chinese trade institutes Yuan payment system. For the Yuan Globalization, China spursexports-based enterprises to use Yuan in their trading with its neighboring nations; has issued theyuan-bond in Hong Kong, and introduces a various type of yuan-based financial instruments.This study reviews how China in itself does cognize the yuan globalization and its current status,so that prospects the ripple effects and its scale that will influence on Korea economy. After all,it suggests Korea’s effective countermeasures against the yuan globalization in the future.