Analysis Of Korea And China FTA(Free Trade Area)’s Economic Effect

Now all countries（regions） in the world, including South Korea, in coping with increasingly globalization of the international trade environment changes at the same time, through enhancing national competitiveness, in the field of domestic with foreign similar status, implementation such as tariff reductions system of free trade area, and other special economic zones of maximizing foreign investment and global enterprises. The European Union, North America trade agreements with the northeast Asia economic circle is rapid growth for the world’s three largest economic circle, belongs to the countries（regions） of northeast Asian economic circle in China’s mainland, South Korea’s competitive countries（regions） such as Singapore, Taiwan of China, Hong Kong of China, in order to ensure that regional economy and logistics control and will be coaxed into northeast Asian stronghold, since countries（regions） to fully devoted to attract foreign investment and other business, so the free trade area and other special economic zone activity than any regional competition.South Korea in 1997 currency crisis caused by the economic crisis, South Korea government introduced various policies and systems. Among them, in particular, foreign investment zone, tariff free zone, free trade zone, economic free trade area, etc, is overcome in the process of the economic crisis, the government department home the need for foreign investment and change to a more active and the introduction of system. As a result, there was a time lag behind the FTZ(Free Trade Zone) diffusion trend of the republic of Korea, also began to promote the FTZ between various parts of the world, especially developed with huge economic circle of the FTZ also actively promote goal, formally involved in FTZ in competition.This paper is divided into six parts. The first chapter is the introduction; about the selected topic background, research methods and contents, innovation point and the difficulty. The Second chapter is literature review. It divided into two parts, Domestic Review and the other one is Foreign Review. The third chapter is about the state of Korea and China’s Trade, and some analysis of two countries trade strength. The fourth chapter shows Korea and China Free Trade Area’s agreement. The fifth chapter analysis the two countries in establishing Korea free trade area of the two countries in Korea’s effect, advantages and opportunities, finally the fifth chapter is to benefit of both countries and several suggestions.