Skip to main content
SpringerLink
Log in

Korea’s linkage strategy between FTA hub policy and middle power leadership in regional economic integration

  • Original Paper
  • Published:
Asia Europe Journal Aims and scope Submit manuscript

Abstract

This article focuses on Korea’s free trade agreement (FTA) hub policy and its implication for Korea’s role in the regional integration process of the Asia-Pacific. It particularly bridges a gap in the existing literature, addressing why Korea, pursuing an FTA hub nation, simultaneously takes a proactive approach toward a range of regional projects. It argues that Korea’s FTA hub policy has not been solely driven by economic consideration, and the Korean government’s intent to use an FTA hub status to gain political objectives is equally, or even more, important. In particular, Korea has linked its FTA hub policy and the exercise of middle power leadership in the shaping of the regional trade architecture. The Korean government has perceived Korea’s FTA hub status as a useful instrument for Korea’s leading roles such as facilitating regional trade liberalization, managing its manners and sequence, and mediating between the USA-led and the China-led regional initiatives.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aggarwal VK, Govella K (eds) (2013) Linking trade and security: evolving institutions and strategic in Asia, Europe, and the United States. Springer, New York

  • Alba J, Hur J, Park D (2010) Do hub and spoke free trade agreements increase trade? A panel data analysis. ADB working paper series on regional economic integration 46. ADB, Philippines

  • Bae H (2013a) Korea to move onto next chapter of free trade deals. Korea Herald, 14 June. http://khnews.kheraldm.com/view.php?ud=20130614000756&md=20130617003242_BL. Accessed 11 Dec 2014

  • Bae H (2013b) Korea’s trade policy straddles U.S., China. Korea Herald, 9 September. http://khnews.kheraldm.com/view.php?ud=20130909000902&md=20130912004422_BL. Accessed 11 Dec 2014

  • Bahk J (2012) Northeast Asian economic integration (In Korean). A speech delivered to an international forum organized by NEAR foundation

  • Baldwin R (2009) The spoke trap: hub and spoke bilateralism in East Asia. NCCR trade working papers 2009/28. NCCR Trade Regulation, Berne

  • Bark T (2012a) Strategic Value of the KORUS FTA. A speech delivered to the AMCHAM General Membership Meeting, Seoul, 8 March

  • Bark T (2012b) The achievement of an annual trade volume of more than one trillion dollars and our strategy for FTA promotion (In Korean). A speech delivered to the Policy Seminar of Korea Trade Research Association, Seoul, April 27

  • Blue House News (2013) The result of the 2013 APEC Summit (In Korean). 9 October. http://www1.president.go.kr/news/newsList.php?srh%5Byear%5D=2013&srh%5Bmonth%5D=10&srh%5Bpage%5D=4&srh%5Bview_mode%5D=detail&srh%5Bseq%5D=252&srh%5Bdetail_no%5D=11. Accessed 11 Dec 2014

  • Blue House News (2014) The result of the 2014 APEC Summit (In Korean). 12 November. http://www1.president.go.kr/news/newsList.php?srh%5Bview_mode%5D=detail&srh%5Bseq%5D=8368&srh%5Bdetail_no%5D=648. Accessed 11 Dec 2014

  • Capling A (2008) Preferential trade agreements as instruments of foreign policy: an Australia–Japan free trade agreement and its implications for the Asia Pacific region. Pac Rev 21(1):27–43

    Article  Google Scholar 

  • Cheong E (2013) The Korean government hesitant to join TPP due to time and public opinion (In Korean). Newsis, 18 September. http://www.newsis.com/ar_detail/view.html?ar_id=NISX20130916_0012364767&cID=10401&pID=10400. Accessed 11 Dec 2014

  • Cheong I, Cheong J (2009) A review for the economic effects and validity of East Asian FTA hub strategy (In Korean). J Northeast Asian Econ Stud 21(4):1–38

    Google Scholar 

  • Cheongwadae (2009) The New Asia Diplomacy on track (In Korean). Policy Briefing, 19 October. http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=117&oid=298&aid=0000025689. Accessed 11 Dec 2014

  • Cho M (2013) Cannot surrender initiatives on the largest multilateral FTA market to Japan (In Korean). Hankook Economy, 29 November. http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=015&aid=0002990724. Accessed 11 Dec 2014

  • Choi K (2014) News briefing by Deputy Trade Minister (In Korean)

  • Choi S (2012) News briefing by the Chief FTA Negotiator (In Korean)

  • Chung J (2007) The security externalities of regional trading agreements: the case of the KORUS FTA (In Korean). Natl Def Stud 50(1):61–80

    Google Scholar 

  • Cooper AF, Higgott R, Nossal KR (1993) Relocating middle powers: Australia and Canada in a changing world order. UBC, Vancouver

    Google Scholar 

  • Das GG, Andriamananjara S (2006) Hub-and-spokes free trade agreements in the presence of technology spillovers: an application to the western hemisphere. R World Econ 142(1):33–66

    Article  Google Scholar 

  • Deltas G, Desmet K, Facchini G (2012) Hub-and-spoke free trade areas: theory and evidence from Israel. Can J Econ 45(3):942–977

    Article  Google Scholar 

  • Dent C (2003) Networking the region? The emergence and impact of Asia-Pacific bilateral free trade agreement project. Pac Rev 16(1):1–28

    Article  Google Scholar 

  • Diaz M (2001) Mexico: free trade agreements anyone? United State-Mexico Chamber of Commerce’s NAFTA Forum series. http://www.usmcoc.org/b-nafta2.php. Accessed 4 Dec 2014

  • Efstathopoulos C (2011) Reinterpreting India’s rise through the middle power prism. Asian J Polit Sci 19(1):74–95

    Article  Google Scholar 

  • Gowa J (1994) Allies, adversaries and international trade. Princeton UP, Princeton

    Google Scholar 

  • Hayashi Y, Sekiguchi T (2012) Japan’s leader turns trade focus to China, South Korea. Wall Street Journal, 13 May. http://online.wsj.com/articles/SB10001424052702304203604577399671944315172, Accessed 11 Dec 2014

  • Higgott R (2004) After neoliberal globalization: the “securitization” of U.S. foreign economic policy in East Asia. Crit Asian Stud 36(3):425–444

    Article  Google Scholar 

  • Higgott R, Beeson M (2013) The changing architecture of politics in the Asia-Pacific: another (lost) middle power moment? A paper presented at the 2013 KAIS-KF international conference, Seoul, 19 April

  • Holbraad C (1984) Middle powers in international politics. St. Martin’s Press, New York

    Book  Google Scholar 

  • Kim CH (2007) Prospect of Korea-China FTA negotiations (In Korean). Kookmin Ilbo, 6 April. http://media.daum.net/politics/others/newsview?newsid=20070406182206472. Accessed 11 Dec 2014

  • Kim CW (2011) Toward a multistakeholder model of foreign policy making in Korea? Big business and Korea-US relations. Asian Perspect 35:471–495

    Google Scholar 

  • Kim DJ (2006) Regionalism in the age of Asia. Global Asia 1(1):10–12

    Google Scholar 

  • Kim DH (2014) Korean value up in TPP negotiations (In Korean). Newsis, 12 November. http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=003&aid=0006192087. Accessed 11 Dec 2014

  • Kim J (2012) Korea-China FTA, Korea-China-Japan FTA simultaneously embarking (In Korean). Onmynews, 8 May. http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=047&aid=0002000025. Accessed 11 Dec 2014

  • Kim K (2014) Interview with Han Duck-soo (In Korean). Seoul Shinmoon, 3 December. http://www.seoul.co.kr/news/newsView.php?id=20141203008006. Accessed 11 Dec 2014

  • Kim Y (2005) The optimal path of regional economic integration between asymmetric countries in the North East Asia. J Policy Model 27(6):673–687

    Article  Google Scholar 

  • Koo M (2006) From multilateralism to bilateralism? A shift in South Korea’s trade strategy. In: Aggarwal VK, Urata S (eds) Bilateral trade agreements in the Asia-Pacific: origins, evolution and implications. Routledge, London, pp 140–159

    Google Scholar 

  • Koo M (2009) South Korea’s FTAs: moving from an emulative to a competitive strategy. In: Solis M, Stallings B, Katada SN (eds) Competitive regionalism: FTA diffusion in the Pacific rim. Palgrave Macmillan, New York, pp 161–180

    Google Scholar 

  • Koo M (2013) The ASEAN+’X’ framework and its implications for the economic-security nexus in East Asia. In: Aggarwal VK, Govella K (eds) Linking trade and security: evolving institutions and strategies in Asia, Europe, and the United States. Springer, New York, pp 89–109

    Chapter  Google Scholar 

  • Kowalczyk C, Wonnacott RJ (1992) Hubs and spokes, and free trade in the Americas. NBER Working Paper, 4198

  • Lee D, Kweon Y (2007) Won Jiabao Hopes for the conclusion of an FTA with Korea as soon as possible (In Korean). Yeonhap News, 5 April. http://media.daum.net/foreign/asia/newsview?newsid=20070405213209418. Accessed 11 Dec 2014

  • Lee S (2013) The economy-security nexus in East Asian FTAs. In: Aggarwal VK, Govella K (eds) Linking trade and security: evolving institutions and strategic in Asia, Europe, and the United States. Springer, New York, pp 135–156

    Chapter  Google Scholar 

  • Mochizuki MM (2009) Political-security competition in East Asia. In: Solis M, Stallings B, Katada SN (eds) Competitive regionalism: FTA diffusion in the Pacific rim. Palgrave Macmillan, New York, pp 54–73

    Google Scholar 

  • MOFATK (Ministry of Foreign Affairs and Trades, ROK) (2007) 2007 Diplomatic White Paper (In Korean). MOFATK, Seoul

    Google Scholar 

  • MOFATK (2012a) Promotion Plan for the Korea-China FTA (In Korean). A policy report to the National Assembly. MOFATK, Seoul

    Google Scholar 

  • MOFATK (2012b) 2012 Diplomatic White Paper (In Korean). MOFATK, Seoul

    Google Scholar 

  • MOFATK (2012c) Plan for the Korea-China-Japan FTA (In Korean). A policy report to the National Assembly. MOFATK, Seoul

    Google Scholar 

  • Moon D (2010) From latecomer to forerunner in global FTA networks: a change in South Korea’s FTA policy. Korean Polit Sci Rev 44(5):101–125

    Article  Google Scholar 

  • MOSFK (Ministry of Strategy and Finance, Republic of Korea) (2012) The evaluation of foreign economic policy for the last 5 years and future direction (In Korean). MOSFK, Seoul

    Google Scholar 

  • MOSFK (2012b) Minister Park, the Korean Peninsula may become a stage for great power competition (In Korean). 13 November. http://www.mosf.go.kr/news/news01.jsp?boardType=general&hdnBulletRunno=60&sub_category=131&hdnFlag=1&hdnDiv=189&&actionType=view&runno=4015565. Accessed 28 Nov 2014

  • MOSFK (2013) New Trade Roadmap (In Korean). MOSFK, Seoul

    Google Scholar 

  • Nye JS, Welch DA (2011) Understanding global conflict and cooperation: an introduction to theory and history. Pearson, Boston

    Google Scholar 

  • Oh H (2014) The Korea-China FTA, a cornerstone for future-oriented trade relations with China (In Korean). Asia Economy, 10 November. http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=100&oid=277&aid=0003369608. Accessed 11 Dec 2014

  • Ping JH (2005) Middle power statecraft: Indonesia, Malaysia and the Asia-Pacific. Ashgate, Aldershot

    Google Scholar 

  • Puga D, Venables AJ (1997) Preferential trading arrangements and industrial location. J Int Econ 43:347–368

    Article  Google Scholar 

  • Rahil S (2012) ASEAN’s regional FTA to slash 95% of tariffs to compete with TPP. Kyodo News, 26 February

  • Ravenhill J (1998) Cycles of middle power activism: constraint and choice in Australia and Canadian foreign policies. Aust J Int Aff 52(3):309–327

    Article  Google Scholar 

  • Ravenhill J (2010) The ‘new East Asian regionalism’: a political domino effect. Rev Int Polit Econ 17(2):178–208

    Article  Google Scholar 

  • Roh M (2009) Successes and failures (In Korean). Hakgojae, Seoul

    Google Scholar 

  • Roh M (2007) History, nationalism and community. Global Asia 2(1):10–13

    Google Scholar 

  • Rozman G (2007) South Korea and Sino-Japanese rivalry: a middle power’s options within the East Asian core triangle. Pac Rev 20(2):197–220

    Article  Google Scholar 

  • Saggi K, Yildiz HM (2006) Welfare effects of preferential trade agreements under optimal tariffs. mimeo, Southern Methodist U

  • Sohn Y, Koo M (2011) Securitizing trade: the case of the Korea-US free trade agreement. Int Relat Asia-Pac 11(3):433–460

    Article  Google Scholar 

  • Solis M, Katada SN (2009) Explaining FTA proliferation: a policy diffusion framework. In: Solis M, Stallings B, Katada SN (eds) Competitive regionalism: FTA diffusion in the Pacific rim. Palgrave Macmillan, New York, pp 1–26

    Chapter  Google Scholar 

  • Solis M, Katada SN (2014) Unlikely pivotal states in ccompetitive free trade agreement diffusion: the effect of Japan’s Trans-Pacific Partnership participation on Asia-Pacific regional integration. New Polit Econ. doi:10.1080/13563467.2013.872612

    Google Scholar 

  • Solis M, Stallings B, Katada SN (eds) (2009) Competitive regionalism: FTA diffusion in the Pacific rim. Palgrave Macmillan, New York

    Google Scholar 

  • Tjandraningsih CT, Kea P (2011) ASEAN economic ministers to discuss new regional cooperation framework. Kyodo News, 15 November

  • Wonnacott RJ (1975) Canada’s future in a world trade of blocks: a proposal. Can Public Policy 1:118–130

    Article  Google Scholar 

  • Wonnacott RJ (1996) Trade and investment in a hub-and-spoke system versus a free trade area. World Econ 19(3):237–252

    Article  Google Scholar 

  • World Bank (2000) Trade blocs. Oxford UP, New York

    Book  Google Scholar 

  • Young OR (1991) Political leadership and regime formation: on the development of institutions ininternational society. Int Organ 45(3):281–308

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Political Science and International Studies, Duksung Women’s University, 33, 144-gil, Samyang-ro, Dobong-gu, Seoul, 132-714, Republic of Korea

    Jinsoo Park

Authors
  1. Jinsoo Park
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jinsoo Park.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Park, J. Korea’s linkage strategy between FTA hub policy and middle power leadership in regional economic integration. Asia Eur J 13, 379–394 (2015). https://doi.org/10.1007/s10308-015-0412-3

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10308-015-0412-3

Keywords

Search

Navigation