Cheol-Won Lee

Policies for Industrial Competitiveness Improvement in Europe and Their Implications

The global economic crisis has brought back into focus the need for a stable manufacturing base in advanced economies. Hence many debates shed new light on industrial policy with an aim to restore industrial competitiveness. In this context, this study reviews industrial strategies and policies adopted by the European Union (EU) and its Member States, and draws policy implications for Koreas industrial policy.

The EU's FTA Strategies in Its New Trade Policy Initiatives and Policy Implications

Beginning with the Global Europe Initiative in 2006, the EU has conducted active trade policy measures to contribute to economic growth, job creation and social cohesion in the European community. Comprehensive and high-leveled bilateral FTA initiatives, among others, have rapidly emerged as a major tool of the new trade policy to achieve such goals. More than a decade has passed since the Global Europe Initiative was declared. In the meantime, the EU successfully established several new generational FTAs with the Republic of Korea, Singapore, Vietnam and others, despite harsh economic turmoil led by global and European financial crises, the Greek crisis, Brexit, etc. This paper aims to illuminate how the goals of the new trade policy have been achieved through the EUs FTA strategies over the years since the Global Europe Initiative. To do this, we focus on three topics: EU standards, the evaluation process of market openness and the global value chain (GVC). In other words, we will evaluate how much the EUs FTA strategies have contributed to achieving globalization of EU standards, job creation through careful evaluation processes, and economic growth of the community by utilizing GVCs.Beginning with the Global Europe Initiative in 2006, the EU has conducted active trade policy measures to contribute to economic growth, job creation and social cohesion in the European community. Comprehensive and high-leveled bilateral FTA initiatives, among others, have rapidly emerged as a major tool of the new trade policy to achieve such goals. More than a decade has passed since the Global Europe Initiative was declared. In the meantime, the EU successfully established several new generational FTAs with the Republic of Korea, Singapore, Vietnam and others, despite harsh economic turmoil led by global and European financial crises, the Greek crisis, Brexit, etc. This paper aims to illuminate how the goals of the new trade policy have been achieved through the EUs FTA strategies over the years since the Global Europe Initiative. To do this, we focus on three topics: EU standards, the evaluation process of market openness and the global value chain (GVC). In other words, we will evaluate how much the EUs FTA strategies have contributed to achieving globalization of EU standards, job creation through careful evaluation processes, and economic growth of the community by utilizing GVCs.

Harmonizing Social Welfare and Economic Growth: Case Studies of European Countries and Implications for Korea

Welfare spending continues to garner a bigger chunk of the national budget in Korea. This has become a key economic issue attracting much public attention. Fiscal conservatives call for tighter controls on welfare spending, while some are calling for greater welfare spending in order to temper the effects of economic polarization. In this context, this paper analyzes relation between level of welfare spending and economic growth and proposes some conditions to create welfare system in favor of economic growth. Beyond quantitative analyses, the paper reviews reforms in welfare policy in Sweden, Denmark, Germany and Netherlands in order to understand how these countries have reacted to domestic and external challenges in their welfare system. Through economic analysis and case studies, the paper draws following policy implications for Korea. First, it is necessary to maximize existing welfare policy, but also develop ways to raise taxes in a growth-friendly manner. Second, it is highly recommended to create an atmosphere conducive to policy innovation. Third, it is necessary to establish growth-oriented welfare regimes with a special focus on strengthening human capital and employment rates.

Reforms in Economic Governance of Eurozone after the Debt Crisis and Lessons for Korean Economy

This study analyzes the causes of the European debt crisis and reviews reforms the eurozone has pushed for in order to solve the crisis. It also focuses on the future prospect of economic governance of the eurozone. European debt crisis has spread over the entire eurozone despite the bail out of Southern European countries. Greece, Ireland, and Portugal were bailed out and since the second semester of 2011, Italy and Spain have been under the pressure of a potential debt crisis due to their soaring bond yield rate. During the early period of the crisis, the eurozone focused on providing liquidities to Greece. However as the crisis affected other countries one after another, eurozones responses have become more comprehensive, recognizing that the crisis is related to insolvency beyond liquidity crisis.