Measures that affect export relationships between Russia and South Korea

The historical aspect of the trade, economic and diplomatic relations between Russia and South Korea. The main priorities in the trade and economic relations of both countries. Recent principal features of the Russian - Korean economic relations.

Рубрика Международные отношения и мировая экономика
Вид дипломная работа
Язык английский
Дата добавления 30.08.2020
Размер файла 274,9 K

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At the same time, it is needed to be mentioned that Russia is a significant world leader in specific areas for high technology, for fundamental reasons not highly developed in South Korea. This is primarily the Nuclear power industry and, in a broad sense, the application of Rosatom's production achievements. The capabilities of the Russian space industry also fall into this category, and Korea has considerable lack and needs in these. The scope of potential demand by the Republic of Korea can be attributed to highly competitive products of certain types of weapons.

Significant for Korea is the Russian potential of its territory and the Northern sea route as the shortest traffic route to Europe. And in this regard, the potential possibility of building a railway transit through the entire Korean Peninsula to the TRANS-Siberian railway is essential. As for the Northern sea route, the potential of the Russian icebreaker fleet is ready to provide ship wiring, while the construction of transport vessels can be provided jointly by Russia and South Korea.

It should be noted that the settlement of the problem on the peninsula of two diverse states (North Korea and South Korea) can also be carried out with the participation of Russia and China. However, it should be mentioned that for a number of reasons (partially discussed above), Russia will emerge from the economic crisis linked to the Covid19 pandemic with large losses, including financial losses, compared to South Korea. This largely determines the need to build even closer trade and economic relations with a country that objectively needs to develop relations with Russia, which is the Republic of Korea.

Methodology

The research topic for the current study is "Measures that affect the export relationships between Russia and South Korea". Descriptive research provides a detailed analysis of the research topic using past and current data from government and private sources. In this study, descriptive research uses to present a profile of export and import markets, classified by types and years, and the overall trade relationship between Russia and South Korea. The research purpose of this study will be exploratory and partly descriptive.

Exploratory research shows a general overview of the market condition in a bigger picture. Under this study, the first step is to develop an in-depth description of the object over time. The primary goal is to analyze and determine problems and questions for future research, precisely, new ideas on how to develop export relationships from South Korea of Russian private companies. The exploratory analysis uses qualitative data. The decision to use qualitative research was made due to the fact that it tends to be more open to using a wide range of evidence and discovering new issues.

The research strategy for this paper would be a case study, specifically, interviews.

According to Patton (1990:280), qualitative, open-ended interviewing can be identified in three forms, such as Informal conversational interview, General interview guide approach, and Standardized open-ended interview.

For qualitative research/observation, it is common to use an open-ended interview approach, which allows gathering information in a pliable, interactive, and ongoing way.

Due to the perception of the data that needs to be gathered and lack of information on particular topics, it has been decided that it would be best to choose a Standardized open-ended interview approach as the main strategy.

Standardized open-ended interviews require consistency, thoughtfulness, and the most unbiased approach possible. The standardized open-ended interview generally consists of "written out in advance exactly the way they are to be asked in the interview" questions (Patton, 1990:285). According to this particular research paper, the interview questions will be provided in order to find out specific points of view or topics it may lack off. The questions will be different for each participant, according to the participant's background and the specifics of the working sphere, which will allow distinguishing different points of view or similarities in the perception of participants on a particular topic.

Type of the interview has been decided to be an expert interview: non-random and voluntary. The expert interview is aimed to obtain a professional opinion about export from South Korea to Russia, using examples of particular companies and politician's opinions. As qualitative research works to obtain an opinion from a sample size on a particular question, four expert's opinions are enough to generate the code and valuable results for this paper. Interview questions will be different for people who are working in companies or operate their own businesses and for politicians and government workers in order to analyze the problem in a wider aspect. Experts from companies are more aware of the particular practical problems their company experiences, while governmental workers can provide more of a general overview of the export relations between the countries in question.

Interviewer data: Name, position, name of the company, company's field.

Interview reliability can be enhanced by ensuring that all the interviewees understand the questions in the same way and that the answers can be coded unambiguously. For this reason, it is necessary to pre-test questionnaires to verify inter-coder reliability for any of the open questions.

The analysis will be done by interview extract (table), translation of general text responses into numbers, generalization, and result.

This study does not require any hypothesis to be specified. To test one or more hypotheses, it is needed to acquire data and a large number of observations that are used in quantitative research methods, while this particular study is focused on the qualitative approach. Due to the fact that this study doesn't include the hypothesis to test, there are no independent nor dependent variables.

Time horizons are also not to be specified because of the fact that overall trade relationship analysis covers historical data throughout the years and for the topic "what measures could be taken by firms or governments to improve export between countries" data from the specific period of time is not needed mainly because analyzed data is taken from the interviews conducted recently.

Data sources for this study are a combination of primary and secondary data. Primary data shows results from expert interviews. However, this paper would be incomplete when using only primary data. Therefore, data will be supplemented by secondary data, which includes historical data in order to provide the relevant background of the problem.

Due to the fact that this research paper chose a case study method through interviewing, there are some limitations to be aware of.

Some difficulties considering primary data are, first of all, some trade data might be inaccessible because of the state policy. Secondly, researchers have to evaluate their own data, which might be inadequate or incomplete to build a database or draw clear conclusions.

Since the research will focus on interviewing only four people (representatives) from various companies with different backgrounds and peculiarities, that means the results, and therefore conclusions will not be necessarily applicable for any other situation elsewhere.

In addition, this study may face incompleteness, fragmentation, and breadth of answers during interviews, as well as inflated opinion during the interview about the economic or environmental context, for example, a company representative wants his company to seem to have a better representation or awareness on certain points than they are in reality.

Moreover, the results will be based on qualitative data, but the interpretation of those results may highly depend on researchers' vision on some particular topics, which can be perceived as a negative or rather too personal matter. Researchers' biased opinion can intrude or influence the conclusion, which could lead to the subjective, non-personal outcome fail.

Due to the research paper focusing on particular companies, the study itself can be seen as not generalizable for wider instances. The research possibly could not be applicable to other companies and/or countries in question.

Lastly, this research may be time-consuming. Conducting interviews and personal meetings with companies' representatives could potentially become an issue due to the time limit or geographical allocation of said representatives.

Results

According to the secondary data collected through the research, this study assumes that there are results that are in need of being discussed.

Diagnostics of Korean-Russian economic cooperation:

1. Russia's economic prospects are structurally dark, also in the short term. Thus, without the proper role of the government, economic cooperation between Korea and Russia during the current government can stagnate.

2. In investment cooperation, there has been a decline after the global financial crisis. The investment sector also does not support the modernization of Russia; therefore, it does not have the status of a partner in economic cooperation.

3. The pace of development of the scale of trade is also slowing down, which is the main reason for diversification in terms of trade structure.

4. In the case of trilateral cooperation in the Russian Far East, progress is not achieved, since there is no internal agreement on North Korean risk.

Market failure factors hinder trade and investment:

In terms of investment, the trend is gradually decreasing from the global financial crisis. Russian investment in the Republic of Korea is also at the initial level of wholesale and retail financing, and the total investment is only $ 48 million.

In the field of investment, the share of the manufacturing industry accounted for 60%, which amounts to 160 million dollars. USA (143 cases), followed by wholesale and retail trade (2.4 billion US dollars, 12.5%) and mining (150 million US dollars, 7.6%). Trends in manufacturing and mining are generally growing, while the rest remain stagnant.

If you look at Korea's investments in Russia in the manufacturing sector, Hyundai Motor's investments in St. Petersburg are the highest - $ 400 million, while the first - Samsung and LG Electronics - the second. However, in the first case, it is only 18%, which is less than the general average of 24.9%, and the share of food and tobacco products is much higher than the average. It is difficult to understand that Korean investments are currently participating in the process of modernizing Russia.

In terms of trade, the pace of development of Korean-Russian trade is gradually slowing down, which is also sluggish compared to China and Japan. The trade turnover between Russia and China increased by 42.7% compared to the previous year to $ 79.3 billion in 2011 and increased by 11% to $ 88 billion in 2012. Trade turnover between Russia and Japan grew by 27.8% year on year to $ 308 billion in 2011 and by 8.4% to $ 33 billion in 2012. As shown in, the growth rate of trade between Korea and Russia in 2012 amounted to 7.7%, and the growth rate until May of this year remained at 4.4%.

In the case of export, in the structure of trade, the share of goods related to automobiles is excessively biased and amounts to about 60%; therefore, it is necessary to develop new export goods.

Five key industries for modernizing the Russian economy: efficiency energy (renewable energy, etc.) nuclear technology, space technology, medical technology (diagnostic equipment and medicines), strategic information technology (IT information technology, such as the development of supercomputers and software)), but energy efficiency, medical modernization, and information and information projects are the main joint tasks. Among the key sectors of industrial cooperation, the development is associated with the industry of agriculture. Moreover, it needs to be mentioned that, according to the future research results, the Korean wave influences the impact of the Korean beauty industry on the Russian population in the modern world, hence the increased demand in the Beauty products import category will rise in demand within years to come. The Korean beauty industry has been actively evolving in the past several years, simultaneously acquiring recognition as one of the leading industries, as well as the demand worldwide. This research paper sees the opportunity of the said industry to increase in the volume of import to Russia.

Korean-Russian economic cooperation needs a political and economical approach. It is necessary to develop mutually beneficial cooperation programs while evaluating the political and diplomatic benefits and costs, as well as the economic benefits and expenses arising from economic cooperation.

Interview results

1. The first interview was conducted with the director Cho Jin-sung of the company, which exports food products, household goods, cosmetics, fabrics, and watches. The company has its own online stores and distributors.

The main difficulties in exporting goods from Korea to Russia are:

Auntification of goods. This means that certification of goods with customs clearance is very complicated and different for many countries, which greatly inhibits the promotion of products and especially the introduction of new products. Cho Jin-sung also says that today GOST certification is not valid; however, it is necessary to issue EAC certification. The advantage of this certification is that it extends to a higher number of countries, such as Belarus and Kazakhstan, Armenia and Kyrgyzstan. However, the process and requirements of this certificate are more time-consuming and complicated.

When asked how trade relations can change as a result of private companies or state measures, Cho Jin-sung believes that private measures are practically negligible, since everything depends on the relations between the countries themselves, only if it is not a business in a particular area of resources. Therefore, the leading thing firms can do with it is to improve the image of companies and goods and make it more attractive to Russian companies and consumers.

Also, one of the main problems of export from Korea and Russia is the very high cost of delivery and translation. According to Cho Jin-sung, this can be significantly affected by the Russian-Korean agreement and free trade, which is in progress. One of the most considerable benefits may be shipping along North Korea's train transportation route.

Speaking about future perspectives, Cho Jin-sung considers the field of medical services and cosmetics to be the most promising niches for the development of exports from Korea. Products in these areas show the best results and technology. It is worth noting that due to the coronavirus, the overall image of healthcare in Korea is growing very much, which positively affects this area as the potential for the development of exports.

2. The second interview was taken from the director H.Y.Kim of a medical cosmetic company. The company exports beauty medical products such as botox, filler, and others.

The main difficulties the company faces are the certification of products and their promotion on the market in Russia. In the director's opinion, the certification system for medical products is complex, and the whole process is costly. As a solution to the problem, the company tried to sort out the fertilization system on its own but always faced various difficulties and challenges. Therefore, they entered into a partnership agreement with a Russian company, and this helped make the process easier and faster.

Speaking about the problem of sales of company products, H.Y.Kim believes that this problem should be solved through work on the image and its recognition, more specifically, to participate in various exhibitions and online advertising. In addition, the most important thing, in his opinion, is to participate in international forums and exhibitions. The Korean government plays an important role, as it provides various tax incentives for SMEs (Small and medium-sized enterprises). Companies can also associate with KOTRA (Korean Trade-Investment Promotion Agency), which includes information about potential buyers in each country.

Speaking about the main differences between doing business and business expansion strategies, HE said that in general, countries take similar measures, but which is typical for Koreans, Koreans are more interested in human relationships with customers and partners.

The most potential niches, according to H.Y.Kim medical beauty products. This market is indeed growing, and Korea is taking an increasingly strong position in it.

3. A third interview was conducted with chairman of the Eurasian Businessmen Association, Eurasia Business Consulting CEO, Chairman of AK GROUP, a Russian lawyer. Yongho Yang provides legal, accounting/tax support, gives advice on starting and developing a business. In addition, in the future plans of the company, the opening of an offline business in the beauty industry, as well as the preparation and launch of manufacture payment system equipment (CAT, POS, etc.).

Yongho Yang identified the main difficulties in exporting to Russia. Firstly, there is a difficulty in checking the buyer's credit due to the financial lag of the market and its opacity. This leads to the emergence of various kinds of export disputes and failures. Letter of credit transactions are complex, and cash transactions such as T / T are used because Western confidence in banks is low, which is a significant concern for export companies. Due to low foreign exchange reserves, general foreign exchange restrictions are also an export factor.

To the question: Have your company ever experienced any kind of implementations or changes in measures or trading policies that improved export relationships or made it more accessible? Yongho Yang's opinion is that Russia and mainly resource-oriented diplomacy have been promoted during the last years. At the institutional level, tax and investment guarantee agreements are signed to facilitate entry into the business, and export financing is often used, such as EXIM LOAN, which "provide fixed-rate financing - up to 12 years in general and up to 18 years for renewable energy projects - to creditworthy international buyers in both the private and public sector, and finance your local costs up to 30%" (exim.gov).

Yongho Yang identified the following improvement measures. Export from Korea to Russia:

? Expansion of export finance support and export insurance system when dealing with Russian companies.

? FTA prompts discussion and conclusion.

? In addition to Russia, the government will draw attention and policy to all Eurasian countries, including Ukraine and Central Asia. There is no depth in the economic policy of Korea's Eurasian countries. Compared to a decade ago, I can't feel much change, which translates into a lack of insight into the local market. Therefore, it is urgent to nurture experts who can accurately understand policies and private demands in this region, including Russia.

? The government and the private sector should create various communication routes so that they can have priority rights in the region in the future.

? Legal and institutional maintenance of investment security.

? Improving the justice system.

? The anti-corruption strategy should be the main direction.

? Moreover, most of the countries in this region are inland. An inland country means that the border is land. Also, due to the geographical factors in which North Korea is located, Korea and the countries in this region cannot be directly connected, and without such direct connections, there is a limit to expanding trade with the countries in the region. In order to dramatically expand exports, you can expect only when the roads and railroads in the north and the south are connected, and if transportation to Europe is smooth, the region will be able to reproduce the history of the Silk Road. In any case, these attempts are being discussed between the two Koreas, but there are limitations because North Korea is currently subject to US sanctions.

Yongho Yang's opinion about promising business fields is that recently, products and services related to Hallyu, such as Korean cosmetics, K-POP, and medical tourism, are increasing. The promising industries are judged as follows: the pharmaceutical industry, industrial products manufacturing, beauty, bio, electric vehicle, elevator, 5G related industries, smart farms, vocational colleges. However, because Russia is being sanctioned by the West, there are several restrictions on trading and finance with state-owned Russian companies.

4. A fourth and final interview was conducted with the Expert of the Fund for Support of Strategic research and Investment of the Ural Federal district in the government delegation of the Sverdlovsk region, Vladislav Michailovich.

The foundation organizes research initiatives on socio-economic problems of the Ural Federal District; Contributes to the development of investment and innovation processes, and the formation of the information infrastructure of the Ural Federal District; The foundation also supports the most significant, strategically important social, information and economic projects of Ural Federal District.

The foundation is actively involved in preparing proposals for improving Federal legislation in the field of innovation and investment activities. In this sense, Vladislav M. mentioned that it would be eventually necessary to avoid double taxation, which as of the moment brings a lot of pressure not only to a small local business trying to expand itself oversees by partnering with a neighboring country business but also to big established corporations since the volume of funds lost in this case is considered to be thousands to millions in local currency.

Also, this foundation organizes and establishes technological parks, technology transfer centers, and territories of scientific and technical development, in support of the advanced, highly intelligent technologies and projects. Hence, when asked about the possible implemented measures for the development of export, Vladislav M. firmly distinguished the differences in both countries' needs, arguing that imported technological advances will be the primary aspects which will drive the Russian economic development to evolve at a faster pace.

Vladislav M. believes that it is necessary to improve the overall communication between the countries through the advertisement or joint market, which will allow both countries to use that market to create a new value to trade economy relations.

According to Vladislav M., since it been shown several times that the most significant volume of export for South Korea makes by high-tech products for product development. In contrast, Russia exports to South Korea raw agricultural products the most, these relations should not be stopped but encouraged even more, due to the recent times' economic change, influenced by pandemic, as well as Russian side should try and implement South Korean piers into the Russian business approach. Governmental support of various businesses will increase their production and encourage steady development.

Vladislav M. also mentioned the need of various companies' representatives to actively participate in business forums held in different countries to showcase their relevance and value for the economical market, so that further partnership can be implemented, in order to increase trade relations volume.

Regarding promising business fields Vladislav M. mentioned that since the number of automobile assembly plants, fully paid and operated by Korean employers with the efforts of Russian employees trained by Korean side, is high enough already, as was argued prior, further development of electronics and raw material processing plants is bound to still be the main direction of future trade relations, even though cosmetics field is still steadily gaining its popularity for import from South Korea to Russia, due to the Korean Wave growing influence.

Summary

In conclusion, it will be useful to summarize the results of all interviews in order to clearly reflect the answer to the research question. Therefore, the results will be divided into measures that can be taken by companies and government measures to improve exports.

Company Measures:

1. Improve the image of companies and goods and make it more attractive to Russian companies and consumers.

2. Develop technologies in specific fields of business and make Russian companies and governments interested in buying and using them.

3. Another suggestion might be for companies of both partner countries to build a strong network by organizing exhibitions and forums in their specific sphere of business such as educational forums, start-ups, investment-oriented exhibitions and etc.

4. South Korean companies should work closely with advertising agencies in Russia to better promote their products and brands because, in every particular country, there is a lot of difference in customer taste and preferences, which makes it easier to analyze these trends "from inside" the country.

5. Korean companies can also cooperate with Korean promotion agencies such as KOTRA, which provides information about potential buyers in each state.

6. Russian companies can pay attention to building more personal relationships with Korean companies in order to improve trade relations and build a successful partnership.

7. Companies in both countries should continue to develop potential business niches to foster responsive development and open up new opportunities.

It is useful to note that most of the measures which can be taken by the companies can apply not only to South Korea and Russia, but also for most different countries. Measures such as: improve the image of companies and goods, develop technologies in potential fields of business, build a strong network by organizing exhibitions and forums and work closely with advertising agencies.

Governmental measures:

1. Improve the certification system, make the certification process easier. However, the improvement can be made not by canceling or changing existing certification norms and rules but by, for example, providing free or affordable for a larger amount of firms customs certification assistants who can analyze and propose solutions to customs problems.

2. One of the largest benefits may be shipping along North Korea's train transportation route.

3. Try to solve the problems of high delivery costs of goods from South Korea to Russia, for example, to connect roads and railways in the north and south, to make available the route of transportation through North Korea.

4. Expansion of export finance support and export insurance system when dealing with Russian companies.

5. Conclusion of an agreement on FTA

6. To nurture experts who can accurately understand policies and private demands in this region, including Russia, by improving and developing education systems or specific programs.

7. The Russian government should focus on legal and institutional maintenance of investment security and improving the justice system.

8. The anti-corruption strategy should be the main direction.

9. In Russia, government support for various exporting and importing enterprises increase their production and will contribute to the sustainable development of trade relations in general.

10. Representatives of the state should invite and participate in business forums held in different countries to demonstrate their relevance and value for the economical market so that further partnerships can be developed in order to increase the volume of trade relations.

Speaking of government measures, they are more specific than company measures and more focused on particular relations between South Korea and Russia. However, some of them may also be useful in trade relations development for other countries as a whole, for example, focus on anti-corruption strategy, legal and institutional maintenance of investment security and improving the justice system as well as host and participate in business forums.

Talking about promising fields themselves for a successful, more prosperous amount of export relations in between Russia and South Korea, it has to be mentioned that according to the results of interviews received, all four interviewed participants mentioned the importance of understanding the main value of any kind economic relations. Hence, due to the fact that South Korea is showing steady growth in its popularity and rather attractiveness to other countries, as well as its positive representation on the international arena, medical services and cosmetics are considered to be the most promising field for the export destination from South Korea to Russia according to this study. Considering the implementation of economic measures, such as advertising and promotional services in order to make potential Russian customers interested in foreign medical services and beauty cosmetics, it could become a business field with the potential to reach huge success.

Furthermore, industrial products manufacturing, as well as electronics and technological advances, are considered to be the fields with the continuously growing value and the need for Russian enterprises. According to the conducted interviews, these fields of export from South Korea to Russia will show even higher results, if measures such as relevant certification will be used, excessive taxation is taken under control, and appropriate promotion to grand enterprises implemented due to, for example, exhibition participation, which will simply spur countries to maintain overall economic growth.

Conclusion

Having considered the above points of the effectiveness of the Korean version of public administration of the country, economy, and quality of life of the population; knowing our situation, which characterizes the effectiveness of our government's actions, some conclusions can be drawn that bear the meaning of the recommendations:

- It is necessary to take all available diplomatic, economic, and political actions to further develop trade, commercial, financial, infrastructure, and cultural relations with the Republic of Korea. These actions should be carried out not only at the state level but also at the level of specific businesses.

- An analysis of many factors that determine the effectiveness of Korean government structures in ensuring the country's development; their role and impact on the construction of high-tech industries; the development of infrastructure; the social sphere, including medicine and education, as well as ensuring the quality of life allows us to draw an important conclusion. Successful dynamic development requires a combination of a market economy in specific companies and structures and a fairly strict, fact-planned approach at the national level. While in Russia, the liberal approach was still in effect, making reducing the role of the state on economic development the main factor. This was largely determined by the recommendations of the International Monetary Fund. It could be shown that the majority of countries of the Asian Tiger group do not follow these recommendations. Unfortunately, Russia has not been able to achieve GDP growth of more than 1-1.5% per year for almost a decade. It would be useful to follow an example of the countries which succeeded in doing so.

- At the level of the importance of ensuring economic growth as a result of specific relations in the trade and economic sphere, it is necessary with such a close neighboring country as the Republic of Korea to ensure business conditions with a clear avoidance of losses due to the double taxation. It is equally important to use the reserve currency (as agreed by the parties) rather than using dollar calculations and finances when conducting trade and building new joint business structures.

- It is necessary to strive for greater tolerance and mutual understanding in the relationship of Russian business people and specialists with the Korean side, which is primarily driven by the different mentality of Russians and Koreans. This will significantly simplify and speed up both the negotiation process and the conduction of businesses from both parties involved.

Looking closely at the details, the Russian-South Korean trade relationship has been constant and will allegedly strive for a better economic connection in the future, but is still in need of updating in-firm, governmental policies and new implementations. The change will allow Russian companies to stay in touch with foreign, South Korean companies, which will lead them to joint economic cooperation.

Moreover, collected data and its correct analysis reveal existing and potential trade trends and opportunities for their development. The effectiveness and efficiency of existing business relationships with other companies were identified and questioned. According to the determined relationship, recommendations and/or suggestions were given, in order for participants in questionnaire companies to improve their trade relationships with South Korean firms in question.

To conclude, the research has reached its aims. The authors also believe that the findings may be of some theoretical and practical value.

The statistical outcomes of the research could be useful for exporting companies, small and medium-size businesses, and start-ups, future experts in trade policies, exportation, and customs policies.

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32. The Treaty on the Fundamentals of Relations between the Russian Federation and the Republic of Korea, ratified by the Supreme Council of the Russian Federation of 04.29 1993, No. 4895-1

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Appendices

Appendices 1

Pre-test questions for business workers:

Question

Comment

In which economic sector does a company you are working in operate?

To find out the sphere in which the company is operating.

Which product(s) do you export from South Korea?

Check export/import policies for these particular products.

What difficulties do you face while exporting product(s) from South Korea to Russia? (define and categorize)

To find out specific export problems from inside the company.

Have your company ever experienced any kind of implementations or changes in measures or trading policies that improved export relationships or made it more accessible?

If there were changes to analyze the results of these measures.

If there is no way to find out the reasons for that and stop factors.

How this relationship can be improved: by private firms or governmental measures?

To analyze if it can be improved by companies or only governmental policies.

Which particular measures your company can suggest improving export?

To find out an opinion on what needs to be improved and how.

Have you thought about expanding the variety of products exported in order to increase the volume of export?

If the expansion of product variety is needed to improve export relationship.

What measures Korean firms take to increase their overall export? (Not only to Russia)

To find out what are the possibilities for expanding the Korean export market and analyze if these measures can be implemented for Korea- Russia trade relationship.

What are the most promising business fields (trends) for export from South Korea to Russia?

To get the information for future market expansion.

Appendices 2

Pre-test questions for politicians

Question

Comment

Which particular measures were implemented for developing exports to Russia or countries with similar economic situations or countries in the same geographic zone?

To analyze potential measures which can be applied in Russia.

Based on the experience of other different countries, what changes have allowed increasing the volume of exports to these countries?

To analyze what measure works with other countries in order to improve trade relationships.

What difficulties Korean companies face while exporting products from South Korea to Russia?

To find out specific export problems from inside the company.

How can this relationship be improved: by private firms or governmental measures?

To analyze if it can be improved by companies or only governmental policies.

Which particular measures in trading policies can you suggest to improve export to Russia?

To find out an opinion on what needs to be improved and how.

What measures Korean firms take to increase their overall export? (Not only to Russia)

To find out what are the possibilities for expanding the Korean export market and analyze if these measures can be implemented for Korea- Russia trade relationship.

What are the most promising business fields (trends) for export from South Korea to Russia?

Get the information for future market expansion.

Appendices 3

Interview guide

Full name

Position (Company)

Date of the interview

Time of the interview

Appendices 4

Interview transcripts:

? Cho Jin-sung

? Director

? 01/05/2020

? 13:00 PM

Question

Answer

In which economic sector does a company you are working in operate?

Introduction, to understand the specification if the business field.

Which product(s) do you export from South Korea?

Introduction, to understand what specific products does the company import.

What difficulties do you face while exporting product(s) from South Korea to Russia? (define and categorize).

The hardest part is that authentication is tricky. In the case of medical devices, certification may be required for more than three years, or more. Due to this, even companies or products that have advanced, there are many restrictions on increasing the lineup or introducing new products. In Russia, even though there is no GOST certification that was previously used independently, EAC certification commonly used in EAEU is introduced. There is an advantage that it can be used in other countries when received from one EAEU country, but it is more difficult than the CE certification process or period.

Which particular measures were implemented for developing exports to Russia or countries with similar economic situations or countries in the same geographic zone?

Eurasia Economic Community (EAEU) will be a joint market operation for partner countries. I see it as the same market formation due to the integration of customs and certification. In particular, imports from Kyrgyzstan. Moving to Russia, sales are prevalent in the B line for some products.

How this relationship can be improved: by private firms or governmental measures?

Due to the relations between countries, it is virtually impossible to exert its influence as a large private enterprise. Unless it is a business for a specific resource field, the part that a loan business can affect as a civilian business is insufficient. The relations between countries will be improved, and the merchandise market can be improved in the Russian market by improving the image of a country called Korea. There is, but it is difficult to make a big impact by establishing a specific relationship. Example: Even if President Moon Jae-in's visit to Russia was scheduled, the impact on general small and medium-sized enterprises' trade with the Russians does not thrive.

Which particular measures your company can suggest improving export?

The Korea-Russia FTA currently being promoted may be the largest. Directions for train transportation route through North Korea. It can be the biggest advantage of exporting from Korea to Russia. Shipping costs and delivery periods are dramatically high.

What measures Korean firms can take to increase their overall export? (Not only to Russia)

How these industries are currently growing exports cannot be defined as one thing. On the contrary, the cosmetics industry is the product that Korean companies are currently performing best. What kind of tumble the cosmetics industry has to increase the market situation depends on whether it is operating directly, through a dealer, or through an OEM product. I think it would be a good idea to summarize the question once again because it changes so much.

What are the most promising business fields (trends) for export from South Korea to Russia?

Currently, the medical service sector and the cosmetics industry are considered to be the most promising, but some Korean companies are also analyzing the cosmetics industry, even the red ocean. Too many companies are advancing. Cosmetic companies of large companies have also come in, so it is expected that it will be reorganized. On the contrary, the demand for the medical industry (botox, filler, etc.) for cosmetic purposes is still growing. Because of the corona crisis, the overall image of Korea's healthcare industry is rising, so the business for the healthcare industry might be responsive.

Appendices 5

Interview transcripts:

? H. Y. Kim

? "Dialine"; Director

? 08/05/2020

? 15:00 PM

Question

Comment

In which economic sector does a company you are working in operate?

Medical cosmetic

Which product(s) do you export from South Korea?

Botox, filler, and others.

What difficulties do you face while exporting product(s) from South Korea to Russia? (define and categorize)

As it is a medical product, it is difficult to obtain an official certificate, and it is expensive in the process.

Have your company ever experienced any kind of implementations or changes in measures or trading policies that improved export relationships or made it easier?

At first, we tried to do all our sales activities and certification process in Russia, but we had many difficulties.

So, by making a partnership agreement with a Russian company, the whole process has become easier and smoother.

Which particular measures your company can suggest improving export?

Constant exhibition participation and online advertising.

Have you thought about expanding the variety of products exported in order to increase the volume of export?

I've thought of items related to the business I'm working on, but I've never thought of a completely different area.

What measures Korean firms take to increase their overall export? (Not only to Russia)

The Korean government provides a variety of tax benefits to export SMEs and contacts KOTRA in each country to obtain useful buyer information. However, the most important marketing tool is the participation in international exhibitions.

What are the most promising business fields (trends) for export from South Korea to Russia?

Medical products for beauty purpose.

Do companies use different measures to increase exports to Russia than to increase exports to other countries?

There is no difference in particular, but compared to the United States, we are more concerned with human relationships with buyers.

Appendices 6

Interview transcripts:

? Yongho Yang

? Chairman of the Eurasian Businessmen Association. Eurasia Business Consulting CEO. Chairman of AK GROUP. Russian lawyer.

? 11/05/2020

? 14:00 PM

Question

Comment

In which economic sector does a company you are working in operate?

Advising companies in Eurasia. Providing legal, accounting/taxation support. Business opportunity discovery and development advice.

Which product(s) do you export from South Korea?


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