South Korea’s economic diplomacy: Perspectives from free trade agreements

Abstract

In the context of globalization and geo-economic competition, South Korea’s economic diplomacy stands out through the strategic use of free trade agreements (FTA) to advance national interests and enhance its international position. Employing a secondary document analysis methodology, this study focuses on policy analysis by comparing the FTAs South Korea signed during the first two decades of the 21st century: the FTA with the United States, the FTA with China and the FTA with Vietnam. The findings demonstrate that the KORUS FTA strengthened U.S.-Korea economic and strategic relations, elevated legal standards and expanded bilateral investment opportunities. The Korea-China FTA enabled South Korea to capitalize on a large market but revealed strategic vulnerabilities during political conflicts. The FTA with Vietnam exemplifies effective strategic cooperation between South Korea and an emerging economy, significantly boosting investment and trade. This study confirms that FTAs serve as essential tools enabling South Korea to manage international economic relations flexibly and effectively.