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Appendix 1: Korea's Trade with Communist Countries
The following two tables, which were composed from government records by two different researchers, show a reasonable correlation in terms of total trade volume and percentage of change. Discrepancies between the two tables may be best explained by the difficulty, even for the government, of recording all indirect trade. The growth rates in trade with Eastern Europe are unusually high due to the small volume of trade at the start. Projection for 1989 showed a similar rising level of activity.
(Us $ million)
Growth Growth 1986 rate 1987 rate Shares
With all the Exports 825.4 -1.4 1029.5 24.7 100 Communist Imports 713.2 0.0 809.2 13.5 100 Countries Total 1538.6 -1.0 1838.7 19.5 100
With Exports 667.7 -2.3 813.2 21.8 80 China Imports 615.4 1.0 673.4 9.4 83.2
Total 1283.1 -0.7 1486.6 15.9 80.9
With Exports 49.9 -16.4 67.2 34.7 6.5 USSR Imports 63.9 2.6 97.0 51.8 12.0
Total 113.8 -6.7 164.2 44.3 8.9
With other Exports 67.5 11.2 102.4 51.7 9.9 East European Imports 9.8 -66.0 28.9 175.0 3.6 Countries Total 77.3 -13.6 131.3 70.0 7.1
Reproduced from the academic paper "Korea's trade with the Communist World: Problems and Prospects," 12 July 1988, by kind permission of the author, Ungsuh Park, Samsung Corp.
104
Appendix 1: Korea's Trade with Communist Countries 105
(in US $ million, %)
Country Year 1984 1985 1986 1987 Increase Rate
China Exports 160 605 736 813 10.5 Imports 198 444 621 866 39.5 Total 358 1049 1357 1679 23.7
(0.6) (1.7) (2.0) ( 1.9)
USSR Exports 26 60 50 67 34.0 Imports 31 62 64 97 51.6 Total 57 122 114 164 43.9
(0.1 ) (0.2) (0.20 (0.2)
East European Exports 97 118 172 45.8 Countries Imports 69 74 126 70.3
Total 166 192 298 55.8 (0.3) (0.3) (0.3) (0.4)
Total Exports 762 904 1052 16.4 Imports 575 759 1089 43.5 Total 1337 1663 2141 28.7
(2.2) (2.5) (2.5) (2.5)
*East European countries are Hungary, Yugoslavia, East Germany, Czecho-slovakia, Poland and Bulgaria. *Figures in parentheses indicate share of Korea's global trade.
Business Korea, November 1988
Appendix 2: Chronology
1971 KOTRA representative visits Yugoslavia.
1972 Revision of the Korean Trade Act, Park Chung-bee's open door declaration.
1973 Declaration on Peaceful Reunification and Diplomatic Policy of the ROK.
South Korean citizen visits USSR.
1978 Indirect trade recognized between ROK and PRC. USSR and South Korea resolve KAL airliner crisis.
1979 ROK-PRC trade advances to 'significant' level.
1982 Daewoo's Kim Woo-choong reported visit to China. Other ROK-PRC business contacts made.
1983 Kim Jong-ll tours China. Direct contact by ROK with PRC arranged over hijacked aircraft. South Korean public official visits China. Seoul hosts Interparliamentary Union. PRC allows South Koreans to visit relatives in China.
1984 North Korea announces a Joint Venture Law. South Korean vessels calion Chinese ports. Olympic meetings draw Chinese public officials to Seoul. Chinese minister of Posts and Telecommunications attends C()ll-
ference in ROK. Additional business personnel receive invitations to visit China.
1985 ROK and PRC directly resolve maritime intrusion conflict tIuough official negotiation.
Daewoo initiates discussions on joint ventures with PRe through subsidiaries.
Seoul hosts World Bank and IMF Conferences.
1986 Socialist countries participate in Asian Games in Seoul. Gorbachev declares new role for Soviet Far East in Vladivostok
speech.
1987 South Korean alhletes attend sports events in China. Daewoo furthers efforts for joint venture refrigentor plant in
Fujian. KOTRA and Hungarian Chamber of Commerce sign agn:ement
to open representative offices, Korean trade office opens..
106
1988 February
April
May
June
July
Appendix 2: Chronology 107
Vietnamese official hosted by Korean corporation, South Korean businessmen visit Vietnam.
ROK indirect trade with Eastern Europe and USSR shows marked increase.
ROK Minister of Health and Social Affairs attends conference in USSR.
Roh Tae Woo inaugurated, calls for renewed dialogue with the North.
Korean Employers Federation meet Chinese Officials in Tokyo. Korean business leaders visit Shandong. Korean businessmen fly to Vietnam.
Rob calls for summit conference with Kim H-sung.
Goldstar holds exhibit in Shanghai and Leningrad.
Roh's brother-in-law visits China. HWlgarian trade office opens doors in Seoul. ROK trade office opens in Yugoslavia. ROK official, Moon Hi Gab, travels to China. Large Hungarian trade mission arrives in Seoul.
Roh declares new six-point policy toward North Korea and other socialist cOWltries.
Daewoo operation of electronics refrigerator plant in China confinned.
Shenyang Province delegation visits. Mission from Shandong arrives. China-South Korea Consultative Committee for Maritime Affairs
fonned. Preliminary inter-parliamentary talks begin with North and second
round ends. Agreement on permanent mission with Budapest signed in
secrecy. High-level South Korean trade mission goes to Czechoslovakia. Soviet scholar attends scientific conference in Seoul.
Seplember Olympics begin in SeouL HWlgary annOWlces intentions to open diplomatic relations. Soviet Bolshoi ballet tours, other Soviet cultural groups perform
in Seoul. Daewoo, Jindo and SamsWlg reveal plans for Soviet investments. China-ROK negotiate full-fledged tourist exchange. Gorbachev delivers Krasnoyarsk speech. Bulgarian trade mission comes to Seoul.
October Roh speaks to UN.
108 South Korea and the Socialist Countries
Roh announces seven-point Inter-Korean Trade Measures. Yugoslavia trade office opens in Seoul. Korea tourist groups sign contract with crrs. Vladimir Galanov of the Soviet Chamber of Commerce and
Industry visits Seoul.. Soviet Deputy Foreign Minister attends ROK celebration at UN. Direct trade and contacts with North Korea allowed by US. Samsung chairman visits China. International Trade Fair opens with China, Poland, Yugoslavia,
Hungary and Vietnam sending representatives. KAL seeks continued use of USSR-China air space after
Olympics. Soviet officials visit KOTRA offices in Yoido. Korean banks sign correspondent agreements with Eastern Europe
and Chinese banks. Hungary's trade office advanced to diplomatic mission. Moscow philharmonic, Soviet poet tour ROK.
November Delegation of machinery industry members visit China. !PECK formed. Daewoo leader reported to visit North Korea through China. Washington announces diplomats can begin contact with North. North Korea begins export of clams to South Korea. Seoul National University releases 6000 socialist bloc materials
for circulation. Government announces revision in Foreign Trade Law, Passport
and Immigration law that hinder exchanges with Conmunist countries.
Daewoo announces plan for joint venture bank with Hungary.
December KOTRA president visits socialist countries including USSR.
1989 January
Samsung announces plan to import from North. Czechoslovakia announces plan to exchange trade offices. Kim Dae Jung visits Hungary. Government announces road network to North under consid-
eration. ROK agrees to unified North-South team at Asiad. Seoul proposes Prime Minister meeting with North. Soviets announce new regulations removing obstacles to joint
ventures with South Koreans. KAL use of Soviet air space approved. USSR sports ministry invites Korean athletes. Soviets request $300 million loan for large furniture plant in
Siberia.
Hyundai leader visits USSR. Soviet business mission visits Seoul.
Appendix 2: Chronology 109
Secret talks reported held by Roh advisor and North Korean officials in Singapore.
China and Korean banks open letters of credit. Australian Prime Minister Hawke visits Seoul to propose Asia
Pacific cooperative grouping.
February Hyundai leader visits North Korea.
March
April
June
Full diplomatic relations with Hungary established. Seoul proposes inter-Korean economic talks with Pyongyang. Government refuses Chinese visa extension. KAL and Aeroftot agree to sell each others tickets. Hyundai said to make feasibility study of power plants in
Siberia. Prime Minister urges caution in Siberian development projects. Lucky-Goldstar begin discussions on joint oil exploration with
Vietnam.
Inter-Korean sports meetings begin and end. Hyundai announces barter agreement with North Korea. North Korea accused of breach of contract in exported coal. Yugoslavia to upgrade status, announcement made. Foreign Minister suggest unilateral entry into UN would be
sought. Pro-Pyongyang composer's concert cancelled. ROK allows group tours to Eastern Europe. Economic Planning Board announces new controls on deals with
Communists. Korean Federation of Small Businessmen announced intention to
promote ties with China and North Korea.
Soviets open trade office in Seoul. Presidential aid Park Chol-un confers in Washington. Poland and Bulgaria suggest full diplomatic offices soon. KAL and CAAC announce future opening of services between
China and Korea. Government regulates trips to Beijing in light of disruptions. Large ROK industry delegation postpones visit to Moscow.
Kim Young-sam visits Moscow, meets with North's Ho Dam. Korean Federation of Small Business make socialist country
tour. Normalization of relations with Poland and Yugoslavia announced. USSR signs with Hyundai for purchase of six bulk carriers. Direct shipping services with China begun. Government allows businesses to return to Beijing. ROK cancels marine products barter deal. Four joint ventures with China suspended. Joint academic research with USSR by Kyongnam University.
110 South Korea and the Socialist Countries
Kim Dae Jung calls for N-S Peace Pact. Hanguk University of Foreign Studies announces bilateral aca
demic exchanges with Hungary, Poland, Yugoslavia. Government limits communist troupe invitations. Two hundred unionists, teachers, and students from South Korea
sponsored in visit to China and other communist countries.
July Government scraps revision of Security Law. Direct shipping line with Vietnam opens. South Korea urges high-level discussion on consular relations with
Soviets. Postponed ROK industry delegation visits USSR.
Notes
Introduction
1. These relations are referred to as "South-North" by South Koreans. Throughout this book. the common usage of North-South will be used without any political statement implied.
2. Dan Sanford. The Future Association of Taiwan with the People's Republic of China (Berkeley: University of California, 1981).
3. Ralph Clough, Embattled Korea: The Rivalry for International Support (Boulder: Westview Press, 1987), p. 327.
4. Thomas Robinson, "The Seoul Olympics: Catalyst for Cross-Recognition and Inter-Korean Reconciliation?" Korea and World Affairs 12 (Summer 1984): 281-92.
5. Bruce Cumings, "Korean-American Relations: A Century of Contact and Thirty Five Years of Intimacy," in Warren I. Cohen, New Frontiers in American-East Asian Relations (New York: Columbia University Press, 1983), p. 237.
6. See Dennis Pirages, Global Technopolitics; The International Politics of Technology and Resources (Pacific Grove: Brooks/Cole publishers, 1989).
7. See James Rosenau, The Study of Globa/lnterdependence: Essays on the Transnationalisation o/World Affairs (London: Frances Pinter; and New York: Nichols Publishing Company, 1980).
8. See Robert Scalapino, Major Power Relations in Northeast Asia (Lanham, Maryland: University Press of America and the Asia Society, 1987).
9. See Karl Deutsch, Tides Among Nations (New York: Free Press, 1979).
1 Trade Contacts
1. Ungsuh K. Park, "Korea's Trade with the Communist World: Problems and Prospects," p. 1. See Appendices 1 and 2. Discrepancies exist in reports of trade statistics due to the secretive, indirect nature of this business. A June 1989, ROK government report put China's share at 87 percent for 1988. The Korean Herald, 3 June 1989, p. 6.
2. Jae Ho Chung, "South Korea-China Economic Relations," Asian Survey 28 (October 1988): 1036.
3. Robert Delfs, "Seoul's Hi-Tech Lure Across the Yellow Sea," Far Eastern Economic Review, 8 December 1988, p. 20; The Korean
111
112 Notes to pp. 9-13
Herald, 3 June 1989, p. 6. Also confirmed in interview with Lee Sun Ki, President, Korean Trade Promotion Corporation, November 1988. For 1989 figures consult FBIS-EAS-89-142, 26 July 1989, p. 34.
4. Jae Ho Chung, Asian Survey, p. 1039. Also confirmed in business interviews.
5. Ibid., p. 1042. 6. Lho Joo-Hyoung, "Korea Looks West - to China," Korea Business
World, July 1988, p. 15. 7. Jae Ho Chung, Asian Survey, p. 1044. 8. Ungsuh K. Park, "Korea's Trade with the Communist World," p. 3. 9. Interview with Lee Chong-yeong. Professor of Marketing. Kyongpook
University, September 1988. 10. By 1988 all ten of Korea's major corporations and over 100 smaller
firms had established trade and investment links with China, according to sources at the Korean Trade Promotion Corporation (KOTRA) and the International Private Economic Council of Korea (IPECK).
11. The Daegu Chamber of Commerce, for instance. arranged a four or five city tour of China to be made by a group of its members in late fall of 1988 (later rescheduled for early 1989). Interview with Jae Eul Park, President of Kabul Corporation, Daegu, in September 1988.
12. Interview with Lee Clong-yeong, Professor at Kyungpook University, September 1988.
13. Kyodo News Service, Tokyo, 8 September 1988. 14. Korea Times, 21 September 1988. p. 11. 15. Korea Business World. October 1988. p. 25, Chungang /lbo, 23 Feb
ruary 1989, p. 1 in FBIS-EAS-89-035, 23 February 1989. p. 38. Also, noted in meeting with Lee Sun-kit President, KOTRA, November 1988. Lee traveled in the PRC again in 1989.
16. Interviews with In Joung Whang, Vice President of the International Private Economic (IPECK) in December 1988, and with Hong Ji Kim, Manager, Socialist Asia Division, Socialist Countries Department, KOTRA, December 1988.
17. Interview with Hong Ji Kim (op. cit.) and Kui-Lae Chung, Director of Overseas Cooperation Department at KOTRA headquarters, November 1988.
18. Tourism Promotion Corporation in Yonhap, 9 June 1989, reprinted in FBIS-EAS-89-110,9 June 1989, pp. 20-21.
19. "Chronicle and Documentary," The China Quarterly, 114: 344. 20. Delfs, Far Eastern Economic Review, pp. 20-21. 21. Interview with United States Embassy analyst, Seoul, November
1988. 22. Lho Joo-Hyoung, Korea Business World, pp. 16-20. Yonhap, 8 March
1989, as quoted in FBIS-EAS-89-044. 8 March 1989, p. 30. Interviews with manager of China office, Daewoo Corporation; China marketing executive with Samsung Corporation; and representative of Doosan Corporation, Daegu branch, all in December 1988.
Notes to pp. 13-15 113
23. The Korean Herald, 12 January 1989, p. 1. 24. Lho Joo-Hyoung, Korea Business World, pp. 17-18. 25. Ibid. 26. Interview with Celeste Lee, Executive Director, Korea Business World,
November 1988. 27. Interview with Chamber of Commerce officials, Daegu, September
1988. 28. Delfs, Far Eastern Economic Review, pp. 20-21. 29. See Korea Times, 3 September 1988, p. 6; and 8 September 1988,
p.l. 30. Previously, some Korean businessmen were compelled to take their
chance and hope that visas would be waiting when they arrived at their first destination in China. See Jae Ho Chung, Asian Survey, p. 1043. For discussion of the consular duties arrangements see The Korean Herald, 30 May 1989, p. 2.
31. Korea Times, 23 October 1988, p. 2. 32. Korea Times, 22 October 1988, p. 6; 3 September 1988; and 1 June
1989, p. 2. 33. It is not known whether this reported Council may be the same
organization as CITIC or not. 34. Korea Times, 30 October 1988, p. 4. 35. Korea Times, 31 May 1989, p. 3. 36. Far Eastern Economic Review, 8 December 1988, p. 20. 37. Interviews with corporate representatives for Samsung and Daewoo in
December 1988. 38. Yonhap, 5 June 1989 in FBIS-EAS-89-106; 5 June 1989, pp. 23-24;
and Yonhap, 8 June 1989 in FBIS-EAS-89-109, p. 27. 39. Interview with Daewoo corporate representative, December 1988. (One
anonymous Daewoo official complained that the Western press was giving too much attention to his company's Beijing office and, therefore, his company felt obliged to make apologies to their Chinese counterparts in Beijing for such outpouring of press information. The Korean Herald, 30 May 1989, p. 2.
40. Ungsuh K. Park, "Korea's Trade with the Communist World," p. 1. 41. Korea Times, 9 October 1988, p. 1. 42. Ranko Petrovic, "Yugoslavia and Republic of Korea in the Nineties,"
Korea and World Affairs 12 (Fall 1988): 528. 43. Yonhap, 5 June 1989 in FBIS-EAS-89-106, 5 June 1989, p. 24. 44. Kyodo News Service, 6 July 1988. Also see Korea Times, 6 December
1988, p. 4. Confirmed in interview with officials at KOTRA in November and December 1988.
45. Hungary, Yugoslavia and Poland all sent sizeable trade delegations to Seoul in the second part of 1988. See James Riordan, "Korea-Soviet Union Relations: The Seoul Olympics as Catalyst and Stimulator of Political Change," Korea and World Affairs, 12 (Winter 1988): 770-71.
114 Notes to pp. 15-21
46. Korea Times, 20 October 1988, p. 3. 47. Korea Times, 16 November 1988, p. 6. 48. James W. Riordan, "Korea-Soviet Union Relations: The Seoul Olym
pics as Catalyst and Stimulator of Political Change," Korea and World Affairs, 12: 768; Korea Times, 20 October 1988, p. 1.
49. See Appendixes 1 and 2. 50. Yonhap, 21 July 1989 in FBIS-EAS-89-142, 26 July 1989, p. 34. 51. Later news articles in Korea related that Samsung Company was look
ing to add a branch office in most of the Eastern European countries by 1990. Also, the public leamed that Lucky-Goldstar, Ssangyong and Hyundai had intentions to open offices in Eastern Europe.
52. Korea Times, 6 October 1988, p. 6. 53. Korea Times, 16 October 1988, p. 6. 54. Korea Times, 28 October 1988, p. 6. 55. Korea Business World, July 1988, p. 21. 56. Korea Times, 29 March 1989, p. 8. 57. Asia Wall Street Journal, 8 February 1988, p. 2. 58. Kyodo News Service, 1 February 1988. 59. Wall Street Journal, 10 February 1988, p. 18. 60. Asia Wall Street Journal, 8 February 1988, p. 2, and Yonhap, 23
February 1989, in FBI8-EAS-89-035, 23 February 1989, p. 39. 61. Riordan, Korea and World Affairs, 12: 773. 62. Korea Times, 8 October 1988, p. 1 and 18 October 1988, p. 1. 63. Ungsuh Park, "Korea's Trade with the Communist World," p. 1. The
exact figure is difficult to obtain, but estimates range from $240 millon to $1 billion. See also, Roy U. Kim, "Gorbachev and the Two Koreas," paper delivered to the international Conference on the Open Policies of Socialist Countries and Economic Cooperation in the Asia-Pacific Region, Seoul, 6-7 December 1988.
64. Korea Times, 4 December 1988, p. 6. 65. Business Korea, November 1988, p. 27; Korea Times, 13 October 1988,
p. 6; 4 December 1988, p. 6. 66. Business Korea, November 1988, p. 28. 67. Korea Times, 16 December 1988, p. 1. 68. Korea Times, 22 December 1988, p. 1. 69. Projects on the board are as follows: (1) Samsung proposed constructing
a tourist hotel in Moscow and exploration of natural resources in Siberia. (2) Daewoo Group, besides building a resort hotel in Moscow, wishes to establish a joint-venture textile plant near the Baltic Sea and construct a $80 million passenger ship. (3) Hyundai Engine and Construction hopes to participate in Siberian construction. Hyundai Miipo Dockyard expects to continue repair of Soviet ships in its Ulsan facilities. (4) Lucky-Goldstar plans to feature electronics and petrochemicals in its bid to the Russians. See Korea Times, 4 December 1988, p. 6, and Business Korea, November 1988, p. 27.
70. Yonhap, March 25, June 9, and 22 June 1989 in FBIS EAS-89-057,
Notes to pp. 21-27 115
110, and 119, 27 March 1989, p. 36; 9 June 1989, p. 21; 22 June 1989, p. 20.
71. Yonhap, 21 July 1989, in FBIS EAS-89-142, 26 July 1989, p. 34; The Korean Herald, 25 March 1989, p. 6; Korea Times, 25 March 1989, p. 6.
72. Korea Times, 26 March 1989, p. 8.
2 Exploring the Commercial Incentives
1. Brian Bridges, "East Asia in Transition: South Korea in the Limelight," International Affairs 64 (Summer 1988): 391.
2. See for instance, "Gorbachev Holds Out a Cold Carrot, Business Korea, November 1988, pp 27-28.
3. Korea Times, 30 October 1988, p. 1. 4. John Odell, "The Outcomes of International Trade Conflicts: The US
and South Korea," International Studies Quarterly, 29 (September 1985): 263-86.
5. Fortune, 17 March 1987, p. 73. 6. A New Global Economic Order," Korea Business World, February
1989, p. 10; Interview with Foreign Minister Choi Kwang-Soo in Korea Business World, September 1988, p. 19.
7. Ibid., p. 11; Lawrence Krause, "Korea in a Managed World Econony, Korea Business World, November 1988, p. 13. Also, many businessmen raised this point during interviews. See statement by Choi Ho-chung in Yonhap, 26 June 89, FBIS-EAS-89-122, 27 June 87, p. 25.
8. "Educating American Corporations," Business Korea, May 1988, p. 32; Korea Times, 1 December 1988, p. 6; and Korea Business Review, September 1988, p. 46.
9. Ungsuh Park, "Korea's Trade with the Communist World: Problems and Prospects," p. 12.
10. The picture of this trend was described in many interviews with Korean businessmen. See also, Fortune, 16 March 1987, pp. 72-76.
11. Ungsuh Park, "Korea's Trade with the Communist World," pp. 2-4, 11-12.
12. Ibid. 13. A point made by several intervewees. See also Korea Business World,
July 1988, p. 21. 14. One Korean trader was quoted saying, "Wherever there is a chance
for business, Korean companies will be there." Korea Business World, July 1988, p. 21.
15. James Riordan, "Korea-Soviet Union Relations: The Seoul Olympics as Catalyst and Stimulator of Political Change," Korea and World Affairs 12 (Winter 1988): 767.
16. Korea Times, 4 September 1988, p. 12.
116 Notes to pp. 27-33
17. Riordan, Korea and World Affairs, p. 768. 18. Korea Times, 9 October 1988. 19. Ranko Petrovic, "Yugoslavia and the Republic of Korea in the Nine
ties," Korea and World Affairs 12 (Fall 1988): 527. 20. Kie Young Lee, "Prospects for Korean-Eastern Europe Economic
Relations: Emphasis on Commercial exchange; Complementary or Competitive?" Korea and World Affairs 12 (Spring 1988): 75-77.
21. Ibid., pp. 63-83; and Adam Gwiazda, "Economic Cooperation between the Socialist and Newly Industrialized Countries," The Korean Journal of International Studies 18 (Autumn 1988): 537-56.
22. Ungsuh Park, "Korea's Trade with the Communist World," p. 9. 23. Ibid. 24. Ibid., p. 14. 25. Far Eastern Economic Review, 18 June 1987, p. 82. 26. Ibid. 27. Ibid. 28. Peter Benon, ''The Soviet Union and Korea: Perceptions, Scholar
ship, Propaganda," Journal of Northeast Asian Studies 4 (Spring 1986): 24-25.
29. Ibid., pp. 22-25. 30. Ibid., p. 25. 31. Riordan, Korea and World Affairs, p. 772; Suck Ho Lee, "Major Deter
minants of Soviet Support for North Korea, Korea and World Affairs 9 (Spring 1985): 114-15; and also by Chong Ouk Lee, "Evolution and Prospects of Soviet-North Korean Relations in the 1980's, Journal of Northeast Asian Studies (Fall 1986): 32-33.
32. Gorbachev said he plans to spend $330 billion (US) in 1000 locations in Siberia to expand the output of goods by 240 percent by the end of this century. Business Korea, 28 November 1988, p. 28.
33. Far Eastern Economic Review, 2 February 1989, p. 54. 34. Ibid. 35. Ibid. 36. Korea Times, 22 December 1988, p. 1. 37. Korea Times, 16 December 1988, p. 1. 38. Quoted from speech by Chong Ouk Lee, Director of the Center for
Science and Technology Policy in Korea to the Northwest China Council in June 1988, printed in Northwest China Council Newsletter, #30, July-September 1988, p. 1. See also anicles in Korea Business, September 1988, p. 43 and Tae Yong Shin, "China's 'Open Door' Policy and Possibilities of Sino-Korean Trade Exchange," Korea and World Affairs 12 (Spring 1988): 44-62.
39. John McBeth, "Peking-Seoul Link is Out of the Closet," Far Eastern Economic Review, 8 September 1988, p. 83.
40. Speech by Chong Ouk Lee, op. cit. 41. Interview with a China specialist at the Federation of Korean
Industries.
Notes to pp. 34-39 117
3 Chinese and Soviet Political Strategies
1. Joo Hong Nam, "The Entangling Conftict," Journal of International Affairs 41 (Summer/Fall 1987): 104.
2. Harry Harding, China and Northeast Asia: The Political Dimension. (Lanham, Maryland: University Press of America, 1988), p. 33-34.
3. Several pro-Chinese Korean leaders were purged by Kim II-sung during the formulative years just after the Korean war despite the presence of Chinese soldiers within their country. See James Cotton, "China's New Northeast Asian Regional Policy and the Implications for Korea," Korea and World Affairs 10 (Fall 1986): 526.
4. Harold Hinton, "China and the Korean Question," Journal of Northeast Asian Studies 1 (March 1982): 93.
5. See details of this phenomenon spelled out in Harold Hinton's study "China and the Korea Question," Journal of Northeast Asian Studies 1 (March 1982): 94-96.
6. Ibid. 7. Scholar James Cotton wrote in 1986, "As to Beijing's attitude towards
Pyongyang, though North Korean initiatives still receive favorable mention, there are no signs of substantive commitment." Korea and World Affairs p. 527.
8. Harding, China and Northeast Asia, p. 36. Deng Xiaoping was quoted in Tokyo to have said, "We do not necessarily agree with some policies made by North Korea." See Byung Chul Koh, "China and the Korean Peninsula," Korea and World Affairs 9 (Summer 1985): 277.
9. Later this historic fact was reiterated in print in the Chinese copy of the Encyclopedia Britannica. See Harding, China and Northeast Asia, p. 34.
10. Chong Wook Chung, "China's Role in Two-Korea Relations in the 1980's," Journal of Northeast Asian Studies 5 (Fall 1986): 54.
11. Mentioned in interview in Hong Kong with Tony Miller, Deputy Director, Hong Kong Trade Department, in October 1988.
12. Note details of these contacts in Byung Chul Koh's study, Korea and World Affairs, pp. 276-79.
13. Jae Ho Chung, "South Korea-China Economic Relations," Asian Survey 28: 1045. Harry Harding, in his study of China's foreign policy, indicates that China recognizes there are limits to North Korea's cooperation with the Soviets. Chinese officials, he states, are confident that North Koreans will never seek an exclusive relationship with the Soviet Union. China and Northeast Asia, p. 39.
14. Donald Zagoria, "Soviet Policy in East Asia: A New Beginning?" Foreign Affairs, "America and the World, 1988/89," p.l25.
15. James Hsiung, "Sino-Soviet Detente and Chinese Foreign Policy," Current History (September 1988): 245.
16. Ibid.
118 Notes to pp. 39-46
17. Ibid. 18. A total of 6000 Soviet citizens attended the events in October 1988.
See paper by Roy U. Kim, "Gorbachev and the Two Koreas," p. 3. 19. Jonathan D. PoUack, "China's Changing Perceptions of East Asian
Security and Development," Orbis (Winter 1986): 786. 20. Harding, China and Northeast Asia, p. 38. 21. Jae Ho Chung, Asian Survey, p. 1047. 22. Pollack, Orbis, p. 787. 23. Harding, China and Northeast Asia, p. 40. 24. The Chinese believe that in time they will wield more influence in
Korea than do the Soviets. Pollack, Orbis, p. 787, and Pollack, "China's Relations with East Asia and the Pacific Region: Part I" (Delphi Papers 217) East Asia the West and International Security (London: International Institute for Strategic Studies, 1987), p. 67.
25. James Riordan, "Korean-Soviet Union Relations," Korea and World Affairs 123 (Winter 1988): 772.
26. See, for example, Suck Ho Lee, "Major Determinants of Soviet Support for North Korea," Korea and World Affairs 9 (Spring 1985): 109-13; Harold Hinton, Journal of Northeast Asian Studies, p. 728; and Ralph Clough, Embattled Korea (Boulder: Westview press, 1987), pp.255-56.
27. Ralph N. Clough, Embattled Korea: The Rivalry for International Support (Boulder, Colorado: Westview Press, 1987), pp. 246-51.
28. Ibid., p. 255. 29. Ibid., p. 241. 30. Ibid., p. 245. 31. See James W. Morley, "The North's Dilemma Is the South's Opportu-
nity," Korea and World Affairs 10 (Winter 1986): 702. 32. Far Eastern Economic Review, 18 June 1987, p. 82. 33. Clough, Embattled Korea, p. 245. 34. Ibid., p. 245. See also, Joseph M. Ha, "Impact of the Sino-Soviet Con
flict on Korea," in Tae-hwan, Kwak, The Two Koreas in World Politics (Seoul: The Institute for Far Eastern Studies, Kyungnam University, 1983), p.227.
35. According to Clough, this continues to be true even though the Soviet usually provide only limited or obsolete military support. Ibid., p. 244.
36. Ibid., p. 246. A top government official in South Korea has agreed with this perspective in public. Moon Hi Gab was quoted, "Compared with China, the Soviet Union is not strongly influenced by Pyongyang's diplomatic policy. This is why I forecast the Soviet Union will be quicker than China in opening its market to the Korean econony." Business Korea October 1988, p. 27.
37. Zagoria, Foreign Affairs, pp. 121-22. 38. Refer to the Soviets economic goals already highlighted in Chapter 2. 39. The USSR's trade with Asia and the Pacific has represented only
Notes to pp. 46-50 119
6 percent of their total trade in the past. Zagoria, Foreign Affairs, p. 13l.
40. Peter Berton, "The Soviet Union and Korea," Journal of Northeast Asian Studies 5 (Spring 1986): 23, 24.
41. Riordan, Korea and World Affairs, p. 775. 42. In January of 1989, for instance, the Korea Institute of Economics and
Teclmology (KIET) and Yonsei University held a seminar in Seoul attended by economic specialists from the Soviet Union. See report in Korea Business World, February 1989, p. 17.
43. Far Eastern Economic Review, 8 December 1988, p. 22. 44. Yonhap 10 June 1989 in FBIS-EAS-89-l11, 12 June 12 1989, p. 20. 45. Clough, Embattled Korea, p. 255; Zagoria, Foreign Affairs, p. 121, and
Suck-Ho Lee, "Major Determinants of Soviet Support for North Korea," Korea World Affairs 9 (Spring 1985): 115.
46. See comments by Russian writer from the Academy of Science as reported in Korea Business World, February 1989, p. 17.
47. See Soviet affairs interpretation by scholar, Thomas Robinson, "The Seoul Olympics: Catalyst for Cross-Recognition and Inter-Korean Reconciliation?" Korea and World Affairs 12 (Summer 1988): 284.
4 Northern Diplomacy: ROK Strategies in Trade
1. The Federation of Korean Industries, a primary organization in Korea for the promotion of international economic cooperation maintains 20 bilateral economic cooperation committees in foreign countries and works closely with other world-renowned economic organizations and research institutes. It represents some 1500 companies in South Korea which have a combined total of over 1000 overseas offices. See the FKl Membership Directory, 1987-88.
2. A senior diplomat was quoted as saying, "The South Koreans have come too far, too fast. They are still trying to catch up with themselves. They are still looking at No. 1 all the time, which is the reason why they are outraged by the US over trade matters." Far Eastern Economic Review 8 December 1988, p. 24.
3. Far Eastern Economic Review, 8 December 1988, p. 24. 4. Ungsuh Park, "Korea's Trade with the Communist World," p. 15.
Forfeiting companies, who extend cash payment to the seller at the time of delivery by assuming the buyer's debt, foresee extensive use of their services by Korean businessmen. See Business Korea, November 1988, p. 24.
5. Business Korea, November 1988, p. 24. In a cover story, "Go North, Young Man, Go North,," Business Korea's writers ask, "Is Gorbachev's motive a political one, designed to promote normalization of north-south relations, an economic one aimed at bringing competitive Korean companies into his development project, or a ploy to bring
120 Notes to pp. 50-54
pressure on Japanese companies that already have some interest in the project?"
6. Korea Business World, November 1988, p. 24. See also comments by Professor Kim Kwangsu, Soong Sil University, in the Korea Times, 22 June 1989, p. 8.
7. Korea Times 21 October 1988, p. 2. 8. Korea Business World, November 1988, p. 20; Korea Times, 7 De
cember 1988. To illustrate this idea as a relates to Hungary, one may note that Seoul's press was very excited to learn that Hungary's former ambassador to Pyongyang would be the new Hungarian representative to the ROK. When the new diplomat moved to Seoul, the South Koreans were disappointed to learn that Hungary would not allow its ambassador to be used as a channel for information between North and South.
9. Reviewed in the Korea Times, 8 October 1988, p. 8. Also, Wall Street Journal, 7 July 1988, p. 1.
10. Korea Times, 8 October 1988, p. 1. 11. Quoted from Roh Tae Woo's speech on 7 July 1988. Korea Times, 8
October 1988, p.4. 12. Learned in interview with Economics Professor at Kyungpook Univer
sity, Daegu, Korea. 13. There were reports of direct shipment of North Korean clams to South
Korea starting 20 November 1988. Wall Street Journal, 23 November 1988 p. All.
14. Samsung apparently signed the deal with North Korean fishermen through its trading partner in Japan. The cargo would be shipped from Wonsan to Pusan. Korea Times, 14 December 1988, p. 4.
15. The deals were purponedly signed during the lO-day visit of Hyundai Group chairman Chung Ju-yung. Chung was hosted by Choe Su-Gil, director of North Korea's Tae-song Bank and consultant to the Association for the Promotion of Asian Trade in the DPRK and Ho Dam, a member of the politburo. Seoul, March 1988, p. 34; Far Eastern Economic Review, 2 February 1989, p. 55; and Wall Street Journal, 17 January 1989, p. A 1. For discussion of baner deal see FBIS-EAS 89-041,3 March 1989, p. 26.
16. John McBeth, "Tacking to the North," Far Eastern Economic Review, 2 February 1989, p. 55.
17. Korea Times, 9 October 1988, p. 6 and Far Eastern Economic Review, 2 February 1989, p. 55.
18. Yonhap, 22 February 1989, in FBIS-EAS-89-039, 1 March 1989, p.28.
19. Korea Times, 8 October 1989, p. 8; Korea Business World, November, 1988, p. 20.
20. Korea Times, 8 October 1988, p. 8. 21. Dr Noh Hee Mok, of the Korea Institute for Economics and Technology,
quoted in Korea Business World. November 1988, p. 20. See similar comments by Yu Suk-yul at the Institute of Foreign Affairs and National
Notes to pp. 54-59 121
Security, The Korean Herald. 12 January 1989, p. 2. 22. For comments on North Korean materials see Korea Times, 4 Sep
tember 1988, p. 1. Student and athletic exchanges were mentioned by President Roh Tae Woo in his presidential address on state affairs, 5 October 1988, Korea Times. p. 2. Discussion of joint team for the Asiad games may be found in Korea Times. 22 December 1988, p. 1.
23. Youngnok Koo, "A Framework for Transactions Between the Two Koreas," Chapter 8 in The Two Koreas in World Politics, lPES Research Series No. 20, edited by Tae-hwan K wak (Seoul: The Institute for Far Eastern Studies, Kyungnam University, 1983), pp. 187-9l.
24. Ibid., p. 188 25. Published as Occasional Papers Series 86-01, "Seoul's Perspective on
South-North Relations," (Seoul: The Ilhae Institute, 1986), p. 14. 26. Korea Times, 14 September 1988, p. 1 and 12. See also, editorial, Korea
Times, 20 October 1988, p. 8, and 21 October 1988, p. 2. 27. See reports in Korea Business World, June, 1989, p. 39; The Korean
Herald 16 February 1989, p. 2; and YOMaP, 21 February 1989, in FBIS-EAS-033, 21 February 1989, p. 43.
28. Korea Times, 9 June 1989, p. 2. 29. Interview with political analyst in the US Embassy conducted in
November 1988. United States response also reported in New York Times, 16 October 1988, p. I 8, and Wall Street Journal. 21 October, 1988, p. A 1.
30. Ungsuh Park, "Korea's Trade with the Communist World: Problems and Prospects," speech delivered 12 July 1988.
31. See statement by senior official at National Unification Board, FBIS-EAS-89-039, 1 March 1989, pp. 23-24.
32. For story on musicians group, see Yonhap, 3 March 1989, in FBIS-EAS-89-041, 3 March 1989, p. 26; comments on sports meetings can be found in Chunggan Daily News, FBIS-EAS-89-008, 12 January 1989, p. 18, and in YOMap, 15 July 1989, in FBIS-EAS-89-135, 17 July 1989, p. 27; the road plan is discussed in Korea Times. 6 January 1989, p. 6.
33. Chugan Chosun, 19 February 1989, pp. 10-13, translated in FBIS EAS 89-040,2 March 1989, p. 19. See also Far Eastern Economic Review, 17 August 1989, p. 13.
34. The stipulation of a period of "peaceful coexistence" has been discussed by Ralph Clough in his book, Embattled Korea: The Rivalry for International Support (Boulder: Westview, 1987).
35. Manwoo Lee, "Soviet Perceptions of South Korea: The Prospects for Normalization of Relations Between the Soviet Union and South Korea," chap. 12 in The Two Koreas in World Politics. IFES Research Series No. 20, edited by Tae-hwan Kwak (Seoul: The Institute for Far Eastern Studies, Kyungnam University, 1983), p. 264. Also note Chong Wook Chung, "China's Role in Two-Korea Relations in the 1980's," Journal of Northeast Asian Studies Fall 1986, p. 57, and the
122 Notes to pp. 60-65
United States Department of State "Statement on US Relations with the DPRK," 31 October 1988.
5 Response to the Northern Policy
1. Business Korea, November 1988, p. 26. 2. Far Eastern Economy, 7 January 1988, p. 15. 3. Business Korea, November 1988, p. 26. 4. Business Korea, November 1988, p. 26. 5. Told to me in meetings with the president of KOTRA and a vice
president of IPECK, in November 1988. There are, of course, many other forums for communication between government officials and corporation leaders in Korea. Considerable instruction occurs through informal channels.
6. Yonhap, 29 December 1988, in FBIS EAS 89-001, 3 January 1989,p.37
7. See editorial in Hanguk /lbo, 5 July 1989, p. 2; analysis and comment in The Korean Herald, 15 June 1989, p. 2.
8. The Korean Herald, 11 January 1989, p. 8; Korea Times, 10 January 1989, p. 8; Yonhap, 10January 1989 inFBIS-EAS-89-006, 10 January 1989, p. 21; Tong-a /lbo, 22 February 1989, p. 2.
9. Yonhap, 15 July 1989 in FBIS-EAS-89-135, 17 July 1989, p. 27. 10. Yonhap, 28 March 1989, in FBIS-EAS-89-058, 28 March 1989,
p.29. 11. Yonhap, 17 June 1989, in FBIS-EAS-89-118, 21 June 1989, p. 27. 12. Travel was allowed once again on June 17th. See Yonhap, 19 June 1989
in FBIS-EAS-89-116, 19 June 1989, p. 21. South Korean Foreign Minister Choe Ho-chung declared by June 20th that the situation in Beijing had stabilized and Korean businessmen would return to their posts in China. See Yonhap, 20 June 1989 in FBIS-EAS-89-117, 20 June 1989, p. 17.
13. The Korean Herald, 30 May 1989, p. 2. 14. Yonhap, 22 March 1989 and 2 June 1989 in FBIS-EAS-89-054, 22
March 1989, p. 30 and FBIS-EAS-89-11O, 9 June 1989, p. 22. 15. Yonhap, 25 February 1989 in FBIS EAS-89-039, 1 March 1989,
p.29. 16. The Korean Herald, 30 May 1989, p. 2. 17. Yonhap, 23 June 1989, in FBIS EAS-89-120, 23 June 1989, p. 22. 18. See, for example, William R Overholt, "Korea's International Roles: A
Move toward Prominence, Korea and World Affairs 11 (Spring 1987): 22 and Donald Stone Macdonald, The Koreans, Contemporary Politics and Society (Boulder: Westview Press, 1988), p. 225; Byung Chul Koh, "Foreign Policy and Inter-Korean Relations," Korea and World Affairs 9 (Winter 1985): 659. See in general Young Whan Kihl, Politics and Policies in Divided Korea: Regimes in Contest (Boulder: Westview
Notes to pp. 65-74 123
Press, 1984) and Ralph Clough, Embattled Korea: The Rivalry for International Support (Boulder: Westview, 1987).
19. See "Ill-boding Developments in Hungary Viewed," in Pyongyang KCNA translated in FBIS-EAS-89-123, 28 June 1989, p. 11.
20. Voice of National Salvation in Korea to South Korea (clandestine) heard on 22 June 1989, translated in FBIS-EAS-89-135, 17 July 1989, p. 19.
21. FBIS-89-114, 15 June 1989, p. 15 and FBIS-EAS-89-135, 17 July 1989, p. 16.
22. Recently North Korean radio broadcasts have acknowledged that the world's tensions are becoming more relaxed and that this is a good omen for Korean reconciliation. Far Eastern Economic Review, November 1988, p. 42.
23. Seoul, The Monthly Magazine of Korea Illustrated, March 1989, p. 34. Also see New York Times, 2 January 1989, p. I 5, and 17 January 1989, p. 13.
24. For minutes of the Ho-Kim talks see Korea Times, 15 June 1989, pp. 2, 3.
25. Quoted in Tong-a /lbo, 8 July 1979, p. 2, translated in FBIS-EAS-89-135, 17 July 1989, p. 32.
26. See Ho Dam's comments in meeting with Kim Young-sam, The Korean Herald, 15 June 1989, p. 2.
27. Harrison, "The 'Great Follower,'" Far Eastern Economic Review, 3 December 1987, p. 36.
28. Reported in Far Eastern Economic Review, 1 December 1988, p. 22. 29. Ibid. 30. Far Eastern Economic Review, 1 December 1988, p. 22. 31. A North Korean economist was reported to have said, "We cannot live
as Robinson Crusoe." The Korean Herald, 27 September 1988, p. 2. 32. Far Eastern Economic Review, 1 December 1988, p. 37. 33. See editorial in Hanguk !lbo, 14 March p. 3; see also Korea Busi
ness World, June 1989, p. 39, and Hangyore Sinmun, 19 February 1989, p. 3.
6 ROK's New Policy in the Regional and Domestic Contexts
1. James Hsiung, U.S.-Asian Relations: National Security paradox (New York: Praeger, 1983).
2. Dwight Perkins, China: Asia's Next Economic Giant? (Seattle: Univer-sity of Washington Press, 1986), p. 5.
3. Ibid. 4. Korea Times, 8 September 1988, p. 4. 5. Tong-a !lbo, 5 June 1989, p. 2; the The Korean Herald, 11 June
1989, p. 8. 6. Note, for example, editorials in the The Korean Herald at the time.
124 Notes to pp. 74-79
7. See for example, Korea Times, 20 October 1988, p. 8. 8. The Korean Herald, 20 June 1989, p. 2, 5,21 June 1989, p. 2; Yonhap,
10 June 1989, in FBIS-EAS-89-111, 12 June 1989, p. 20. 9. I am grateful to Dr Soo Eon Moon, Soviet studies specialist at Soong
Sil University, for his long discussions with me on this subject. 10. Byung Chul Koh, "China and the Korean Peninsula," Korea and World
Affairs 9 (Summer 1985): 276-77. 11 Korea Times, 16 December 1988, p. 3. 12. The Korean Herald, 22 February 1989, p. 3. 13. Robert Scalapino, Major power Relations in Northeast Asia (Lanham:
University Press of America, 1987), pp. xiv, 4, 54-55. 14. Ibid., p. xiv. 15. Franklin B. Weinstein, "The U.S. Role in East and Southeast Asia," in
Raymon H. Myers, A U.S. Foreign Policy for Asia: The 1980's and beyond (Stanford: Hoover Institution Press, 1982), pp. 122-23.
16. Scalapino, Major Power Relations in Northeast Asia, pp. 4, 7. 17. Ibid., p. 8. 18. Jeffrey E. Garten, "Trading Blocs and the Evolving World Economy,"
Current History, January 1989, p. 16. If the United States is included in the Pacific Basin trade statistics, it can be shown that Japan's regional trade is near 60 percent, Australia and Thailand's near 70 percent, the Philippines and South Korea's between 70 and 80 percent. See Richard L. Sneider, "The Evolving Pacific Community," in Robert B. Hewett, Political Change and the Economic Future of East Asia (Honolulu: University Press of Hawaii, 1981), p. 36.
19. Paul Wolfowitz, "U.S. Interests and the Emerging Pacific Community," in Robert L. Downen and Bruce J. Dickson, The Emerging Pacific Community: A Regional Perspective (Boulder: Westview Press, 1984), p. 29.
20. See for instance, studies by James Shubert, ''Toward a Working Peace System in Asia," International Organization 32 (Spring 1987): 425--62. Among some of the chief organizations are the Pacific Basin Economic Council , the Organization of Pacific Trade and Development, the Asia World Bank, and the Pacific Economic Cooperation Council.
21. Yonhap, 27 March 1989 and 30 March 1989, in FBIS-EAS-89-057-060,27 March 1989, p. 37 and 30 March 1989, p. 34.
22. Nicholas Lardy, China's Entry Into the World Economy (Landham: University Press of America, 1987), p. 6.
23. Dwight Perkins, China: Asia's Next Economic Giant? (Seattle: University of Washington Press, 1986), p.29; Lardy, China's Entry Into the World Economy, pp. xv, 8,9; Robert F. Demberger, "Economic Cooperation in the Asia-Pacific Region and the Role of the P.R.C.," Journal of Northeast Asian Studies (Spring 1988): 18-21.
24. Tong Whan Park, "Political Economic Approach to the Study of NIC's Foreign Policy Behavior: The Case of South Korea," Journal of Northeast Asian Studies (Summer 1986): 71.
Notes to pp. 79-85 125
25. Susan Lee and Tatiana Pouschine, ''The Rising Stars," Forbes, 5 May 1986, p. 111; Korea Times, 30 November 1988; Brian Bridges, Korea and the West (London: Routledge and Kegan Paul, 1986), p.93.
26. Tong Whan Park, Journal of Northeast Asian Studies, p. 71. 27. Herbert J. Ellison, Japan and the Pacific Quadrille; The Major Powers
in East Asia (Boulder: Westview Press, 1987), p. 1. 28. Clive Hamilton and Richard Tanter, ''The Antinomies of Success in
South Korea," Journal of International Affairs 41 (Summer/Fall 1987): 82.
29. The development fits the theory of Robert O. Keohane in After Hegemony; Cooperation and Discord in the World political Economy (Princeton: Princeton University Press, 1984), p. 246. Keohane writes, ''Theories that dismiss international institutions as insignificant fail to help us understand the conditions under which states' attempts at cooperation, in their own interests, will be successful. This is especially true in the contemporary world political economy, since it is endowed with a number of important international regimes, created under conditions of American hegemony but facilitating cooperation even after the erosion of U.S. dominance."
30. See for example, the comments by Sung-joo Han, After One Hundred Years: Continuity and Change in Korean-American Relations (Seoul: Asiatic Research Center, 1988), p. 399.
31. A government commissioned survey taken by Prof. Choi Pyong-gil of Yonsei University in 1988, reported 28 November 1988, Korea Times, p. 1.
32. Former US Ambassador William H. Gleysteen, Jr., suggests a policy of flexibility and compromise but his comments fall short of calling a halt to the Korean-American military alliance. See his article with Alan D. Romberg, "Korea: Asian Paradox," Foreign Affairs (Summer 1987): 1054.
33. Tong-a llbo, 21 March 1989, p. 20. Permission for initial contacts was reported given earlier in 1988. Wall Street Journal, 31 October 1988, p. AI.
34. Choung-Il Chee, "South Korea's Foreign policy in Transition," Korea and World Affairs 12 (Winter 1988): 741.
35. The Korean Herald, 28 November 1988. 36. Byung-Joon Ahn, "South Korea's New Nordpolitik," Korea and World
Affairs 12 (Winter 1988): 699. 37. See Donald Clark (ed.), The Kwangju Uprising (Boulder: Westview
Press, 1988). 38. Koreans have accused the United States of trying to put a stop to their
trade efforts with Vietnam. See brief review in Korea Business World, March 1989, p. 29.
39. The Korean Herald, 28 November 1988. 40. For a current assessment of this change in public image, see Choung-Il
Chee , Korea and World Affairs, pp. 740-42.
126 Notes to pp. 85-93
41. YOWlgnok Koo and SWlg-jOO Han, The Foreign Policy of the Republic of Korea (New York: Columbia University Press, 1985.)
42. See for illustration, YWlg Whee Rhee, Bruce Ross-Larson and Garry Pursell, Korea's Competitive Edge (Baltimore: The John Hopkins University Press, 1984).
43. Lee Jae Woong, "Internationalization: Another Look," Korea Business World, March 1989, p. 32.
44. Confirmed to me in conversations with the Daegu Chamber of Commerce and other businessmen in Daegu and Seoul whom I was able to interview during October and November of 1988.
45. Information gathered from interviews conducted at office headquarters for IPECK, KOTRA, AND FKI in November and December 1988.
46. See Business Korea, October 1988, p. 25 and Korea Business World, March 1989, p. 21.
47. Korea Business World, March 1989. 48. Far Eastern Economic Review, 8 December 1988, p. 26. 49. Terms used by Scalapino, Major Power Relations in Northeast Asia. 50. Quoted term taken from James Rosenau, "A Pre-Theory Revisited,"
International Studies Quarterly 28 (1984): 245-305.
7 ROK Socialist Trade as a Transnational Phenomenon
1. Robert Keohane and Joseph Nye, Transnational Relations and World Politics (Cambridge: Harvard University Press, 1970), p. 379.
2. Ibid., p. x. 3. In the spring and summer of 1989, for instance, the government
announced several public supported tours by teachers, students, and labor leaders to various socialist countries. See Yonhap, 11 March 1989 and 27 June 1989 in FBIS-EAS-047, 13 March 1989, p. 44 and in FBIS-EAS-89-122, 27 June 1989, p. 26.
4. Ibid., p. xvi. 5. Ibid., p. xvii. 6. See for example, Karl Deutsch, Tides Among Nations (New York: Free
Press, 1979). 7. See Donald P. Warwick, ''Transnational Participation and International
Peace," in Robert Keohane and Joseph Nye, Transnational Relations and World Politics pp, 305-24.
8. Keohane, Transnational Relations and World Politics, p. xix, and Werner 1. Feld, Nongovernmental Forces and World Politics: A Study of Business Labor and Political Groups (New York: Praeger, 1988), p. 15.
9. See, for instance, Robert Keohane and Joseph Nye, Power and Interdependence; World Politics in Transition (Boston: Little, Brown and Co., 1977) and James O'Leary, "Envisioning Interdependence: Perspectives on Future World Orders," Orbis, Fall 1978, pp. 503-33.
Notes to pp. 93-102 127
10. Ibid. 11. See Andrew Scott, The Revolution in Statecraft; Informal Penetration
(New York: Random House, 1965). 12. Feld, Nongovernmental Forces and World Politics, p. 253. 13. Ibid. 14. Ibid., p. 106. 15. Note, for example, the study by Lewis Austin, "Political Culture of
Two Generations" in Japan: The Paradox of Progress. 16. Mark Gasiorowski, "Economic Interdependence and International Con
flict: Some Cross-National Evidence," International Studies Quarterly 30 (March 1986): 23-38.
17. For a discussion of the use of leverage in trade interdependence, see Robert C. North and Nazli Chollcri, "Economic and Political Factors in International Conflict and Integration," International Studies Quarterly 27 (1983): 443-61.
18. See Ruth Arad and Seev Hirsch, "Peacemaking and Vested Interests: International Economic Transactions," International Studies Quarterly, 23 September 1981): 439-68.
19. Feld, Nongovernmental Forces and World Politics, p. 106. 20. Peter Knirsch, "The Significance of Economic Interdependence Arising
from East-West Relations," in Zbigniew M. Fallenbuchl and Carl H. McMillan, Partners in East West Economic Relations (New York: Pergamon Press, 1980), p. 68.
21. Feld, Nongovernmental Forces and World Politics, p. 249. 22. James Rosenau, "A Pre-Theory Revisited: World Politics in an Era
of Cascading Interdependence," International Studies Quarterly 28 (September 1984): 254, 258.
23. Ibid., p. 254. 24. James Rosenau, The Study of Global Interdependence (New York:
Michols Publishing Company, 1980), p. 80. 25. Young Whan Kihl, Politics and Policies in Divided Korea: Regimes
in Contest (Boulder: Westview Press, 1984), p. 237. 26. Ibid. 27. Adrian Buzo, Far Eastern Economic Review, 8 December 1988, p.26. 28. K. 1. Holsti, Why Nations Realign: Foreign Policy Restructuring in the
Postwar World (London: George Allen & Unwin, 1982), p. 7. 29. Ibid., p. 15.
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Index
Association of Southeast Asian Nations (ASEAN) 77-78
Bulgaria see South Korea, trade with
Canada-United States Free Trade Agreement 25
China, People's Republic of (PRC) Foreign Relations: with North
Korea 4,35,36,37,38,41; with South Korea 3, 4, 5, 65, 75; with Taiwan 2, 32, 57; with the United States 35, 36; with the Soviet Union 39,40, 73; with the West 72
Olympics Participation 39, 40 Trade Growth 79 Trade relations with South
Korea 8,13,14,15,32,33: with North Korea 40
China Council for Promotion of International Trade 10, II, 12, 14
China International Trade and Investment Corporation (CITIC) 12
China International Travel Service (CITS) 14, 15
Chung Ju-yung 87, 98 Chun Doo-hwan 55,61 Cold War 71,72 Council for Mutual Economic
Assistance (CMEA) 27 Cross-recognition 6,40,50,51,56,
57,58,59,65 Czechoslovakia
see South Korea, trade with
Daewoo Corporation 10, 13, 17,20,87
Democratic Justice Party 60, 61 Democratic People's Republic
of Korea
135
see North Korea Deng Xiaoping 36, 39
East Asia Region 6, 68, 70, 71, 76, 77, 78, 79
East-West Detente 72, 76, 77 East Germany
see South Korea, trade with Eastern Europe
see South Korea, trade with
Federation of Korean Industries (FKI) 87
Fujian Province, trade with South Korea 10, 13, 39 see also South Korea, trade with China
Galanov, Vladimir 19 Goldstar Company 19 Gorbachev, Mikhail 20,26,30,39,
42,46,47 Grosz, Karoly 27 Guangzhou, trade with South
Korea 13 see also South Korea, trade with China
Hanjin Corporation 18 Harrison, Selig 66, 67 Ho Dam 66 Hong Kong Port of Entry 9 Hwasung Corporation 19 Hyosung Corporation 53 Hungary
Foreign relations: with South Korea 3,16,17,27,28,57; with North Korea 16, 65
Foreign trade with South Korea 17, 28, 50 see also South Korea, relations with
136 Index
Hyundai Corporation 13, 19, 21,53,87
Inter-Korean Trade Measure 52 Interdependence 92, 93, 94, 95, 96 International Sununer Olympics see
Olympics
Japan, as a trading model 8 Jeong, Se Hyun 55, 56 Jindo Industries 20 "juche" see North Korea
Korean Air lines 15 Korean Civil Economic Council 12 Korean Economic Planning Board 17 Korean Institute for Economics and
Technology (KlET) 18 Korean Maritime and Port Administra
tion 14 Korean National Security Law 52,63 Korea Trade Promotion Corporation
(KOTRA) 12, 15, 18, 19, 31,87,88
Koreans in China 15,63 Korea Trade Promotion Corporation
(KOTRA) 12, 15, 18, 19, 31,87,88
Koreans in China 15,63 Kim II-sung 5,35,36,44,66,67,70 Kim Jong-il 36,37,44 Kim Pok-tong 12 Kim Woo choong 10, 87 Kim Young-sam 21,47,62
Liaoning Province 15, 33, 39 see also South Korea, trade with China
Lee Hahn been 88 Lee Sun-ki 12, 19,21,88 Lord, Winston 12 Lucky-Goldstar see Goldstar
Moon Hi Gab 11, 87
North Korea, Democratic People's Republic of Korea (DPRK)
Domestic Conditions 1, 38, 44, 67,100
Foreign Policy 65, 99, 100; toward the West 65,66,67, 70, 100; regarding Northern Policy 65, 70; regarding Reunification 66, 67
Foreign relations: with China 35, 36, 37, 38,39,40,41; with South Korea 65, 66, 100, 101; with the United States 70; with Hungary 65; with the Soviet Union 42,43,44,47;
Trade: with China 40; with South Korea 51,52, 97; with the Soviet Union 45
Northern Policy 5, 48, 54, 55 Domestic Critics 60, 61, 62, 63,
64, 68, 69, 85 Foreign Response 64, 65, 66,
67,68,69 United States Response 67, 68 North Korean Response 64, 65,
66, 68, 70
Olympics 1,3,40,42,61,83,84
Pacific Basin Conununity 31,47,66, 77, 78, 79
Pacific Economic Cooperation Conference 31
Park Chol-un 87 Park Chung-hee 5,51, 61
Open Door Policy 51,52 Park Young-su 88 Pohang Iron and Steel Company 20 Poland, relations with Korea 16, 18,
28,57,65 see also South Korea, relations with
Pyongyang see North Korea
Recognition 6,41,50,51,57, 58,59,64 see also Cross-recognition
Reunification 2, 6, 36,40,41,44,57, 58,59,66,67,100
Roh Doctrine see Northern Policy Roh Tae Woo 5, 11, 51, 52,
56,61,82 Rong Yiren 12
Index 137
Sakhalin, Ethnic Koreans 64 Samsung Corporation 12,13,17,19,
20,21,53 Scalapino, Robert 76, 77 Seoul see South Korea Shandong Province, relations with
South Korea 10, 12, 14, 15,33,39 see also South Korea, relations with China
Shevardnadze, Eduard 21,31,33 Siberian Development Project
see Soviet Far East Single European Act 25 Society for the Advancement of
Machinery Industry 11 "Soft Regionalism" 76, 77,
78,79,80 South Korea, Republic of Korea
(ROK) Domestic Conditions (general):
Business affairs 85, 86, 87, 88, 91, 98; Economic Position 49, 79, 86, 87; Politics and democracy 82, 83,84,85,98
Domestic Conditions (public opinion) 82, 83, 84, 85: regarding China 73,74, 76, 84; regarding North Korea 55, 83, 84; regarding socialist countries 60, 62, 63; regarding the Soviet Union 74, 75, 76, 84; regarding the United States 81, 84; regarding Northern Policy see Northern Policy
Foreign relations 97: with China 9, 10, 11, 12, 13, 14,15,32,33,73,75;with Eastern Europe 62,91; with Hungary 5,16,17, 27,28; with North Korea 5, 62, 65, 66; with socialist countries 48; with the Soviet Union 29,30,31,75; with the United States 5, 19, 20, 21, 22; with Vietnam 18, 19; with Yugoslavia 8
Policy toward North Korea 51 Trade Policy 49, 61, 86; Direct
shipping 9 Trade with 24, 79; ASEAN 17;
Bulgaria 16; China 8, 9, 10, 11, 12, 13, 14, 15, 25, 32, 33; Czechoslovakia 16; East Germany 16, 17; Eastern Europe 8,16,17,18,23, 24, 26, 50; European Common Market 25, 26; Hungary 18; North Korea 50,51,52,53, 54; socialist countries 49, 50, 63, 87,91; Soviet Union 19,20,21,22,50; Vietnam 18, 19; the West, 24, 25; United States 24, 25; Yugoslavia 16
Southwest Korea, China trade 60 Soviet Far East 20,21,36,37,46 Soviet Union, USSR
Foreign relations: with China 19, 20, 21, 22, 50; with North Korea 18, 19; with the Pacific/Far East 20, 21, 30; with South Korea 21, 29, 30, 31,42, 43, 44, 45, 46, 47,65, 74, 75; with the United States and the West 43;
Trade 30: with North Korea 29, 45; with South Korea 29,30, 31
Summer Olympics see Olympics
Taiwan, RepUblic of China 2, 40, 41 Relations with mainland China 2,
15,32,57 Tiananmen Square Crisis 73,74 Transnationalism 90,91,92, 93,
94,95,96 and East-West relations 94,95 relation to nationalism 96 transnational actors, Korea 98
United States Foreign Relations: with East
Asia 80, 81; with North Korea 59, 68; with South Korea 81,82; with China 72
138
Trade with South Korea 75
Vietnam, Socialist Republic of Vietnam
Trade with South Korea 18, 19
Weinstein, Franklin 76
Index
Yugoslavia Relations with South Korea 8, 16,
17,28,57 see also South Korea, relations with
