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A Study on Trade Dispute Problem between China and Korea (Focus on Trade Correlation Problem and Business Dispute and Anti-Dumping Dispute)

Both China and Korea have increased the trade amount to the astonishment of the world with the active industrial and economic interchanges after the establishment of diplomatic relation in 1992. However, they have the disgrace to be the first trade dispute counterpart to each other on the other side of such external expansion and such trade dispute does not become phenomena to stay for a time but occurs continuously and variously, which may constitute a potential risk factor to the relation of both countries in the future.Since frequent trade disputes of both China and Korea not only generate the compensation responsibility for the economical loss between the concerned parties of companies but also lead to lose national credit, to give biased national sentiment and to create a great loss to the friendly relation of both countries, it is urgently necessary to take measures for such.Therefore, this thesis attempted to understand the general dispute status as well as the occurrence situation of trade disputes for both countries by studying trade disputes first divided into comprehensive dispute area, dispute statistics and dispute pattern in order to identify such problems of trade disputes and find out their causes. Then it analyzed the degree how the trade disputes of both countries affect the general industries negatively in the respect of industry, investment, civilian trade and national relation. It can be confirmed that the trade disputes of both countries are getting worse in the overall industries and becomes the threatening factor to the economic development of both countries through the results.It could be understood from such analysis results that studies corresponding to the economic bodies including nation, industry, enterprise and environment are objective and reasonable rather than those of simply combining into one area of disputes in order to find out the causes of trade disputes of both China and Korea.For such reason, not only the degree of trade dependency and competition was actually analyzed for the issue of trade fundamentality, i.e. trade correlation that is a concept of relation between countries using a wide range of statistical data, but also problems on trade transaction, i.e. business disputes in the concept of enterprise and industry, and causes of creating anti-dumping were analyzed in a variety of viewpoints, in order to analyze the causes of trade disputes for both countries. Finally, the issue of trade environment, i.e. the analysis of legislative difference regarding trade and precedents of trade disputes in the reality was compared, analyzed, and domestic trade and environment problems including government and enterprise were studied, analyzed together. As a result, it was understood that the causes of trade disputes between China and Korea belonged to the above-mentioned three areas.In addition, the anti-dumping disputes causing the greatest economic, industrial loss among other trade disputes between China and Korea, which has not studies so far, were actually analyzed. Data was based on the recent five year for which the ratio of anti-dumping disputes from China to Korea has been the highest and the economic effect of the anti-dumping lawsuits to affect both countries was actually analyzed by improving the existing prusa model appropriate to the situation of both countries. As a result, it was concluded that the anti-dumping lawsuits did more economic damage to both countries than both countries expected their original effect.Therefore, this thesis tries to help both China and Korea develop a friendly and sound relation of cooperative partner by minimizing trade disputes as well as preparing measures through finding out such causes of trade dispute problems for both countries.

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