Korean Job Discussion Forums

[nstick13]

If I recall from earlier reading I did about this, there will be limits on how many of certain goods are allowed to be traded freely. For example, I think only 25,000 American cars will be allowed. I don't know what the final agreement looks like, though.

[atwood]

I'd agree with those who think NAFTA was a loss for the U.S. For the environment as well.

Free trade can be great for the consumer and high tariffs can really do a number on the little guy, but if you lose your job in the process it doesn't matter much since you're not going to be consuming very much.

Personally, as closed as the Korean market is, I don't see why the U.S. had to make any concessions. They ought to figure out a way to open up off-base PXs, an Uncle Sam Costco if you will. Sell at a profit of course and defray some of those military costs.

I agree that theoretically it should make Korean corporations more competitive but as long as the won stays weak I wonder if that holds true. Also, they'll probably use it like the IMF crisis--an excuse to layoff employees. Besides they seem to be so busy thumping their chests these days, they may just assume it won't affect them.

As for cars, we'll see.

[NohopeSeriously]

[Wildbore]

[Unposter]

For what it is worth, and I don't know how much it is, I remember reading (somewhere - sorry) that some private American schools are licking their chops at entering the "lucrative" Korean education market. I would guess the newness of these schools and the prestige they may carry may initially give them strong advantages in the market. I've heard (similar sources) that even American universities may want to open their own branch campuses in Korea and compete directly for Korean students.

If this does happen, and such schools bring American educators with American ideas on how to run schools, it could bring drastic changes to the Korean education system.

I would also suspect that the increased competition will lower prices and salaries, except for schools that can market themselves as elite.

Same thing with book sellers. First of all, books are going the way of the dodo. But, it will be much harder for book sellers to charge a premium for "imported" books.

I suspect that if new companies come to Korea, at least some, possibly many, will choose these FEZ (Free economic zones) where they can get tax breaks and purchase land cheap. I think the employees of these companies, likely Americans, won't mind comuting to and from Seoul, when they realize the costs. Think about how far people commute to New York or LA. Koreans seems much less willing to do it. American cities are spread out. Seoul is relatively packed in, and I suspect Westerners won't care whether they live in Gangnam or in their new, ultra-modern Western "ghettos" in a FEZ.

Anyway, I think it is still too early to say for certain what is going to happen. Like I posted earlier, I doubt Lee and Obama have even read the FTA in its entireity. (sp?) And, I am sure there are all sorts of unforseen effects from the new regulations. But, obviously, it should bring big changes.

[atwood]

[Malislamusrex]

I will be similar to the European trade agreement........ nothing will happen they have no idea what's going on.

[Unposter]

It is a general principle of free trade agreements that increased competition tends to bring down prices and often salaries in such industries lower salaries.

But, who knows?

[fermentation]

Government sanction "free" trade agreements are not free trade. But I do hope lower priced foreign goods will force Korean competitors to lower their prices.

[atwood]

[coralreefer_1]

The nature of trade is that of course some industries will be hurt by imports, while others will be strengthened by the increased exports. There is not a single country in the world that trades and does not suffer at least some type of loss in one sector. The gains however are to the overall welfare of the nation (consumers) are at least supposed to be larger than the losses in various other sectors.

In the case of Korea however, I do not see huge losses to the Korean farmer. Korea already produces rice at a surplus level, so much to a point that I believe it was last year the government had rice rotting in storage because so much more was produced that even after domestic consumption, exports, and food aid to the north...there was STILL to much. However the Korean government was very adamant about not including rice in this deal.

But on to the Korean cattle farmer, although it is good for consumers, I cannot imagine huge losses to the Korean farmers in the beef market. Korean beef is already 300-400% more expensive than imported, and yet Koreans happily and readily choose it over imports. The beef industry here has done a fantastic job over the years to convince Koreans that Korean beef tastes better, better for your body, one of a kind most delicious beef in the world, and all the other psychological factors that drive costumers to choose it over imports. As mentioned earlier it will take 15 years for US beef tariff reductions to be completed, and even after the 40% tariff is reduced, it is not as if consumers on the end will ever see that beef 40% cheaper.

[atwood]

[coralreefer_1]

[minos]

[coralreefer_1]

I have also noticed this. Since the bailout of the big 3 US automakers, every GM/Daewoo facility that was located in the city is now a Chevy.

I am not sure why either, but I have seen young Korean guys driving Korean models who have glued on Chevy emblems to their cars~

I cant help but laugh about that..kind of the same laugh I have when I see rich ajussis impressing each other with Budweiser.