The Nongovernmental Nature of Korean Businesses' Economic Exchanges with China prior to the Normalization of 1992

Cheon Kyung-Hee

doi:10.14731/kjis.2005.12.45.5.131

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한국국제정치학회
국제정치논총 학술저널
The Korean Journal of International Relations Vol.45 No.5
2005.12 131 - 153 (23page)
DOI : 10.14731/kjis.2005.12.45.5.131

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Cheon Kyung-Hee

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Prior to the normalization of South Korea-China relations in 1992, South Korea's economic exchanges with China centered on trade and other related contacts. And South Korea's unofficial trade with China was mainly led by private businesses, especially big business groups' (or chaebol groups). Then, in relation to the dominant role of private businesses, one may ask whether Korean private businesses' economic exchanges with China over the period 1979-92 could be regarded as 'nongovernmental' in effect. Those who raise doubt about the nongovernmental nature of such Korean businesses' economic activities might suppose that Korea's unofficial economic exchanges with China were made possible largely by the Korean government's initiative or its active intervention and that thus they were not very nongovernmental. Although the subject on the basic nature of Korean businesses' economic exchanges with China during 1979-92 has not received due scholarly attention, it is to be dealt with for further research on South Korea-China relations in general and theoretical research on South Korea's transnational economic relations with China prior to 1992 in particular. Thus, this study seeks to find an answer to the question by identifying the nongovernmental nature of Korean businesses' economic exchanges with China during the period of 1979-92.
To this end, this study begins with a discussion of the changes in government-business relations in Korea to consider the general business climate, then presents more circumstantial and empirical evidence supporting the nongovernmental nature of Korean businesses' economic exchanges with China, and finally comments on the Korean government's financial support for private companies involved in China business. As a conclusion, there is no evidence available to demonstrate that Korea's unofficial economic exchanges with China were explicitly directed or closely controlled by the Korean government; on the contrary, much circumstantial and empirical evidence supports that such Korean private businesses' economic exchanges were nongovernmental, conducted by their own decisions, on their own initiative, for their own interests, and at their own risks, not by their government's close control, coordination or direction.

#South Korea-China relations #South Korean businesses' economic activities with China #South Korea's nongovernmental economic relations with China