By Ryu Jin
Staff Reporter
South Korea needs an organization that will fairly protect domestic industries from unfair trade practices by foreign players in the era of free trade and the Korea Trade Commission (KTC) aims to do just that, striving to be one with the highest level of credibility, its new chairman says.
Dr. Bark Tae-ho, 55, dean of the Graduate School of International Studies at Seoul National University, who was designated as the new KTC chairman late last month, laid great emphasis on ``fairness’’ and ``expertise’’ as the most required virtues of the country’s trade remedy agency.
``We need to continue our efforts to improve our expertise, objectivity and fairness in trade to remain as an impartial judge in the case of unfair trade actions such as dumping or subsidies,’’ Bark said in an interview with The Korea Times Wednesday.
Set up in July 1987, the KTC is a quasi-judicial agency that determines the impact of dumped or subsidized imports on domestic industries. It also directs actions against certain unfair international trade practices such as infringements on intellectual property rights (IPRs).
In the past two decades, the role of the trade remedy organization has been getting considerably larger, as South Korea, which heavily relies on imports and exports for its economic growth, has opened its markets wider to the outside world.
``We are about to see the ratification of the free trade agreement with the United States and now negotiating with the European Union (EU) for another deal,’’ the noted economist said. ``I feel a great sense of responsibility since I took the rudder of the commission at this critical time.’’
For export-driven South Korea, the launch of the World Trade Organization (WTO) system in the mid-1990s was a great opportunity to take a leap toward becoming an advanced economy. Exports rose from $125 billion in 1995 to $325 billion last year.
But increased trade has also brought about negative aspects such as unfair trade practices including dumping, which consequently damaged domestic industries.
For the past 20 years, the KTC has taken anti-dumping measures 167 times, dealt with 262 unfair trade cases such as IPR infringement and imposed safeguard actions on 33 occasions.
Bark, who served as a commissioner of the trade remedy body from 1999 to 2004, says there seem to be a couple of common misconceptions among ordinary people about his commission.
One is that the commission should also guard South Korean companies from unfair treatment overseas. But the KTC is mostly designed to protect the domestic industries from unfair trade at home.
Secondly, a number of people -- not only ordinary citizens but also entrepreneurs -- have the belief that the KTC should always take the side of local enterprises which is, in the words of the chairperson, ``totally misguided.’’
``It is true we should protect domestic enterprises and industries. But what we should actually do is to judge `unfair’ trade in a `fair’ manner,’’ Bark said. ``Who in the world would trust us, if we always sided with South Korean companies?’’
He also stressed the need to expand the organization and fortify its function and capability ahead of the expected increase in demand for its services, as the country has been pursuing crucial free trade agreements (FTAs) with advanced and developing nations.
Currently, the KTC is under the wing of the Ministry of Commerce, Industry and Energy. Led by a vice minister-level, ``non-standing’’ chairperson, the KTC is composed of only one standing commissioner and seven non-standing commissioners, backed by about 45 staff members.
Bark said his commission should become an independent organization like the U.S. International Trade Commission (USITC) in the long term and that it should at least be headed by a ``standing’’ chairperson.
He added that he would make utmost efforts during his tenure to enhance the expertise of his commission, inviting more lawyers, certified public accountants and patent attorneys, in preparation for the free trade era.
``I will do my best so that the Korea Trade Commission can move forward as a fair and transparent trade remedy organization fitting international standards,’’ he said.
Bark graduated from Gyeonggi High School and Seoul National University and obtained a doctorate of economics at the University of Wisconsin?Madison in the United States.
He served as the head of the Korean Association of Trade and Industry Studies and now is the dean of the Graduate School of International Studies at the Seoul National University.