Analysis on E-commerce in Korea and its future strategies to Korea-China FTA

다국어 초록 (Multilingual Abstract)

This article is aimed not only to examine characteristics of e-commerce in Korea, but to also explore its future strategies to Korea-China FTA. Based on comparative analysis, the author found that e-commerce in both countries has been significantly growing with the wide usage of the Internet, continuous technological innovations, and governmental supports. In fact, Korea has relative advantages to develop its infrastructure as a small country but around 65 percent of its online open market is occupied by one foreign firm, eBay. On the other hand, the increasing size of the middle-class in China draws considerable attention from foreign investors with FDI inflows. Unlike Korea, e-commerce in China is dominated by local firms and many of them have decided to go public with IPO in foreign stock markets as an aggressive overseas expansion strategy. Although both countries still have trade barriers on e-commerce, their future seems bright due to the explosive growth of online and mobile e-commerce.
By introducing transaction cost theory and diffusion of innovation theory, the author forecast two significant impacts on e-commerce that the Korea-China FTA may provide. First, it will contribute to stimulating further economic growth, cooperation and structural changes between the two countries. Second, if they agree to insert a separate chapter of e-commerce on negotiations, it will weaken its trade barriers, reduce transaction costs and promote their bilateral cooperation. From Korea’s perspective, this article strongly recommends that Korea should use the Korea-China FTA as an important tool to enter the Chinese market. Its negotiations should try to remove technical and regulative barriers on e-commerce China currently holds, as well as to ask to strengthen its consumer protection. In addition, Korea has to search through various methods to support Korean firms, especially for SMEs who are eager to export to China through e-commerce.

목차 (Table of Contents)

• Ⅰ. INTRODUCTION 1
• Ⅱ. THEORITICAL FRAMEWORK AND LITERATURE REVIEW 6
• 2.1. Theoretical Framework 6
• 2.2. Literature Review 10
• Ⅲ. COMPARATIVE ANALYSIS ON E-COMMERCE IN KOREA AND CHINA 12
• 3.1. Development of E-Commerce 12
• 3.2. Factors Promoting E-Commerce 17
• 3.3. Barriers to E-Commerce 30
• 3.4. Future Prospects 35
• Ⅳ. CASE STUDY: SK Planet (Korea) and Alibaba (China) 39
• Ⅴ. KOREA-CHINA FTA: IMPACTS AND POLICY IMPLICATIONS ON E-COMMERCE IN KOREA 43
• 5.1. Impacts 43
• 5.2. Policy Implications 47
• Ⅵ. CONCLUSION 52
• BIBLIOGRAPHY 54