Trade Liberalization and Agricultural Sector in Korea

Abstract

Purpose: The aim of the study was to assess the trade liberalization and agricultural sector in Korea. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Trade liberalization, characterized by the reduction or elimination of tariffs and other barriers to international trade, has had significant impacts on the agricultural sector. Numerous studies have explored these effects, revealing both positive and negative outcomes. On the positive side, trade liberalization often leads to increased market access for agricultural products, allowing farmers to expand their consumer base and potentially achieve higher profits. Moreover, exposure to international competition can drive efficiency improvements within the agricultural sector, encouraging innovation and technological advancements. However, trade liberalization can also pose challenges for farmers, particularly those in developing countries who may struggle to compete with highly subsidized agricultural sectors in wealthier nations. Additionally, increased import competition can threaten the livelihoods of small-scale farmers and exacerbate income inequality within rural communities. Implications to Theory, Practice and Policy: Heckscher-ohlin theory, new trade theory and institutional theory may be use to anchor future studies on assessing the trade liberalization and agricultural sector in Korea. Encourage the adoption of sustainable agriculture practices among smallholder farmers through capacity-building initiatives, extension services, and incentives. Develop targeted support mechanisms for vulnerable agricultural communities, including smallholder farmers, women, and marginalized groups.