In the last 10 years, Korea has pushed ahead with FTA policies, putting multiple FTAs in effects starting with the effectuation of FTA with Chile in April, 2004. Currently, total of 9 FTAs are in effects including ASEAN, EFTA, EU, and Peru. Moreover, negotiations are being made for the agreements with countries, such as China, Canada and Mexico.
In the middle of this, historic FTA between Korea and US has been put in effect on March 15, 2012. Due to the FTA with US, the economic territory of Korea has been extended to 61% of world market and domestic companies have found ways to compete in international markets with favorable conditions as the access to the US market, the largest consumer market, became more affordable more.
However, the effectuation of Korea-US FTA has not automatically guaranteed benefit as the conditions of Rules of Origins must be fulfilled first to take an advantage of mitigation or lift of barrier of tariffs.
The Rules of Origins of the Korea-US FTA is however more complex than previously effectuated FTAs, making it difficult for domestic companies to actively utilize hence numerous cases, where companies are failing to benefit from the effects of the FTA, are being observed.
This thesis analyzes the Rules of Origins of the Korea-US FTA and present successful business models which actually created profit by utilizing the Rules of Origins of the Korea-US FTA, thereby providing assistance to domestic exporting companies in seizing new business opportunities in the US market.
Domestic companies will be able to utilize FTA more easily by using the strategic means of FTA business model for acquiring Korea-US FTA preferential tariffs. In this way, the companies can secure competitiveness in prices, which enable them to extend the presence in US market preemptively ahead of other competitors such as Japan and China. Furthermore, they can lay the ground for developing into a global company.
Macroscopically, it is also expected to help improve international credit standing and enhance national brand values. Many positive effects can be expected on the entire fields of Korean industries as the values of Korean companies' products rise and foreign investments in Korea are facilitated.