The current state of the economics relations of South Korean and Latin America: new paradigm and challenges

<p>The economic relationship between South Korea and Latin America has accelerated since the 1990s, and deepened in the 21st century. While this relationship is characterized by ‘inter-industrial trade’ because of their complementary industrial structures, South Korea has the largest share of its exports to the region out its total exports, among the countries of the Asia-Pacific. Furthermore, the rapid expansion of Korean-Latin American trade in the 21st century is owed to the sustained growth of Latin American economies with consumer demand, infrastructure, and inputs and spare parts, to the free trade agreements between South Korea and its Latin American trade partners, Korean direct investments and development cooperation programs. These new dimensions of relationships are part of a new paradigm. However, since in the Latin American region three different development strategies exist, it is required on the part of the Korean side a more sophisticated policy toward the region. The future of Korean- Latin American economic relations depends on better mutual understanding of the respective interests, which are based on recognition of different development experiences.