The Characteristics of Korean Exports to Brazil from the Perspective of Export Diversification

Abstract

Purpose - The Korean economy has been growing rapidly with Five-Year Economic Development Plans since the 1960s. It is generally accepted that foreign trade has been a key factor in the rapid growth of the economy. Initially, the growth of Korean exports was concentrated in a small number of countries. Over time, this high concentration became a threat to the stable growth of the Korean economy. This was the main reason why the need for Korean export diversification emerged. Design/Methodology/Approach - Most analyses of Korea's foreign trade by Korean researchers have focused on total exports and important countries. On the other hand, there are not many studies on other small and medium-sized countries. With the recent publication of several papers on Korea's exports to Brazil, it is now possible to examine the characteristics of Korean exports to the Brazilian market as a part of diversification of exports. Findings - Integrating four recent papers on Korean exports to Brazil, Chapter 3 discusses their main characteristics; the process of Korean penetration into the Brazilian market, the changes in export trends from Korea to Brazil, the relationship between Korean exports to Brazil, and the Brazilian macroeconomic policy/situation, as well as others. Research Implications - Despite the limitations of analyzing only one country, Brazil, this paper not only sheds new light on various characteristics of Korean exports to the Brazilian market, but also suggests new approaches and analytical methods for future research on Korea's foreign trade and export diversification.